In the context of the history of American business, the industrial revolution era encouraged workers to take individual ownership and personal pride in the production process.

Demographic factors include the milestones achieved during the developments in the field of computers, telecommunications, and other digital products.

Online technology prevents leading-edge companies from offering customized products at prices that are comparable to standardized products.

The central banking system of the United States is the Federal Reserve.

During the production era, managers focused mostly on customer satisfaction and not on production efficiency.

People can create natural resources by growing and harvesting agricultural products.

In the context of the competitive environment of business, unlike leading-edge firms, bleeding-edge firms offer products just as the market becomes ready to embrace them.

In the context of the competitive environment of business, a product has value when its benefits to the customer are lesser than the price that the customer pays.

Which of the following statements is true of profit in a business?

Menoth, a recreational resort for the elderly, saw a sharp increase in its customers in the last decade compared to the period between 1996 and 2006. This was because 65% of working individuals retired in the last decade. Identify the dimension of the social environment that this scenario exemplifies.

In the context of factors of production, which of the following statements is true of capital?

In the context of the workforce advantage in the business environment, as the baby boom generation begins to retire, which of the following will likely become a crucial competitive issue in the next decade?

Lint Port, an apparel company, offers personalized customer service in all its stores and engages in post-purchase communication to take feedback from its customers. It also gives gift vouchers with customized messages to its customers on their birthdays. The company values the importance of building long-term customer relationships. In this context, which dimension of the business environment is affected the most?

In the context of the history of American business, during the entrepreneurship era, _____.

Which of the following is an example of a nonprofit organization?

Gormath Inc., a shoe manufacturing company, employs 750 workers to create handcrafted shoes. In the context of factors of production, the employees of Gormath Inc. can be classified as _____.

Melina and Carl want to start an event management company that would provide local artists with a platform to showcase their talent and gain an audience. Melina and Carl are willing to invest their own resources in this project. In the context of factors of production, the given scenario exemplifies the concept of _____.

Which of the following statements is true of the economic environment of a business?

Western Transit Bank has 150 automated teller machines (ATMs) across the country. Customers can use these machines to withdraw money, deposit money in their bank accounts, check their account balance, and transfer money to other accounts. These machines enable Western Transit Bank to carry out some of its operations smoothly. In the given scenario, the ATMs of Western Transit Bank can be classified as _____.

Which of the following is a characteristic of entrepreneurs?

Operth, an automobile company, hires people from various cultural and social backgrounds. This allows the company to enjoy a competitive advantage by developing innovative products that serve a wide customer base. Which of the following dimensions of the social environment does this scenario exemplify?

Chargon Flasks, a restaurant specializing in Asian cuisine, focuses solely on customer satisfaction. It allows patrons to customize the quantity of their meals and only charges them half the price if their meal is unsatisfactory. The restaurant also has a voluntary service charge policy. In this context, which dimension of the business environment is affected the most?

Reserve requirement is a rule of the Fed which requires that all of its member banks hold funds which are more than the stated percentage of the deposits held by their customers.

In the context of monetary policy, when the economy contracts, the Fed typically decreases the money supply.

Gross Domestic Product (GDP) measures the total value of all the imports and exports of a nation on a quarterly basis.

The consumer market basket of goods and services, in which the consumer price index (CPI) measures the change in weighted-average price over time, is created by the U.S. Bureau of Labor Statistics.

The gross domestic product (GDP) includes output produced within households.

Social security taxes are a source of revenue for the U.S. federal government.

Each year, the Federal Open Market Committee holds eight regularly scheduled meetings to make decisions about open market operations.

The amount of input divided by the amount of output equals productivity.

Economists declare an official recession when gross domestic product decreases for six consecutive quarters.

Disinflation is defined as a period of slowing average price increases across an economy.

In the context of monetary policy, when the Fed reduces the discount rate, banks will have to obtain funds at a higher cost.

In the context of federal debt, if spending is lower than revenue, the government incurs a budget deficit.

Gross Domestic Product (GDP) levels tend to be somewhat understated, since they don't include any illegal activities, which can represent a significant portion of some countries' production.

The structure of the Board of Governors of the Federal Reserve is such that no single president can appoint all of the Board's members.

In the context of monetary policy, the money supply includes credit cards.

In 1982, the total expenditure of the government of Kargenia, a European country, exceeded its revenue by a substantial amount. This forced the government of Kargenia to borrow funds to meet its legal obligations. In this scenario, the government of Kargenia incurred a _____ in 1982.

In a business cycle, the _____ is a period of robust economic growth and high employment.

In the context of the free market system, which of the following market structures has a low barrier to entry?

Anoush used to work for an investment firm. Although she liked her job, she had to resign because it took her a lot of time to commute to work. After resigning, she searched for a job, and within a month, she found a better job that was closer to her home. In the given scenario, the duration of Anoush's unemployment exemplifies _____.

In the context of monetary policy, the _____ is a rule set by the Fed, which specifies the minimum amount of funds a bank must hold, expressed as a percentage of the bank's deposits.

To bring inflation under control, the Fed:

_____ is a market structure with only a handful of competitors selling products that can be similar or different and has high barriers to entry.

Which of the following statements best defines the producer price index (PPI)?

During a period of inflation in the United States, the Federal Reserve sells treasury bonds. Buyers of these bonds write checks to the Fed, and the Fed cashes these checks from banks. Given this information, the banks will most likely:

In the context of monetary policy, if the Fed decreases the reserve requirement, _____.

In the context of monetary policy, the Fed is most likely to reduce the discount rate during:

Real gross domestic product (GDP) measures the total value of final goods and services produced within a nation's physical boundaries over a given period of time, adjusted for:

In its role as a banker for banks, the Fed:

 In the context of open market operations, when inflation is a concern, the Federal Reserve _____ government securities.

The term _____ refers to a market structure with many competitors selling differentiated products; the barriers to enter such a market structure are low.

The government of the South Asian nation of Albana is unable to maintain the electronics business effectively because of slack in management and lack of skilled employees. It sells the business to a company called Ramington Electricals. The company has no association with the government, and it operates on its own terms. The sale of the government-owned electronics business to Ramington Electricals is an example of _____.

 _____ is a market structure with just a single producer completely dominating the industry.

Which of the following is an example of a natural monopoly?

Which of the following is a difference between inflation and deflation?

The Fed directly stimulates spending by:

Which of the following tools is most frequently used by the Fed to expand and contract the money supply in the economy?

In the context of price levels, which of the following is used by the government to evaluate inflation?

In the context of monetary policy, when the economy is weak, the Fed:

Which of the following is one of the core purposes of the Fed?

In the context of fiscal policy, which of the following actions by the government helps boost the economy in the long term?

New Tapan, an African country, invested resources in the defense sector, and as a result, its budget deficit grew. To decrease the budget deficit, the government of New Tapan cut down its expenditures in several other sectors and imposed higher taxes. Similar measures implemented by the government in the United States would most likely create _____.

In the context of monetary policy, which of the following statements is true of money supply?

Brontsky & Co., a member bank of the Fed, receives a notice from the Fed that notifies that it must hold funds equal to 15% of the deposits held by its customers. In this scenario, the 15% is the _____.

A(n) _____ is a structure for allocating limited resources.

Macroeconomics involves the study of:

Microeconomics focuses on:

In its role as a regulator, the Fed:

The United States goes through a period of recession because of the continuous decrease in the nation's gross domestic product. The Fed intervenes and improves the situation by reducing the discount rate. This move by the Fed will result in:

Gregory was a typist at a corporate firm. When the company adopted a special voice recognition software for the purpose of documentation, Gregory's job became redundant. Therefore, he was laid off. The increased use of technology in most companies has made Gregory's skills inessential, and he remained unemployed for a long time. In the given scenario, Gregory is facing _____.

_____ refers to Federal Reserve decisions that shape the economy by influencing interest rates and the supply of cash.

In response to inflation, the Fed is likely to:

Which of the following statements is true of productivity?

The district of Dansas in Nerito, a European country, is a major producer of walnuts. All producers in the district sell packaged walnuts. The market structure is flexible enough for producers to enter and leave the market as and when they wish, but no single producer has control over the prices of the product. Which of the following market structures exists in Dansas?

A newly appointed government in the United States requests Congress to raise the amount of money that the government can borrow. This borrowed money is intended to be used to cover the costs of the major policies that the government plans to implement. In this scenario, the government has asked the Congress to hike its _____.

Identify a true statement about the debt ceiling.

Identify a true statement about the Federal Reserve.

A limited liability company (LLC) can elect to be taxed as a corporation.

Corporations are by far the most common type of business organization in the United States.

A disadvantage of an S corporation is that it can have no more than 50 stockholders.

A corporation can be a partner in a partnership.

One of the limitations of a not-for-profit corporation is that it cannot have stockholders.

The earnings of not-for-profit corporations are exempt from federal and state income taxes.

The most basic form of a partnership is known as a general partnership.

A corporation offers more flexibility than a limited liability company (LLC) in terms of tax treatment.

A corporation is a business entity created by filing a form, which is known in most states as the articles of incorporation.

It is possible to establish a corporation by a simple verbal agreement.

The Internal Revenue Service classifies each limited liability company (LLC) based on the tax treatment the company selects.

Signing a franchise agreement exempts the franchisee from making any form of payments to use a franchisor's products.

A limited partnership is an agreement between two or more individuals to operate a business as co-owners for a limited period of time.

One of the advantages of a C corporation is ease of formation.

One of the disadvantages of general partnerships is the lack of continuity.

A sole proprietorship tends to be both larger and more profitable than a partnership.

Common stock represents the basic ownership interest in a corporation.

The most common type of corporation is an S corporation.

Michael owns 100 shares of stock in the Zanson Electricals Corporation, but as a stockholder, he does not have the right to vote in stockholders' meetings. In this scenario, Michael is a preferred stockholder.

In the context of limited partnerships, the general partners of a company assume limited personal liability for any of the company's debts.

There is no limit on the number of partners who can participate in a general partnership.

Choice of ownership determines the degree to which each owner has personal liability for the firm's debts.