Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Explain the difference between fiscal policy and monetary policy.Discuss how each of these approaches can be used to influence the state of the economy.

Accepted Answer

Fiscal policy refers to changes in the l

Question 3

How is it that people working in their own self-interest produce goods,services,and wealth for others?

Accepted Answer

A) By taking advantage of a vast supply of labor,people working in their own self-interest could hire others at very low wages. 
B) In order to earn money and produce goods that improve lives,self-directed gain would provide jobs,and subsequently wages for others. 
C) The government pays entrepreneurs in the U.S.to produce goods,services,and wealth for others. 
D) Entrepreneurs tend to include themselves in a group of people who need charitable support.A portion of the entrepreneur's profit as required by law)goes to the charity of one's choice to support the less fortunate. 
A) By taking advantage of a vast supply of labor,people working in their own self-interest could hire others at very low wages. 
B) In order to earn money and produce goods that improve lives,self-directed gain would provide jobs,and subsequently wages for others. 
C) The government pays entrepreneurs in the U.S.to produce goods,services,and wealth for others. 
D) Entrepreneurs tend to include themselves in a group of people who need charitable support.A portion of the entrepreneur's profit as required by law)goes to the charity of one's choice to support the less fortunate.

Question 4

The study of how to increase the amount of available resources and create conditions that will make better use of these resources is known as:

Accepted Answer

A) human resource management 
B) microeconomics 
C) econology 
D) resource development 
A) human resource management 
B) microeconomics 
C) econology 
D) resource development

Question 5

_____________ refers to a general rise in the price level of goods and services over time.

Accepted Answer

A) Acceleration 
B) Recession 
C) Inflation 
D) Escalation 
A) Acceleration 
B) Recession 
C) Inflation 
D) Escalation

Question 6

The markets for laundry detergents,soft drinks,and automobiles are dominated by just a few sellers.Economists would classify these markets as examples of:

Accepted Answer

A) Monopolistic competition. 
B) Perfect competition. 
C) Oligopolies. 
D) Monopolies. 
A) Monopolistic competition. 
B) Perfect competition. 
C) Oligopolies. 
D) Monopolies.

Question 7

__________ is the market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product.

Accepted Answer

A) Oligopoly 
B) Monopolistic competition 
C) Perfect competition 
D) Microeconomic competition 
A) Oligopoly 
B) Monopolistic competition 
C) Perfect competition 
D) Microeconomic competition

Question 8

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

Accepted Answer

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

Question 9

Peace and prosperity will flourish if we can find the one best way to divide existing resources among nations.

Accepted Answer

A) True 
 B)False

Question 10

A collapse in Buldovia's banking system eventually led to companies unable to borrow money to run their businesses.Firms terminated employees.These circumstances cut into consumer's purchasing power,causing a severe decline in the prices of goods and services,better known as _______.

Accepted Answer

A) Disinflation. 
B) Deflation. 
C) Contra inflation. 
D) Overproduction. 
A) Disinflation. 
B) Deflation. 
C) Contra inflation. 
D) Overproduction.

Question 11

Resource development is the study of how to increase resources and to create the conditions that will make better use of those resources.

Accepted Answer

A) True 
 B)False

Question 12

In the long run,the market price tends to adjust toward the equilibrium point.

Accepted Answer

A) True 
 B)False

Question 13

In the U.S. ,the percentage of GDP that the government collects through taxes is approximately 28%.

Accepted Answer

A) True 
 B)False

Question 14

__________ is a condition in which the price increases are slowing.

Accepted Answer

A) Deflation 
B) Disinflation 
C) Stagflation 
D) Uniflation 
A) Deflation 
B) Disinflation 
C) Stagflation 
D) Uniflation

Question 15

A contemporary economic challenge is creating profitable businesses by selling goods and services that contribute toward a healthier environment.

Accepted Answer

A) True 
 B)False

Question 16

As indicated by the Making Ethical Decisions box,activities that lead to corruption can destroy free economic opportunities because they interfere with the right to freely compete.

Accepted Answer

A) True 
 B)False

Question 17

The major benefit of socialism is that it creates strong incentives to work hard and take the risks associated with starting and operating a business.

Accepted Answer

A) True 
 B)False

Exam 2: Understanding Economics and How It Affects Business

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

Explain the difference between fiscal policy and monetary policy.Discuss how each of these approaches can be used to influence the state of the economy.

How is it that people working in their own self-interest produce goods,services,and wealth for others?

The study of how to increase the amount of available resources and create conditions that will make better use of these resources is known as:

_____________ refers to a general rise in the price level of goods and services over time.

The markets for laundry detergents,soft drinks,and automobiles are dominated by just a few sellers.Economists would classify these markets as examples of:

__________ is the market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product.

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

Peace and prosperity will flourish if we can find the one best way to divide existing resources among nations.

A collapse in Buldovia's banking system eventually led to companies unable to borrow money to run their businesses.Firms terminated employees.These circumstances cut into consumer's purchasing power,causing a severe decline in the prices of goods and services,better known as _______.

Resource development is the study of how to increase resources and to create the conditions that will make better use of those resources.

In the long run,the market price tends to adjust toward the equilibrium point.

In the U.S. ,the percentage of GDP that the government collects through taxes is approximately 28%.

__________ is a condition in which the price increases are slowing.

A contemporary economic challenge is creating profitable businesses by selling goods and services that contribute toward a healthier environment.

As indicated by the Making Ethical Decisions box,activities that lead to corruption can destroy free economic opportunities because they interfere with the right to freely compete.

The major benefit of socialism is that it creates strong incentives to work hard and take the risks associated with starting and operating a business.

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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