Question 1

A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to:

Accepted Answer

A) Decrease. 
B) Increase. 
C) Remain constant. 
D) Fluctuate randomly around its equilibrium value. 
A) Decrease. 
B) Increase. 
C) Remain constant. 
D) Fluctuate randomly around its equilibrium value.

Question 2

An increase in productivity means that a worker is now able to produce more goods and services in the same amount of time.

Accepted Answer

A) True 
 B)False

Question 3

On average,what percentage of the GDP does the U.S.government collects through taxes?

Accepted Answer

A) 50% 
B) 10.5% 
C) 28.2% 
D) 33.33% 
A) 50% 
B) 10.5% 
C) 28.2% 
D) 33.33%

Question 4

A key to economic growth and development is to:

Accepted Answer

A) Locate more deposits of gold and other precious metals. 
B) Emphasize a fair and equitable distribution of income. 
C) Provide people with better education. 
D) Allow government planning to guide the allocation of resources. 
A) Locate more deposits of gold and other precious metals. 
B) Emphasize a fair and equitable distribution of income. 
C) Provide people with better education. 
D) Allow government planning to guide the allocation of resources.

Question 5

On its website,Papa John's Pizza compares itself to the competition with the following message: "better ingredients,better pizza".The company wants to achieve:

Accepted Answer

A) Product differentiation. 
B) An equilibrium price. 
C) A monopoly. 
D) A perfectly competitive market. 
A) Product differentiation. 
B) An equilibrium price. 
C) A monopoly. 
D) A perfectly competitive market.

Question 6

The PowerHouse Utility Company recently built a nuclear power plant in a southern state and started competing against BXY Utility Company that has served customers in that region for 65 years.Due to deregulation,consumers now have a choice among utility companies in this are
A.Although PowerHouse has made a sizeable capital investment,if it successfully grows market share,eventually prices for electricity may stabilize or fall.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) John Maynard Keynes 
B) Adam Smith 
C) Thomas Carlyle 
D) Thomas Malthus 
A) John Maynard Keynes 
B) Adam Smith 
C) Thomas Carlyle 
D) Thomas Malthus

Question 8

One of the greatest concerns associated with capitalism is that:

Accepted Answer

A) It is not very successful at creating wealth. 
B) Some businesspeople may let greed guide their behavior. 
C) The amount of economic freedom enjoyed by consumers is very limited. 
D) Producers are unlikely to supply the goods and services that consumers value the most. 
A) It is not very successful at creating wealth. 
B) Some businesspeople may let greed guide their behavior. 
C) The amount of economic freedom enjoyed by consumers is very limited. 
D) Producers are unlikely to supply the goods and services that consumers value the most.

Question 9

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

Accepted Answer

A) rising 
B) relatively stable 
C) falling slowly 
D) falling very rapidly 
A) rising 
B) relatively stable 
C) falling slowly 
D) falling very rapidly

Question 10

Which of the following indicators provides the clearest indication that an economy is experiencing deflation?

Accepted Answer

A) A decrease in the unemployment rate. 
B) A decrease in GDP. 
C) An increase in the PPI. 
D) A decrease in the CPI. 
A) A decrease in the unemployment rate. 
B) A decrease in GDP. 
C) An increase in the PPI. 
D) A decrease in the CPI.

Question 11

During the recent recession,the administrations of Presidents George W.Bush and Barack Obama flooded several banking,financial services,and insurance firms with government funds in exchange at least temporarily)for government ownership rights.The unprecedented move signaled the government's concern that the global banking system might collapse if these firms ended up in bankruptcy.The decision for active government involvement in the operations of these firms demonstrates:

Accepted Answer

A) The unforgiving nature of capitalism. 
B) The desire for more individuals in the U.S.to live under a socialist system. 
C) The trend toward mostly capitalist nations to move toward socialism. 
D) The freedoms the U.S.government has under capitalism. 
A) The unforgiving nature of capitalism. 
B) The desire for more individuals in the U.S.to live under a socialist system. 
C) The trend toward mostly capitalist nations to move toward socialism. 
D) The freedoms the U.S.government has under capitalism.

Question 12

Sue is a gifted cook.She plans to open a restaurant in which she will be the head chef.Sue is willing to work long hours because she believes that her culinary talents and hard work will allow her business to succeed and earn her sizeable profits.Sue's efforts are most consistent with the economic theory developed by:

Accepted Answer

A) Thomas Malthus. 
B) Karl Marx. 
C) Adam Smith. 
D) David Ricardo. 
A) Thomas Malthus. 
B) Karl Marx. 
C) Adam Smith. 
D) David Ricardo.

Question 13

When the supply curve and demand curve for a particular good are shown together on a single graph,the point at which the two curves intersect identifies the:

Accepted Answer

A) Total profit earned by producers. 
B) Total amount of labor that will be employed in that market. 
C) Amount of time it takes to bring together the buyers and sellers of the good. 
D) Equilibrium price of the good. 
A) Total profit earned by producers. 
B) Total amount of labor that will be employed in that market. 
C) Amount of time it takes to bring together the buyers and sellers of the good. 
D) Equilibrium price of the good.

Question 14

History shows that free-market capitalism leads to a fair and equitable distribution of wealth.

Accepted Answer

A) True 
 B)False

Question 15

Mike spends a lot of time blogging.Yesterday,he left the following comment on a site where participants were discussing the pros and cons of healthcare: "If you think healthcare is expensive now,wait until it is free.The problem with free rides is,eventually everyone piles on the bus and no one is left to push it.Then the system collapses." He was responded to by Martha,who added,"Universal healthcare is not a dirty word.It's the salvation for many people.If I have to pay a little more in taxes and know that my neighbor's kids have good pre-school and can see the doctor when needed,it's worth it to me." Mike and Martha are discussing the benefits and drawbacks of:

Accepted Answer

A) Healthcare under communism. 
B) Healthcare under capitalism. 
C) Healthcare under socialism 
D) Healthcare under nationalism. 
A) Healthcare under communism. 
B) Healthcare under capitalism. 
C) Healthcare under socialism 
D) Healthcare under nationalism.

Question 16

In developing nations of the world,population has leveled off and is not expected to increase dramatically in the future.

Accepted Answer

A) True 
 B)False

Question 17

Thomas Malthus was pessimistic about the ability of a society to achieve high standards of living for most of its citizens because he believed that:

Accepted Answer

A) Government has a natural tendency to run deficits that would eventually bankrupt a nation. 
B) Significant population growth would result in shortages of food and resources. 
C) Owners of businesses would deliberately exploit their employees in an attempt to earn greater profits,and this would ultimately lead to a worker's revolt. 
D) High tax rates would eventually undermine people's incentives to work hard and create wealth. 
A) Government has a natural tendency to run deficits that would eventually bankrupt a nation. 
B) Significant population growth would result in shortages of food and resources. 
C) Owners of businesses would deliberately exploit their employees in an attempt to earn greater profits,and this would ultimately lead to a worker's revolt. 
D) High tax rates would eventually undermine people's incentives to work hard and create wealth.

Question 18

A __________ is a very severe recession that is usually accompanied by deflation.

Accepted Answer

A) stagflation 
B) retraction 
C) depression 
D) dissolution 
A) stagflation 
B) retraction 
C) depression 
D) dissolution

Question 19

Over the past decade,socialist economies have proven to be more successful at creating wealth and jobs than capitalist economies.

Accepted Answer

A) True 
 B)False

Question 20

The U.S.national debt equals the sum of all recorded years of deficits.

Accepted Answer

A) True 
 B)False

A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to:

An increase in productivity means that a worker is now able to produce more goods and services in the same amount of time.

On average,what percentage of the GDP does the U.S.government collects through taxes?

A key to economic growth and development is to:

On its website,Papa John's Pizza compares itself to the competition with the following message: "better ingredients,better pizza".The company wants to achieve:

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

One of the greatest concerns associated with capitalism is that:

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

Which of the following indicators provides the clearest indication that an economy is experiencing deflation?

When the supply curve and demand curve for a particular good are shown together on a single graph,the point at which the two curves intersect identifies the:

History shows that free-market capitalism leads to a fair and equitable distribution of wealth.

In developing nations of the world,population has leveled off and is not expected to increase dramatically in the future.

Thomas Malthus was pessimistic about the ability of a society to achieve high standards of living for most of its citizens because he believed that:

A __________ is a very severe recession that is usually accompanied by deflation.

Over the past decade,socialist economies have proven to be more successful at creating wealth and jobs than capitalist economies.

The U.S.national debt equals the sum of all recorded years of deficits.

Taking Risks and Making Profits Within the Dynamic Business Environment

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Union and Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money,financial Institutions,and the Federal Reserve

test Planning Table for Bonus Chapter A

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

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Exam 2: Understanding Economics and How It Affects Business

A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to:

An increase in productivity means that a worker is now able to produce more goods and services in the same amount of time.

On average,what percentage of the GDP does the U.S.government collects through taxes?

A key to economic growth and development is to:

On its website,Papa John's Pizza compares itself to the competition with the following message: "better ingredients,better pizza".The company wants to achieve:

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

One of the greatest concerns associated with capitalism is that:

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

Which of the following indicators provides the clearest indication that an economy is experiencing deflation?

When the supply curve and demand curve for a particular good are shown together on a single graph,the point at which the two curves intersect identifies the:

History shows that free-market capitalism leads to a fair and equitable distribution of wealth.

In developing nations of the world,population has leveled off and is not expected to increase dramatically in the future.

Thomas Malthus was pessimistic about the ability of a society to achieve high standards of living for most of its citizens because he believed that:

A __________ is a very severe recession that is usually accompanied by deflation.

Over the past decade,socialist economies have proven to be more successful at creating wealth and jobs than capitalist economies.

The U.S.national debt equals the sum of all recorded years of deficits.

Taking Risks and Making Profits Within the Dynamic Business Environment

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Union and Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money,financial Institutions,and the Federal Reserve

test Planning Table for Bonus Chapter A

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

Filters