Environments Of Business Quiz!

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Environment Quizzes & Trivia

Chapter 2 - Business 1110 Kwantlen University


Questions and Answers
  • 1. 

    Organizational boundaries is governed by the external environment (everything outside an organization's boundaries that might affect it) and the internal environment of that organization such as administration, industry and technological environment.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The statement is true because organizational boundaries are indeed governed by both the external and internal environments. The external environment consists of factors outside the organization's boundaries that can impact it, such as economic conditions, competition, and legal regulations. On the other hand, the internal environment includes factors within the organization, such as its administration, industry, and technological environment. Both these environments play a crucial role in shaping and defining an organization's boundaries.

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  • 2. 

    The conditions of the economic system in which an organization operates is:

    Correct Answer
    economic environment
    Explanation
    The correct answer is "economic environment" because the economic system refers to the structure and functioning of the economy, including factors such as production, distribution, and consumption of goods and services. The conditions of the economic system, also known as the economic environment, play a crucial role in shaping an organization's operations. This includes factors such as economic growth, inflation, interest rates, government policies, and market conditions, which can significantly impact an organization's performance and decision-making. Understanding and adapting to the economic environment is essential for an organization to thrive and succeed in its operations.

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  • 3. 

    The pattern of short-term ups and downs (expansion and contractions) in an economy is called:

    Correct Answer
    business cycle
    Explanation
    The correct answer is business cycle. The business cycle refers to the fluctuation of economic activity over time. It is characterized by periods of expansion, where the economy grows and experiences increased production and employment, followed by periods of contraction, where the economy slows down and experiences decreased production and employment. These cycles are a natural part of the economic system and can be influenced by various factors such as changes in consumer spending, government policies, and global economic conditions.

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  • 4. 

    Total value of all goods and services produced within a given period by a national economy through domestic factors of production is called:   ********* important to remember ******

    • A.

      Aggregrate output

    • B.

      Standard of living

    • C.

      Gross domestic product (GDP)

    • D.

      Revenue

    Correct Answer
    C. Gross domestic product (GDP)
    Explanation
    Gross domestic product (GDP) is the correct answer because it refers to the total value of all goods and services produced within a national economy using domestic factors of production. GDP is an important measure of a country's economic performance and is commonly used to assess the size and growth of an economy. It provides valuable information about the overall economic activity and productivity of a nation.

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  • 5. 

    Standard if living is the total quantity and quality of goods and services that a country's citizen can purchase with the currency used in their economic system.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The statement is true because the standard of living refers to the overall well-being and quality of life of individuals in a country. It encompasses both the quantity and quality of goods and services that citizens can afford to purchase with their currency. A higher standard of living indicates that individuals have access to a greater range of goods and services, indicating a higher level of economic prosperity and well-being.

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  • 6. 

    Total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located.

    • A.

      GDP (gross domestic product)

    • B.

      GNP (Gross national product)

    • C.

      Purchasing power

    • D.

      Standard of living

    Correct Answer
    B. GNP (Gross national product)
    Explanation
    The correct answer is GNP (Gross national product). GNP refers to the total value of all goods and services produced by a national economy within a given period, regardless of where the factors of production are located. It takes into account the production by both domestic and foreign factors of production owned by the residents of a country. In contrast, GDP only considers the production that occurs within a country's borders, regardless of the nationality of the factors of production. Therefore, GNP provides a more comprehensive measure of a country's economic output.

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  • 7. 

    The measure of economic growth that compares how much a system produces with the resources needed to produce it:

    • A.

      Balance of trade

    • B.

      Productivity

    • C.

      Inflation

    Correct Answer
    B. Productivity
    Explanation
    Productivity is the correct answer because it measures the efficiency of a system by comparing the output or production with the resources required to achieve it. It indicates how effectively resources are being utilized to generate goods or services. A higher productivity level signifies that more output is being produced with the same or fewer resources, which is generally considered a positive indicator of economic growth. On the other hand, a lower productivity level suggests inefficiency and can hinder economic progress.

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  • 8. 

    The total amount of money that a country owes its creditors is:

    • A.

      Budget deficit

    • B.

      Mortgage

    • C.

      Credit balance

    • D.

      National debt

    Correct Answer
    D. National debt
    Explanation
    The correct answer is National debt. National debt refers to the total amount of money that a country owes its creditors. It is the accumulated debt that a country has incurred over time through borrowing from both domestic and foreign sources. This debt includes government bonds, loans, and other forms of borrowing. The national debt is an important indicator of a country's financial health and is often used to assess its ability to repay its debts and manage its finances.

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  • 9. 

    When the government spending more in one year then it takes in during that year, it will result:

    • A.

      Budget deficit

    • B.

      Budget surplus

    • C.

      Increased standard of living

    Correct Answer
    A. Budget deficit
    Explanation
    When the government spends more in one year than it takes in during that year, it will result in a budget deficit. This means that the government is operating at a shortfall and is spending more money than it is collecting in revenue. A budget deficit can lead to an increase in national debt as the government may need to borrow money to cover its expenses. It can also have implications for the economy, such as higher interest rates and inflation.

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  • 10. 

    A condition in an economic system in which the amount of money available and the number of goods and services produced are growing at about the same rate is:

    • A.

      Inflation

    • B.

      Economic stability

    • C.

      Deflation

    • D.

      Recession

    Correct Answer
    B. Economic stability
    Explanation
    Economic stability refers to a state in which the growth rate of money supply and the production of goods and services are balanced. In this condition, there is neither excessive inflation nor deflation. It signifies a healthy and sustainable economic environment where prices are relatively stable, businesses can operate smoothly, and individuals have confidence in the economy. This state allows for steady economic growth and reduces the risk of financial instability.

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  • 11. 

    Inflation is when there is an occurance of widespread price increases throuhout an economic system.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Inflation refers to the general increase in prices of goods and services in an economy over a period of time. It is characterized by a decrease in the purchasing power of money. When there is an occurrence of widespread price increases throughout an economic system, it is a clear indication of inflation. Therefore, the statement that inflation is when there is an occurrence of widespread price increases throughout an economic system is true.

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  • 12. 

    The measure of the prices of typical products purchased by consumers living in urban areas is called:

    • A.

      Consumer price index (CPI)

    • B.

      Gross domestic product (GDP)

    • C.

      Gross national product (GNP)

    Correct Answer
    A. Consumer price index (CPI)
    Explanation
    The consumer price index (CPI) is a measure of the prices of typical products purchased by consumers living in urban areas. It is used to track inflation and changes in the cost of living over time. GDP and GNP, on the other hand, are measures of the total value of goods and services produced within a country's borders and by its residents, respectively. Therefore, the correct answer is consumer price index (CPI).

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  • 13. 

    Policies, whereby governments collect and spend revenues, is called:

    • A.

      Monetary policies

    • B.

      Fiscal policies

    Correct Answer
    B. Fiscal policies
    Explanation
    Fiscal policies refer to the government's decisions and actions regarding the collection and expenditure of revenues. These policies involve the use of taxes, government spending, and borrowing to influence the overall economy. Monetary policies, on the other hand, pertain to the actions taken by central banks to control the money supply and interest rates. Since the question specifically mentions the collection and spending of revenues by governments, the correct answer is fiscal policies.

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  • 14. 

    Policies whereby the government control (manipulates ) the size of the nation's money supply  by means such as changing the interest rates is called:

    • A.

      Fiscal policies

    • B.

      Monetary policies

    Correct Answer
    B. Monetary policies
    Explanation
    Monetary policies refer to the actions taken by the government to control and manipulate the nation's money supply, typically through changes in interest rates. This involves the central bank's efforts to influence the availability and cost of money in the economy, with the aim of achieving macroeconomic objectives such as controlling inflation, promoting economic growth, and stabilizing the financial system. Fiscal policies, on the other hand, involve the government's use of taxation and spending to influence the economy. Therefore, the correct answer is monetary policies.

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  • 15. 

    The strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services is called:

    • A.

      Outsourcing

    • B.

      Integration

    • C.

      Distribution

    • D.

      R & D

    Correct Answer
    A. Outsourcing
    Explanation
    Outsourcing refers to the strategy of paying suppliers and distributors to perform certain business processes or provide materials or services. This involves contracting with external parties to handle specific tasks or functions, allowing the company to focus on its core competencies. By outsourcing, businesses can benefit from cost savings, access to specialized expertise, improved efficiency, and increased flexibility. This strategy helps companies streamline their operations and allocate resources effectively, ultimately enhancing their overall performance and competitiveness.

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  • 16. 

    Viral marketing is strategy of using the internet and word-of-mouth marketing to spread product information

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Viral marketing is indeed a strategy that utilizes the internet and word-of-mouth marketing to disseminate information about a product. It aims to create a buzz or viral effect, where individuals share the information with their network, leading to exponential growth in reach. This approach takes advantage of social media platforms, online communities, and influential individuals to amplify the message and generate interest and engagement. Therefore, the statement "Viral marketing is the strategy of using the internet and word-of-mouth marketing to spread product information" is accurate.

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  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 01, 2008
    Quiz Created by
    Golddude1000
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