5.00 Test

Question 1

Businesses purchasing items for resale are exempt from sales tax. This helps to prevent when measuring the GDP?

Accepted Answer

double counting

Question 2

online communities enable business to learn about the wants and needs of their target market have created a new form of:

Accepted Answer

social relationships

Question 3

Exports are $1,000,000 and imports are $500,000 what is the country's trade postion

Accepted Answer

trade surplus

Question 4

Which will occur if the U.S. dollar increases in value?

Accepted Answer

imports will increase

Question 5

Sales are falling, production and employment are in decline, and the feeling among businesspeople is that times are bad.

Accepted Answer

contraction

Question 6

A country can often produce goods more inexpensively than other nations because it:

Accepted Answer

has easy access to raw materials

Question 7

Which are used in the calculation of the gross domestic product?

Accepted Answer

net exports

Question 8

Which is a company-specific influence on a stock price?

Accepted Answer

change in management

Question 9

In calculating GDP, economists try to avoid double counting because it would:

Accepted Answer

inflate the value of GDP

Question 10

Why might some nations be dependent on other nations?

Accepted Answer

unequal distribution of resources

Question 11

Falling interest rates typically cause

Accepted Answer

stock prices to increase

Question 12

Ups and downs in the level of economic activity over a period of time are called a/an:

Accepted Answer

business cycle

Question 13

A decline in the financial markets can be caused by:

Accepted Answer

higher unemployment

Question 14

At a stock exchange, specialists have responsibility for:

Accepted Answer

all of the trades on a particular stock

Question 15

Gross domestic product that has been adjusted for inflation is known as:

Accepted Answer

Real GDP

Question 16

When an emerging market suffers an economic decline, foreign investors usually:

Accepted Answer

quickly withdraw their money from the emerging market

Question 17

The U.S. produces cogs faster and cheaper than the UK does. In this ex., the U.S. has which type of economic advantage?

Accepted Answer

absolute

Question 18

Why should a businessperson understand business cycles?

Accepted Answer

to make plans that will level out cycles

Question 19

Some businesses sell their goods and services to individuals, businesses, or governments in other countries. This is

Accepted Answer

exporting

Question 20

An insurance appraiser:

Accepted Answer

determines repair costs for insurance claim settlements

Question 21

Which is an economic condition that consumer spending usually measures?

Accepted Answer

employment

Question 22

An insurance underwriter

Accepted Answer

reviews applications for insurance to evaluate the degree of risk involved

Question 23

What often occurs when the national unemployment rate falls?

Accepted Answer

the inflation rate increases

Question 24

For calculating the gross domestic product, wages paid to U.S. military personnel are categorized as

Accepted Answer

government purchases

Question 25

A country's central bank issues too much currency given the size of its economy.

Accepted Answer

prices will go up and inflation will result

Question 26

Maggie wants to buy stock in Pepsi but only when the price drops to a certain amount. What kind of order will she place?

Accepted Answer

limit

Question 27

Stay quiet about it but Raise your hand to get 10 extra credit points on the test!!!!

Accepted Answer

3, 4, 1, 2

Question 28

When people invest in stocks, what primarily drives their actions

Accepted Answer

expectations

Question 29

Which is a benefit of global trade?

Accepted Answer

an improved standard of living

Question 30

High levels of inflation often have a negative effect on a business's

Accepted Answer

purchasing power

Question 31

What tends to occur when a country is experiencing political instability?

Accepted Answer

its currency loses value

Question 32

When nominal gross domestic product (GNP) rises, the money supply typically

Accepted Answer

increases

Question 33

When the Consumer Price Index (CPI) increases sharply, stock prices usually:

Accepted Answer

fall

Question 34

Stocks whose prices rise higher, or fall lower, than the market as a whole are referred to as:

Accepted Answer

Volatile

Question 35

This year’s GDP is higher than last year’s even though production stayed same. The higher GDP figure is the result of

Accepted Answer

inflation

Question 36

One factor that has stimulated financial globalization is the increase in:

Accepted Answer

domestic competition

Question 37

What cultural and social characteristics could affect businesses that trade with certain foreign countries

Accepted Answer

role of women

Question 38

How can the general state of the economy affect a stock's price?

Accepted Answer

by increasing supply or demand

Question 39

During periods of economic expansion, businesses are likely to:

Accepted Answer

increase their production

Question 40

an example of nonverbal communication that might have a different meaning to businesspeople in other parts of the world?

Accepted Answer

shaking hands when greeting a customer

Question 41

One factor that contributed to financial globalization was the shift of many developed countries from

Accepted Answer

fixed exchange rates to floating exchange rates

Question 42

When interest rates continue to increase to a high level, the economy might experience a/an:

Accepted Answer

recession

Question 43

What is the difference between a stock’s ask price and buy price?

Accepted Answer

the asking price is the selling price, while the buy price is the bid price

Question 44

Japan and the U.S. buy and sell each other’s goods and services. This is an example of

Accepted Answer

global trade

Question 45

Which is the most likely result of institutional investors buying a number of shares of a company's stock?

Accepted Answer

individual investors purchase shares of stock from the company

Question 46

What do bond yields typically do during an economic expansion?

Accepted Answer

increase

Question 47

Which is a factor that measures the condition of the economy?

Accepted Answer

price stability

Question 48

If a bank doubles its interest rates on loans, the demand for money will:

Accepted Answer

decreases

Question 49

A large number of underemployed workers indicates a problem in the economy because underemployment means that:

Accepted Answer

there are insufficient jobs for qualified people

Question 50

How does a bull market affect a stock's price?

Accepted Answer

by encouraging product purchases

Question 51

The purchasing power of consumers will decrease when:

Accepted Answer

a pay raise is 4% and the inflation rate is 6%

Question 52

The government can restrict the flow of money by:

Accepted Answer

raising taxes

Question 53

When consumer purchasing power decreases, the economy will experience a period of:

Accepted Answer

contraction

Question 54

Which economic advantage occurs when a country can produce goods at a more efficient rate than another country?

Accepted Answer

comparative advantage

Question 55

What type of order restriction lets a broker know the order will expire at the end of the trading day?

Accepted Answer

day order

Question 56

The period of time during the business cycle when production and employment increase is called a/an

Accepted Answer

expansion

Question 57

Interest rates that rise and fall by a wide range on a regular basis often are an indication of:

Accepted Answer

economic instability

5.00 Test

Questions 57

5.00 Test

Questions 57