Question 1

In the market for breakfast cereals,only a few large producers dominate the market.This situation best describes which of the following?

Accepted Answer

A)  oligopoly 
B)  pure competition 
C)  monopolistic competition 
D)  monopoly 
A)  oligopoly 
B)  pure competition 
C)  monopolistic competition 
D)  monopoly

Question 2

Price decreases by one company in an oligopoly are likely to be matched by other companies.

Accepted Answer

A) True 
 B)False

Question 3

The term supply is best defined as ________.

Accepted Answer

A)  giving something to someone who needs it 
B)  the willingness and ability of producers to offer a good or service for sale 
C)  the area in which a firm keeps its wholesale stock for future use 
D)  the willingness and ability of buyers to buy a good or service 
A)  giving something to someone who needs it 
B)  the willingness and ability of producers to offer a good or service for sale 
C)  the area in which a firm keeps its wholesale stock for future use 
D)  the willingness and ability of buyers to buy a good or service

Question 4

Under the law of demand,which of the following situations will likely result in increases in product purchases?

Accepted Answer

A)  the consumer's need for the product 
B)  lowering the price of the product 
C)  raising the price of the product as an indication that it is of high quality 
D)  the knowledge that possessing such a product can add to a person's positive image 
A)  the consumer's need for the product 
B)  lowering the price of the product 
C)  raising the price of the product as an indication that it is of high quality 
D)  the knowledge that possessing such a product can add to a person's positive image

Question 5

Which of the following is NOT one of the elements required in private enterprise?

Accepted Answer

A)  private property rights 
B)  stability of cash flow 
C)  freedom of choice 
D)  profits 
A)  private property rights 
B)  stability of cash flow 
C)  freedom of choice 
D)  profits

Question 6

List and describe the five factors of production.

Accepted Answer

The factors of production are labor,capi

Question 7

A planned economy relies on a centralized government to ________.

Accepted Answer

A)  support free enterprise in every way possible 
B)  allocate all or most factors of production 
C)  encourage citizens to buy shares of stock in small companies 
D)  keep its control activities to a minimum 
A)  support free enterprise in every way possible 
B)  allocate all or most factors of production 
C)  encourage citizens to buy shares of stock in small companies 
D)  keep its control activities to a minimum

Question 8

Describe monopolistic competition.

Accepted Answer

In a market characterized by monopolisti

Question 9

Which economic system provides for the private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive?

Accepted Answer

A)  socialism 
B)  communism 
C)  capitalism 
D)  Marxism 
A)  socialism 
B)  communism 
C)  capitalism 
D)  Marxism

Question 10

Short Case Scenario 1-1
Expert Electronics is a manufacturer of computers on the large, but isolated, island nation of New Vermont. Although imports are extremely limited because of difficult navigation to and from New Vermont, there are a handful of computer manufacturers in addition to Expert Electronics. While the government provides some services, such as public education and a well-maintained road system, almost all businesses are privately owned. Home ownership is unusually high, with 80 percent of all families owning their own home. Expert Electronics is selling a state-of-the-art desktop computer system for 1,299 veros (the local currency). At this price, Expert Electronics is able to fill all orders, but they have no waiting list.
-What type of economic system exists in New Vermont? Support your conclusions.

Accepted Answer

It appears that New Vermont operates und

Question 11

The purpose of monetary and fiscal policy is to smooth out fluctuations in output and unemployment and to stabilize prices.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following might be considered an oligopoly?

Accepted Answer

A)  clothing 
B)  cell phones 
C)  airlines 
D)  backpacks 
A)  clothing 
B)  cell phones 
C)  airlines 
D)  backpacks

Question 13

Which of the following best defines the term business cycle?

Accepted Answer

A)  the conditions of the economic system in which an organization operates 
B)  the total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system 
C)  the pattern of short-term ups and downs in an economy 
D)  the measure of economic growth that compares how much a system produces with the resources needed to produce it 
A)  the conditions of the economic system in which an organization operates 
B)  the total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system 
C)  the pattern of short-term ups and downs in an economy 
D)  the measure of economic growth that compares how much a system produces with the resources needed to produce it

Question 14

Communism and capitalism are the two basic forms of planned economies.

Accepted Answer

A) True 
 B)False

Question 15

Explain purchasing power parity.

Accepted Answer

Purchasing power parity is the

Question 16

The primary measure of growth in the business cycle is inflation.

Accepted Answer

A) True 
 B)False

Question 17

The main measure of growth in the business cycle is ________.

Accepted Answer

A)  the prices of products 
B)  the average number of hours worked by employees 
C)  aggregate output 
D)  unemployment 
A)  the prices of products 
B)  the average number of hours worked by employees 
C)  aggregate output 
D)  unemployment

Question 18

Describe monopoly.

Accepted Answer

A monopoly exists when an industry or ma

Question 19

Through various stimulus programs,the U.S.government injected money into the economy during the 2008-2009 recession leading to fears of an increase in ________.

Accepted Answer

A)  productivity 
B)  spending 
C)  unemployment 
D)  inflation 
A)  productivity 
B)  spending 
C)  unemployment 
D)  inflation

Question 20

The point at which the supply curve and the demand curve intersect is the market price.

Accepted Answer

A) True 
 B)False

In the market for breakfast cereals,only a few large producers dominate the market.This situation best describes which of the following?

Price decreases by one company in an oligopoly are likely to be matched by other companies.

The term supply is best defined as ________.

Under the law of demand,which of the following situations will likely result in increases in product purchases?

Which of the following is NOT one of the elements required in private enterprise?

List and describe the five factors of production.

A planned economy relies on a centralized government to ________.

Describe monopolistic competition.

Which economic system provides for the private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive?

The purpose of monetary and fiscal policy is to smooth out fluctuations in output and unemployment and to stabilize prices.

Which of the following might be considered an oligopoly?

Which of the following best defines the term business cycle?

Communism and capitalism are the two basic forms of planned economies.

Explain purchasing power parity.

The primary measure of growth in the business cycle is inflation.

The main measure of growth in the business cycle is ________.

Describe monopoly.

Through various stimulus programs,the U.S.government injected money into the economy during the 2008-2009 recession leading to fears of an increase in ________.

The point at which the supply curve and the demand curve intersect is the market price.

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters

Exam 1: The U.S.Business Environment

In the market for breakfast cereals,only a few large producers dominate the market.This situation best describes which of the following?

Price decreases by one company in an oligopoly are likely to be matched by other companies.

The term supply is best defined as ________.

Under the law of demand,which of the following situations will likely result in increases in product purchases?

Which of the following is NOT one of the elements required in private enterprise?

List and describe the five factors of production.

A planned economy relies on a centralized government to ________.

Describe monopolistic competition.

Which economic system provides for the private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive?

The purpose of monetary and fiscal policy is to smooth out fluctuations in output and unemployment and to stabilize prices.

Which of the following might be considered an oligopoly?

Which of the following best defines the term business cycle?

Communism and capitalism are the two basic forms of planned economies.

Explain purchasing power parity.

The primary measure of growth in the business cycle is inflation.

The main measure of growth in the business cycle is ________.

Describe monopoly.

Through various stimulus programs,the U.S.government injected money into the economy during the 2008-2009 recession leading to fears of an increase in ________.

The point at which the supply curve and the demand curve intersect is the market price.

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters