Exam 1: Understanding Economic Systems and Business

In Canada, the government owns the communications, transportation, and utilities industries, while most other activity is carried on by private enterprise.Canada is an example of:

George LaDuc is the manager of a nonprofit agency that provides transportation for parents of children with life-threatening diseases.Each year the prices of necessities such as groceries, housing, and electricity continue to rise, but LaDuc's salary stays the same.LaDuc's _____ is being eroded by his stagnant salary and increasing prices.

_____ policy refers to a government's program of taxation and spending.

In 2005, the government of Bangladesh spent $8.59 billion on government programs, and had revenues of $5.993 billion.This indicates that Bangladesh like the United States can have a(n):

_____ policy refers to a government's program for controlling the amount of money in circulation.

In the middle of the desert in Arizona, there are five service stations competing for all the business that exists in this isolated location.When one service station lowers its price on gas, all must follow suit.These service stations are operating in a(n) _____ market structure.

Which of the following factors would most likely result in a shift in the demand curve?

Which of the following statements about strategic alliances is true?

Freida Bida lost her job as a result of a recession and would be described as experiencing cyclical unemployment.

_____ are the inputs (resources) that are common to productive activity in all economic systems.

What kind of an economic system is characterized by government ownership of virtually all resources and economic decision making by central-government planning?

Baby boomers are Americans that are retiring or near-retirement age.

Members of Generation X:

Economics is the study of a society's financial institutions.

_____ inflation is inflation that occurs when the demand for goods and services is greater than the supply.

_____ combine the inputs in the production of goods and services for what are intended to be profitable ventures.

If you were told the output of goods and services produced in Tajikistan, a former Soviet Republic had increased by eight percent in 2006, you would correctly refer to this increase as:

Upward and downward changes in aggregate economic activity, as measured by GDP, are called:

People who combine natural resources, labor, and capital in a profitable venture are called entrepreneurs.

In 1993, Purdue Pharmaceuticals of Stamford, Conn.applied for the first in a series of patents on Oxycontin, a painkiller.The U.S.Patent and Trademark Office (PTO) granted those patents based on the manufacturer's contention that the drug contained a novel innovation: It had been engineered so that only a very small dose was required for the drug to be effective for 90 percent of patients.As a result of the patent Purdue was the only company that could sell Oxycontin.Thus, Purdue became an example of which of the following market structures?