Backus-EOPA Prep Test

What effect do some environmental laws have on businesses?

• Control exterior landscapes

• Require more employees

• Increase operating costs

• Limit equipment purchases

Which of the following is an example of an affinity partnership:

• A restaurant gives discounts to those who join its rewards program.

• An airline offers frequent flyer miles to travelers.

• A credit card company offers cards with sports teams' logos.

• A bank pays to have its name on a local concert venue.

When should a visual aid be shown during a presentation?

• At the end of the presentation to summarize

• When the audience gets bored and restless

• During the entire presentation to maintain interest

• When the speaker shares relevant information

A primary use of flowcharts in business documents or presentations is to

• identify trends

• explain relationships

• compare and contrast data

• summarize numerical data

By promoting their goods and services and offering a number of purchasing arrangements, businesses help to create __________ utility.

• financial

• time

• possession

• place

What should economists do to account for the effects of inflation on GDP?

• Avoid double counting

• Use only nominal GDP

• Use a price deflator

• Use the balance of trade

Kelly runs a small home bakery. To help her fulfill more orders, she hired three part-time employees. The additional workers increased her output, so she hired another three workers. To her surprise, Kelly's output actually decreased once she added the last three workers. This example best demonstrates the

• harm of taking business risks.

• law of diminishing returns

• danger of hiring employees

• need for effective employee training

Which of the following circumstances is most likely to cause interest rates to increase:

• Low inflation

• Consistent investment spending

• Economic recession

• Tight money supply

Each pay period, Kendra has her employer automatically deposit her paycheck into her checking account so the funds are available for use when she needs them. In this situation, money is functioning as a(n)

• store of value.

• medium of exchange.

• form of cash.

• unit of measure.

Which of the following phrases is most likely to be listed in an official job description:

• Edit company newsletter

• Have 10-15 years' experience

• Possess an associate's degree or higher