Strayer University BUS 100 Final Exam (pdf) | 2026/2027 | Intro to
Business Q&A | Business
1. The organized effort of individuals to produce and sell, for a profit, the
goods and services that satisfy society's needs is called:
A) Economics
B) Business
C) Marketing
D) Management
Correct Answer: Business
Rationale: Business is the organized effort of individuals to produce and sell,
for a profit, the goods and services that satisfy society's needs . It is the
fundamental activity that drives economic systems and provides value to
consumers.
2. A business that produces tangible goods such as computers or furniture is
classified as a:
A) Service business
B) Marketing intermediary
C) Manufacturing business
D) Non-profit organization
Correct Answer: Manufacturing business
Rationale: A manufacturing business is any business that uses components
to make a finished good . Service businesses provide intangible products like
healthcare or education, and intermediaries buy products from
manufacturers and resell them.
,3. The function of profit in business includes:
A) Rewarding employees for their work
B) Compensating owners for assuming the risks of ownership
C) Paying taxes to the government
D) Covering the cost of raw materials
Correct Answer: Compensating owners for assuming the risks of ownership
Rationale: Profit serves as compensation for assuming the risks of ownership,
including the risk of not receiving payment and the risk of losing investment .
It is the reward for producing goods and services people want.
4. The study of the decisions made by individuals and businesses is called:
A) Macroeconomics
B) Microeconomics
C) Global economics
D) Fiscal economics
Correct Answer: Microeconomics
Rationale: Microeconomics is the study of the decisions made by individuals
and businesses . Macroeconomics focuses on the national and global
economies, including GDP, inflation, and unemployment rates.
5. The study of the national and global economies, including GDP, inflation,
and unemployment, is called:
A) Microeconomics
B) Macroeconomics
,C) Managerial economics
D) Behavioral economics
Correct Answer: Macroeconomics
Rationale: Macroeconomics is the study of the national and global economies
and their interaction . It examines broad economic indicators such as Gross
Domestic Product (GDP), inflation rates, and unemployment levels.
6. An economic system in which individuals and businesses own the
resources and are free to exchange and contract without government
authority is called:
A) Command economy
B) Socialism
C) Capitalism
D) Communism
Correct Answer: Capitalism
Rationale: Capitalism is an economic system in which individuals and
businesses own the resources and are free to exchange and contract with
each other without decree from government authority. The collective term for
these uncoordinated exchanges is the "market" .
7. Under a command economy, the government:
A) Allows the market to determine prices
B) Owns all factors of production and determines production decisions
C) Encourages private enterprise and competition
D) Limits its role to regulating monopolies
, Correct Answer: Owns all factors of production and determines production
decisions
Rationale: Under a command economy, governments own all of the factors of
production such as land, capital and resources, and government officials
determine when, where and how much is produced at any one time .
8. The total value of all goods and services produced by all people within the
boundaries of a country during a specified time period is called:
A) Consumer Price Index
B) Gross Domestic Product (GDP)
C) Producer Price Index
D) National debt
Correct Answer: Gross Domestic Product (GDP)
Rationale: Gross Domestic Product (GDP) is the total value of all goods and
services produced by all people within the boundaries of a country during a
one-year period . It is a key indicator of economic health.
9. The Consumer Price Index (CPI) measures:
A) The total value of goods produced in a country
B) The change in prices paid by consumers
C) The rate of unemployment
D) The value of the dollar
Correct Answer: The change in prices paid by consumers
Business Q&A | Business
1. The organized effort of individuals to produce and sell, for a profit, the
goods and services that satisfy society's needs is called:
A) Economics
B) Business
C) Marketing
D) Management
Correct Answer: Business
Rationale: Business is the organized effort of individuals to produce and sell,
for a profit, the goods and services that satisfy society's needs . It is the
fundamental activity that drives economic systems and provides value to
consumers.
2. A business that produces tangible goods such as computers or furniture is
classified as a:
A) Service business
B) Marketing intermediary
C) Manufacturing business
D) Non-profit organization
Correct Answer: Manufacturing business
Rationale: A manufacturing business is any business that uses components
to make a finished good . Service businesses provide intangible products like
healthcare or education, and intermediaries buy products from
manufacturers and resell them.
,3. The function of profit in business includes:
A) Rewarding employees for their work
B) Compensating owners for assuming the risks of ownership
C) Paying taxes to the government
D) Covering the cost of raw materials
Correct Answer: Compensating owners for assuming the risks of ownership
Rationale: Profit serves as compensation for assuming the risks of ownership,
including the risk of not receiving payment and the risk of losing investment .
It is the reward for producing goods and services people want.
4. The study of the decisions made by individuals and businesses is called:
A) Macroeconomics
B) Microeconomics
C) Global economics
D) Fiscal economics
Correct Answer: Microeconomics
Rationale: Microeconomics is the study of the decisions made by individuals
and businesses . Macroeconomics focuses on the national and global
economies, including GDP, inflation, and unemployment rates.
5. The study of the national and global economies, including GDP, inflation,
and unemployment, is called:
A) Microeconomics
B) Macroeconomics
,C) Managerial economics
D) Behavioral economics
Correct Answer: Macroeconomics
Rationale: Macroeconomics is the study of the national and global economies
and their interaction . It examines broad economic indicators such as Gross
Domestic Product (GDP), inflation rates, and unemployment levels.
6. An economic system in which individuals and businesses own the
resources and are free to exchange and contract without government
authority is called:
A) Command economy
B) Socialism
C) Capitalism
D) Communism
Correct Answer: Capitalism
Rationale: Capitalism is an economic system in which individuals and
businesses own the resources and are free to exchange and contract with
each other without decree from government authority. The collective term for
these uncoordinated exchanges is the "market" .
7. Under a command economy, the government:
A) Allows the market to determine prices
B) Owns all factors of production and determines production decisions
C) Encourages private enterprise and competition
D) Limits its role to regulating monopolies
, Correct Answer: Owns all factors of production and determines production
decisions
Rationale: Under a command economy, governments own all of the factors of
production such as land, capital and resources, and government officials
determine when, where and how much is produced at any one time .
8. The total value of all goods and services produced by all people within the
boundaries of a country during a specified time period is called:
A) Consumer Price Index
B) Gross Domestic Product (GDP)
C) Producer Price Index
D) National debt
Correct Answer: Gross Domestic Product (GDP)
Rationale: Gross Domestic Product (GDP) is the total value of all goods and
services produced by all people within the boundaries of a country during a
one-year period . It is a key indicator of economic health.
9. The Consumer Price Index (CPI) measures:
A) The total value of goods produced in a country
B) The change in prices paid by consumers
C) The rate of unemployment
D) The value of the dollar
Correct Answer: The change in prices paid by consumers
