Intro to Business Chapter 2 Quiz Review

Question 1

Equity refers to

Accepted Answer

ownership in a company

Question 2

The interest rate financial institutions charge to borrow funds from Federal Reserve banks

Accepted Answer

discount rate

Question 3

When consumers increase their borrowing, interest rates tend to decline

Accepted Answer

False

Question 4

Capital projects involve spending by businesses for employee training and benefits

Accepted Answer

False

Question 5

Which of the following would most likely cause a budget surplus for government

Accepted Answer

lower spending

Question 6

In emerging markets, consumer incomes and buying power are

Accepted Answer

increasing

Question 7

Which of the following would not be included in GDP?

Accepted Answer

dinner preparation for your family

Question 8

The labor force consists of people above the age of __ who are actively working

Accepted Answer

16

Question 9

Some nations have abundant resources and never experience hardships

Accepted Answer

False

Question 10

The money for capital projects usually comes from

Accepted Answer

all of these are correct

Question 11

Retail sales include

Accepted Answer

school supplies bought by students

Question 12

Deflation results in lower buying power of money

Accepted Answer

False

Question 13

Only final goods are counted when GDP is measured

Accepted Answer

True

Question 14

The last great depression in the U.S. was during the 1930s

Accepted Answer

True

Question 15

The phase of the business cycle in which unemployment is highest

Accepted Answer

depression

Question 16

Productivity would likely increase as a result of

Accepted Answer

expanded production technology

Question 17

Which type of business sells stock

Accepted Answer

corporation

Question 18

The rate individuals pay to borrow for the purchase of a new home

Accepted Answer

mortgage rate

Question 19

When you buy a corporate bond, you have lent money to the company

Accepted Answer

True

Question 20

A well-run business should never need to borrow money

Accepted Answer

False

Question 21

The rate banks charge to their best business clients

Accepted Answer

prime rate

Question 22

People who buy bonds are called

Accepted Answer

creditors

Question 23

Inflation can occur when the demand for goods and services is greater than the supply

Accepted Answer

True

Question 24

The main cause of unemployment is reduced demand for the goods and services

Accepted Answer

True

Question 25

The training of workers to do a specific task

Accepted Answer

specialization of labor

Intro to Business Chapter 2 Quiz Review

Questions 25

Intro to Business Chapter 2 Quiz Review

Questions 25