Business Essentials - Complete test bank - exam questions - quizzes (updated 2022)

CHAPTER 1

THE U.S. BUSINESS ENVIRONMENT


CHAPTER 1 CORRELATION TABLE


Question Number

Question Easy Moderate Difficult
Type Knowledge Comprehension Application

True / False 1–19 20–37 38–50

Multiple Choice 51–83 84–133 134–150

Short Answer 151–155 156–165 166–175

Essay 176–178 179 180

Boxed Features 181, 185 182–183, 186–187 184, 188

Short Case
189–191 192–198 199–200
Scenario



Question Number

Corresponding Difficult
Easy Moderate
Learning
Knowledge Comprehension Application
Objective

LO 1 1–2, 51–53, 176 20, 84, 156–157 NA

LO 2 54–55 85 NA

3–7, 56–61,
LO 3 21–22, 86–94, 192 134, 166–168, 187
177, 180

95–99,
LO 4 8–9, 62–68, 178 135–139, 199–200
158–159, 193

23–28, 100–112,
10–11, 69–71, 38–41, 140–142,
LO 5 160, 179,
185, 189 169–173, 180
182, 194–195

, 12–19, 72–83, 29–37, 113–133, 42–50,
LO 6 151–155, 190– 161–165, 183, 143–150,
191 186–187, 196–198 174–175, 184



Total Number of Test Questions: 200

(50 True/False; 100 Multiple Choice; 25 Short Answer; 5 Essay;
8 Boxed Feature; 12 Scenario)

, CHAPTER 1

THE U.S. BUSINESS ENVIRONMENT




True/False Questions
Easy Questions



1. A business provides goods or services in order to earn profits.



Answer: True Level: Easy Page 5

Reference: Learning Objective 1 / The Concept of Business and the Concept of Profit



2. Non-profit businesses operate in many of the same ways as businesses that seek profits.



Answer: True Level: Easy Page 5

Reference: Learning Objective 1 / The Concept of Business and the Concept of Profit



3. A factor of production is a nation’s system for allocating resources among its citizens.



Answer: False Level: Easy Page 6

Reference: Learning Objective 3 / Factors of Production



4. A planned economy relies on a centralized government to control all or most of the factors of
production and to make all or most production and allocation decisions.



Answer: True Level: Easy Page 11

Reference: Learning Objective 3 / Types of Economic Systems

, 5. Capitalism allows for the private ownership of the factors of production.



Answer: True Level: Easy Page 12

Reference: Learning Objective 3 / Types of Economic Systems



6. In a socialist economy, the government owns and operates selected major industries.



Answer: True Level: Easy Page 12

Reference: Learning Objective 3 / Types of Economic Systems



7. Economic systems allocate the factors of production differently.



Answer: True Level: Easy Page 11

Reference: Learning Objective 3 / Types of Economic Systems



8. The law of demand states that buyers will purchase more of a product as its price drops and
less of a product as its price increases.



Answer: True Level: Easy Page 13

Reference: Learning Objective 4 / Demand and Supply in a Market Economy



9. The point at which the supply curve and the demand curve intersect is the market price.



Answer: True Level: Easy Page 14

Reference: Learning Objective 4 / Demand and Supply in a Market Economy