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Business: A Changing World, 4/e
O.C. Ferrell, Colorado State University
Geoffrey Hirt, DePaul University

The Dynamics of Business and Economics

True or False Quiz

Please answer all questions.



1

Economics is the study of how resources are distributed for the production of goods and services within a social system.
A)True
B)False
2

Profit is the difference between what it costs to make and sell a product and what the customer pays for it.
A)True
B)False
3

Most nations operate as mixed economies, which have elements from more than one economic system.
A)True
B)False
4

Socialism is an economic system in which the government owns and operates basic industries while individuals own most other businesses.
A)True
B)False
5

The goal of all organizations is profit.
A)True
B)False
6

The standard of living rises because people have more money to spend.
A)True
B)False
7

Profit is represented by the point where a product's supply and demand curves intersect.
A)True
B)False
8

Prior to World War II, the United States was mainly an agricultural economy.
A)True
B)False
9

Economic contraction occurs when an economy is growing and people are spending more money.
A)True
B)False
10

Products have tangible and intangible attributes.
A)True
B)False
11

Societal trends have gradually changed the U.S. to a service economy.
A)True
B)False
12

A central issue of economics is how to fulfill a limited demand for goods and services in a world with unlimited resources.
A)True
B)False
13

A severe depression may turn into a recession.
A)True
B)False
14

Equilibrium is the quantity of goods and services that consumers are willing to buy at different prices at a specific time.
A)True
B)False
15

The focus of all human resource activities is customer satisfaction.
A)True
B)False
16

The focus of all management activities is satisfying customers.
A)True
B)False
17

A monopoly exists when there is only one producer of a product in a given market.
A)True
B)False
18

Television first made consumers aware of differences in products and prices in the manufacturing economy.
A)True
B)False
19

Socialism and laissez-faire capitalism are essentially the same thing.
A)True
B)False




McGraw-Hill/Irwin