Question 1

Which of the following measures the total value of all final goods and services produced within a nation's physical boundaries over a given period of time?

Accepted Answer

A)  The consumer price index 
B)  Gross domestic product 
C)  Net national production 
D)  The production function 
A)  The consumer price index 
B)  Gross domestic product 
C)  Net national production 
D)  The production function

Question 2

When inflation is a concern, the Fed buys securities.

Accepted Answer

A) True 
 B)False

Question 3

The demand curve shows the relationship between:

Accepted Answer

A)  the price and quantity from a customer demand standpoint. 
B)  the quantity of products produced from a producer demand standpoint. 
C)  macroeconomics and microeconomics. 
D)  suppliers' prices and consumers' prices. 
A)  the price and quantity from a customer demand standpoint. 
B)  the quantity of products produced from a producer demand standpoint. 
C)  macroeconomics and microeconomics. 
D)  suppliers' prices and consumers' prices.

Question 4

For which of the following reasons has the federal government become part owner of a number of financial institutions?

Accepted Answer

A)  Open market operations by the Federal Reserve 
B)  New federal regulations passed by Congress 
C)  Bailouts from the 2008 economic crisis 
D)  A Democratic Presidential administration 
A)  Open market operations by the Federal Reserve 
B)  New federal regulations passed by Congress 
C)  Bailouts from the 2008 economic crisis 
D)  A Democratic Presidential administration

Question 5

The two core categories within the field of economics are:

Accepted Answer

A)  production and consumption. 
B)  data collection and forecasting. 
C)  macroeconomics and microeconomics. 
D)  supply economics and demand economics. 
A)  production and consumption. 
B)  data collection and forecasting. 
C)  macroeconomics and microeconomics. 
D)  supply economics and demand economics.

Question 6

Luke is taking an economics class that focuses on decisions made by individual business firms and consumers. Luke's class is concerned with microeconomic issues.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a difference between a socialist economic system and a communist economic system?

Accepted Answer

A)  A socialist economic system has lower taxes, whereas a communist economic system has higher taxes. 
B)  A socialist economic system mandates that the government run and own virtually all enterprises, whereas a communist economic system mandates that the government run key enterprises that affect public welfare. 
C)  A socialist economic system is politically totalitarian, whereas a communist economic system is not. 
D)  A socialist economic system mandates that the government run key enterprises that affect public welfare, whereas a communist economic system mandates that the government run and own virtually all enterprises. 
A)  A socialist economic system has lower taxes, whereas a communist economic system has higher taxes. 
B)  A socialist economic system mandates that the government run and own virtually all enterprises, whereas a communist economic system mandates that the government run key enterprises that affect public welfare. 
C)  A socialist economic system is politically totalitarian, whereas a communist economic system is not. 
D)  A socialist economic system mandates that the government run key enterprises that affect public welfare, whereas a communist economic system mandates that the government run and own virtually all enterprises.

Question 8

Privatization is an important element of the movement toward a greater market orientation in many nations.

Accepted Answer

A) True 
 B)False

Question 9

The Fed is headed by a 50­member Board of Governors.

Accepted Answer

A) True 
 B)False

Question 10

In 2011, which of the following resulted in a fiscal cliff?

Accepted Answer

A)  Congress reaching a reasonable long­ term agreement to lower tax rates 
B)  The government decreasing the debt ceiling 
C)  The government incurring a budget surplus 
D)  Congress finally agreeing to raise the debt ceiling 
A)  Congress reaching a reasonable long­ term agreement to lower tax rates 
B)  The government decreasing the debt ceiling 
C)  The government incurring a budget surplus 
D)  Congress finally agreeing to raise the debt ceiling

Question 11

_____ is a market structure with just a single producer completely dominating the industry.

Accepted Answer

A)  ​Oligopoly 
B)  ​Monopoly 
C)  ​Monopolistic competition 
D)  ​Pure competition 
A)  ​Oligopoly 
B)  ​Monopoly 
C)  ​Monopolistic competition 
D)  ​Pure competition

Question 12

The two key phases of the business cycle are:

Accepted Answer

A)  trend and random variation. 
B)  inflation and recession. 
C)  contraction and expansion. 
D)  inflation and deflation. 
A)  trend and random variation. 
B)  inflation and recession. 
C)  contraction and expansion. 
D)  inflation and deflation.

Question 13

A nation that adopts communist economics is devoid of a free market system and hence develops:

Accepted Answer

A)  intense competition among business owners. 
B)  ​a number of privately­owned businesses. 
C)  adequate production mechanisms. 
D)  crippling shortages and surpluses. 
A)  intense competition among business owners. 
B)  ​a number of privately­owned businesses. 
C)  adequate production mechanisms. 
D)  crippling shortages and surpluses.

Question 14

The sum of all the money borrowed over the years and not yet repaid is the total fiscal debt.

Accepted Answer

A) True 
 B)False

Question 15

The unemployment rate hit 9.6% in 2010, leading to total Great Recession job losses of nearly 8 million. Many of these jobs will never come back as the economy continues to change, and old skills become obsolete.

Accepted Answer

A) True 
 B)False

Question 16

Most business enterprises in the United States are privately owned, but the federal government owns a number of major enterprises­such as the U.S. Postal Service. This suggests that the U.S. economy is best classified as a(n) _____.

Accepted Answer

A)  socialist economy 
B)  mixed economy 
C)  differentiated economy 
D)  anarchist economy 
A)  socialist economy 
B)  mixed economy 
C)  differentiated economy 
D)  anarchist economy

Question 17

Explain how fiscal and monetary policy influences the economy.

Accepted Answer

Macroeconomics is the study of a country

Question 18

By the end of the 1980s, communism began to collapse across the Soviet Union and its satellite nations.

Accepted Answer

A) True 
 B)False

Question 19

Economics is the study of the choices that people, companies, and governments make in allocating those resources.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following tools used by the Fed helps protect depositors who may want to withdraw their money without notice?

Accepted Answer

A)  Discount rate 
B)  Interest rate 
C)  Open market operation 
D)  Reserve requirement 
A)  Discount rate 
B)  Interest rate 
C)  Open market operation 
D)  Reserve requirement

Which of the following measures the total value of all final goods and services produced within a nation's physical boundaries over a given period of time?

When inflation is a concern, the Fed buys securities.

The demand curve shows the relationship between:

For which of the following reasons has the federal government become part owner of a number of financial institutions?

The two core categories within the field of economics are:

Luke is taking an economics class that focuses on decisions made by individual business firms and consumers. Luke's class is concerned with microeconomic issues.

Which of the following is a difference between a socialist economic system and a communist economic system?

Privatization is an important element of the movement toward a greater market orientation in many nations.

The Fed is headed by a 50member Board of Governors.

In 2011, which of the following resulted in a fiscal cliff?

_____ is a market structure with just a single producer completely dominating the industry.

The two key phases of the business cycle are:

A nation that adopts communist economics is devoid of a free market system and hence develops:

The sum of all the money borrowed over the years and not yet repaid is the total fiscal debt.

The unemployment rate hit 9.6% in 2010, leading to total Great Recession job losses of nearly 8 million. Many of these jobs will never come back as the economy continues to change, and old skills become obsolete.

Most business enterprises in the United States are privately owned, but the federal government owns a number of major enterprisessuch as the U.S. Postal Service. This suggests that the U.S. economy is best classified as a(n) _____.

Explain how fiscal and monetary policy influences the economy.

By the end of the 1980s, communism began to collapse across the Soviet Union and its satellite nations.

Economics is the study of the choices that people, companies, and governments make in allocating those resources.

Which of the following tools used by the Fed helps protect depositors who may want to withdraw their money without notice?

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

Which of the following measures the total value of all final goods and services produced within a nation's physical boundaries over a given period of time?

When inflation is a concern, the Fed buys securities.

The demand curve shows the relationship between:

For which of the following reasons has the federal government become part owner of a number of financial institutions?

The two core categories within the field of economics are:

Luke is taking an economics class that focuses on decisions made by individual business firms and consumers. Luke's class is concerned with microeconomic issues.

Which of the following is a difference between a socialist economic system and a communist economic system?

Privatization is an important element of the movement toward a greater market orientation in many nations.

The Fed is headed by a 50­member Board of Governors.

In 2011, which of the following resulted in a fiscal cliff?

_____ is a market structure with just a single producer completely dominating the industry.

The two key phases of the business cycle are:

A nation that adopts communist economics is devoid of a free market system and hence develops:

The sum of all the money borrowed over the years and not yet repaid is the total fiscal debt.

The unemployment rate hit 9.6% in 2010, leading to total Great Recession job losses of nearly 8 million. Many of these jobs will never come back as the economy continues to change, and old skills become obsolete.

Most business enterprises in the United States are privately owned, but the federal government owns a number of major enterprises­such as the U.S. Postal Service. This suggests that the U.S. economy is best classified as a(n) _____.

Explain how fiscal and monetary policy influences the economy.

By the end of the 1980s, communism began to collapse across the Soviet Union and its satellite nations.

Economics is the study of the choices that people, companies, and governments make in allocating those resources.

Which of the following tools used by the Fed helps protect depositors who may want to withdraw their money without notice?

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

The Fed is headed by a 50member Board of Governors.

Most business enterprises in the United States are privately owned, but the federal government owns a number of major enterprisessuch as the U.S. Postal Service. This suggests that the U.S. economy is best classified as a(n) _____.