Foundations of Business
7th Edition by William M. Pride
Complete Chapters Test Bank
are included (Ch 1 to 18)
** Immediate Download
** Swift Response
** All Chapters included
,Name: Class: Date:
Chap 01 7e
Indicate whether the statement is true or false.
1. A person must own stock in a corporation to be considered a stakeholder.
a. True
b. False
2. Macroeconomists often study the effect of taxes, government spending, interest rates, and similar factors on a
nation's economy.
a. True
b. False
3. A market economy is sometimes referred to as a command economy.
a. True
b. False
4. Command economies include capitalism, socialism, and communism.
a. True
b. False
5. According to Adam Smith, under laissez-faire capitalism, everyone should be allowed to work toward their own
economic gain without government interference.
a. True
b. False
6. Today, managers and employees are no longer concerned about cultural diversity.
a. True
b. False
7. Fewer workers producing more goods and services can lead to higher overall employment rates.
a. True
b. False
8. An oligopoly is a market situation in which there is one producer and a few large buyers.
a. True
b. False
9. If a firm's sales revenue exceeds its expenses, the firm has earned a profit.
a. True
b. False
10. The products available in a monopolistically competitive market are similar in nature and are intended to satisfy
the same basic need.
a. True
b. False
Page 1
,Name: Class: Date:
Chap 01 7e
11. The ultimate goal of every business firm should be to satisfy the needs of its customers.
a. True
b. False
12. Economists define a recession as two or more consecutive three-month periods of decline in a country's gross
domestic product (GDP).
a. True
b. False
13. The U.S. business system is more accurately referred to as a mixed economy.
a. True
b. False
14. A factory system of manufacturing involves the separation of a manufacturing process into separate tasks and
the assignment of different tasks to different employees.
a. True
b. False
15. Reducing costs and enabling employees to work more efficiently are at the core of all attempts to improve
productivity.
a. True
b. False
16. Specialization is meant to increase the efficiency and productivity of industrial workers.
a. True
b. False
17. Productivity is the total output per worker per year.
a. True
b. False
18. The four resources that a business must use to operate successfully include material resources, human
resources, financial resources, and operational resources.
a. True
b. False
19. Only about half of business firms survive the first five years.
a. True
b. False
20. During the Great Depression, government became deeply involved in business to stimulate the nation’s
economy.
a. True
b. False
Page 2
, Name: Class: Date:
Chap 01 7e
21. Inflation is a general rise in the level of prices experienced by people in a nation.
a. True
b. False
22. During the peak or prosperity stage of a nation's business cycle, businesses are reluctant to offer new products
and services.
a. True
b. False
23. The equilibrium or market price exists when the supply of a product exceeds the amount that consumers are
willing to purchase.
a. True
b. False
24. Monetary policies exert the government's influence on the amount of savings and expenditures by altering the
tax structure and changing the levels of government spending.
a. True
b. False
25. A depression is a severe recession that lasts longer than a recession.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
26. A price at which the demanded quantity is equal to the quantity supplied of that product is called the _______
price.
a. market
b. customer
c. equality
d. demand
e. supply
27. Which of the following best characterizes how the government uses tax dollars?
a. To invest in foreign bonds
b. To invest in foreign corporations
c. To purchase resources and products needed to provide services
d. To purchase other nations
e. To increase consumer income
Page 3
7th Edition by William M. Pride
Complete Chapters Test Bank
are included (Ch 1 to 18)
** Immediate Download
** Swift Response
** All Chapters included
,Name: Class: Date:
Chap 01 7e
Indicate whether the statement is true or false.
1. A person must own stock in a corporation to be considered a stakeholder.
a. True
b. False
2. Macroeconomists often study the effect of taxes, government spending, interest rates, and similar factors on a
nation's economy.
a. True
b. False
3. A market economy is sometimes referred to as a command economy.
a. True
b. False
4. Command economies include capitalism, socialism, and communism.
a. True
b. False
5. According to Adam Smith, under laissez-faire capitalism, everyone should be allowed to work toward their own
economic gain without government interference.
a. True
b. False
6. Today, managers and employees are no longer concerned about cultural diversity.
a. True
b. False
7. Fewer workers producing more goods and services can lead to higher overall employment rates.
a. True
b. False
8. An oligopoly is a market situation in which there is one producer and a few large buyers.
a. True
b. False
9. If a firm's sales revenue exceeds its expenses, the firm has earned a profit.
a. True
b. False
10. The products available in a monopolistically competitive market are similar in nature and are intended to satisfy
the same basic need.
a. True
b. False
Page 1
,Name: Class: Date:
Chap 01 7e
11. The ultimate goal of every business firm should be to satisfy the needs of its customers.
a. True
b. False
12. Economists define a recession as two or more consecutive three-month periods of decline in a country's gross
domestic product (GDP).
a. True
b. False
13. The U.S. business system is more accurately referred to as a mixed economy.
a. True
b. False
14. A factory system of manufacturing involves the separation of a manufacturing process into separate tasks and
the assignment of different tasks to different employees.
a. True
b. False
15. Reducing costs and enabling employees to work more efficiently are at the core of all attempts to improve
productivity.
a. True
b. False
16. Specialization is meant to increase the efficiency and productivity of industrial workers.
a. True
b. False
17. Productivity is the total output per worker per year.
a. True
b. False
18. The four resources that a business must use to operate successfully include material resources, human
resources, financial resources, and operational resources.
a. True
b. False
19. Only about half of business firms survive the first five years.
a. True
b. False
20. During the Great Depression, government became deeply involved in business to stimulate the nation’s
economy.
a. True
b. False
Page 2
, Name: Class: Date:
Chap 01 7e
21. Inflation is a general rise in the level of prices experienced by people in a nation.
a. True
b. False
22. During the peak or prosperity stage of a nation's business cycle, businesses are reluctant to offer new products
and services.
a. True
b. False
23. The equilibrium or market price exists when the supply of a product exceeds the amount that consumers are
willing to purchase.
a. True
b. False
24. Monetary policies exert the government's influence on the amount of savings and expenditures by altering the
tax structure and changing the levels of government spending.
a. True
b. False
25. A depression is a severe recession that lasts longer than a recession.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
26. A price at which the demanded quantity is equal to the quantity supplied of that product is called the _______
price.
a. market
b. customer
c. equality
d. demand
e. supply
27. Which of the following best characterizes how the government uses tax dollars?
a. To invest in foreign bonds
b. To invest in foreign corporations
c. To purchase resources and products needed to provide services
d. To purchase other nations
e. To increase consumer income
Page 3
