Question 1

Which of the following people would tend to favor a socialist economy?

Accepted Answer

A) John wants to live in a country with low marginal tax rates. 
B) Robin wants to live in a country that encourages rapid economic growth. 
C) Liz wants to live in a country with limited government regulation. 
D) Fred prefers to live in a country that promotes social equality. 
A) John wants to live in a country with low marginal tax rates. 
B) Robin wants to live in a country that encourages rapid economic growth. 
C) Liz wants to live in a country with limited government regulation. 
D) Fred prefers to live in a country that promotes social equality.

Question 2

Core inflation figures omit healthcare prices,but not energy prices.

Accepted Answer

A) True 
 B)False

Question 3

A depression is a severe recession that is often accompanied by deflation.

Accepted Answer

A) True 
 B)False

Question 4

Explain the significance of "price" in a free-market economic system.

Accepted Answer

In a free-market economy,the mechanism o

Question 5

Sweetland is a nation that publicly supports a free market economy with private ownership of businesses.Over time,the government of Sweetland has developed policies designed to help the needy and reduce the level of income inequality.It pays for these programs by levying relatively high taxes on businesses and workers.These arrangements suggest that the economy of Sweetland is trending toward pure capitalism.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Fiscal policy involves the federal government's efforts to stabilize the economy by increasing or decreasing taxes and/or government spending.

Accepted Answer

A) True 
 B)False

Question 8

Global economics and politics have no significant influence on businesses in the United States.

Accepted Answer

A) True 
 B)False

Question 9

The main goal of resource development is to find ways to:

Accepted Answer

A) Increase the amount of resources and create conditions that will make better use of those resources. 
B) Allocate existing resources more efficiently among competing uses. 
C) Find the right balance between policies that promote economic growth and policies designed to promote other goals such as a fair distribution of income. 
D) Promote the central planning of resource utilization so that resources can be allocated to the uses that will benefit society the most. 
A) Increase the amount of resources and create conditions that will make better use of those resources. 
B) Allocate existing resources more efficiently among competing uses. 
C) Find the right balance between policies that promote economic growth and policies designed to promote other goals such as a fair distribution of income. 
D) Promote the central planning of resource utilization so that resources can be allocated to the uses that will benefit society the most.

Question 10

Monica notices that just a few big companies produce the vast majority of soft drinks.She would be correct in describing the soft drink industry as an oligopoly.

Accepted Answer

A) True 
 B)False

Question 11

Senator Gong Lee is alarmed at the state of the economy.Unemployment is high and GDP is low.Senator Lee has called for Congress to take action to increase government spending and cut taxes in order to stimulate the economy.The actions called for by Senator Lee are examples of:

Accepted Answer

A) Monetary policy. 
B) Fiscal policy. 
C) Discretionary income policy. 
D) Social investment policy. 
A) Monetary policy. 
B) Fiscal policy. 
C) Discretionary income policy. 
D) Social investment policy.

Question 12

___________ studies the operation of a nation's economy as a whole.

Accepted Answer

A) Microeconomics 
B) Socioeconomics 
C) Econometrics 
D) Macroeconomics 
A) Microeconomics 
B) Socioeconomics 
C) Econometrics 
D) Macroeconomics

Question 13

__________ unemployment refers to persons who purposefully quit their jobs and have not yet found a new job.

Accepted Answer

A) Frictional 
B) Structural 
C) Cyclical 
D) Seasonal 
A) Frictional 
B) Structural 
C) Cyclical 
D) Seasonal

Question 14

A major trend in the world today is that:

Accepted Answer

A) Free-market economies are moving more toward socialism and socialist economies are moving more toward capitalism. 
B) Productivity in the service sector is increasing much more rapidly than productivity in agriculture and manufacturing. 
C) Governments in socialist economies are increasing their use of social programs and relying on higher tax rates to finance these programs. 
D) Governments in countries with capitalist economies are paying less attention to environmental concerns and issues involving social equality. 
A) Free-market economies are moving more toward socialism and socialist economies are moving more toward capitalism. 
B) Productivity in the service sector is increasing much more rapidly than productivity in agriculture and manufacturing. 
C) Governments in socialist economies are increasing their use of social programs and relying on higher tax rates to finance these programs. 
D) Governments in countries with capitalist economies are paying less attention to environmental concerns and issues involving social equality.

Question 15

There are some restrictions on freedom of assembly and freedom of speech under a ____________ system.

Accepted Answer

A) capitalist 
B) socialist 
C) mixed economy 
D) communist 
A) capitalist 
B) socialist 
C) mixed economy 
D) communist

Question 16

One drawback of socialism is that it may result in a reduction in the individual's incentive to work hard.

Accepted Answer

A) True 
 B)False

Question 17

Most communist countries today are suffering from severe economic problems.

Accepted Answer

A) True 
 B)False

Question 18

Gig started Giganeers to earn a profit,but by working hard and increasing his market share,he was able to create jobs for others.This is an example of the ______________ concept.

Accepted Answer

A) circular flow 
B) invisible hand 
C) equitable income 
D) social dividend 
A) circular flow 
B) invisible hand 
C) equitable income 
D) social dividend

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Resource development is:

Accepted Answer

A) The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals. 
B) The study of how to increase the amount of available resources and create conditions that will make better use of these resources. 
C) The part of economics that looks at the operation of a nation's economy as a whole. 
D) The part of economics that looks at particular markets. 
A) The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals. 
B) The study of how to increase the amount of available resources and create conditions that will make better use of these resources. 
C) The part of economics that looks at the operation of a nation's economy as a whole. 
D) The part of economics that looks at particular markets.

Exam 2: Understanding Economics and How It Affects Business

Which of the following people would tend to favor a socialist economy?

Core inflation figures omit healthcare prices,but not energy prices.

A depression is a severe recession that is often accompanied by deflation.

Explain the significance of "price" in a free-market economic system.

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

Fiscal policy involves the federal government's efforts to stabilize the economy by increasing or decreasing taxes and/or government spending.

Global economics and politics have no significant influence on businesses in the United States.

The main goal of resource development is to find ways to:

Monica notices that just a few big companies produce the vast majority of soft drinks.She would be correct in describing the soft drink industry as an oligopoly.

Senator Gong Lee is alarmed at the state of the economy.Unemployment is high and GDP is low.Senator Lee has called for Congress to take action to increase government spending and cut taxes in order to stimulate the economy.The actions called for by Senator Lee are examples of:

___________ studies the operation of a nation's economy as a whole.

__________ unemployment refers to persons who purposefully quit their jobs and have not yet found a new job.

A major trend in the world today is that:

There are some restrictions on freedom of assembly and freedom of speech under a ____________ system.

One drawback of socialism is that it may result in a reduction in the individual's incentive to work hard.

Most communist countries today are suffering from severe economic problems.

Gig started Giganeers to earn a profit,but by working hard and increasing his market share,he was able to create jobs for others.This is an example of the ______________ concept.

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

Resource development is:

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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