Question 1

Cyclical unemployment is caused by a mismatch between workers' skills and current employer needs.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following actions of the government indicates the privatization of an industry?

Accepted Answer

A)  allowing private businesses to operate in an industry that was previously operated by the government 
B)  discouraging private business to operate in an industry that is critical for the growth of the economy 
C)  acquiring the market leader to gain control of the industry and its resources 
D)  imposing taxes on scarce raw materials to discourage unfair pricing by its suppliers 
E)  imposing regulations on multinational businesses to protect local businesses 
A)  allowing private businesses to operate in an industry that was previously operated by the government 
B)  discouraging private business to operate in an industry that is critical for the growth of the economy 
C)  acquiring the market leader to gain control of the industry and its resources 
D)  imposing taxes on scarce raw materials to discourage unfair pricing by its suppliers 
E)  imposing regulations on multinational businesses to protect local businesses

Question 3

Differentiate between structural and cyclical unemployment.

Accepted Answer

Structural Unemployment
-It occurs due t

Question 4

"As the supply and demand curves are dynamic,so is the equilibrium point." Explain this statement with an example.

Accepted Answer

As variables affecting supply and demand

Question 5

________ is a concept that refers to the finite supply of resources.

Accepted Answer

A)  Redundancy 
B)  Scarcity 
C)  Deficit 
D)  Stringency 
E)  Shortage 
A)  Redundancy 
B)  Scarcity 
C)  Deficit 
D)  Stringency 
E)  Shortage

Question 6

________ taxes,levied on the earnings of individuals and businesses,are the government's largest single source of revenue.

Accepted Answer

A)  Income 
B)  Property 
C)  Sales 
D)  Excise 
E)  Payroll 
A)  Income 
B)  Property 
C)  Sales 
D)  Excise 
E)  Payroll

Question 7

________ laws limit what businesses can and cannot do to ensure that all competitors have an equal chance of succeeding.

Accepted Answer

A)  Fiscal 
B)  Discrimination 
C)  Antitrust 
D)  Stabilization 
E)  Equilibrium 
A)  Fiscal 
B)  Discrimination 
C)  Antitrust 
D)  Stabilization 
E)  Equilibrium

Question 8

________ taxes are implemented,in part,to help control potentially harmful practices,on selected items such as gasoline,tobacco,and liquor.

Accepted Answer

A)  Income 
B)  Property 
C)  Sales 
D)  Excise 
E)  Payroll 
A)  Income 
B)  Property 
C)  Sales 
D)  Excise 
E)  Payroll

Question 9

The ________ measures price at the producer or wholesaler level,reflecting what businesses are paying for the products they need.

Accepted Answer

A)  gross domestic product (GDP) 
B)  producer price index (PPI) 
C)  inflationary stability index (ISI) 
D)  consumer price index (CPI) 
E)  economic stimulus index (ESI) 
A)  gross domestic product (GDP) 
B)  producer price index (PPI) 
C)  inflationary stability index (ISI) 
D)  consumer price index (CPI) 
E)  economic stimulus index (ESI)

Question 10

Is there such a thing as a "free" economy? Elucidate your views.

Accepted Answer

In practice,no economy is truly "free."

Question 11

The ________ measures the rate of inflation by comparing changes in the prices of a representative basket of goods and services such as clothing,food,housing,and utilities.

Accepted Answer

A)  gross domestic product (GDP) 
B)  producer price index (PPI) 
C)  inflationary stability index (ISI) 
D)  consumer price index (CPI) 
E)  economic stimulus index (ESI) 
A)  gross domestic product (GDP) 
B)  producer price index (PPI) 
C)  inflationary stability index (ISI) 
D)  consumer price index (CPI) 
E)  economic stimulus index (ESI)

Question 12

The situation in which one supplier thoroughly dominates a market and essentially shuts out other competitors is called monopoly.

Accepted Answer

A) True 
 B)False

Question 13

Colonel's Burgers sells 2500 of its flagship burger,Colonel's Treat,each month at a price of $10 each.The customers are willing to buy 2500 Colonel's Treat burgers each month at the same price.Hence,the price of $10 per burger is the ________.

Accepted Answer

A)  sunk cost 
B)  break-even price 
C)  equilibrium price 
D)  opportunity cost 
E)  incremental cost 
A)  sunk cost 
B)  break-even price 
C)  equilibrium price 
D)  opportunity cost 
E)  incremental cost

Question 14

Which of the following is characteristic of a country with a planned economic system?

Accepted Answer

A)  The economy relies chiefly on market forces to allocate goods and resources and to determine prices. 
B)  The economic system combines private and state enterprises with limited intervention from the government. 
C)  The economy subscribes to capitalistic competition, where private parties own and operate the majority of businesses. 
D)  The economic system is primarily capitalistic but there is some degree of government ownership of the means of production. 
E)  The economy is largely controlled by the government and freedom of choice is limited in order to accomplish government goals. 
A)  The economy relies chiefly on market forces to allocate goods and resources and to determine prices. 
B)  The economic system combines private and state enterprises with limited intervention from the government. 
C)  The economy subscribes to capitalistic competition, where private parties own and operate the majority of businesses. 
D)  The economic system is primarily capitalistic but there is some degree of government ownership of the means of production. 
E)  The economy is largely controlled by the government and freedom of choice is limited in order to accomplish government goals.

Question 15

The ________ measures a country's output - its production,distribution,and use of goods and services - by computing the sum of all goods and services produced for final use in a country during a specified period.

Accepted Answer

A)  gross domestic product (GDP) 
B)  producer price index (PPI) 
C)  gross national product (GNP) 
D)  consumer price index (CPI) 
E)  economic stability index (ESI) 
A)  gross domestic product (GDP) 
B)  producer price index (PPI) 
C)  gross national product (GNP) 
D)  consumer price index (CPI) 
E)  economic stability index (ESI)

Question 16

Sales taxes are the government's largest single source of revenue.

Accepted Answer

A) True 
 B)False

Question 17

What is economics? Compare and contrast between microeconomics and macroeconomics.

Accepted Answer

Economics is the study of how a society

Question 18

Which of the following types of unemployment is common in industries with predictable increases and decreases in customer demand?

Accepted Answer

A)  structural 
B)  frictional 
C)  intrinsic 
D)  seasonal 
E)  cyclical 
A)  structural 
B)  frictional 
C)  intrinsic 
D)  seasonal 
E)  cyclical

Question 19

Retail sales,on the day after Thanksgiving,are usually a good indicator of overall retail sales for the Christmas season.This is an example of a ________ indicator.

Accepted Answer

A)  leading 
B)  conversionary 
C)  lagging 
D)  current 
E)  latent 
A)  leading 
B)  conversionary 
C)  lagging 
D)  current 
E)  latent

Question 20

________ is defined as having two consecutive quarters of decline in the country's gross domestic product.

Accepted Answer

A)  Deflation 
B)  Stagnation 
C)  Immobilism 
D)  Stagflation 
E)  Recession 
A)  Deflation 
B)  Stagnation 
C)  Immobilism 
D)  Stagflation 
E)  Recession

Cyclical unemployment is caused by a mismatch between workers' skills and current employer needs.

Which of the following actions of the government indicates the privatization of an industry?

Differentiate between structural and cyclical unemployment.

"As the supply and demand curves are dynamic,so is the equilibrium point." Explain this statement with an example.

________ is a concept that refers to the finite supply of resources.

________ taxes,levied on the earnings of individuals and businesses,are the government's largest single source of revenue.

________ laws limit what businesses can and cannot do to ensure that all competitors have an equal chance of succeeding.

________ taxes are implemented,in part,to help control potentially harmful practices,on selected items such as gasoline,tobacco,and liquor.

The ________ measures price at the producer or wholesaler level,reflecting what businesses are paying for the products they need.

Is there such a thing as a "free" economy? Elucidate your views.

The ________ measures the rate of inflation by comparing changes in the prices of a representative basket of goods and services such as clothing,food,housing,and utilities.

The situation in which one supplier thoroughly dominates a market and essentially shuts out other competitors is called monopoly.

Colonel's Burgers sells 2500 of its flagship burger,Colonel's Treat,each month at a price of $10 each.The customers are willing to buy 2500 Colonel's Treat burgers each month at the same price.Hence,the price of $10 per burger is the ________.

Which of the following is characteristic of a country with a planned economic system?

The ________ measures a country's output - its production,distribution,and use of goods and services - by computing the sum of all goods and services produced for final use in a country during a specified period.

Sales taxes are the government's largest single source of revenue.

What is economics? Compare and contrast between microeconomics and macroeconomics.

Which of the following types of unemployment is common in industries with predictable increases and decreases in customer demand?

Retail sales,on the day after Thanksgiving,are usually a good indicator of overall retail sales for the Christmas season.This is an example of a ________ indicator.

________ is defined as having two consecutive quarters of decline in the country's gross domestic product.

Developing a Business Mindset

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters

Exam 2: Understanding Basic Economics

Cyclical unemployment is caused by a mismatch between workers' skills and current employer needs.

Which of the following actions of the government indicates the privatization of an industry?

Differentiate between structural and cyclical unemployment.

"As the supply and demand curves are dynamic,so is the equilibrium point." Explain this statement with an example.

________ is a concept that refers to the finite supply of resources.

________ taxes,levied on the earnings of individuals and businesses,are the government's largest single source of revenue.

________ laws limit what businesses can and cannot do to ensure that all competitors have an equal chance of succeeding.

________ taxes are implemented,in part,to help control potentially harmful practices,on selected items such as gasoline,tobacco,and liquor.

The ________ measures price at the producer or wholesaler level,reflecting what businesses are paying for the products they need.

Is there such a thing as a "free" economy? Elucidate your views.

The ________ measures the rate of inflation by comparing changes in the prices of a representative basket of goods and services such as clothing,food,housing,and utilities.

The situation in which one supplier thoroughly dominates a market and essentially shuts out other competitors is called monopoly.

Colonel's Burgers sells 2500 of its flagship burger,Colonel's Treat,each month at a price of $10 each.The customers are willing to buy 2500 Colonel's Treat burgers each month at the same price.Hence,the price of $10 per burger is the ________.

Which of the following is characteristic of a country with a planned economic system?

The ________ measures a country's output - its production,distribution,and use of goods and services - by computing the sum of all goods and services produced for final use in a country during a specified period.

Sales taxes are the government's largest single source of revenue.

What is economics? Compare and contrast between microeconomics and macroeconomics.

Which of the following types of unemployment is common in industries with predictable increases and decreases in customer demand?

Retail sales,on the day after Thanksgiving,are usually a good indicator of overall retail sales for the Christmas season.This is an example of a ________ indicator.

________ is defined as having two consecutive quarters of decline in the country's gross domestic product.

Developing a Business Mindset

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters