Question 1

Financial or social systems are not essential to the development of a strong economy.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a function of the Fed?

Accepted Answer

A)  It creates a budget, or a financial plan, for the national economy every year. 
B)  It provides banking services for member banks and the federal government. 
C)  It calculates the expected spending for the federal government every year. 
D)  ​It outlines expected revenue that is due from the collection of taxes and fees. 
A)  It creates a budget, or a financial plan, for the national economy every year. 
B)  It provides banking services for member banks and the federal government. 
C)  It calculates the expected spending for the federal government every year. 
D)  ​It outlines expected revenue that is due from the collection of taxes and fees.

Question 3

Explain the fundamental rights of capitalism.

Accepted Answer

The right to own a business and keep aft

Question 4

Explain in detail the terms debt ceiling and fiscal cliff and their effect on the U.S. economy.

Accepted Answer

The debt ceiling is the maximum amount C

Question 5

An economy is officially in recession when:

Accepted Answer

A)  the GDP increases for at least two consecutive years. 
B)  the GDP decreases for at least two consecutive years. 
C)  the market is in an especially deep and prolonged "trough". 
D)  the GDP decreases for at least two consecutive quarters. 
A)  the GDP increases for at least two consecutive years. 
B)  the GDP decreases for at least two consecutive years. 
C)  the market is in an especially deep and prolonged "trough". 
D)  the GDP decreases for at least two consecutive quarters.

Question 6

The unemployment rate includes only individuals over the age of 21 who were involuntarily laid off or fired from their previous jobs.

Accepted Answer

A) True 
 B)False

Question 7

In the business cycle, a transition period of rising economic growth and increasing employment is a _____.

Accepted Answer

A)  recovery 
B)  peak 
C)  contraction 
D)  disinflation 
A)  recovery 
B)  peak 
C)  contraction 
D)  disinflation

Question 8

Changes in the producer price index (PPI) can predict changes in the consumer price index (CPI) because:​

Accepted Answer

A)  interaction between supply and demand results in an equilibrium price.​ 
B)  ​they are computed using the same market basket. 
C)  ​producers pass on price increases to consumers within a month or two of the changes. 
D)  ​consumers and producers often buy the same goods. 
A)  interaction between supply and demand results in an equilibrium price.​ 
B)  ​they are computed using the same market basket. 
C)  ​producers pass on price increases to consumers within a month or two of the changes. 
D)  ​consumers and producers often buy the same goods.

Question 9

To measure productivity, multiply the number of inputs by the cost of each input.

Accepted Answer

A) True 
 B)False

Question 10

Demand refers to the quantity of products that consumers are willing to buy at different market prices.

Accepted Answer

A) True 
 B)False

Question 11

Recovery is a period of increased employment, business expansion, and increased consumer spending.

Accepted Answer

A) True 
 B)False

Question 12

The core principles of communism are outlined in the _____.

Accepted Answer

A)  Communist Declaration 
B)  Communist Manifesto 
C)  Communist Handbook 
D)  Communist Platform 
A)  Communist Declaration 
B)  Communist Manifesto 
C)  Communist Handbook 
D)  Communist Platform

Question 13

Fiscal policy is the government's effort to influence the economy through taxation and spending decisions to encourage growth and boost employment while curbing inflation.

Accepted Answer

A) True 
 B)False

Question 14

Productivity growth due to the infusion of technology enables employees to measure quality.

Accepted Answer

A) True 
 B)False

Question 15

Brooklyn's Beachfront Bed and Breakfast loses money due to a sharp drop in the number of guests during the winter months. One way to attract more guests would be to offer lower rates during the off­season.

Accepted Answer

A) True 
 B)False

Question 16

Frictional unemployment may occur even when the economy is healthy and may ultimately result in a better match between workers and jobs.

Accepted Answer

A) True 
 B)False

Question 17

Microeconomics is the study of a country's overall economic dynamics, such as the employment rate, the gross domestic product, and taxation policies.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a source of federal government revenue?

Accepted Answer

A)  Net interest on debt 
B)  Social security taxes 
C)  National defense 
D)  Income security 
A)  Net interest on debt 
B)  Social security taxes 
C)  National defense 
D)  Income security

Question 19

Monopolistic competition is a market structure:

Accepted Answer

A)  with many competitors selling differentiated products. 
B)  with only a handful of competitors selling similar products. 
C)  with many competitors selling virtually identical products. 
D)  with just a single producer completely dominating the industry. 
A)  with many competitors selling differentiated products. 
B)  with only a handful of competitors selling similar products. 
C)  with many competitors selling virtually identical products. 
D)  with just a single producer completely dominating the industry.

Question 20

​Which of the following corporations was NOT bailed out by the Federal Government or the Federal Reserve during the economic crisis of 2008?

Accepted Answer

A)  AIG 
B)  Ford 
C)  Bear Stearns 
D)  Chrysler 
A)  AIG 
B)  Ford 
C)  Bear Stearns 
D)  Chrysler

Financial or social systems are not essential to the development of a strong economy.

Which of the following is a function of the Fed?

Explain the fundamental rights of capitalism.

Explain in detail the terms debt ceiling and fiscal cliff and their effect on the U.S. economy.

An economy is officially in recession when:

The unemployment rate includes only individuals over the age of 21 who were involuntarily laid off or fired from their previous jobs.

In the business cycle, a transition period of rising economic growth and increasing employment is a _____.

Changes in the producer price index (PPI) can predict changes in the consumer price index (CPI) because:

To measure productivity, multiply the number of inputs by the cost of each input.

Demand refers to the quantity of products that consumers are willing to buy at different market prices.

Recovery is a period of increased employment, business expansion, and increased consumer spending.

The core principles of communism are outlined in the _____.

Fiscal policy is the government's effort to influence the economy through taxation and spending decisions to encourage growth and boost employment while curbing inflation.

Productivity growth due to the infusion of technology enables employees to measure quality.

Brooklyn's Beachfront Bed and Breakfast loses money due to a sharp drop in the number of guests during the winter months. One way to attract more guests would be to offer lower rates during the offseason.

Frictional unemployment may occur even when the economy is healthy and may ultimately result in a better match between workers and jobs.

Microeconomics is the study of a country's overall economic dynamics, such as the employment rate, the gross domestic product, and taxation policies.

Which of the following is a source of federal government revenue?

Monopolistic competition is a market structure:

Which of the following corporations was NOT bailed out by the Federal Government or the Federal Reserve during the economic crisis of 2008?

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

Financial or social systems are not essential to the development of a strong economy.

Which of the following is a function of the Fed?

Explain the fundamental rights of capitalism.

Explain in detail the terms debt ceiling and fiscal cliff and their effect on the U.S. economy.

An economy is officially in recession when:

The unemployment rate includes only individuals over the age of 21 who were involuntarily laid off or fired from their previous jobs.

In the business cycle, a transition period of rising economic growth and increasing employment is a _____.

Changes in the producer price index (PPI) can predict changes in the consumer price index (CPI) because:​

To measure productivity, multiply the number of inputs by the cost of each input.

Demand refers to the quantity of products that consumers are willing to buy at different market prices.

Recovery is a period of increased employment, business expansion, and increased consumer spending.

The core principles of communism are outlined in the _____.

Fiscal policy is the government's effort to influence the economy through taxation and spending decisions to encourage growth and boost employment while curbing inflation.

Productivity growth due to the infusion of technology enables employees to measure quality.

Brooklyn's Beachfront Bed and Breakfast loses money due to a sharp drop in the number of guests during the winter months. One way to attract more guests would be to offer lower rates during the off­season.

Frictional unemployment may occur even when the economy is healthy and may ultimately result in a better match between workers and jobs.

Microeconomics is the study of a country's overall economic dynamics, such as the employment rate, the gross domestic product, and taxation policies.

Which of the following is a source of federal government revenue?

Monopolistic competition is a market structure:

​Which of the following corporations was NOT bailed out by the Federal Government or the Federal Reserve during the economic crisis of 2008?

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

Changes in the producer price index (PPI) can predict changes in the consumer price index (CPI) because:

Brooklyn's Beachfront Bed and Breakfast loses money due to a sharp drop in the number of guests during the winter months. One way to attract more guests would be to offer lower rates during the offseason.

Which of the following corporations was NOT bailed out by the Federal Government or the Federal Reserve during the economic crisis of 2008?