Question 1

To be classified as unemployed,a person must be at least 16 years old and trying to find a job within the past four weeks.

Accepted Answer

A) True 
 B)False

Question 2

Due to the fundamental rights afforded to us by a free-market capitalistic system;persons are more willing to take calculated risks.

Accepted Answer

A) True 
 B)False

Question 3

___________ exists when a large number of firms produce goods that are similar but are perceived by buyers as being different.

Accepted Answer

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

Question 4

As of 2010,total GDP in the United States was around $14 trillion.

Accepted Answer

A) True 
 B)False

Question 5

One strength of a free-market economic system is that it emphasizes the fair and humane treatment of the less fortunate in society.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a basic right under capitalism?

Accepted Answer

A) Freedom of collusion. 
B) Freedom from taxation. 
C) The right to vote. 
D) The right to compete. 
A) Freedom of collusion. 
B) Freedom from taxation. 
C) The right to vote. 
D) The right to compete.

Question 7

Any output produced by U.S.firms is included in the value of U.S.GDP,even if the output was produced in a foreign country.

Accepted Answer

A) True 
 B)False

Question 8

Economist Adam Smith's important contribution was an inquiry as to why some nations are wealthy,while others remain poor.

Accepted Answer

A) True 
 B)False

Question 9

The national deficit is the difference between our nation's exports and its imports.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements about government deficit spending is most accurate?

Accepted Answer

A) The federal government violates the law by running deficits because the U.S.Constitution requires the government to balance its budget each year. 
B) Although the government used to run big deficits,it has consistently run surpluses since the late 1980s. 
C) The government has used deficit spending to lower the national debt. 
D) One reason the government has a hard time reducing deficits is that there is a great deal of pressure on the government to expand its spending each year. 
A) The federal government violates the law by running deficits because the U.S.Constitution requires the government to balance its budget each year. 
B) Although the government used to run big deficits,it has consistently run surpluses since the late 1980s. 
C) The government has used deficit spending to lower the national debt. 
D) One reason the government has a hard time reducing deficits is that there is a great deal of pressure on the government to expand its spending each year.

Question 11

A command economic system is characterized by:

Accepted Answer

A) Reliance on the forces of supply and demand to determine what is produced. 
B) Reliance on the government to determine what is produced and who gets the output. 
C) An extremely rapid rate of economic growth. 
D) Freedom of choice and freedom of competition. 
A) Reliance on the forces of supply and demand to determine what is produced. 
B) Reliance on the government to determine what is produced and who gets the output. 
C) An extremely rapid rate of economic growth. 
D) Freedom of choice and freedom of competition.

Question 12

High tax rates that put money into the government's coffers tend to slow spending,and ultimately slow the economy.

Accepted Answer

A) True 
 B)False

Question 13

____________ looks at the behavior of individual people and organizations in specific markets.

Accepted Answer

A) Macroeconomics 
B) Finite economics 
C) Microeconomics 
D) Nanoeconomics 
A) Macroeconomics 
B) Finite economics 
C) Microeconomics 
D) Nanoeconomics

Question 14

Efforts by the Federal Reserve Bank the Fed)to control the money supply and interest rates are known as:

Accepted Answer

A) fiscal policy. 
B) incomes policy 
C) monetary policy 
D) securities policy. 
A) fiscal policy. 
B) incomes policy 
C) monetary policy 
D) securities policy.

Question 15

If a shortage exists in a market for a good,the price of that good will tend to fall.

Accepted Answer

A) True 
 B)False

Question 16

Macroeconomics is the economic perspective that looks at the operation of a nation's economy as a whole.

Accepted Answer

A) True 
 B)False

Question 17

Brain drain is the loss of the best and brightest people to other countries.

Accepted Answer

A) True 
 B)False

Question 18

If the quantity supplied in a market exceeds the quantity demanded,a shortage will exist.

Accepted Answer

A) True 
 B)False

Question 19

A problem with the CPI is that it measures the price changes of only food and clothing,while ignoring what happens to the prices of such important items as medical care and energy.

Accepted Answer

A) True 
 B)False

Question 20

The consumer price index CPI)measures what is happening to prices at the wholesale level.

Accepted Answer

A) True 
 B)False

Exam 2: Understanding Economics and How It Affects Business

To be classified as unemployed,a person must be at least 16 years old and trying to find a job within the past four weeks.

Due to the fundamental rights afforded to us by a free-market capitalistic system;persons are more willing to take calculated risks.

___________ exists when a large number of firms produce goods that are similar but are perceived by buyers as being different.

As of 2010,total GDP in the United States was around $14 trillion.

One strength of a free-market economic system is that it emphasizes the fair and humane treatment of the less fortunate in society.

Which of the following is a basic right under capitalism?

Any output produced by U.S.firms is included in the value of U.S.GDP,even if the output was produced in a foreign country.

Economist Adam Smith's important contribution was an inquiry as to why some nations are wealthy,while others remain poor.

The national deficit is the difference between our nation's exports and its imports.

Which of the following statements about government deficit spending is most accurate?

A command economic system is characterized by:

High tax rates that put money into the government's coffers tend to slow spending,and ultimately slow the economy.

____________ looks at the behavior of individual people and organizations in specific markets.

Efforts by the Federal Reserve Bank the Fed)to control the money supply and interest rates are known as:

If a shortage exists in a market for a good,the price of that good will tend to fall.

Macroeconomics is the economic perspective that looks at the operation of a nation's economy as a whole.

Brain drain is the loss of the best and brightest people to other countries.

If the quantity supplied in a market exceeds the quantity demanded,a shortage will exist.

A problem with the CPI is that it measures the price changes of only food and clothing,while ignoring what happens to the prices of such important items as medical care and energy.

The consumer price index CPI)measures what is happening to prices at the wholesale level.

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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