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All of the following are considered natural resources EXCEPT
Student
Response
Value Correct
Answer
Feedback
A. trees used
for lumber
to build
houses.
B. coal, oil,
and natural
gas to
create
energy.
C. soil used in
agricultural
production.
D. computers
used for
managing
information.
100
Which of the following would MOST likely happen to less efficient companies in a
competitive environment?
Student
Response
Value Correct
Answer
Feedback
A. They would
carry on as
usual.
B. They would
close down.
100%
C. They would
receive
additional
money from
investors.
D. They would
be taken
over by the
government.
Medicare Rights Center (MRC) in New York helps people with disabilities receive good,
affordable health care. It also has programs that train volunteers to educate
Westchester County residents about Medicare issues. MRC is considered a nonprofit
organization because it
Student
Response
Value Correct
Answer
Feedback
A. focuses on
New York,
which is
known for
being a
busy
business
center.
B. uses the
money it
earns only
as a means
to further
help the
community.
100%
C. aims to
generate
revenue
solely by
focusing on
health care
services.
D. needs to
employ
thousands
of workers
to sustain
its service.
All of the following are ways that a successful business is most likely to earn greater
revenue EXCEPT
Student
Response
Value Correct
Answer
Feedback
A. convincing
customers
that its
product is
better.
B. convincing
customers
that its
product is
less
expensive.
C. strategizing
an effective
marketing
campaign.
D. requesting a
tax
reduction
from the
government.
100%
Jarvis runs a restaurant that is struggling to keep customers satisfied. He is a strict
manager and prefers to make all the decisions himself. A concerned friend recommends
that he delegate more responsibility to his employees to improve the restaurant's
performance. Which of the following is the MOST likely effect of delegating
responsibility?
Student
Response
Value Correct
Answer
Feedback
A. Customer
satisfaction
will
improve
because
employees
can be
more
responsive
100%
To retain a competitive advantage,
businesses need to be responsive to
customer needs and wants. Delegating
responsibility to employees allows customer
concerns to be addressed when they come
up, rather than waiting until Jarvis can
attend to them.
to customer
needs.
B. Customers
will be
upset
because
the
restaurant
is being run
differently.
C. Employees
will use
their extra
freedom to
goof off.
D. Productivity
will go
down
because his
employees
will make
the wrong
decisions.
Sasha decides to purchase health insurance. Based on her annual income, she can only
afford the minimum package. Which type of economy typically reflects Sasha's
situation?
Student
Response
Value Correct
Answer
Feedback
A. Traditional
economy
B. Mixed
economy
C. Market
economy
D. Planned
economy
Prices become higher when a unique and highly desireable item is auctioned
Student
Response
Value Correct
Answer
Feedback
A. because
the supply
and
demand
are equal.
B. because
the
demand
and
supply are
kept
unknown.
C. because
the supply
is higher
than the
demand.
D. because
the
demand is
higher
than the
supply.
What MOST likely happens when there are few sellers in a given market?
Student
Response
Value Correct
Answer
Feedback
A. Each seller
has to look
for possible
mergers.
B. Each seller
has to come
up with
innovations.
C. Each seller
has a fairly
large share
of the
market.
D. Each seller
has to
double its
marketing
strategy.
In a declining economy, how do businesses prefer to reduce their workforce?
Student
Response
Value Correct
Answer
Feedback
A. Through
retirement
and
natural
attrition
B. By hiring
temporary
and
contractual
employees
C. By giving
incentives
to workers
for them to
resign
D. By laying
off workers
and
rehiring
when they
need more
A number of stores on Faulkner Street sell fresh fruits and vegetables. The products
appear to be identical and the prices differ little, if at all. What type of market structure
is this?
Student
Response
Value Correct
Answer
Feedback
A. Perfect
competition
B. Oligopoly
C. Monopoly
D. Monopolistic
competition
What determines the value of each good or service in a bartering exchange?
Student
Response
Value Correct
Answer
Feedback
A. Power
B. Wealth
C. Needs 100%
D. Desires
What makes monopolistic competition different from an oligopoly?
Student
Response
Value Correct
Answer
Feedback
A. The added
choice of a
perceived
superior
product
B. Little
differentiation
between
products
C. The nature of
government
sanctions
D. Demonstration
of an
imperfect
competition
After a period of loss, sales in the electronics industry have started picking up again.
What is this part of the business cycle called?
Student
Response
Value Correct
Answer
Feedback
A. Resuscitation
B. Restoration
C. Recovery 100%
D. Recession
Which type of economy grants individuals the freedom to make their own economic
decisions?
Student
Response
Value Correct
Answer
Feedback
A. Traditional
economy
B. Mixed
economy
C. Planned
economy
D. Market
economy
100%
In which type of economic system does the government control resources, pay wages,
and provide all services?
Student
Response
Value Correct
Answer
Feedback
A. Communism 100%
In a communist economic system. the
government takes control of everything so
that they can equally and adequately
redistribute the wealth among its citizens.
B. Socialism
C. Capitalism
D. Democracy
When competition is strong in an oligopoly, which of the following would MOST likely
happen?
Student
Response
Value Correct
Answer
Feedback
A. Consumers
would
complain.
B. Prices
would
differ
slightly.
100%
C. Prices
would go
up fast.
D. Consumers
would buy
a lot.
Pure H2O is a company that provides water to consumers and operates as a water
distribution monopoly. Why is the company permitted to operate as a monopoly?
Student
Response
Value Correct
Answer
Feedback
A. Pure H2O is
permitted to
operate as a
natural
monopoly in
an effort to
conserve
natural
resources.
B. Pure H2O is
permitted to
operate as a
natural
monopoly in
an effort to
provide
consumers
with the best
service.
C. Pure H2O is
permitted to
operate as a
natural
monopoly
because it
pays its taxes
annually.
D. Pure H2O is
permitted to
operate as a
natural
monopoly
because of its
campaign to
promote
water
conservation.
Which of the jobs below is affected by seasonal unemployment?
Student
Response
Value Correct
Answer
Feedback
A. A part-time
lifeguard
100%
A lifeguard faces seasonal unemployment
because people do not normally go
swimming all year long, only during the
summer. So, when swimming season is in
session, he or she would have a job, but
when the pool closed for the season, the
lifeguard would be out of work.
B. A night
guard at the
mall
C. A crime
scene
investigator
D. A
mathematics
teacher
Christine's, a popular sportswear manufacturer, has a factory in Louisiana and another
in Thailand. Which value of the sportswear should be counted in the United States' gross
domestic product?
Student
Response
Value Correct
Answer
Feedback
A. The value
of
sportswear
produced
in Thailand
B. The value
of
sportswear
produced
in
Louisiana
100%
C. The
average
value of
sportswear
produced
in both in
Louisiana
and
Thailand
D. The total
value of
sportswear
produced
both in
Louisiana
and
Thailand
The Nook is the only bookstore in George's neighborhood. Which market structure is this
an example of?
Student
Response
Value Correct
Answer
Feedback
A. Communism
B. Oligopoly
C. Socialism
D. Monopoly 100%
In a market economy, the focus of production is on
Student
Response
Value Correct
Answer
Feedback
A. supplying
an infinite
demand.
B. fair and
equal
distribution.
C. quality over
quantity.
D. efficiency
and
profitability.
Karl Johnson goes to a sports shop and buys a pair of sneakers. The brand sounds
familiar, but he is unsure whether the sneakers are made in the United States or in an
Asian country. This confusion is brought about by the impact of
Student
Response
Value Correct
Answer
Feedback
A. raised
investment
barriers.
B. technological
innovations.
C. increase in
trade
barriers.
D. globalization
of markets.
A nation with abundant natural resources will likely have a comparative advantage in the
production of goods that require these raw materials. Which of the following is an
example of this statement?
Student
Response
Value Correct
Answer
Feedback
A. A country
with the
required
raw
material for
the
production
of certain
goods can
trade with
other
countries
for final
products.
B. A country
with
abundant
100%
amounts of
iron ore has
a
comparative
advantage
in the
production
of steel.
C. A country
with
abundant
amounts of
iron ore has
all the
necessary
capital for
investing in
steel
company
stocks.
D. A country
with
abundant
amounts of
silver has a
comparative
advantage
because it is
wealthier
than other
countries.
Heather's chain of clothing stores is expanding to India and South Africa. She plans to
adjust her designs and marketing to reflect the tastes of the local populations. Which
phrase would best sum up Heather's approach?
Student
Response
Value Correct
Answer
Feedback
A. Think
globally and
act locally
100%
"Think globally and act locally" refers to the
business strategy of selling products
throughout the world while adjusting for
local tastes and preferences.
B. Globalization
of
production
C. Think locally
and act
universally
D. Globalization
of markets
A European nation wishes to apply for membership to the European Union. Which of the
following might be used as an argument against applying for membership?
Student
Response
Value Correct
Answer
Feedback
A. Trade
between
member
nations is
severely
restricted.
B. International
businesses
are
increasingly
transferring
capital out of
EU
countries.
C. Member
nations give
up some of
their
capability for
independent
action.
D. The EU does
not provide
sufficient
protection
for internal
industries
against
outside
competition.
Jaime runs a plant that manufactures designer shoes. She has gained a comparative
advantage over plants making similar products. Which of the following statements is
true?
Student
Response
Value Correct
Answer
Feedback
A. Jaime was
unable to
access the
same cheap
raw
materials as
her
competitors.
B. The
competition
spent time
on training
rather than
actual
production.
C. Jaime's
workers
have
improved
their
production
rate
compared to
their
competitors.
100%
D. The
competitors
have
invested too
much in new
technology.
Satori works for a company that exports handmade furniture. What is the MOST likely
reason why she prefers a weak dollar?
Student
Response
Value Correct
Answer
Feedback
A. A weak dollar
causes
companies to
retrench
their
workers.
B. A weak dollar
stimulates
sales and
ensures job
security.
C. A weak dollar
pushes
employees
to forego
their
benefits.
D. A weak dollar
provides
lending
opportunities
to
employers.
An engineering company is considering implementing a turnkey project in a neighboring
country. Why might the company have reservations about implementing the plan?
Student
Response
Value Correct
Answer
Feedback
A. The
company
would have
difficulty
maintaining
quality
control
remotely.
B. The
company
would have
to bear the
full burden
of start-up
costs and
risks.
0%
C. The
company
may create
a viable
competitor
with access
to the same
technology
and
methods.
D. It may be
difficult to
find a
compatible
business
partner.
Recently, oil was discovered in an island in the Pacific. An oil refinery from Texas wants
to enter this foreign market without actually building their own facility on the island.
Which of the following is the BEST way for the oil refinery to enter this foreign market?
Student
Response
Value Correct
Answer
Feedback
A. Franchising
B. Turnkey
projects
C. Exporting
D. Licensing
One of the ways in which firms can enter foreign markets is through licensing. All of the
following can be sold by international firms through licensing EXCEPT
Student
Response
Value Correct
Answer
Feedback
A. trade
secrets.
B. service
marks.
C. trademarks.
D. physical
inventory.
100%
Suppose a weak Japanese currency reduces labor costs in Japan. If you were a
multinational firm owner, why might you feel competitive pressure to shift more of the
firm's production to Japan?
Student
Response
Value Correct
Answer
Feedback
A. I must be the
first
multinational
firm to help
Japan, or
else their
country
might lag
behind in the
global
market.
B. I must be the
first
multinational
firm to train
Japan's labor
force so that
my
competitors
will be
discouraged
to invest
there.
C. I have to
take
advantage of
Japan's
lower
production
costs, or else
my company
might lose
global
market
share.
100%
D. I have to
take
advantage of
Japan's
cheap labor
force so that
I can
influence my
competitors
to also shift
their
production
there.
In Thailand, featuring a variety of cute animals wearing eyeglasses is an ineffective
advertisement for eyeglasses because animals are considered a low form of life there.
Which component of culture is considered in this example?
Student
Response
Value Correct
Answer
Feedback
A. Attitudes
B. Language
C. Religion
D. Aesthetics
Which of the following trade barriers are a government likely to prefer from a financial
perspective?
Student
Response
Value Correct
Answer
Feedback
A. subsidy.
B. quota.
C. tariff. 100%
D. embargo.
A country has an absolute advantage in oil production compared to its nearest
neighbors. A neighboring country can produce oil in a given period of time at half the
cost. Which of the following statements is definitely false?
Student
Response
Value Correct
Answer
Feedback
A. The country
exports
much of its
oil to
neighboring
countries.
B. The country
produces
oil more
effectively
than its
neighbors.
100%
C. The country
should
allocate
more
resources
to oil
production.
D. The country
produces
more oil
than its
neighbors.
Maya creates unique, customized furniture made from rattan, a local pliable wood in her
country. She wants to export her products to the United States. Which of the following
is a disadvantage of exporting her furniture?
Student
Response
Value Correct
Answer
Feedback
A. Foreign trade
barriers are in
place for
rattan
furniture.
B. Maya will
have to train
staff in the
United States.
C. Exporting a
bulky and
heavy product
entails high
transportation
costs.
100%
D. Furniture
makers in the
United States
will have
access to
Maya's
designs.
Isabella owns a chain of Mexican restaurants. When the restaurants prove to be a huge
domestic success, Isabella decides to make the restaurant chain an international
business venture. However, Isabella does not want to bear the costs and risks of opening
a foreign market. Which method of entering foreign markets is the BEST choice for
Isabella?
Student
Response
Value Correct
Answer
Feedback
A. Exporting
B. Franchising 100%
C. Joint
venture
D. Strategic
alliance
Philip Newman runs a seafood restaurant in New Jersey. Nowadays, it is possible for him
to buy fresh grouper in Indonesia and have the product flown in immediately because
Student
Response
Value Correct
Answer
Feedback
A. there have
been dramatic
advances in
transportation.
B. the cost of
grouper is
much lower in
Indonesia than
in other
countries.
C. he has
established
contacts in
Indonesia.
0%
D. Indonesia is
the largest
exporter of
grouper.
Which of the following is a long-term effect of protectionist trade barriers?
Student
Response
Value Correct
Answer
Feedback
A. There is a
decrease in
prices of
domestic
products as
consumer
consumption
rises.
B. There is an
increase in
demand for
imports and
a
subsequent
increase in
sales.
C. The local
market
becomes
more
accessible to
foreign
companies.
D. There is an
increase in
supply of
domestic
products
leading to
market
expansion.
Patricia works for a domestic manufacturer. How would she likely feel about a
protectionist trade barrier?
Student
Response
Value Correct
Answer
Feedback
A. She would
support it
because
domestic
goods
would be
less
expensive
to
purchase.
B. She would
support it
because
domestic
sales and
prices
would
increase,
making
her
company
more
profitable.
100%
C. She would
oppose it
because
import
prices
would
drop.
D. She would
oppose it
because it
would
increase
the
amount of
exports.
Country A has much stricter regulations than country B. Which scenario would best
represent an ethical dilemma for a company that operates in both countries?
Student
Response
Value Correct
Answer
Feedback
A. The
company
has to
adjust its
advertising
campaign
in country
A to reflect
laws
governing
content.
B. The
company
must pay
heavier
property
taxes for
its facilities
in country
B.
C. The
company
must lower
their prices
in country
A because
of a strong
currency.
D. The
company
is required
to pay a
minimum
wage in
country A
but are
allowed to
pay
workers in
country B
much less
Yes
money.
A biochemical company is looking to enter a partnership with a pharmaceutical company
from the same country to create a new medical drug. Why would the partnership NOT be
a joint venture?
Student
Response
Value Correct
Answer
Feedback
A. The
biochemical
company is not
looking to
enter a foreign
market.
B. The
biochemical
company
would be
constrained by
decisions made
by the
pharmaceutical
company.
C. The
biochemical
company will
be bearing the
majority of the
costs.
D. The
biochemical
company is
looking for a
long-term
partnership.
Lea goes to a shop that sells bags in California. She inspects one and sees that it is made
in China. Finding products that are made in other countries and sold locally reflects the
impact of globalization of
Student
Response
Value Correct
Answer
Feedback
A. distribution.
B. production.
C. labor force.
D. markets. Yes
Which of the following is a long-term effect of a trade embargo?
Student
Response
Value Correct
Answer
Feedback
A. An
increase in
the supply
of
imported
goods.
B. A decrease
in prices of
both
domestic
and foreign
goods.
C. Reduced
production
costs for
domestic
companies.
D. A decrease
in the
variety of
goods
available.
100%
