GEB 1011 EXAM 1: INTRO TO BUSINESS QUESTIONS
& ANSWERS
The ________ for a particular product is the quantity that buyers are willing to purchase
at each varying price. - Answer -Demand
A system of business where the key industries are owned and controlled by the
government with private ownership of some business is known as capitalism. - Answer
-False
Approximately 45 percent of small businesses fail within the first seven years. - Answer
-False
Material resources include sand, water, wood, dump trucks, and computers. - Answer -
True
If a company's sales are higher than its expenses, the company has earned what is
known as revenue. - Answer -False
When a firm is lacking financing, inventory, or time, it is dealing with issues of scarcity. -
Answer -True
The "invisible hand" was a term coined by Adam Smith. - Answer -True
Approximately 70 percent of U.S. production consists of goods and services purchased
by individuals for personal or household consumption. - Answer -True
In a socialist economy, the distribution of goods and services - who gets what - is
controlled by the government. - Answer -True
The health of a nation's economy is actually quite unrelated to the amount of interest
consumer's pay for homes, automobiles, and credit card purchases. - Answer -False
Generally, the business cycle consists of four phases: the peak, recession, the trough,
and recovery. - Answer -True
Which of the following government agencies issues guidelines on the use of labeling
that advertisers have an obligation to follow? - Answer -Federal Trade Commission
The ________ investigates illegal trade practices. - Answer -Federal Trade
Commission
For more than fifty years, women's salaries have consistently been only about
________ for each dollar earned compared to men's. - Answer -77
, The Clean Air Amendments, the Water Pollution Control Act Amendment, and the
National Environmental Policy Act were all instituted in the - Answer -1970s
All of the following are arguments for increased social responsibility except
a. business is a part of our society and therefore cannot ignore social issues.
b. by helping resolve social issues, business can create a more stable environment for
long-term profitability
c. socially responsible decision making by firms can prevent increased government
intervention, which would force businesses to do what they fail to do voluntarily.
d. social problems affect society in general, so individuals businesses should not be
expected to solve these problems.
e. business has the technical, financial, and managerial resources needed to tackle
today's complex social issues. - Answer -d. social problems affect society in general, so
individuals businesses should not be expected to solve these problems.
All of the following are rights of the consumer bill of rights except
a. the right to be informed.
b. the right to choose.
c. the right to courteous service.
d. the right to personalized service.
e. the right to be heard.
Hide Feedback - Answer -d. the right to personalized service.
Business ethics is the application of legal and regulatory standards to business
situations. - Answer -False
Cultural norms can play a part in a person's ethical or unethical behavior in the
workplace. - Answer -True
Regulations and laws were much stricter in the first quarter of the twentieth century than
they are now. - Answer -False
The Interstate Commerce Act was the first federal act to regulate business practices. -
Answer -True
A Latin phrase, caveat emptor, summarizes the vulnerable position that consumers
were in the early 1900s. - Answer -True
The EPA is a federal agency charged with enforcing laws intended to protect the
environment. - Answer -True
Misleading advertising in print or television is illegal as well as unethical. - Answer -
True
& ANSWERS
The ________ for a particular product is the quantity that buyers are willing to purchase
at each varying price. - Answer -Demand
A system of business where the key industries are owned and controlled by the
government with private ownership of some business is known as capitalism. - Answer
-False
Approximately 45 percent of small businesses fail within the first seven years. - Answer
-False
Material resources include sand, water, wood, dump trucks, and computers. - Answer -
True
If a company's sales are higher than its expenses, the company has earned what is
known as revenue. - Answer -False
When a firm is lacking financing, inventory, or time, it is dealing with issues of scarcity. -
Answer -True
The "invisible hand" was a term coined by Adam Smith. - Answer -True
Approximately 70 percent of U.S. production consists of goods and services purchased
by individuals for personal or household consumption. - Answer -True
In a socialist economy, the distribution of goods and services - who gets what - is
controlled by the government. - Answer -True
The health of a nation's economy is actually quite unrelated to the amount of interest
consumer's pay for homes, automobiles, and credit card purchases. - Answer -False
Generally, the business cycle consists of four phases: the peak, recession, the trough,
and recovery. - Answer -True
Which of the following government agencies issues guidelines on the use of labeling
that advertisers have an obligation to follow? - Answer -Federal Trade Commission
The ________ investigates illegal trade practices. - Answer -Federal Trade
Commission
For more than fifty years, women's salaries have consistently been only about
________ for each dollar earned compared to men's. - Answer -77
, The Clean Air Amendments, the Water Pollution Control Act Amendment, and the
National Environmental Policy Act were all instituted in the - Answer -1970s
All of the following are arguments for increased social responsibility except
a. business is a part of our society and therefore cannot ignore social issues.
b. by helping resolve social issues, business can create a more stable environment for
long-term profitability
c. socially responsible decision making by firms can prevent increased government
intervention, which would force businesses to do what they fail to do voluntarily.
d. social problems affect society in general, so individuals businesses should not be
expected to solve these problems.
e. business has the technical, financial, and managerial resources needed to tackle
today's complex social issues. - Answer -d. social problems affect society in general, so
individuals businesses should not be expected to solve these problems.
All of the following are rights of the consumer bill of rights except
a. the right to be informed.
b. the right to choose.
c. the right to courteous service.
d. the right to personalized service.
e. the right to be heard.
Hide Feedback - Answer -d. the right to personalized service.
Business ethics is the application of legal and regulatory standards to business
situations. - Answer -False
Cultural norms can play a part in a person's ethical or unethical behavior in the
workplace. - Answer -True
Regulations and laws were much stricter in the first quarter of the twentieth century than
they are now. - Answer -False
The Interstate Commerce Act was the first federal act to regulate business practices. -
Answer -True
A Latin phrase, caveat emptor, summarizes the vulnerable position that consumers
were in the early 1900s. - Answer -True
The EPA is a federal agency charged with enforcing laws intended to protect the
environment. - Answer -True
Misleading advertising in print or television is illegal as well as unethical. - Answer -
True
