All of the following are considered natural resources EXCEPT

Student Response 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.

Value Correct Answer

Feedback

100

Which of the following would MOST likely happen to less efficient companies in a competitive environment?

Student Response A. They would carry on as usual. B. They would close down. C. They would receive additional money from investors. D. They would be taken

Value Correct Answer

Feedback

100%

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 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. C. aims to generate revenue solely by focusing on health care services. D. needs to employ thousands of workers to sustain its service.

Value Correct Answer

Feedback

100%

All of the following are ways that a successful business is most likely to earn greater revenue EXCEPT

Student Response A. convincing customers that its product is better. B. convincing customers that its product is less expensive. C. strategizing an effective marketing campaign.

Value Correct Answer

Feedback

D. requesting a 100% tax reduction from the government. 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

100% A. Customer satisfaction will improve because employees can be more responsive

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 A. Traditional economy B. Mixed economy C. Market economy D. Planned economy

Value Correct Answer

Feedback

Prices become higher when a unique and highly desireable item is auctioned

Student Response 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.

Value Correct Answer

Feedback

What MOST likely happens when there are few sellers in a given market?

Student Response A. Each seller has to look for possible mergers. B. Each seller has to come up with

Value Correct Answer

Feedback

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 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

Value Correct Answer

Feedback

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 A. Perfect competition B. Oligopoly C. Monopoly D. Monopolistic competition

Value Correct Answer

Feedback

What determines the value of each good or service in a bartering exchange?

Student Response A. Power B. Wealth C. Needs D. Desires

Value Correct Answer

Feedback

100%

What makes monopolistic competition different from an oligopoly?

Student Response A. The added choice of a perceived superior product B. Little differentiation between products C. The nature of

Value Correct Answer

Feedback

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 A. Resuscitation B. Restoration C. Recovery D. Recession

Value Correct Answer

Feedback

100%

Which type of economy grants individuals the freedom to make their own economic decisions?

Student Response A. Traditional economy B. Mixed economy C. Planned economy D. Market economy

Value Correct Answer

Feedback

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 A. Consumers would complain. B. Prices would differ slightly. C. Prices would go up fast. D. Consumers would buy a lot.

Value Correct Answer

Feedback

100%

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 A. Pure H2O is permitted to operate as a natural monopoly in an effort to conserve

Value Correct Answer

Feedback

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 A. A part-time lifeguard

Value Correct Answer 100%

Feedback

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 A. The value of sportswear produced in Thailand B. The value of sportswear produced in Louisiana C. The average value of sportswear produced in both in Louisiana

Value Correct Answer

Feedback

100%

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 A. Communism B. Oligopoly C. Socialism D. Monopoly

Value Correct Answer

Feedback

100%

In a market economy, the focus of production is on

Student Response A. supplying an infinite demand. B. fair and equal distribution. C. quality over quantity. D. efficiency and profitability.

Value Correct Answer

Feedback

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 A. raised investment barriers. B. technological innovations. C. increase in trade barriers. D. globalization of markets.

Value Correct Answer

Feedback

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 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

Value Correct Answer

Feedback

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 A. Think globally and act locally

Value Correct Answer 100%

Feedback

"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 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

Value Correct Answer

Feedback

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 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. D. The competitors have

Value Correct Answer

Feedback

100%

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 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.

Value Correct Answer

Feedback

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 A. The company

Value Correct Answer

Feedback

would have difficulty maintaining quality control remotely. B. The company would have to bear the full burden of start-up costs and risks. 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? 0%

Student Response A. Franchising B. Turnkey projects

Value Correct Answer

Feedback

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 A. trade secrets. B. service marks. C. trademarks. D. physical inventory.

Value Correct Answer

Feedback

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 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

Value Correct Answer

Feedback

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. 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? 100%

Student Response A. Attitudes B. Language

Value Correct Answer

Feedback

C. Religion D. Aesthetics Which of the following trade barriers are a government likely to prefer from a financial perspective?

Student Response A. subsidy. B. quota. C. tariff. D. embargo.

Value Correct Answer

Feedback

100%

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 A. The country exports much of its oil to neighboring countries.

Value Correct Answer

Feedback

B. The country 100% produces oil more effectively than its neighbors. 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 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. D. Furniture makers in the United States will have access to Maya's designs.

Value Correct Answer

Feedback

100%

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 A. Exporting

Value Correct Answer

Feedback

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 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. D. Indonesia is the largest exporter of grouper.

Value Correct Answer

Feedback

0%

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 A. She would support it because

Value Correct Answer

Feedback

domestic goods would be less expensive to purchase. B. She would 100% support it because domestic sales and prices would increase, making her company more profitable. 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 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.

Value Correct Answer

Feedback

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 A. distribution. B. production. C. labor force. D. markets.

Value Correct Answer

Feedback

Yes

Which of the following is a long-term effect of a trade embargo?

Student Response 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.

Value Correct Answer

Feedback

D. A decrease 100% in the variety of goods available.