Examination 1

Question 0

Efficiency canbestbe defined as?

Answer 0

producing items using the least amount of resources.

Question 1

In a _______, consumers ultimately decide what should be produced.

Answer 1

free market system

Question 2

________ is the study of how to increase resources and create conditions that will make better use of resources.

Answer 2

Resource development

Question 3

To help employees become moreeffectively productive, companies may form cross_______ teams that draw on people from different departments to work on a special project.

Answer 3

functional

Question 4

The trend toward two-family income has led to?

Answer 4

flexible work schedules, pregnancy benefits, and elder-care programs.

Question 5

The idea that countries should produce and sell goods that they produce most effectively and efficiently, and buy goods that other countries produce mosteffectively and efficiently, is known as?

Answer 5

comparative advantage theory

Question 6

These days, the leading commercial firms are found in the _______ sector.

Answer 6

service

Question 7

In global trade, when the difference between money coming into a country from exports and money leaving a country due to imports or money flows from other factors is known as the?

Answer 7

balance of payments.

Question 8

Which statement best characterizes Adam Smith’s concept of the “invisible hand”?

Answer 8

The quest for personal gain works for the common good

Question 9

Calendula, Inc. sells its herbal teas at a lower price in foreign countries than those charged to consumers in Calendula’s home nation. In global trade, this is known as?

Answer 9

dumping

Question 10

Often, the _______ the risk, the _______ the rewards.

Answer 10

higher; higher

Question 11

When the government of Indonesia imposes a tax on imported electronics products to help its young electronics industry compete in the global marketplace, it’s imposing a/an _______ on foreign electronics products.

Answer 11

protective tariff

Question 12

Typically, the quantity of products people are willing to buy will _______ when prices__________?

Answer 12

decrease; increase

Question 13

The _______, created in 1995, is assigned the task of mediating international trade disputes.

Answer 13

WTO

Question 14

In general, a person who owns and operates his or her own business can be thought of as a/an?

Answer 14

entrepreneur

Question 15

Consider two used-car dealers: Bob’s Better Wheels and Dewey, Cheatum, and Howe Motors. Their prices are basically the same for similar vehicles even as their advertising screams that their products are different. Which kind of competition is going on here?

Answer 15

Monopolistic competition

Question 16

Americans are often accused of being ethnocentric. This means that?

Answer 16

Americans feel their culture is superior to other cultures

Question 17

Uniform product codes are also known as?

Answer 17

bar codes

Question 18

Which of the following about a capitalist system is correct?

Answer 18

It relies on honesty, integrity, and high ethical standards.

Question 19

Among developed nations, the United States is typical in that it has a _______ economy.

Answer 19

mixed

Question 20

The EU is an example of a trading bloc, or _______, that has a common external tariff and no internal tariffs, and that coordinates laws to facilitate trade between member countries.

Answer 20

common market

Question 21

The five factors of production include land, _______, capital, entrepreneurship, and _________.

Answer 21

labor; knowledge

Question 22

When the value of exports from a country exceeds the value of imports into that country, there’s?

Answer 22

a trade surplus

Question 23

The number of businesses owned by immigrants, minority groups, and women has _______ in recent years.

Answer 23

increased

Question 24

The _______ denotes a common pattern wherein there’s a period of rapid growth in the economy when supply and demand stimulate each other, alternating with a period of decline accompanied by diminishing demand and supply.

Answer 24

business cycle