Management 1- Chapter 1

MCQ

1-Which environment is NOT an important dimension of a business organization's

external environment?
A) the global business environment
B) the political-legal environment
C) the corporate cultural environment
D) the sociocultural environment
E) the technological environment

2-What term denotes a nation's basis for allocating its resources among its citizens?
A) economic system
B) distribution network
C) capital structure
D) national regulations
E) ownership processes

3-What is the process for converting government enterprises into individually owned firms
known as?
A) production allocation
B) profit maximization
C) entrepreneurship
D) demand assessment
E) privatization

4-What is the point at which the supply curve and the demand curve intersect on a graph?
A) decision point
B) surplus price
C) perfect price
D) equilibrium price
E) parity point

5-What is the price at which the quantity of goods demanded and the quantity of goods
supplied are equal?
A) the cost price
B) the market price
C) the margin rate
D) the optimum price
E) the going rate

6-What occurs when the quantity demanded exceeds the quantity supplied?
A) surplus
B) demand deficit
C) equilibrium point
D) supply schedule
E) shortage

7-Which of the following does NOT represent a degree of competition in a private

enterprise system?
A) monopoly
B) monopolistic competition
C)socialism
D) oligopoly
E) perfect competition

8-Which of the following exists when an industry or market has only one producer?
A) communism
B) socialism
C) competition
D) monopoly
E) oligopoly

9-Which term refers to the pattern of short-term ups and downs in an economy?
A) standard of living
B) balance of payments
C) demand and supply schedule
D) business cycle
E) aggregate output

10-Which term refers to the total quantity and quality of goods and services that people
living in an economic system can purchase?
A) business cycle
B) consumer price index
C) aggregate output
D) demand and supply schedule
E) standard of living

11-Which term refers to the total value of all goods and services produced within a given
period by a national economy?
A) standard of living
B) aggregate output
C) gross national produce
D) purchasing power parity
E) gross domestic product

12-What does productivity measure?

A) the total value of all goods and services produced by a national economy
B) how much gross national product results from inputs of labor
C) the standard of living relative to purchasing power parity
D) how much a system produces with the resources needed to produce it
E) how much output is necessary to produce a certain level of demand

13-What is the economic condition characterized by widespread increased prices without

increased purchasing power?
A) recession
B) inflation
C) deflation
D) unemployment
E) expansion

14-What is the condition in an economic system in which the amount of money available
and the number of goods and services produced are growing at about the same rate?
A) inflation
B) unemployment
C) oversupply
D) stability
E) deflation

15-What are profits?

A) increases in a corporation's stock price
B) total money taken in by a corporation
C) difference between revenues and expenses
D) increases in income from year to year
E) revenue generated by goods and services