BUS100 FINAL EXAM STUDY GUIDE UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
1. Goods
a) are the same as services
b) are tangible
c) must only be sold directly to consumers
d) cannot be combined with services into a product
e) are still the cornerstone of the American economy
Answer:
b) are tangible
Question:
2. An entrepreneur
a) is not a human resource
b) creates but does not operate a new business
c) is guaranteed to make a profit
d) does not direct the businesses resources
e) takes a risk by starting a new business venture
Answer:
e) takes a risk by starting a new business venture
Question:
3. Identity theft
a) only affects a small number of people
b) does not include sharing of private information
c) has been wiped out due to new security measures
d) can only occur when an individual's wallet is stolen
e) can be used to gain medical care
f) is not a joke, Jim!
Answer:
e) can be used to gain medical care
,Question:
4. Which of the following best describes
undercapitalization?
a) it occurs when a business owner cannot gain access to
adequate business funding
b) it is a great financial condition for businesses to aspire
to
c) it does not include potential damage to a business
d) it does not involve taxes and insurance
e) it is guaranteed to happen in a business
Answer:
a) it occurs when a business owner cannot gain access to adequate business
funding
Question:
5. In which type of economic system is the focus on
efficiency and profitability?
a) socialism
b) planned economic system
c) capitalism
d) mixed market economy
e) communism
Answer:
c) capitalism
Question:
6. All of the following statements are true about socialism
EXCEPT:
a) countries characterized by socialism tend to have high
tax rates
b) the majority of economic systems in the world are
purely socialist economies
c) the government is in control of production of many
basic businesses and distributes the profits from those
businesses
d) socialism tends to disincentivize labor
e) the government usually runs social services such as
education, health care, retirement and utilities
Answer:
b) the majority of economic systems in the world are purely socialist economies
,Question:
7. Which of the following statements is true of
complementary goods?
a) complementary goods are consumed separately
b) a decrease in demand of one good would increase
demand of its complementary good
c) complementary goods are typically consumed
together
d) complementary goods are not a determinant of
demand
e) complementary goods decrease the value and
demand of a related good
Answer:
c) complementary goods are typically consumed together
Question:
8. Which of the following statements is true?
a) lower profit margins leads to more supply
b) supply is driven by a supplier's desire to minimize
profits
c) price decreases result in suppliers providing more
goods
d) higher prices lead to less supply
e) suppliers will provide more of a good when its price is
high
Answer:
e) suppliers will provide more of a good when its price is high
Question:
9. Which of the following statements is true of duopolies?
a) duopolies encourage competition
b) consumers have many purchasing options in duopolies
c) duopolies result is decreased demand for goods and
services
d) duopolies have great influence over the pricing and
the availability of the products and services they sell
e) in duopolies, there are many firms that sell a product or
service
Answer:
d) duopolies have great influence over the pricing and the availability of the
products and services they sell
, Question:
10. perfect competition
a) is unlikely to occur in a free-market economy
b) makes it easy for sellers to control the prices of their
goods and services
c) makes it impossible for any single seller to set the price
for their products
d) puts consumers at a disadvantage due to higher prices
e) occurs when a few large companies compete with
another for business
Answer:
c) makes it impossible for any single seller to set the price for their products
Question:
11. Which of the following is NOT one of the major groups of
products and services used by the U.S. Bureau of Labor
Statistics in determining the consumer price index (CPI)?
a) medical care
b) recreation
c) transportation
d) income taxes
e) food and beverages
Answer:
d) income taxes
Question:
12. Which of the following is NOT a stage of the business
cycle?
a) stagnation
b) expansion or recovery
c) recession
d) trough
e) peak
Answer:
a) stagnation
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
1. Goods
a) are the same as services
b) are tangible
c) must only be sold directly to consumers
d) cannot be combined with services into a product
e) are still the cornerstone of the American economy
Answer:
b) are tangible
Question:
2. An entrepreneur
a) is not a human resource
b) creates but does not operate a new business
c) is guaranteed to make a profit
d) does not direct the businesses resources
e) takes a risk by starting a new business venture
Answer:
e) takes a risk by starting a new business venture
Question:
3. Identity theft
a) only affects a small number of people
b) does not include sharing of private information
c) has been wiped out due to new security measures
d) can only occur when an individual's wallet is stolen
e) can be used to gain medical care
f) is not a joke, Jim!
Answer:
e) can be used to gain medical care
,Question:
4. Which of the following best describes
undercapitalization?
a) it occurs when a business owner cannot gain access to
adequate business funding
b) it is a great financial condition for businesses to aspire
to
c) it does not include potential damage to a business
d) it does not involve taxes and insurance
e) it is guaranteed to happen in a business
Answer:
a) it occurs when a business owner cannot gain access to adequate business
funding
Question:
5. In which type of economic system is the focus on
efficiency and profitability?
a) socialism
b) planned economic system
c) capitalism
d) mixed market economy
e) communism
Answer:
c) capitalism
Question:
6. All of the following statements are true about socialism
EXCEPT:
a) countries characterized by socialism tend to have high
tax rates
b) the majority of economic systems in the world are
purely socialist economies
c) the government is in control of production of many
basic businesses and distributes the profits from those
businesses
d) socialism tends to disincentivize labor
e) the government usually runs social services such as
education, health care, retirement and utilities
Answer:
b) the majority of economic systems in the world are purely socialist economies
,Question:
7. Which of the following statements is true of
complementary goods?
a) complementary goods are consumed separately
b) a decrease in demand of one good would increase
demand of its complementary good
c) complementary goods are typically consumed
together
d) complementary goods are not a determinant of
demand
e) complementary goods decrease the value and
demand of a related good
Answer:
c) complementary goods are typically consumed together
Question:
8. Which of the following statements is true?
a) lower profit margins leads to more supply
b) supply is driven by a supplier's desire to minimize
profits
c) price decreases result in suppliers providing more
goods
d) higher prices lead to less supply
e) suppliers will provide more of a good when its price is
high
Answer:
e) suppliers will provide more of a good when its price is high
Question:
9. Which of the following statements is true of duopolies?
a) duopolies encourage competition
b) consumers have many purchasing options in duopolies
c) duopolies result is decreased demand for goods and
services
d) duopolies have great influence over the pricing and
the availability of the products and services they sell
e) in duopolies, there are many firms that sell a product or
service
Answer:
d) duopolies have great influence over the pricing and the availability of the
products and services they sell
, Question:
10. perfect competition
a) is unlikely to occur in a free-market economy
b) makes it easy for sellers to control the prices of their
goods and services
c) makes it impossible for any single seller to set the price
for their products
d) puts consumers at a disadvantage due to higher prices
e) occurs when a few large companies compete with
another for business
Answer:
c) makes it impossible for any single seller to set the price for their products
Question:
11. Which of the following is NOT one of the major groups of
products and services used by the U.S. Bureau of Labor
Statistics in determining the consumer price index (CPI)?
a) medical care
b) recreation
c) transportation
d) income taxes
e) food and beverages
Answer:
d) income taxes
Question:
12. Which of the following is NOT a stage of the business
cycle?
a) stagnation
b) expansion or recovery
c) recession
d) trough
e) peak
Answer:
a) stagnation
