Exam 1: Understanding Economic Systems and Business

Think about all the restaurants that are located near your campus.You have probably noted some new ones appearing, and others closing because of lack of business.What type of competition exists in the restaurant business?

For most agricultural products, farmers produce homogeneous products, sell them to a common market, and generally cannot affect prices greatly.This is an example of which kind of market structure?

Last year, a mother in a small African nation could buy a pound of flour for the U.S.equivalent of $1.30.Six months ago, an identical pound of flour costs $3.40.Today she would need $5.60 to buy that pound of flour.This example of the general upward movement of prices is called:

Business owners and managers have a great deal of control over the internal environment of business, which covers the day-to-day business decisions.

The GDP of Poland in 2006 was approximately $512 billion.This $512 billion represents:

The _____ prints money and controls its circulation.

What is another name for capitalism?

The _____ is the total monetary value of all goods and services produced within a nation annually.

The government of Cuba owns or controls all of the basic industries in their economy.Cuba operates in which type of economic system?

What is the term used to describe the point at which customers' demands for a product equals the amount made available by the producer?

Structural unemployment is unemployment that results from:

When the Federal Reserve implements a(n) ______, it increases the growth of the money supply.

When demand and supply meet, the price of the product or service is established.This is the point of:

One of the reasons for the growing inflation rate in Argentina is due to increases in production costs of goods and services which occurred as a result of a decline in a suitable labor force.This would be an example of a _____ inflation.

A market in which there are a large number of firms that differentiate their products is called:

Social factors influence what, how, where, and when to purchase products or services.

A business is an organization that strives for a profit by providing goods and services desired by its customers.

Monetary policy deals with tax revenues and expenditures at the national level.

As soon as any nation has experienced two consecutive quarterly declines of its gross domestic product, that nation will be in a(n):

Legal challenges arising from laws designed to control anticompetitive behavior occur in monopolistic competition.