Question 1

Over many years the nature of U.S. business has changed very little from century to century.

Accepted Answer

The nature of U.S. business has changed significantly over the centuries, with shifts in industries, technologies, and economic systems. For example, agriculture dominated in the early days of the country, then manufacturing, and now there is a greater emphasis on service-based industries and technology. Additionally, economic systems have evolved from mercantilism to capitalism to mixed economies with government intervention.

Question 2

According to the box, "Gourmet Airport Eateries Take Flight," safety regulations have made it difficult for airport restaurants to operate. Because of this, all airport food is limited to cold sandwiches and reheated entrees. This makes an airport restaurant an unprofitable business venture.

Accepted Answer

The statement is not entirely true. While safety regulations have created some challenges, there are still many airport restaurants that offer gourmet options and manage to operate profitably.

Question 3

The evidence for climate change is questionable. Well-known U.S. companies are taking a wait-and-see approach toward addressing climate change.

Accepted Answer

The statement is incorrect as there is overwhelming scientific evidence for climate change. Additionally, many U.S. companies have taken significant steps to address climate change, such as setting targets for reducing greenhouse gas emissions and investing in renewable energy.

Question 4

Increases in productivity have allowed fewer farmers to feed more and more people.

Accepted Answer

With advanced technology, machinery, and practices, farmers are able to produce greater quantities of food with less effort and resources, allowing them to feed a growing population with fewer farmers.

Question 5

The best employment strategy for today's college graduates is to search for jobs that are closely related to their college major.

Accepted Answer

The answer of The best employment strategy for today's college...

Question 6

There are more high-paying jobs in the service sector than in the goods-producing sector.

Accepted Answer

According to recent data from the Bureau of Labor Statistics, the service sector includes many high-paying occupations such as healthcare, finance, and professional and technical services. In contrast, the goods-producing sector tends to have more jobs in lower-paying industries such as manufacturing and construction.

Question 7

War and terrorism have had a significant effect in drawing many resources away from the U.S. economy and led to many additional costs for businesses.

Accepted Answer

War and terrorism require the use of resources and funding that could have otherwise been allocated towards the U.S. economy or businesses. Additionally, businesses may face additional costs such as increased security measures or lost profits due to market instability during times of war or terrorism.

Question 8

In most industries, the only producers that pose a serious threat to U.S. manufacturers are those in Japan and Western Europe.
Producers in countries like China and India have become major U.S. competitors. For example, Lenovo, a Chinese firm, recently bought IBM's PC unit.

Accepted Answer

The answer of In most industries, the only producers that...

Question 9

Technology helped the manufacturing industry to become more productive.

Accepted Answer

The use of advanced technology in manufacturing has led to automation, improved precision, and increased efficiency, which has boosted productivity.

Question 10

Lucy owns a restaurant in Los Angeles. She heard on the radio that the homeland security threat level has been increased due to anticipated terrorist activities, especially in large cities in the U.S. She will likely not be able to get insurance to cover any losses her business may suffer should an attack occur in L.A.

Accepted Answer

This is likely true as insurance companies may view the higher threat level as an increased risk and may be hesitant to provide coverage, or may impose higher premiums that may not be affordable for small business owners like Lucy.

Question 11

Almost all of the growth in employment opportunities since the mid-1980s has been generated by the service sector.

Accepted Answer

According to data from the Bureau of Labor Statistics, in the United States, almost all of the net increase in employment from 1985 to 2017 occurred in the service-providing sector, while the goods-producing sector experienced little net change in employment.

Question 12

While the proportion of workers employed in agriculture has remained relatively constant, the average size of farms has steadily decreased over the past century.

Accepted Answer

The statement is incorrect. The proportion of workers employed in agriculture has actually decreased over time, while the average size of farms has increased.

Question 13

Carlos Gonzalez owns a small manufacturing company that makes ventilation systems used in the construction of office buildings. As the U.S. continues to be involved in wars around the globe, Carlos may notice that his business will be growing more slowly in the future as more money continues to be put into the war effort.

Accepted Answer

The answer of Carlos Gonzalez owns a small manufacturing company...

Question 14

The number of U.S. jobs in manufacturing has increased in the past five years.

Accepted Answer

The answer of The number of U.S. jobs in manufacturing...

Question 15

One of the problems with globalization is that distribution systems and communication systems lack efficiency.

Accepted Answer

The answer of One of the problems with globalization is...

Question 16

After several years of study as a part-time student, Alex recently earned a degree in marketing at a local college. The growth in global markets may increase Alex's job opportunities, but it will also require him to continually update his skills or seek further education.

Accepted Answer

The statement is true as the growth in global markets will require Alex to stay updated with the changing market and consumer trends, as well as new marketing techniques and technologies. He may have to undertake further education or training to remain competitive in the job market.

Question 17

Companies that participate in the defense industry by making weapons and other companies that make armored vehicles and even food companies do well when the U.S. is at war.

Accepted Answer

Companies that participate in the defense industry tend to do well during times of war due to increased demand for their products and services. This includes not only weapon manufacturers and armored vehicle companies but also food companies that may provide rations for soldiers.

Question 18

Although employment in the service sector has increased rapidly in recent years, the vast majority of workers are still employed in the goods producing sector.

Accepted Answer

The answer of Although employment in the service sector has...

Question 19

Maya is an engineer for Windy Ridge, Inc. a maker of wind turbines. Recently, a large company has shown interest in investing in this small operation. This is not surprising since firms that are creating products for alternative sources of energy are attracting the attention of governments and other businesses.

Accepted Answer

It is true that firms creating products for alternative sources of energy are attracting the attention of governments and other businesses, as they are seeking to invest in sustainable and renewable energy solutions. This makes it unsurprising that a large company would show interest in Windy Ridge, Inc., which makes wind turbines.

Question 20

The advice provided by a marriage counselor is an example of the service industry.

Accepted Answer

The service industry refers to businesses that provide intangible services to customers, such as advice, expertise or guidance. Marriage counselors provide advice to couples, thus making their profession an example of the service industry.

Quiz 1: Taking Risks and Making Profits Within the Dynamic Business Environment