South Branch Career and Technical Center
Introduction to Business
Directions: 1. Read each question carefully;
2. read choices a, b, c and d;
3. select the correct answer; you may enter ONLY ONE ANSWER;
4. using your mouse, place the cursor over the "option button" to the left side of the correct answer. "Left click" the cursor. The center of the option button should become green. If it does not, please ask your instructor for assistance. After the option button becomes green, you have successfully answered the question, and you may move on to the next question.
5. When you have finished the test, please re-read and check your answers. When you feel you have done your best, go to "File" in the upper left hand side of your task bar, select the "Print" option. When the print box appears, press OK. Your completed test should begin printing.
___________ helps to keep prices at a reasonable level.
a) profit motive
b) competition
c) worker role
d)
voluntary exchange
Question 2
___________ is the business cycle that occurs after a period of depression.
a) recovery
b) recession
c) depression
d) prosperity
Question 3
Which of the following is true about inflation?
a) It is a problem that our
country has had to deal with.
b) It is a sustained increase in the general level of
prices.
c) Prices of goods and services rise faster than wages.
d) All of the above.
Question 4
When the effect of price changes is taken out of GDP, we have
a) inflated GDP.
b) undervalued GDP.
c) real GDP.
d) GDP per capita.
Question 5
Gross domestic product is
a) the total value of all
goods produced in a year.
b) the total value of all final goods and
services produced in a year.
c) the total value of all services produced in a year.
d) none of the above.
Question 6
The condition that is opposite of inflation is called
a) scarcity.
b) deflation.
c) profit motive.
d) undervalue.
Question 7
GDP divided by the total population is
a) inflated GDP
b) undervalued GDP.
c) real GDP.
d) GDP per capita.
Question 8
The quantity of a product or service that consumers are willing and able to buy at a given price is called
a) demand.
b) profit.
c) supply.
d)
consumer preference.
Question 9
Which of the following is the best definition of supply?
a) the quantity businesses
would like consumers to buy.
b) the quantity producers are
able to produce at a given price.
c) the quantity producers would like to
produce.
d) the quantity consumers are willing and able to buy.
Question 10
The basic economic problem is also called
a) wants
b)
competition
c) choices
d) scarcity
Question 11
The person or group who receives a franchise is called the
a) franchiser
b) franchisee
c) marketer
d) extractor
Question 12
A wholesaler sells directly to
a) retailers
b) manufacturers
c) consumers
d) all of the above
Question 13
A business affects the community when it
a) buys products.
b) uses services.
c) employs workers.
d) all
of the above.
Question 14
A leader who has the personal trust and respect of group members will have what kind of influence?
a) identity
b) expert
c) position
d) reward
Question 15
Which of the following is NOT an important human relations skill of managers?
a) self-understanding
b) understanding others
c) criticizing poor employee performance
d) communications
Question 16
Managers rather than employees would be most concerned about
a) profits.
b) pay.
c) working conditions.
d) job security.
Question 17
The ___________ is the blending of four marketing elements to satisfy a target market.
a) custom manufacturing
b) marketing mix
c) processing
d)
mass production
Question 18
Today most promotion is done through
a) sales promotion.
b)
publicity.
c) media advertising.
d) personal selling.
Question 19
Which word below includes the methods and information communicated to customers to encourage purchases and increase their satisfaction?
a) promotion
b) pricing
c) distribution
d) marketing
Question 20
It is necessary for the US to import a variety of
a) farm machinery.
b) metals.
c) horses.
d) dollars.
Question 21
Another name for government income is
a) expenses.
b) profits.
c) revenue.
d) none of these.
Question 22
Which of the following is a correct description of a copyright?
a) issued for 17 years
b) issued for inventions
c) lasts for 50 years only
d) continues for the life of the person receiving it and
beyone
Question 23
The federal organization set up to enforce standards for air quality is
a) the EPA.
b) the SPC.
c) the AEP.
d) none of the above.
Question 24
A business that contributes to community groups, such as to the community chest and to homeless shelters, is being
a) morally responsible.
b) ethically correct.
c) socially responsible.
d) careless with profits.
Question 25
Which of the following is a tax on imported goods?
a) embargo
b) quota
c) customs factor
d) tariff
Question 26
Refers to business transactions involving companies operating in just one state:
a) interstate
commerce
b) intrastate commerce
c)
d)
Question 27
The legal right to exclusively make, use, or sell an item for 17 years is called a
a) patent
b) copyright
c)
d)
Question 28
Products and services we sell to other countries are called:
a) imports
b) exports
c)
d)
Question 29
A limit on the import or export of certain products is a(n)
a) embargo
b) quota
c) .
d)
Question 30
An agreement to exchange goods or services for something of value is called a
a) contract.
b) bargain.
c)
d)
Question 31
To determine the value of your money compared to that of another country, you need to know the
a) dollar conversion
formula.
b) dollar denominator.
c) banker's ratio.
d) exchange rate.
Question 32
Ethics are
a) of little concern to
business.
b) principles of morality.
c) behaviors performed by groups.
d) all of the above.
Question 33
Which government agency has been set up to help new businesses get started?
a) New Business Agency
(NBA)
b) Bureau of Labor Statistics (BLS)
c) Small Business Administration (SBA)
d) None of the above
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