Introduction To Business: The Ultimate Practice Exam

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  • 1/200 Questions

    The Internet is greatly increasing the benefits that can be derived from a market-based economy

    • True
    • False
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About This Quiz

Test your knowledge of business fundamentals with this practice exam, covering profits, risks, and the basics of starting a business.

Introduction To Business: The Ultimate Practice Exam - Quiz

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  • 2. 

    Mr. Lilly's theory of the causes of differential wealth among nations includes the right to own private property as a subfactor within institutional capital.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement is true because Mr. Lilly's theory states that the right to own private property is a subfactor within institutional capital, which means that it plays a role in determining the differential wealth among nations. This suggests that the ownership of private property is considered as an important aspect of the institutional framework that influences the economic prosperity of a country.

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  • 3. 

    Mr. Lilly's theory of the causes of differential wealth among nations includes institutional capital as a factor

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Mr. Lilly's theory of the causes of differential wealth among nations includes institutional capital as a factor. This means that according to his theory, the presence or absence of certain institutions within a nation can contribute to its level of wealth. Institutional capital refers to the quality and effectiveness of a country's institutions, such as its legal system, property rights protection, and governance structures. These institutions can impact economic growth, investment, and productivity, ultimately influencing a nation's wealth. Therefore, the statement is true.

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  • 4. 

    Mr. Lilly's theory of the causes of differential wealth among nations includes effective enforcement of private contracts as a subfactor within institutional capital.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Mr. Lilly's theory suggests that effective enforcement of private contracts is a subfactor within institutional capital when it comes to explaining the differential wealth among nations. This means that the ability to enforce private contracts plays a role in the overall wealth and prosperity of a nation. Therefore, the statement is true.

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  • 5. 

    Mr. Lilly's theory of the causes of differential wealth among nations includes keeping taxes and business regulations to a minimum as a subfactor within institutional capital.  

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement suggests that according to Mr. Lilly's theory, keeping taxes and business regulations to a minimum is a subfactor within institutional capital in explaining the causes of differential wealth among nations. Therefore, the statement is true.

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  • 6. 

    According to Mr. Lilly, Businesses bring wealth into existence in our universe that wasn't there before. They create wealth "out of thin air."

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Businesses have the ability to create wealth "out of thin air" because they generate economic value through their operations. By combining resources, such as labor, capital, and technology, businesses are able to produce goods and services that have value in the market. This value creation leads to the generation of wealth, as businesses are able to sell their products or services at a price higher than their production costs. Therefore, businesses play a crucial role in the creation of wealth within our universe.

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  • 7. 

    ____________ is the amount a business earns over and above what it spends for salaries and other expenses.

    • Profit

    • Revenue

    • Interest

    • Dividends

    Correct Answer
    A. Profit
    Explanation
    Profit is the amount a business earns over and above what it spends for salaries and other expenses. This means that after deducting all the costs and expenses from the revenue generated, if there is a positive amount remaining, it is considered as profit. Profit is an important measure of a business's financial performance and indicates its ability to generate income. It is often used to assess the profitability and success of a business.

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  • 8. 

    Mr. Lilly's theory of the causes of differential wealth among nations includes social capital as a factor

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The explanation for the given correct answer is that Mr. Lilly's theory considers social capital as one of the factors that contribute to the differences in wealth among nations. Social capital refers to the networks, relationships, and social norms that exist within a society, which can have a significant impact on economic development and wealth accumulation. Therefore, acknowledging social capital as a factor aligns with Mr. Lilly's theory and supports the statement that it is true.

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  • 9. 

    Mr. Lilly's theory of the causes of differential wealth among nations includes elimination of corruption as a subfactor within institutional capital.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement suggests that Mr. Lilly's theory includes the idea that eliminating corruption is a subfactor within institutional capital when it comes to the causes of differential wealth among nations. In other words, according to Mr. Lilly's theory, reducing corruption is a part of improving institutional capital, which is believed to contribute to the disparity in wealth between nations. Therefore, the statement is true.

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  • 10. 

    A(n) ____________ is a person who assumes the risk of starting a business.

    • Manager

    • Entrepreneur

    • Private investor

    • Stakeholder

    Correct Answer
    A. Entrepreneur
    Explanation
    An entrepreneur is a person who assumes the risk of starting a business. Unlike a manager who may work for someone else and oversee operations, an entrepreneur takes on the financial and personal risks associated with starting and running their own business. They are responsible for identifying opportunities, developing a business plan, securing funding, and making strategic decisions to ensure the success of their venture. Entrepreneurs are known for their innovative thinking, willingness to take risks, and ability to create and grow businesses.

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  • 11. 

    Successful businesses are keenly focused on their:

    • Customers

    • Managers

    • Creditors

    • Bureaucrats

    Correct Answer
    A. Customers
    Explanation
    Successful businesses prioritize their customers because they understand that customer satisfaction is crucial for long-term success. By focusing on their customers' needs, preferences, and feedback, businesses can develop products and services that meet their expectations, build strong relationships, and foster customer loyalty. This customer-centric approach helps businesses to stay competitive, attract new customers, and retain existing ones, ultimately driving growth and profitability. Managers, creditors, and bureaucrats are important stakeholders in a business, but their needs and interests are often secondary to those of the customers.

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  • 12. 

    Mr. Lilly says the stakeholder view of the corporation presented in the textbook, as summarized in its statement that "The challenge of the 21st century will be for organizations to balance, as much as possible, the needs of all stakeholders" (emphasis added) is a bit controversial

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The correct answer is true. This is because Mr. Lilly believes that the stakeholder view of the corporation presented in the textbook is controversial. The textbook states that organizations should strive to balance the needs of all stakeholders, which implies that this may be a difficult task in the 21st century. Therefore, Mr. Lilly's statement supports the idea that the stakeholder view is indeed controversial.

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  • 13. 

    Economics is a social science

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Economics is considered a social science because it studies the behavior and interactions of individuals, groups, and societies in relation to the production, distribution, and consumption of goods and services. It analyzes how people make choices and allocate resources, taking into account social, cultural, and political factors. Economics also examines the impact of economic systems and policies on society as a whole. Therefore, it is accurate to say that economics is a social science.

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  • 14. 

    Mr. Lilly's theory of the causes of differential wealth among nations includes labor as a factor

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement is true because Mr. Lilly's theory considers labor as one of the factors that contribute to the differential wealth among nations. This implies that the amount and quality of labor available in a nation can impact its economic prosperity. Therefore, labor plays a role in determining the wealth disparity between nations, according to Mr. Lilly's theory.

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  • 15. 

    Mr. Lilly's theory of the causes of differential wealth among nations includes physical capital as a factor

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement is true. Mr. Lilly's theory of the causes of differential wealth among nations includes physical capital as a factor. This means that according to his theory, the amount of physical capital, such as machinery, equipment, and infrastructure, that a nation possesses plays a role in determining its wealth. Physical capital is considered an important factor in economic growth and development, as it enables increased productivity and efficiency in production processes. Therefore, Mr. Lilly's theory suggests that nations with greater physical capital are more likely to have higher levels of wealth.

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  • 16. 

    The percentage change in the CPI from one year to the next tells you the rate of inflation for that year

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The percentage change in the CPI (Consumer Price Index) from one year to the next indicates the rate of inflation for that year. The CPI measures the average price change of a basket of goods and services over time. By comparing the CPI values of two consecutive years and calculating the percentage change, it provides a measure of how much prices have increased or decreased. Therefore, the statement is true as the percentage change in the CPI serves as an indicator of the rate of inflation.

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  • 17. 

    Last year, MacTeck Enterprises had total revenues of $34 million while its total expenses were $22 million. Based on this information, MacTeck:

    • Earned a profit of $12 million.

    • Earned a profit of $56 million.

    • Suffered a loss of $12 million.

    • Suffered a loss of $22 million.

    Correct Answer
    A. Earned a profit of $12 million.
    Explanation
    MacTeck Enterprises earned a profit of $12 million because the total revenue of $34 million exceeded the total expenses of $22 million. The difference between the revenue and expenses is the profit, which in this case is $12 million.

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  • 18. 

    Mr. Lilly's theory of the causes of differential wealth among nations includes land as a factor.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Mr. Lilly's theory of the causes of differential wealth among nations includes land as a factor. This means that according to his theory, the availability and quality of land in a nation can contribute to its wealth. Land can be a valuable resource for agriculture, natural resources, and infrastructure development, all of which can impact a nation's economic growth and prosperity. Therefore, the statement is true based on Mr. Lilly's theory.

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  • 19. 

    A key assumption of socialism is that:

    • Government ownership of some basic businesses is desirable because it helps achieve a more equal distribution of profits among the people

    • The most important economic function of government is to promote rapid economic growth

    • Economic growth requires strict government control over population growth

    • Tax rates should be kept as low as possible in order to give consumers the maximum possible purchasing power

    Correct Answer
    A. Government ownership of some basic businesses is desirable because it helps achieve a more equal distribution of profits among the people
    Explanation
    The key assumption of socialism is that government ownership of some basic businesses is desirable because it helps achieve a more equal distribution of profits among the people. This means that socialism believes in reducing income inequality by having the government control certain industries and ensuring that the profits generated are distributed more evenly among the population. This assumption is based on the belief that a more equal distribution of wealth and resources leads to a fairer and more just society.

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  • 20. 

    Often in business the greater the risk, the:

    • Greater the potential reward.

    • Lower the expected revenues.

    • Lower the value provided to society.

    • Greater the number of stakeholders.

    Correct Answer
    A. Greater the potential reward.
    Explanation
    In business, taking greater risks often leads to the potential for greater rewards. This is because when a company takes on more risk, such as investing in new ventures or entering new markets, there is a higher chance of achieving significant success and financial gains. On the other hand, lower risk strategies may result in lower returns. Therefore, the greater the risk a business is willing to take, the higher the potential reward it can expect.

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  • 21. 

    According to Mr. Lilly, eBay creates wealth or value out of thin air.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    According to Mr. Lilly, eBay creates wealth or value out of thin air. This means that eBay is able to generate wealth or value without any physical or tangible assets. This could be attributed to the fact that eBay operates as an online marketplace, connecting buyers and sellers from around the world, and facilitating transactions that result in the creation of value. Therefore, the statement is true as per Mr. Lilly's perspective.

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  • 22. 

    A key characteristic of entrepreneurs is that they:

    • Are willing to accept the risks involved in starting and managing a business

    • Have a high level of scientific and technical expertise

    • Possess a great deal of personal wealth

    • Have experience in running large, complex organizations

    Correct Answer
    A. Are willing to accept the risks involved in starting and managing a business
    Explanation
    Entrepreneurs are individuals who are willing to take risks in order to start and manage a business. They understand that there is a certain level of uncertainty and potential for failure associated with entrepreneurship, but they are still willing to take the leap and pursue their business ideas. This willingness to accept risks is a key characteristic of entrepreneurs because it demonstrates their courage, determination, and belief in their own abilities to overcome challenges and achieve success in the business world.

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  • 23. 

    Taxes and government regulations are part of the ________________ environment of business.

    • Economic and legal

    • Competitive

    • Social

    • Technological

    Correct Answer
    A. Economic and legal
    Explanation
    Taxes and government regulations are part of the economic and legal environment of business. These factors impact businesses by influencing their financial decisions and legal obligations. Taxes can affect a company's profitability and cash flow, while government regulations dictate how businesses operate and ensure compliance with laws. Understanding and adapting to the economic and legal environment is crucial for businesses to thrive and avoid legal issues.

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  • 24. 

    The series of lines on a product packaging that the cashier scans when you check out at a grocery store or discount store is called a:

    • Bar code

    • Zip code

    • Scan code

    • Laser code

    Correct Answer
    A. Bar code
    Explanation
    A bar code is a series of lines on a product packaging that can be scanned by a cashier when checking out at a grocery or discount store. It contains information about the product such as its price, name, and other details. The bar code allows for quick and accurate scanning of products, making the checkout process more efficient.

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  • 25. 

    __________ is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable.

    • Depreciation

    • Risk

    • Fallibility

    • Redundancy

    Correct Answer
    A. Risk
    Explanation
    Risk refers to the possibility of losing the time and money invested in a business that turns out to be unprofitable. It is an inherent part of any business venture and is influenced by various factors such as market conditions, competition, and economic fluctuations. Business owners must assess and manage risks effectively to minimize potential losses and maximize profitability.

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  • 26. 

    Businesses keep 100% of the value they create

    • True

    • False

    Correct Answer
    A. False
    Explanation
    This statement is false because businesses do not keep 100% of the value they create. They have various expenses such as operating costs, taxes, salaries, and investments. These expenses reduce the overall value that businesses retain. Additionally, businesses may also distribute profits to shareholders or reinvest them in the company, further reducing the percentage of value they keep.

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  • 27. 

    ___________ means producing items with the least amount of resources.

    • Efficiency

    • Technology

    • Production

    • Productivity

    Correct Answer
    A. Efficiency
    Explanation
    Efficiency refers to the ability to produce items with the least amount of resources. It involves maximizing output while minimizing input, ensuring that resources are used effectively and waste is minimized. By improving efficiency, organizations can achieve cost savings, reduce environmental impact, and enhance overall productivity. Therefore, efficiency is the most suitable term that accurately describes the process of producing items with the least amount of resources.

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  • 28. 

    Companies that sell goods to consumers over the Internet are engaging in:

    • B2C transactions

    • IOU transactions

    • B2B transactions

    • Y2K transactions

    Correct Answer
    A. B2C transactions
    Explanation
    B2C transactions refer to business-to-consumer transactions, where companies sell goods directly to individual consumers over the internet. This involves the online purchase of products or services by individual customers from e-commerce websites.

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  • 29. 

    Which of the following best describes recent job growth in the service sector?

    • The service sector has generated almost all new jobs in the American economy since the mid 1980's, but the rate of job growth in services has slowed in recent years

    • Jobs in the service sector have increased slowly over the past decade, but most new jobs are created in the manufacturing industries

    • Employment in the service sector has declined in recent years, and this decline is expected to continue

    • There has been little change in the number of jobs in the service sector in recent years, however employment is expected to increase rapidly

    Correct Answer
    A. The service sector has generated almost all new jobs in the American economy since the mid 1980's, but the rate of job growth in services has slowed in recent years
    Explanation
    The correct answer describes the recent job growth in the service sector as having slowed down in recent years, despite the fact that the service sector has been responsible for generating the majority of new jobs in the American economy since the mid 1980's. This suggests that while there has been growth, it has not been as significant or rapid as in previous years.

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  • 30. 

    Shelley recently opened a new restaurant specializing in fast foods prepared with less fat and calories for health-conscious diners who are in a hurry. Shelley knows that there are some risks associated with opening and managing a restaurant, but she is confident that she can earn a profit. Shelley is an example of a(n):

    • Arbitrageur

    • Entrepreneur

    • Speculator

    • Account manager

    Correct Answer
    A. Entrepreneur
    Explanation
    Shelley, who recently opened a new restaurant specializing in healthy fast foods, demonstrates the characteristics of an entrepreneur. An entrepreneur is someone who takes risks to start and manage a business with the goal of making a profit. Shelley's confidence in her ability to earn a profit despite the risks associated with opening and managing a restaurant aligns with the entrepreneurial mindset.

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  • 31. 

    ____________ looks at the behavior of individual people and organizations in specific markets.

    • Macroeconomics

    • Finite economics

    • Microeconomics

    • Nanoeconomics

    Correct Answer
    A. Microeconomics
    Explanation
    Microeconomics is the correct answer because it focuses on the behavior of individual people and organizations in specific markets. It examines how individuals and firms make decisions regarding the allocation of resources and the interaction between supply and demand in a particular market. This branch of economics analyzes factors such as pricing, production, consumption, and market equilibrium at a micro level, rather than looking at the economy as a whole (macroeconomics) or a specific subset of the economy (finite economics or nanoeconomics).

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  • 32. 

    The part of unemployment composed of workers who chose to leave their last job, plus people entering the job market for the first time, is called   (

    • Frictional unemployment

    • Structural unemployment

    • Seasonal unemployment

    • Cyclical unemployment

    Correct Answer
    A. Frictional unemployment
    Explanation
    Frictional unemployment refers to the portion of unemployment that occurs when workers voluntarily leave their previous job or when individuals enter the job market for the first time. This type of unemployment is temporary and occurs due to the time it takes for individuals to search for and transition into new jobs. It is considered a natural part of a healthy labor market as it reflects the movement and reallocation of workers in the economy.

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  • 33. 

    Starting a business always involves a ________.

    • Profit

    • Loss

    • Revenue

    • Risk

    Correct Answer
    A. Risk
    Explanation
    Starting a business always involves a risk. When an individual or a group of individuals decide to start a business, they are taking a chance or a gamble on the success of that venture. There is no guarantee that the business will be profitable or that it will generate revenue. There are various risks involved such as financial risks, market risks, competition risks, and operational risks. Therefore, risk is an inherent part of starting a business and entrepreneurs must be willing to take calculated risks in order to succeed.

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  • 34. 

    Those individuals born in the U.S. between 1946 and 1964 are referred to as:

    • Boomers

    • Generation Xers

    • Echoes

    • Diversity workers

    Correct Answer
    A. Boomers
    Explanation
    The correct answer is "boomers" because individuals born in the U.S. between 1946 and 1964 are commonly known as the baby boomers generation. This term is used to describe the significant increase in birth rates during that period, following the end of World War II. The baby boomers generation has had a significant impact on society and culture, and they are known for their influence on various aspects of life, including politics, economy, and social movements.

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  • 35. 

    The book Generations at Work suggests that ________ are perceived by others as self-righteous workaholics

    • Boomers

    • Generation Xers

    • Ethnic

    • Immigrant workers

    Correct Answer
    A. Boomers
    Explanation
    The book Generations at Work suggests that boomers are perceived by others as self-righteous workaholics.

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  • 36. 

    Economics is the study of how

    • To invest wisely in the stock market

    • To employ resources to produce goods and services and distribute them among competing groups and individuals

    • Sophisticated statistical techniques can be used to make predictions about the evolution of society over the long run

    • People govern themselves in a democratic society

    Correct Answer
    A. To employ resources to produce goods and services and distribute them among competing groups and individuals
    Explanation
    The correct answer is "to employ resources to produce goods and services and distribute them among competing groups and individuals". This answer accurately describes the main focus of economics, which is the allocation of resources to produce goods and services and how they are distributed among different groups and individuals in society. Economics studies how societies make choices about what to produce, how to produce it, and how to distribute the resulting output.

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  • 37. 

    Which theory states that a nation should produce and sell goods to other countries that it produces most efficiently, and buy goods produced more efficiently by other countries?

    • Comparative advantage

    • Absolute advantage

    • Mercantilism

    • Bilateral advantage

    Correct Answer
    A. Comparative advantage
    Explanation
    The theory of comparative advantage states that a nation should specialize in producing and selling goods that it can produce most efficiently, while importing goods that other countries can produce more efficiently. This theory suggests that countries should focus on producing goods in which they have a lower opportunity cost, allowing for increased efficiency and overall economic growth through international trade.

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  • 38. 

    The high cost of housing and the desire to “have it all” have contributed to a dramatic growth in:

    • Unemployment

    • Two-income families

    • Divorce rates

    • Government subsidy programs

    Correct Answer
    A. Two-income families
    Explanation
    The high cost of housing and the desire to "have it all" have led to a significant increase in two-income families. As the cost of living continues to rise, many households find it necessary for both partners to work in order to afford housing and maintain their desired lifestyle. This trend has become more prevalent as individuals strive to achieve financial stability and provide for their families.

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  • 39. 

    A(n) _____________ curve shows the relationship between the price of a good and the quantity of that good people are willing and able to buy in a given time period

    • Demand

    • Supply

    • Utility

    • Laffer

    Correct Answer
    A. Demand
    Explanation
    The correct answer is "demand". In economics, the demand curve illustrates the relationship between the price of a good and the quantity of that good that consumers are willing and able to buy in a specific time period. It shows the inverse relationship between price and quantity demanded, indicating that as the price of a good increases, the quantity demanded decreases, and vice versa. The demand curve is a fundamental tool used to analyze consumer behavior and market dynamics.

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  • 40. 

    In a purely capitalist economy, ________ percent of the productive resources of the economy would be privately owned and managed

    • 100

    • Over 80

    • Over 70

    • At least 50

    Correct Answer
    A. 100
    Explanation
    In a purely capitalist economy, all the productive resources of the economy would be privately owned and managed. This means that 100 percent of the productive resources would be under the control of private individuals or businesses, rather than being owned or controlled by the government or any other entity.

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  • 41. 

    In countries where businesses are government owned:

    • There is less incentive to work hard.

    • The right amount of each good is produced.

    • Profits tend to be higher.

    • The quality of goods is high but profits are low.

    Correct Answer
    A. There is less incentive to work hard.
    Explanation
    In countries where businesses are government owned, there is less incentive to work hard. This is because in such systems, individuals do not directly benefit from their hard work or the success of the business. Since profit is not a driving factor, individuals may not feel motivated to put in extra effort or go above and beyond their basic responsibilities. As a result, productivity and innovation may suffer, leading to overall lower levels of efficiency and economic growth.

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  • 42. 

    Employers provide tools and technology for their employees in order to:

    • Increase the cost of production and profitability

    • Improve their efficiency and productivity

    • To reduce corruption in business and eliminate scandals

    • Encourage the private ownership of businesses

    Correct Answer
    A. Improve their efficiency and productivity
    Explanation
    Employers provide tools and technology for their employees to improve their efficiency and productivity. By equipping employees with the necessary tools and technology, employers enable them to perform tasks more efficiently and effectively, leading to increased productivity. This not only benefits the employees by making their work easier and more streamlined, but it also benefits the employer by maximizing output and ultimately increasing profitability. Providing tools and technology also demonstrates a commitment to staying up-to-date with advancements in the industry and investing in the success of the business and its employees.

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  • 43. 

    An electronic storage file where firms keep customer information is known as a(n):

    • MP3 file

    • Management information system

    • Database

    • E-mail server

    Correct Answer
    A. Database
    Explanation
    A database is an electronic storage file where firms keep customer information. It is a structured collection of data that is organized and accessible in a systematic way. Unlike an MP3 file, which is a format for storing audio files, a database is specifically designed for storing and managing large amounts of data. While a management information system and an email server are also electronic systems, they do not specifically refer to the storage of customer information like a database does.

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  • 44. 

    _________ is considered by some to be the father of modern economics

    • John Maynard Keynes

    • Adam Smith

    • Thomas Carlyle

    • Samuel Kapital

    Correct Answer
    A. Adam Smith
    Explanation
    Adam Smith is considered by some to be the father of modern economics because of his groundbreaking work in the field. In his book "The Wealth of Nations," published in 1776, Smith laid the foundation for modern economic theory. He introduced the concept of the invisible hand, which explains how the self-interested actions of individuals in a free market can lead to positive outcomes for society as a whole. Smith's ideas on free trade, division of labor, and the role of government in the economy have had a profound influence on the development of economics as a discipline.

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  • 45. 

    Which of the following statements provides the most accurate comparison of socialism and communism?

    • Under socialism the government owns most businesses, while under communism the church owns most businesses

    • Both socialism and communism want to achieve a more equal distribution of income and wealth, but under communism the government takes more control over people's lives

    • Socialism strives for an equal distribution of income but communism wants income to go primarily to those who own and operate private businesses

    • Communism believes that the government should always strive to balance its budget, while socialism accepts deficit spending as the price of achieving true equality

    Correct Answer
    A. Both socialism and communism want to achieve a more equal distribution of income and wealth, but under communism the government takes more control over people's lives
    Explanation
    Both socialism and communism aim to achieve a more equal distribution of income and wealth. However, under communism, the government exercises more control over people's lives compared to socialism. This means that in a communist society, the government has more authority and influence over various aspects of individuals' lives, such as personal freedoms, choices, and decision-making.

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  • 46. 

    Kathleen manages a manufacturing plant for ScanRite, Inc., a producer of scanners and other input devices connected to computers. About six months ago, Kathleen asked an assistant to keep track of both work hours and output at her plant. She has compared these figures, and has found that even though the number of workers (and the hours they worked) remained relatively steady over the past six months, the plant's output increased significantly. This indicates that:

    • The productivity of workers at the ScanRite plant has increased

    • The ScanRite plant must have sold off some of its excess inventory

    • ScanRite prices have increased faster than the wages it pays to its workers

    • Kathleen should hire more workers.

    Correct Answer
    A. The productivity of workers at the ScanRite plant has increased
    Explanation
    The increase in output despite the steady number of workers and hours worked suggests that the workers at the ScanRite plant have become more productive. They are able to produce more output within the same amount of time, indicating an increase in efficiency and effectiveness.

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  • 47. 
    Refer to the graph above. The quantity demanded when price is $4.00 per week is: - ProProfs

    Refer to the graph above. The quantity demanded when price is $4.00 per week is:

    • 2 cassettes per week

    • 4 cassettes per week

    • 6 cassettes per week

    • 8 cassettes per week

    Correct Answer
    A. 2 cassettes per week
  • 48. 

    Maureen, a United States resident, was surprised to see that her home computer was actually made in Japan. Maureen did not know she had purchased a(n):

    • Imported item

    • Exported item

    • Protected good

    • Generic good

    Correct Answer
    A. Imported item
    Explanation
    Maureen, a United States resident, was surprised to see that her home computer was actually made in Japan. This indicates that Maureen unknowingly purchased an imported item.

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  • 49. 

    The knowledge and skills students acquire in business courses will be useful to them:

    • Only if they work for a major corporation.

    • Only if they work for a nonprofit organization.

    • Only if they start their own businesses.

    • If they work for any organization that produces goods and services, including nonprofit and volunteer organizations as well as businesses.

    Correct Answer
    A. If they work for any organization that produces goods and services, including nonprofit and volunteer organizations as well as businesses.
    Explanation
    The correct answer is if they work for any organization that produces goods and services, including nonprofit and volunteer organizations as well as businesses. This answer suggests that the knowledge and skills acquired in business courses are applicable to a wide range of organizations, not limited to major corporations or nonprofit organizations. It implies that the principles and concepts taught in business courses can be useful in any organization that is involved in the production of goods and services, regardless of its nature or size.

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Quiz Review Timeline (Updated): Mar 22, 2023 +

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  • Current Version
  • Mar 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Jun 05, 2009
    Quiz Created by
    Marcosbarrera

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