comm 101 chapter 1 upload

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What is a characteristic of perfect competition?

Firms have significant control over prices.

There are many firms selling identical products. (correct)

Barriers to entry are extremely high.

Products are differentiated to attract specific consumer segments.

Which market structure is characterized by a few firms dominating the market?

Oligopoly (correct)

Perfect competition

Market failure

Monopolistic competition

How does monopolistic competition differ from perfect competition?

Firms in monopolistic competition sell identical products.

Monopolistic competition has no barriers to entry.

Firms in monopolistic competition engage in product differentiation. (correct)

All firms have the same costs in monopolistic competition.

What phase of the business cycle is characterized by increasing economic activity and rising employment?

Expansion Signup and view all the answers

Which factor does NOT influence the choices available to consumers in an economy?

Consumer behavior alone Signup and view all the answers

Which economic factor can lead to a decrease in consumer choice?

Economic contraction Signup and view all the answers

What distinguishes oligopoly from monopolistic competition?

Barriers to entry are significant in oligopoly. Signup and view all the answers

Which action might be affected by the slowdown of an economy?

Consumer spending on luxury items Signup and view all the answers

Which of the following is NOT a condition necessary for perfect competition to exist?

Restrictions on firms entering the industry Signup and view all the answers

In monopolistic competition, what is the primary strategic consideration for sellers?

Product differentiation Signup and view all the answers

What characterizes an oligopoly market structure?

Firms interact strategically using game theory Signup and view all the answers

Which phase of the business cycle is characterized by two consecutive quarters of economic contraction?

Recession Signup and view all the answers

Which of the following best describes inflation?

Persistent increase in prices over time Signup and view all the answers

What is a defining feature of a monopoly market structure?

One firm controlling the entire market Signup and view all the answers

In the business cycle, what occurs during the expansion phase?

Economic performance shows significant growth Signup and view all the answers

Which type of inflation occurs when demand exceeds supply?

Demand-pull inflation Signup and view all the answers

What is a potential consequence of deflation in an economy?

Increased purchasing power of consumers Signup and view all the answers

What happens during the trough phase of the business cycle?

Unemployment rate hits a peak Signup and view all the answers

Which of the following accurately defines profit in a business context?

The money left over after all expenses are paid Signup and view all the answers

What is a primary goal of an organization that exists to achieve social goals?

Satisfying needs of its stakeholders Signup and view all the answers

Which of the following represents a material resource for a business?

The raw materials used in manufacturing Signup and view all the answers

What negative social impact can occur when a company is not cautious with its operations?

Irreversible damage to natural resources Signup and view all the answers

Which factor does NOT belong to the five external factors affecting business environments?

Social media factors Signup and view all the answers

In what situation would a business primarily focus on stakeholder satisfaction rather than profit?

When operating as a non-profit organization Signup and view all the answers

Which of the following best describes a human resource?

The people providing labor for wages Signup and view all the answers

What is one potential consequence of a successful business on its local community?

Increased employment opportunities Signup and view all the answers

What is revenue?

The total income generated by the sale of goods or services Signup and view all the answers

A business refers to:

An organization that sells goods and or services for profit, and to satisfy society's needs Signup and view all the answers

Which of the following are classified as goods? (Select all that apply)

Electronics Signup and view all the answers

What is a service?

An intangible product that we experience or use Signup and view all the answers

What is the term 'standard of living' most commonly associated with?

the amount of products available, the wealth of the nation, and lifestyle opportunities Signup and view all the answers

What factors are commonly considered to determine the quality of life? (Select all that apply)

Income and employment opportunities Signup and view all the answers

What is the definition of quality of life?

The general level of human well-being and happiness of people and societies including access to healthcare, education, and food Signup and view all the answers

What are costs in the context of a business?

Expenses for rent, salaries, supplies, transportation and many other items that a business incurs from creating and selling goods and services Signup and view all the answers

What is the definition of profit in a business context?

Total revenue minus total expenses Signup and view all the answers

Which of the following best describes stakeholders in a business context?

anyone who is impacted by the activities of the business Signup and view all the answers

What is the purpose of an environmental scan in business?

To assess external factors affecting the business Signup and view all the answers

What is an environmental scan?

The process of gathering information about the external environment to determine how it will potentially impact the business operations Signup and view all the answers

What is a patent?

A legal right that grants the inventor exclusive rights to manufacture, use and sell their invention. Signup and view all the answers

What is a trademark?

A symbol or word legally registered to represent a company or product Signup and view all the answers

Which of the following statements are true regarding a command economy? (Select all that apply)

Government control of production Signup and view all the answers

What characterizes a mixed economy?

A system that combines elements of both capitalism and socialism economy Signup and view all the answers

What is a defining characteristic of a socialism economy?

major infrastructure is owned and controlled by the government, while smaller businesses are controlled by individuals Signup and view all the answers