GEB 2011 Exam 1 Review (updated)
questions and answers
All of the following are reasons to study business, except: - correct answer ✔✔ To guarantee
success in running your own business.
Studying _____ can help you develop skills and acquire knowledge to prepare for your future
career, regardless of whether you plan to work for a multinational Fortune 500 firm, start your
own business, work for a government agency, or manage or volunteer at a nonprofit
organization. - correct answer ✔✔ Business
A good such as a shirt, has an actual physical existence and can be held in one's hand, so it is
considered ______, which is different from a service such as dry cleaning, which is ______. -
correct answer ✔✔ Tangible; intangible
What is the term for all of the groups that stand to gain or lose by the policies and activities of a
business and whose concerns the business needs to address? - correct answer ✔✔
Stakeholders
A business's major role is to satisfy the _____ who buy its goods or services. - correct answer
✔✔ Customers
For a business to be successful, it must effectively combine these four resources: - correct
answer ✔✔ Human resources, material resources, informational resources, and financial
resources.
______ is an economic system based on free markets, in which all or most of the factors of
production and distribution are privately owned and operated for profit. - correct answer ✔✔
Capitalism
, Which of the following is not one of the four basic assumptions required for a laissez-faire
capitalist economy? - correct answer ✔✔ Right of government to decide what goods and
services will be produced
Even though the United States' economic system is rooted in laissez-faire capitalism, its
government collects taxes and provides services such as national defense and education making
the United States a: - correct answer ✔✔ Mixed Economy
Hugo lives in a country where individuals (not the government) own and operate the majority of
businesses that provide goods and services. Clearly, Hugo lives in a ______ country. - correct
answer ✔✔ Capitalist
An increase in productivity can result in all of the following, except: - correct answer ✔✔ It now
takes more workers to produce the same number of goods and services.
The total dollar value of all goods and services produced by all people within the boundaries of
a country during a one-year period is called: - correct answer ✔✔ Gross domestic product (GDP)
A general rise in the prices of goods and services over time is called: - correct answer ✔✔
Inflation
Changes in this economic indicator reflect price increases or decreases at the wholesale level. -
correct answer ✔✔ Producer price index (PPI)
What are the four phases in the typical business cycle? - correct answer ✔✔ The peak,
recession, the trough, and recovery
In general, economists define a recession as _______ or more consecutive three-month periods
of decline in a country's GDP. - correct answer ✔✔ Two
questions and answers
All of the following are reasons to study business, except: - correct answer ✔✔ To guarantee
success in running your own business.
Studying _____ can help you develop skills and acquire knowledge to prepare for your future
career, regardless of whether you plan to work for a multinational Fortune 500 firm, start your
own business, work for a government agency, or manage or volunteer at a nonprofit
organization. - correct answer ✔✔ Business
A good such as a shirt, has an actual physical existence and can be held in one's hand, so it is
considered ______, which is different from a service such as dry cleaning, which is ______. -
correct answer ✔✔ Tangible; intangible
What is the term for all of the groups that stand to gain or lose by the policies and activities of a
business and whose concerns the business needs to address? - correct answer ✔✔
Stakeholders
A business's major role is to satisfy the _____ who buy its goods or services. - correct answer
✔✔ Customers
For a business to be successful, it must effectively combine these four resources: - correct
answer ✔✔ Human resources, material resources, informational resources, and financial
resources.
______ is an economic system based on free markets, in which all or most of the factors of
production and distribution are privately owned and operated for profit. - correct answer ✔✔
Capitalism
, Which of the following is not one of the four basic assumptions required for a laissez-faire
capitalist economy? - correct answer ✔✔ Right of government to decide what goods and
services will be produced
Even though the United States' economic system is rooted in laissez-faire capitalism, its
government collects taxes and provides services such as national defense and education making
the United States a: - correct answer ✔✔ Mixed Economy
Hugo lives in a country where individuals (not the government) own and operate the majority of
businesses that provide goods and services. Clearly, Hugo lives in a ______ country. - correct
answer ✔✔ Capitalist
An increase in productivity can result in all of the following, except: - correct answer ✔✔ It now
takes more workers to produce the same number of goods and services.
The total dollar value of all goods and services produced by all people within the boundaries of
a country during a one-year period is called: - correct answer ✔✔ Gross domestic product (GDP)
A general rise in the prices of goods and services over time is called: - correct answer ✔✔
Inflation
Changes in this economic indicator reflect price increases or decreases at the wholesale level. -
correct answer ✔✔ Producer price index (PPI)
What are the four phases in the typical business cycle? - correct answer ✔✔ The peak,
recession, the trough, and recovery
In general, economists define a recession as _______ or more consecutive three-month periods
of decline in a country's GDP. - correct answer ✔✔ Two
