BUSINESS 101 - CHAPTERS 1-4 - EXAM 1 UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

BUSINESS 101 - CHAPTERS 1-4 - EXAM 1 UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS

Question:
1. Which of the following is not an example of a functional area of business? (Chapter 2)
operations finance assembly marketing
Answer:
assembly

Question:
2. The government of a country owns the railways, utilities, energy companies and financial institutions.
Ownership of small less critical businesses is in private hands. This is an example of __________ (Chapter
3)
Answer:
socialism

Question:
3. Businesses have responsibilities to...
investors only investors and customers investors, customers, and employees investors, customers,
employees and society
Answer:
investors, customers, employees and society

Question:
4. Consumers can choose from hundreds of different kinds and producers of clothing; with differences in
quality, style, popularity etc. This type of market structure is known as.... (chapter 3)
perfect competition monopolistic competition monopoly oligopoly
Answer:
monopolistic competition

Question:
5. The sum of all goods and services produced within a nation's boundaries are called.... cpi gdp infation
productivity
Answer:
GDP

Question:
6. All of the following are examples of corporate philanthropy EXCEPT...
donating computers to school giving employees time off to participate in volunteer activities paying local
property taxes giving money to support red cross blood drive
Answer:
paying local property taxes

, Question:
7. There is only one satellite radio in the US. This is an example of...
monopoly oligopoly monopolistic competition none of the above
Answer:
monopoly

Question:
8. In 1998, mitsubishi paid 34 million to more than 350 female employees of its Normal, IL plant to settle a
sexual harassment case supported by the (BLANK). This agency reprimanded the company for permitting
an atmosphere of verbal and physical abuse of women....
vocational rehabilitation act EEOO (Equal Employment Opportunity Commission) OSHA FMLA
Answer:
EEOO

Question:
9. A key aspect of free market system is the concept of (blank) which means that the business owners can
expect to own their own land, buildings, machines, etc. and keep the majority of their profits except for
taxes (Chapter 3)
macroeconomics private property rights entrepreneurship capitalism
Answer:
private property rights

Question:
10. Which of the following statements about demand curves is true? (wording is tricky!)
When the prices rise, demand increases when prices fall, demand decreaes when price falls, demand
increases when price fall, supply increases
Answer:
When the prices rise, demand increases

Question:
11. Consumers can choose from hundreds of different kinds and producers of cheese, each with a slightly
different flavor and texture. This type of market structure is known as _____.
pure competition monopolistic competition monopoly oligopoly
Answer:
monopolistic competition

Question:
12. TRUE OR FALSE : In principle, full employment occurs when everyone who wants to work has a job.
In practice, we say that we have full employment when about 95 percent of those wanting to work are
employed.
Answer:
TRUE

Question:
13. During an economic recovery, consumer spending (blank) and unemployment (blank)
increases; increases increases; decreases decreases; increases decreases; decreases