BUSM 20 TEST 1 Exam Questions With
Solutions
_______________ is/are the external and internal circumstances that surround the business.
Business Environment
Economics is the study of how a society _________________. -Uses scares resources to
satisfy its needs
-Employs resources to produce...
_______________ is/are the external and internal circumstances that surround the business.
Business Environment
Economics is the study of how a society _________________. -Uses scares resources to
satisfy its needs
-Employs resources to produce goods and services and distributes them among competing groups
and individuals
___________ studies the operation of a nation's economy as a whole. Macroeconomics
A major trend in the world today is that: Free-market economies are moving towards
socialism and socialist economies are moving more toawards capitalism
Today, the economic systems of most nations could most accurately be classified as:
Capitalism/Free Market
Jorge Martinez is a well-educated entrepreneur who operated a small business in his home
country of Florentina. At the encouragement of his American relatives, Jorge recently
, BUSM 20 TEST 1 Exam Questions With
Solutions
immigrated to the United States and applied for U.S. citizenship. "In Florentina, tax rates were
very high," Jorge complained. "The government used the taxes I paid to finance all sorts of social
programs to help the less fortunate. While this is a noble goal, it has really undermined the profit
incentive of individuals such as me. I really feel that these high taxes have stifled economic
growth." Jorge's comments illustrate the reason many socialist countries are experiencing a(n):
Brain Drain
One of the most significant problems faced by communist nations is: Not having a way of
knowing what to produce thus creating food and supply shortages
Which of the following people would tend to favor a communist economy? John wants to
live in a country with low marginal tax rates
A major benefit of socialism is the: Social Equality
Which of the following statements most accurately identifies a limitation of the free-market
economic system? Free-Market economies tend to result in unequal distribution of wealth
____________ is the selling of products to another country. Exporting
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