Business 101 Midterm Exam Questions and Answers Graded A+
2. A laissez-fair system of Gov. - Answers The economic doctrine that advocates total gov. inaction In
business, so businesses are free to do wht and as they please
3. Recently Microsoft Corporation was prosecuted by the U.S. and several state governments for being
too large and powerful, dominating the computer software market, and engaging in anticompetitive
tactics. Microsoft was found guilty of violating __________ laws. - Answers Anti trust policies
gov laws designed to break up monopolies and control monopoly abuses by business
4. The mass production assembly line was designed to - Answers to avoid unnecessary movement on the
part of the worker to complete a specific job
5. A capitalistic economy is primarily controlled by - Answers Consumer - create the demand for goods
6. Which of the following is not true about society's demand curve? - Answers shows the relationship
between quanity demand and the price of a product/service
It is downward sloping
The slope (steepness) of the demand curve is heavily influenced by the consumers budget and spending
priority
7. The demand for new automobiles is price elastic. This means that - Answers means the demand
where a small change in the price will have a significant impact on the quality demand of a
product/server
very gentle curve
8. In a free market system, prices will tend to - Answers The price that consumers pay for goods/services
are determined by the collective interaction of total consumer damand and producer supply
Provides us with the markey clearing/equalibruim price- the price at which supply will equal demand.
Prices will always tend to move towards the equalibrium
9. In product life cycle theory, what requires firms to become more efficient? - Answers competition
forces firms to become more effiecent
10. Within a city, one cable television company is the only supplier licensed to serve that area. Which
market condition does this situation describe? - Answers Monopoly
The industy markey structure in which there is essentially a single supplier of goods/services that has the
power to set prices.
, 11. Just a few international steel companies control most of the world's steel production. What market
condition does this situation describe? - Answers Oligoploy
The industry market structure where a few producers of almost identical products caters to the needs of
the whole market
12. India sold its government-owned aluminum mining company, Bharat Aluminum, to private investors
in 2001. This is an example of - Answers Privatization
The process of selling state enterprises to private entrepreuers
13. Lan says, "I would like to start a dry cleaning business, but I need to buy the machinery first." Which
factor of production is Lan lacking? - Answers Lacking product diffentiation
A strategy that firms employ to make there product seem different from those of their competitor
14. In a publicly traded, for profit business corporation, the owners are the - Answers Investors
Those who have a financial stake in a business. Small or large and expect to receive a return on their
investment capital.
15.What is the primary difference between a shareholder society and a stakeholder society? - Answers
Stakeholder- takes into account the interest of ALL its partners, including its customers, management,
employess, supliers, and society . Employees are valued
Shareholder- Focuses primarily on maximizing share holders wealth
16. Calvin Klein is known for fragrance ads that show young, attractive models in suggestive poses and
revealing clothes. In appealing to customers' sexual urges, Calvin Klein is using - Answers Pschographics-
The analysis and understanding of the consumer mind to ID consumers likes,dilikes, and preforences
17. Which of the following would not be included in the U.S. GDP? - Answers It does not include profits
earned by US companies overseas or products produced by american overseas
18. Real GDP is nominal GDP that has been adjusted for - Answers been adjusted on an inflation-
adjusted basis
19. As compared to previous technological revolutions such as the internal combustion engine or
electricity, the Internet technological revolution - Answers has made the internet and technologies
become a part of our everyday lives
20. Which of the following would be the best indicator of a country's economic health? - Answers
Output- High levels of GDP and rapid growth of real GDP
Employment- Low unemployment
2. A laissez-fair system of Gov. - Answers The economic doctrine that advocates total gov. inaction In
business, so businesses are free to do wht and as they please
3. Recently Microsoft Corporation was prosecuted by the U.S. and several state governments for being
too large and powerful, dominating the computer software market, and engaging in anticompetitive
tactics. Microsoft was found guilty of violating __________ laws. - Answers Anti trust policies
gov laws designed to break up monopolies and control monopoly abuses by business
4. The mass production assembly line was designed to - Answers to avoid unnecessary movement on the
part of the worker to complete a specific job
5. A capitalistic economy is primarily controlled by - Answers Consumer - create the demand for goods
6. Which of the following is not true about society's demand curve? - Answers shows the relationship
between quanity demand and the price of a product/service
It is downward sloping
The slope (steepness) of the demand curve is heavily influenced by the consumers budget and spending
priority
7. The demand for new automobiles is price elastic. This means that - Answers means the demand
where a small change in the price will have a significant impact on the quality demand of a
product/server
very gentle curve
8. In a free market system, prices will tend to - Answers The price that consumers pay for goods/services
are determined by the collective interaction of total consumer damand and producer supply
Provides us with the markey clearing/equalibruim price- the price at which supply will equal demand.
Prices will always tend to move towards the equalibrium
9. In product life cycle theory, what requires firms to become more efficient? - Answers competition
forces firms to become more effiecent
10. Within a city, one cable television company is the only supplier licensed to serve that area. Which
market condition does this situation describe? - Answers Monopoly
The industy markey structure in which there is essentially a single supplier of goods/services that has the
power to set prices.
, 11. Just a few international steel companies control most of the world's steel production. What market
condition does this situation describe? - Answers Oligoploy
The industry market structure where a few producers of almost identical products caters to the needs of
the whole market
12. India sold its government-owned aluminum mining company, Bharat Aluminum, to private investors
in 2001. This is an example of - Answers Privatization
The process of selling state enterprises to private entrepreuers
13. Lan says, "I would like to start a dry cleaning business, but I need to buy the machinery first." Which
factor of production is Lan lacking? - Answers Lacking product diffentiation
A strategy that firms employ to make there product seem different from those of their competitor
14. In a publicly traded, for profit business corporation, the owners are the - Answers Investors
Those who have a financial stake in a business. Small or large and expect to receive a return on their
investment capital.
15.What is the primary difference between a shareholder society and a stakeholder society? - Answers
Stakeholder- takes into account the interest of ALL its partners, including its customers, management,
employess, supliers, and society . Employees are valued
Shareholder- Focuses primarily on maximizing share holders wealth
16. Calvin Klein is known for fragrance ads that show young, attractive models in suggestive poses and
revealing clothes. In appealing to customers' sexual urges, Calvin Klein is using - Answers Pschographics-
The analysis and understanding of the consumer mind to ID consumers likes,dilikes, and preforences
17. Which of the following would not be included in the U.S. GDP? - Answers It does not include profits
earned by US companies overseas or products produced by american overseas
18. Real GDP is nominal GDP that has been adjusted for - Answers been adjusted on an inflation-
adjusted basis
19. As compared to previous technological revolutions such as the internal combustion engine or
electricity, the Internet technological revolution - Answers has made the internet and technologies
become a part of our everyday lives
20. Which of the following would be the best indicator of a country's economic health? - Answers
Output- High levels of GDP and rapid growth of real GDP
Employment- Low unemployment
