Exam 2: Understanding Economics and How It Affects Business

Willow was laid off from her job 7 months ago. At first, she looked for a new job nearly every day. However, in the last 6 weeks, Willow has become depressed about not finding a job and quit looking. Based on the criteria used by the government, Willow is a civilian whose job status is included in computing the national unemployment rate.

The freedom for people to buy, sell, and use land, buildings, machinery, and inventions are basic capitalist rights under

Large educated populations can contribute to an economy by offering knowledge and entrepreneurship.

Under the ________ system there is very little incentive to work hard or to produce quality goods or services.

In the United States, laws prohibit the creation of most types of monopolies.

High tax rates in socialist countries are a major reason these nations have experienced a brain drain.

In recent years, U.S. manufacturing sector has experienced ________ productivity.

________ is considered by some to be the father of modern economics.

Most communist countries today are suffering from severe economic problems.

If the national debt is $20 trillion, the national deficit will be considerably higher.

In the box "World Population is Popping," the textbook describes how the world's population is growing at an incredible rate and discusses the challenges that will face different countries. Which of the following statements best illustrates the challenges that can arise?

Sarah owns a candle shop. She had been charging $5 for each scented jar candle. At this price her customers bought an average of 421 jars each week. For the last few weeks, she has reduced her price to $3.95 per candle, and her customers have purchased an average of 695 jar candles each week. These results are consistent with the economic concept of demand.

Although mixed economies tend to improve economic conditions, moral values prevent communist nations such as North Korea and Vietnam from progressing in this direction. Overall, economic progress continues to be very slow in these nations.

Disinflation refers to a situation in which prices continue to rise, but not at the rate they were rising previously.

Today, the economic systems of most nations could most accurately be classified as

The four basic types of unemployment are frictional, structural, seasonal, and

Adam Smith believed that since businesspeople are motivated to improve their own prosperity, their actions are unlikely to benefit society as a whole.

A monopoly occurs when there is a single seller for a product or service.

Which of the following would be a topic emphasized in a macroeconomics course?

Over the years, the government of Evensplitia has focused on implementing programs that promote equality. In the short term, though, Evensplitia's legislators are concerned about the very slow rate of growth that has plagued its national economy. In order to address this problem, the government is likely to