13 Jan All economies in the

Question
Quiz 1

Quiz 1

Question 1

Munn, Inc. is a company that sells night vision equipment to the public. When it first launched its website, some of the equipment was incorrectly offered for sale at the company’s wholesale price. The company received one hundred orders for the mispriced items before the mistake was corrected and the price changed. If Munn, Inc. follows good business and ethical practices, it will:

A)

Charge the one hundred customers the posted wholesale price of the equipment

B)

Delete the one hundred customers’ orders, hoping they will reorder at the correct price

C)

Charge the one hundred customers the correct retail price of equipment

Question 2

Which of the following is/are an example(s) of a service?

A)

A flight from Los Angeles to Dallas

B)

A couch or sofa

C)

A computer

Question 3

Which of the following is/are internal stakeholders in a business?

A)

Competitors

B)

Industry associations

C)

Managers

Question 4

A business cycle reflects changes in economic activity, particularly real GDP. The phases of a business cycle, in order, are:

A)

Expansion, peak, contraction and trough

B)

Expansion, trough, contraction and peak

C)

Contraction, recession, expansion and boom

Question 5

The field of economics that focuses on the actions of individual agents within the economy, like households, workers, and businesses is:

A)

Global economics

B)

Microeconomics

C)

Macroeconomics

Question 6

Pertaining to international trade, the acronym WTO stands for:

A)

World Trade Organization

B)

World Transaction Operations

C)

Working Trade Organization

Question 7

When the Japanese yen goes up relative to the U.S. dollar:

A)

U.S. citizens will receive more Japanese yen for each dollar they exchange

B)

Japanese goods will be more expensive for U.S. citizens

C)

Japanese goods will be cheaper for U.S. citizens

Question 8

________ follow(s) the dictates of laws, which are written down and interpreted by the courts.

A)

Legal behavior

B)

Morals

C)

Ethics

Question 9

Statistics that indicate change in the status of the economy a few months in the past are called ________ economic indicators.

In

A)

Prognosticating

B)

Leading

C)

Lagging

Question 10

Pertaining to international trade, the acronym GATT stands for:

A)

Global Agency of Textile Trade

B)

Georgia Affiliation of Timed Transit

C)

General Agreement on Tariffs and Trade

Question 11

In 2015, the fictional country Moonbeam Island had $1.8 billion in imports and $1.2 billion in exports. Its balance of trade is:

A)

$600 million surplus

B)

$600 million deficit

C)

$3 billion surplus

Question 12

Both capital and natural resources can be used to produce other goods and services, but only capital resources:

A)

Require bank financing

B)

Have been produced

C)

Grow naturally

Question 13

A person who seeks to earn profits by finding new ways to organize factors of production is a(n):

A)

Employee

B)

Manager

C)

Entrepreneur

Question 14

Shopping online you find a new pair of running shoes that is a brand you have purchased before. They are offered for 1,500 Thai baht. You check the exchange rate and find that the current exchange rate for the baht is $.03 bahts per dollar. What is the price for the shoes in U.S. dollars?

A)

$4.50

B)

$45.00

C)

$450.00

Question 15

If the Consumer Price Index was 120 at the end of last year and is 125 at the end of this year, the country is experiencing which of the following?

A)

Inflation

B)

Stagnation

C)

Deflation

Question 16

A hotel provides both goods and services. Which of the following is an example of a good provided by a hotel?

A)

Offering a bathrobe that you can purchase to take home with you

B)

Offering rooms for rent

In

C)

Providing clean linens during your stay

Question 17

If Guatemala is seeking funding to invest in expanding production and exports that will grow its economy then it would turn to:

In

A)

the World Trade Organization.

B)

the International Monetary Fund.

C)

the World Bank.

Question 18

When it was formed the World Trade organization absorbed:

A)

the IMF

B)

the World Bank

C)

all of GATT’s agreements

Question 19

A ________ is a formalized guide that describes the principles and guidelines that all members must follow in the course of job-related activities.

A)

Business plan

B)

Code of conduct

C)

Balance sheet

Question 20

Which function is responsible for creating financial reports that can be used to evaluate the financial performance of the business?

In

A)

Finance

B)

Management

C)

Accounting

Question 21

If a drop in the price of taxicab fares shifts the demand curve of private limousine rentals leftward, what does this signify?

A)

Taxicab rides and limousine rentals are inferior goods

B)

Taxicab rides and limousine rentals are substitutes

C)

Taxicab rides and limousine rentals are normal goods

Question 22

The market value of all goods and services produced by the economy in a given year is known as:

A)

Rate of Inflation

B)

Gross Domestic Product (GDP)

C)

Consumer Price Index (CPI)

Question 23

________ is the system of shared beliefs, values, customs, and behaviors that govern the interactions of members of a society.

A)

Culture

B)

Organization

C)

Humanity

Question 24

All economies in the world share three primary goals, which are:

A)

Growth, high employment, and price stability

B)

Productivity, high employment and price stability

C)

Growth, happiness and price stability