Multiple Choice Answers

1. These days, the leading commercial firms are found in the________sector.
a. manufacturing
b. agricultural
c. service
d. goverment

2. The __________denotes a common pattern wherein there’s a period of rapid growth in the economy when supply and demand stimulat each other, alteranating with a period of decline accompanied by dimminishing demand and supply.
A. macroeconomic system.
b. free market system.
c. unemployment rate
d. business cycle.

3. _________is the study of how to incrase resources and create condition that will make better use of resources.
A. Resource developement
B. Economics.
C. Macroeconomics
d. Microeconomics

4. To help employees  become more effectively productive, companies may form cross__________ teams tha draw on people form different departments to work on a special project.

A. gender
b. trained.
c. Managerial
d. functional

5. The trend toward two-family  income has led to
A. policies allowing only one familymember to work for a company.
B. Flexible work schedules, pregnancy benefits, and elder-care programs.
c. businesses paying lower wages and hiring fewer workers.
d. fewer opportunities in the field of human resource management.

6 The idea that countries should produce and sell good that they produce most effectively and efficiently, and buy goods that other countries produce most effectively and efficently, is known as

a. absolute advantage theory.
b. free trade.
c. efficiency balanced trade.
d. comparative advantaged theory.

7. In a____________, consumers ultimately decide what should be produced.

A. macroecomonic System
B. Socialist economy
c. free market system
d. command economy

8. 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

a. balance of payments.
b. trade offset.
c.balance of trade.
d. trade deficit

9. Which statement best characterizes Adam Smith’s concept of the “invisible hand”?
A. Those who don’t work shouldn’t eat.
b. The quest for personal gain works for the common good.
c. When governments fail to regulate, greed conquers al.
d. Markets crate money, and money, creates demand.

10. Calendula, Inc. sells its herbal teas at a lower price in foreign countries than those charged to consumers to calendula’s home nation. In global trade, this is known as
a. Freeloading
b. depreciation.
c. brand infringement
d. dumping.

11. Often, the ___________the risk, the________________ the rewards.

a. higher; higher
b. lower; higher
c. higher; lower
d. faster; quicker

12. When the government of Indonesia imposes a tax on imported electronics products to help its your electronics industry compete in the global maketplace, it’s imposing a/an __________ on foreign electrionics products.

a. import quota
b. protective tariff
c. embargo
d. revenue tariff

13. Typically, the quantity of products people are willing to buy will________ when prices __________.

a. increase; increase
b. Stay the samel increase
c. decrease; increase
d. incrase, stay the same

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

a. EU
b.WTO
c. GATT
D. NAFTA

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

A. entreprenur.
b. manager.
C. gambler.
d. pioneer.

16. Consider tow used-car dealers: Bob Better Wheels and Dewwy, Cheatum, and Howe Motors. Their prices are basically the same for similar vehicels even as their advertising scrams that their products are different. Which kind of competition is going on here?
a. Perfect competition
B. Monopoly
C. Monoplistic competition
D. Oligopoly

17. American are often accused of being ethnocentric. This means that
A. Americans welcome diversity in their work force.
b. Americans feel their culture is superior to other cultures.
c. U.S.firms are actively seeking international markets.
D U.S. businesses are pursuring a policy of multiculturalism.

18. Uniform product codes are also known as
a. bar codes
b. Product numbers
c. customer service standards.
d. basic product quality standards.

19. Which of the following about a capitalist system is correct?
A.It guarantees the success of almost any business
B.It’s one in which the factors of production are owned by the government.
c. It relies on honesty, intergrity, and high ethical standards
d. It isn’t substantially damaged by unethical business behavior.

20. Among developed nations, the United States is typical in that it has a______.
a. mixed
B. Socialist
C. command
D. Free market.

21. The EU is an example of a trading bloc, or_____________, that has a coomon external tariff and no internal tariffs, and that coodinates laws to facilitate trade betwen member countries.
A. strategic alliance
b. joint venture
c. common market
d. multinational export assistance center.

22. The Five factors of production include land, _____________, capital, entrepreneurship, and________________.
a. effort; education.
b. knowledge; effort
c. energy; application
d. labor; knowledge

23. When the value of exports from a country exceeds the value of imports into that country, there’s
A. a trade surplus,
b. no balance of payments.
c. an imbalance of trade.
d. a trade deflicit.

 

24. The number of businesses owned by immigrants, minority groups, and women has________in recent years.
a. declined
b. Stabilized
c. increased
d. been dramaically

25. Efficiency can best be defined as

a. the amount of output generated in a given amount of time.
b. Producing items using the least amount of resources.
c. using high-tech equipment on a job.
d. producing as much as you can as fast as you can, regardless