164. All except
to 2000.
are considered important, major events that shaped the nation’s economy during the period of 1940
a. the Korean War
b. the institution of Franklin D. Roosevelt’s federal government programs
c. the shortage of crude oil
d. high inflation with high interest rates and reduced business profits
e. the Vietnam War
165. In the early 1980s, David Jimenez, a corporate finance manager, was faced with which of the following problems?
a. High inflation rates
b. Competition from e-business firms
c. Too much productivity
d. Declining interest rates
e. A decline in the use of specialization
166. The organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society‘s
needs through the Internet is known as
a. business.
b. economy.
c. entrepreneurship.
d. e-business.
e. e-marketing.
167. Increased competition from firms in other nations is an example of the
a. technological environment.
b. global environment.
c. command environment.
d. laissez-faire environment.
e. mixed environment.
168. In the last decade of the century, became a major force in the economy in regard to business.
a. reduced business profits
b. high interest rates
c. high inflation
d. the Internet
e. shortage of crude oil
169. The current technology environment
a. is not as important as it was fifteen years ago.
b. does not affect manufacturing firms.
c. changes the way business firms communicate with customers.
d. doesn’t change as often as it did fifteen years ago.
e. is not a concern for most firms that do business only in the United States.
170. Which of the following statements does not describe the U.S. economy as we finish the first decade of the new
millennium?
a. Information technology will continue to fuel the new economy.
b. There will be more investment in information technology.
c. There will be fewer opportunities for international trade.
d. e-business will be a more important part of the economy.
e. Service businesses will continue to employ more than half of the American workforce.
171. The concept of sustainability focuses on which of the following?
a. The needs of the present without compromising the future
b. The needs of the future without compromising the present
c. The needs of the firm to make a profit in the present
d. The needs of future employees
e. The needs of the government in the future
172. Service businesses employ approximately percent of the U.S. work force.
a. 40
b. 50
c. 65
d. 75
e. 85
173. Which of the following issues will not be a challenge for our economy in the years to come?
a. How can we encourage economic growth while conserving natural resources?
b. How can we preserve the benefits of competition?
c. How can we meet the challenges of managing a culturally diverse workforce?
d. How can individuals reinvest all the profits that have been made in the stock market as a result of the strong
economy?
e. How can we meet the needs of the less fortunate?
174. As the founder of an American business firm, Jeff Bezos can, within certain limits, produce and/or sell any product
he chooses and sell it at any price it sets.
a. True
b. False
175. In our free-enterprise system, federal and state governments decide what products and services to provide.
a. True
b. False
176. A working knowledge of our business system combined with technical skills can give an applicant an advantage in
looking for a job.
a. True
b. False
177. After getting her bachelor’s degree in business, Mary Wilson realized she was much more productive at her job
than she had been before. Mary’s degree helped her to become a better employee.
a. True
b. False
178. Today, managers and employees are no longer concerned about cultural diversity.
a. True
b. False
179. Because e-businesses use the Internet, there is no need to meet the needs of their customers.
a. True
b. False
180. In order for a business to be successful, it must be organized, it must satisfy needs, and it must make a profit.
a. True
b. False
181. The four resources that a business must use to operate successfully include material resources, human resources,
financial resources, and operational resources.
a. True
b. False
182. Generally there are three types of businesses: manufacturing businesses, service businesses, and marketing
intermediaries.
a. True
b. False
183. Sony is most correctly classified as a marketing intermediary type of business.
a. True
b. False
184. People buy goods and services simply to own them.
a. True
b. False
185. The ultimate goal of every business firm should be to satisfy the needs of its customers.
a. True
b. False
186. If a firm’s sales revenue exceeds its expenses, the firm has earned a profit.
a. True
b. False
187. Profit is the payment business owners receive for assuming the risks of ownership.
a. True
b. False
188. The term stakeholders refers only to the people who have invested money in a business.
a. True
b. False
189. Economics is the study of how wealth is created and distributed.
a. True
b. False
190. How the price of homes affects the number of homes built and sold would be an economic issue studied in a
Macroeconomics course.
a. True
b. False
191. Macroeconomists often study the effect of taxes, government spending, interest rates, and similar factors on a
nation’s economy.
a. True
b. False
192. The factors of production include natural resources, labor, government assistance, and entrepreneurship.
a. True
b. False
193. The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and
when to produce.
a. True
b. False
194. Adam Smith is the person who actually organized American business as we know it today.
a. True
b. False
195. According to Adam Smith, under laissez-faire capitalism, each person should be allowed to work toward his or her
own economic gain without government interference.
a. True
b. False
196. Adam Smith argued that the creation of wealth is a proper concern of government.
a. True
b. False
197. Adam Smith developed the concept of the invisible hand to explain how all economic activity should be based on a
nation’s needs and not the individual’s needs.
a. True
b. False
198. A market economy is sometimes referred to as a command economy.
a. True
b. False
199. The U.S. business system is commonly referred to as a mixed economy.
a. True
b. False
200. Consumers exchange tax money to purchase goods and services.
a. True
b. False
201. A business provides goods and services in exchange for sales revenues.
a. True
b. False