Question 1

Federal law has made all types of monopolies illegal in the United States.

Accepted Answer

A) True 
 B)False

Question 2

The _____ is the price associated with the point at which the quantity demanded of a product equals the quantity supplied.

Accepted Answer

A)  natural capital 
B)  price ceiling 
C)  equilibrium price 
D)  incentive 
A)  natural capital 
B)  price ceiling 
C)  equilibrium price 
D)  incentive

Question 3

The two key phases of the business cycle are contraction and expansion.

Accepted Answer

A) True 
 B)False

Question 4

_____ is an economic system based on the principle that the government should own and operate key enterprises that directly affect public welfare.

Accepted Answer

A)  Laissez­faire 
B)  Capitalism 
C)  Socialism 
D)  Anarchism 
A)  Laissez­faire 
B)  Capitalism 
C)  Socialism 
D)  Anarchism

Question 5

The federal government does not own the Federal Reserve Banks.

Accepted Answer

A) True 
 B)False

Question 6

State governments are actually the owners of the Federal Reserve Banks.

Accepted Answer

A) True 
 B)False

Question 7

Government policies promoting free trade are consistent with the right to free choice, which is fundamental to capitalism.

Accepted Answer

A) True 
 B)False

Question 8

The primary way in which the Fed controls the supply of money is by:

Accepted Answer

A)  establishing the amount of currency the U.S. Treasury is allowed to print. 
B)  changing the reserve requirement as per prevailing economic conditions. 
C)  buying and selling government securities in open market operations. 
D)  allowing banks to borrow more money from the U.S. Treasury. 
A)  establishing the amount of currency the U.S. Treasury is allowed to print. 
B)  changing the reserve requirement as per prevailing economic conditions. 
C)  buying and selling government securities in open market operations. 
D)  allowing banks to borrow more money from the U.S. Treasury.

Question 9

A _____ is targeted to borrowers with low credit scores, high debt­to­ income ratios, or other signs of a reduced ability to repay the money they borrow.

Accepted Answer

A)  home equity line of credit 
B)  revolving line of credit 
C)  fixed­rate mortgage loan 
D)  subprime mortgage loans 
A)  home equity line of credit 
B)  revolving line of credit 
C)  fixed­rate mortgage loan 
D)  subprime mortgage loans

Question 10

Define and describe productivity.

Accepted Answer

Productivity refers to the relationship

Question 11

In 2011, the foreclosure rate dropped to the lowest level since 2007, when the recession began.

Accepted Answer

A) True 
 B)False

Question 12

Macroeconomics focuses on:

Accepted Answer

A)  the major issues facing the national economy that do not affect individuals. 
B)  smaller economic units such as individual consumers, families, and individual businesses operating within an economy. 
C)  the major issues facing the national economy that may seem abstract but directly affect an individual's day­to­day life. 
D)  the economics of private companies, while microeconomics focuses on dynamics involving the government. 
A)  the major issues facing the national economy that do not affect individuals. 
B)  smaller economic units such as individual consumers, families, and individual businesses operating within an economy. 
C)  the major issues facing the national economy that may seem abstract but directly affect an individual's day­to­day life. 
D)  the economics of private companies, while microeconomics focuses on dynamics involving the government.

Question 13

The economic system of the United States is called capitalism. Capitalism is based on private ownership, economic freedom, and fair competition.

Accepted Answer

A) True 
 B)False

Question 14

An economy, as a system, represents:

Accepted Answer

A)  the monitored consumption of material resources in a society. 
B)  the resource flow from production to consumption. 
C)  only the means of production in a social system. 
D)  only a country's overall financial dynamics. 
A)  the monitored consumption of material resources in a society. 
B)  the resource flow from production to consumption. 
C)  only the means of production in a social system. 
D)  only a country's overall financial dynamics.

Federal law has made all types of monopolies illegal in the United States.

The _____ is the price associated with the point at which the quantity demanded of a product equals the quantity supplied.

The two key phases of the business cycle are contraction and expansion.

_____ is an economic system based on the principle that the government should own and operate key enterprises that directly affect public welfare.

The federal government does not own the Federal Reserve Banks.

State governments are actually the owners of the Federal Reserve Banks.

Government policies promoting free trade are consistent with the right to free choice, which is fundamental to capitalism.

The primary way in which the Fed controls the supply of money is by:

A _____ is targeted to borrowers with low credit scores, high debtto income ratios, or other signs of a reduced ability to repay the money they borrow.

Define and describe productivity.

In 2011, the foreclosure rate dropped to the lowest level since 2007, when the recession began.

Macroeconomics focuses on:

The economic system of the United States is called capitalism. Capitalism is based on private ownership, economic freedom, and fair competition.

An economy, as a system, represents:

Business Now: Change Is the Only Constant

The World Marketplace: Business Without Borders

Business Ethics Social Responsibility: Doing Well by Doing Good

Business Communication: Creating Delivering Messages That Matter

Business Formation: Choosing the Form That Fits

Small Business Entrepreneurship: Economic Rocket Fuel

Accounting: Decision Making by the Numbers

Finance: Acquiring Using Funds to Maximize Value

Securities Markets: Trading Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation, and Leadership: Bringing Business to Life

HRM: Building a Top Quality Workforce

Managing Information Technology: Finding New Ways to Learn and Link

Om: Putting It All Together Endnotes

Appendix Studentinstructor Review Cards

Online Appendix

Filters

Exam 2: Economics: the Framework of Business

Federal law has made all types of monopolies illegal in the United States.

The _____ is the price associated with the point at which the quantity demanded of a product equals the quantity supplied.

The two key phases of the business cycle are contraction and expansion.

_____ is an economic system based on the principle that the government should own and operate key enterprises that directly affect public welfare.

The federal government does not own the Federal Reserve Banks.

State governments are actually the owners of the Federal Reserve Banks.

Government policies promoting free trade are consistent with the right to free choice, which is fundamental to capitalism.

The primary way in which the Fed controls the supply of money is by:

A _____ is targeted to borrowers with low credit scores, high debt­to­ income ratios, or other signs of a reduced ability to repay the money they borrow.

Define and describe productivity.

In 2011, the foreclosure rate dropped to the lowest level since 2007, when the recession began.

Macroeconomics focuses on:

The economic system of the United States is called capitalism. Capitalism is based on private ownership, economic freedom, and fair competition.

An economy, as a system, represents:

Business Now: Change Is the Only Constant

The World Marketplace: Business Without Borders

Business Ethics Social Responsibility: Doing Well by Doing Good

Business Communication: Creating Delivering Messages That Matter

Business Formation: Choosing the Form That Fits

Small Business Entrepreneurship: Economic Rocket Fuel

Accounting: Decision Making by the Numbers

Finance: Acquiring Using Funds to Maximize Value

Securities Markets: Trading Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation, and Leadership: Bringing Business to Life

HRM: Building a Top Quality Workforce

Managing Information Technology: Finding New Ways to Learn and Link

Om: Putting It All Together Endnotes

Appendix Studentinstructor Review Cards

Online Appendix

Filters

A _____ is targeted to borrowers with low credit scores, high debtto income ratios, or other signs of a reduced ability to repay the money they borrow.