Question 1

Free enterprise is a system of business in which individuals decide what to produce and how to produce it.

Accepted Answer

Free enterprise, also known as capitalism, is an economic system where private individuals have the freedom to make their own economic decisions, including what goods and services to produce and how to produce them, with minimal government intervention.

Question 2

Less than 65 percent of small businesses fail within the first ten years.

Accepted Answer

False&#10;

Question 3

Adam Smith argued that the creation of wealth is properly the concern of private individuals, not the government.

Accepted Answer

Adam Smith, in his seminal work "The Wealth of Nations," advocated for the idea that individuals pursuing their own self-interest in a free market would lead to economic prosperity, with minimal government intervention.

Question 4

The business cycle consists of two or more consecutive three-month periods of decline in a country's GDP.

Accepted Answer

The business cycle includes periods of expansion and contraction, but a recession is specifically defined as two consecutive quarters (six months) of GDP decline.

Question 5

A general rise in the level of prices is called&#10;A) free enterprise.&#10;B) inflation.&#10;C) gross domestic product.&#10;D) depression.&#10;E) monopoly.

Accepted Answer

Inflation is a general rise in the level of prices.

Question 6

A market situation in which there are many buyers and sellers of a product and no single buyer or seller can control the price is&#10;A) an oligopoly.&#10;B) a monopolistic marketplace.&#10;C) a monopoly.&#10;D) pure competition.&#10;E) a laissez-faire market.

Accepted Answer

Pure competition is a market situation where there are many buyers and sellers, and no single buyer or seller can influence the price of the product.

Question 7

A system of exchange in which goods or services are exchanged without using money is called&#10;A) a barter system.&#10;B) free enterprise.&#10;C) monetary policy.&#10;D) fiscal policy.&#10;E) monopolistic competition.

Accepted Answer

A barter system is a system of exchange in which goods or services are exchanged without using money.

Question 8

The separation of a manufacturing process into distinct tasks is referred to as&#10;A) barter.&#10;B) specialization.&#10;C) a factory system.&#10;D) a domestic system.&#10;E) an economy of scale.

Accepted Answer

Specialization refers to dividing a manufacturing process into distinct tasks, allowing workers to focus on specific tasks to increase efficiency and productivity.

Question 9

A method of manufacturing in which all materials, machinery, and workers are assembled in one place is called&#10;A) the economic system.&#10;B) the domestic system.&#10;C) Slater's system.&#10;D) the factory system.&#10;E) an oligopoly.

Accepted Answer

The factory system is a method of manufacturing where all resources, including materials, machinery, and workers, are brought together in one location to increase efficiency and production.

Question 10

The definition of a service economy is an economy in which more effort is devoted to the production of goods to be used for services.

Accepted Answer

A service economy is one where the majority of economic activity is focused on the provision of services rather than the production of goods.

Question 11

Walmart and Target are often referred to as marketing intermediaries.

Accepted Answer

The answer of Walmart and Target are often referred to...

Question 12

Approximately one-third of our nation's total production consists of consumer products.

Accepted Answer

The answer of Approximately one-third of our nation's total production...

Question 13

A monopoly is a market (or industry) with only one seller.

Accepted Answer

The answer of A monopoly is a market (or industry)...

Question 14

Which of the following is not one of the four resources used by business today?&#10;A) Material&#10;B) Informational&#10;C) Governmental&#10;D) Financial&#10;E) Human

Accepted Answer

The answer of Which of the following is not one...

Question 15

Today, the U.S. economy is often characterized as a __________ economy.&#10;A) laissez-faire&#10;B) command&#10;C) socialist&#10;D) mixed&#10;E) Smithsonian

Accepted Answer

The answer of Today, the U.S. economy is often characterized...

Question 16

Many economists refer to the average level of output per worker per hour as&#10;A) productivity.&#10;B) inflation.&#10;C) the business cycle.&#10;D) real GDP.&#10;E) the trough.

Accepted Answer

The answer of Many economists refer to the average level...

Question 17

Which of the following is not one of the four states in a business cycle?&#10;A) Peak&#10;B) Recession&#10;C) Trough&#10;D) Recovery&#10;E) Deficit

Accepted Answer

The answer of Which of the following is not one...

Question 18

Before leaving England, __________ memorized the plans for a water-powered spinning ma-chine and set up a textile plan in Pawtucket, Rhode Island.&#10;A) Eli Whitney&#10;B) Franklin Roosevelt&#10;C) Samuel Slater&#10;D) Mark Cuban&#10;E) Cyrus McCormick

Accepted Answer

The answer of Before leaving England, __________ memorized the plans...

Question 19

So You Think You Know Business?&#10;(Answer the following questions to see how much you really know.)&#10;-Since 1954, three companies have been No. 1 on America's Fortune 500 list several times. They are:

Accepted Answer