SEVI EXAM 1 UPDATED Exam Questions
and CORRECT Answers
Cultural diversity - Correct Answer- Google is an American multinational technology
company that incorporates a workplace system that recognizes and respects the differences
among people because of their age, race, ethnicity, gender, sexual orientation, and ability.
Which of the following terms refers to the system that Google uses?
Socioeconomic objectivity
Socioeconomic homogeneity
Cultural subjectivity
Cultural diversity
To pursue the sole path to self-actualization - Correct Answer- Isabel is interested in taking an
Introduction to Business course during her freshman year at university. Which of the
following is not a reason why she should study business?
To pursue the sole path to self-actualization
To start her own business
To become a better informed consumer
To be a successful employee
To become a better informed investor - Correct Answer- Tobias, a first-year student at the
local community college, has just inherited $25,000 from his dear aunt Katharina, and Tobias
would like to pursue a course of study that will help him earn the best financial return on his
inheritance. Which of the following is a reason Tobias should study business?
To be a successful employee
To receive help in choosing a career
To become a better informed consumer
To become a better informed investor
A marketing intermediary - Correct Answer- Target buys products from manufacturers and
then resells them to consumers. As such, Target is which of the following?
A marketing intermediary
A promotional enterprise
A manufacturing business
,A service business
A loss - Correct Answer- In 2020, retailer JCPenney was forced to file bankruptcy because it
experienced a negative profit caused by the COVID-19 pandemic. This negative profit is
referred to as which of the following?
Expenses
A loss
Inverse sales revenue
Negative sales revenue
Stakeholders - Correct Answer- Suppose that Ford Motor Company decides to shut down
entirely its domestic automobile production in the United States and move its operations to
other countries. All the individuals in the United States who would be negatively impacted by
such a decision are referred to as which of the following?
Independent contractors
Stakeholders
Shareholders
Corporate citizens
Its stakeholders - Correct Answer- In its latest social responsibility report, General Mills
describes how it contributed more than $93 million in 2019 to a wide variety of charitable
causes, including support for programs that feed the hungry and nonprofit organizations,
schools, and communities across the globe. This is an example of General Mills' attempt to
satisfy its obligations to which of the following?
Its stakeholders
Its independent contractors
Its board of directors
Its shareholders
The invisible hand - Correct Answer- Inspired by her visit to a Voodoo Donut shop in Austin,
Texas, Nahia decided to start her own donut shop in her hometown of Jacksonville, Florida.
As a result of her passion for donuts and her hard work, Nahia's donut shop became very
successful. As a result, Nahia became personally wealthy, she paid, local, state, and federal
taxes on her earnings, and she contributed generously to local causes. This is an example of
which theory of economics?
,The steady hand
The discernible brain
The invisible hand
The strong back
A market economy - Correct Answer- General Motors Corporation plans to offer 30 new
electric vehicle models globally by 2025. It remains to be determined whether consumers will
embrace (in other words, purchase) electric vehicles to the extent required by the company's
plan. General Motors' decision to commit to electric vehicle technology, despite the risk, is an
example of which of the following economic systems?
A shareholder economy
A market economy
A mixed economy
A command economy
A mixed economy - Correct Answer- Manu, a student enrolled in an undergraduate
economics class, has studied the various types of economic systems. He has concluded that
the best type of economic system is one that encourages private enterprise, subject to
regulation by the government. He also believes that certain services, such as social security
and health care benefits, should be managed by the government. Manu supports which of the
following types of economic systems?
Socialism
A command economy
A mixed economy
Capitalism
The government owns all smaller businesses. - Correct Answer- In her Principles of
Economics course, Valentina learned about the characteristics of socialism. These
characteristics include all but which of the following?
Land, buildings, and raw materials may be the property of the state.
The government owns all smaller businesses.
People may usually choose their own occupations.
Many people work in state-owned industries.
, Productivity - Correct Answer- During her annual performance evaluation, Maira's supervisor
Camille expressed that she was very pleased that Maira's output per hour had improved by 17
percent compared to the previous year. Based on her comment, Camille was encouraged with
Maira's improvement in which of the following?
Revenue
Profitability
Productivity
Efficiency
Gross domestic product - Correct Answer- In 2020, the total dollar value of all goods and
services produced by all people within the boundaries of the United States was $20.9 trillion.
Which of the following does this statistic measure?
Gross national product
Gross domestic product
Inflation
Deflation
Inflation - Correct Answer- As a retiree living on a fixed income (primarily Social Security
benefits), Marlon is very concerned that after the height of the COVID-19 pandemic, grocery
store prices are rising significantly. Marlon is concerned about which of the following?
Inflation
Gross domestic product
Deflation
Gross national product
Deflation - Correct Answer- Suppose that as chief executive officer of the United States
Chamber of Commerce, Suzanne Clark is very concerned that due to economic turbulence in
the United States, product prices in various industries will decrease due to the lack of
consumer willingness and/or ability to pay currently existing prices. Mrs. Clark is concerned
about which of the following?
Deflation
Gross domestic product
Gross national product
Inflation
