Question 1

Economics is the study of how a society _________________.

Accepted Answer

A) invests wisely in the stock market. 
B) employs resources to produce goods and services and distribute them among competing groups and individuals. 
C) employs statistical techniques to make predictions about the evolution of society over the long run. 
D) governs itself for the good of its citizens. 
A) invests wisely in the stock market. 
B) employs resources to produce goods and services and distribute them among competing groups and individuals. 
C) employs statistical techniques to make predictions about the evolution of society over the long run. 
D) governs itself for the good of its citizens.

Question 2

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

Accepted Answer

A) The right to own private property. 
B) Freedom of expression. 
C) Freedom of choice. 
D) Freedom of competition. 
A) The right to own private property. 
B) Freedom of expression. 
C) Freedom of choice. 
D) Freedom of competition.

Question 3

Adam Smith believed that incentives to seek personal gain would create wealth,but that the government must then step in to make sure that this wealth is equitably distributed.

Accepted Answer

A) True 
 B)False

Question 4

GLAMOR GAL is a popular cosmetics company.Although it is gaining in popularity among younger women,its promotional strategy continues to focus on the shadow-free finish that it produces on almost any skin type.Due to the fact that its industry faces monopolistic competition,the company knows that it must continue to differentiate itself from the competition.

Accepted Answer

A) True 
 B)False

Question 5

Robin just graduated from college and is seeking her first job.She received a degree in engineering at a prestigious university.Robin has several leads and has heard that the market for engineers is very strong,so she is convinced that she should locate a good job in the near future.Robin's current situation is an example of structural unemployment.

Accepted Answer

A) True 
 B)False

Question 6

A free market is one in which decisions about what to produce and in what quantities are made by:

Accepted Answer

A) the Fed 
B) the community 
C) the market 
D) the Congress 
A) the Fed 
B) the community 
C) the market 
D) the Congress

Question 7

The price of iPhones™ is falling.In a free-market economic system where everything else is equal,the most likely explanation is:

Accepted Answer

A) Suppliers are not producing enough product. 
B) Sellers cannot keep up with market demand. 
C) The government determined that the product was not worth the price tag that the producer was asking. 
D) The product has competition at the equilibrium price. 
A) Suppliers are not producing enough product. 
B) Sellers cannot keep up with market demand. 
C) The government determined that the product was not worth the price tag that the producer was asking. 
D) The product has competition at the equilibrium price.

Question 8

Most nations recognize that private enterprise is detrimental to business growth and what is best for consumers.Recently,a nation had the opportunity to sell its government-owned telecommunication system to a private firm.Instead it realized that it would be better off if it raised taxes so that it could maintain the status quo.

Accepted Answer

A) True 
 B)False

Question 9

Monetary policy is directly under the control of the U.S.Department of the Treasury.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) Pure capitalism. 
B) Pure socialism. 
C) Command economies. 
D) Mixed economies. 
A) Pure capitalism. 
B) Pure socialism. 
C) Command economies. 
D) Mixed economies.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The next wave of marketable innovations may involve new ways to produce and conserve energy.If we can turn new technology into marketable products and services that produce energy to run our businesses and homes,the U.S.could see a surge in output of goods and services.The Department of Economic Development would document this surge by measuring the ______.

Accepted Answer

A) Gross Domestic Product 
B) Consumer Price Index 
C) Consumer Marginal Index 
D) number of workers who are frictionally employed 
A) Gross Domestic Product 
B) Consumer Price Index 
C) Consumer Marginal Index 
D) number of workers who are frictionally employed

Question 13

When the market price of a good is above its equilibrium value,and all other determinants are unchanged:

Accepted Answer

A) A shortage will exist in the market. 
B) The quantity demanded will exceed the quantity supplied. 
C) Both the supply curve and the demand curve will shift to the right. 
D) A surplus will exist in the market. 
A) A shortage will exist in the market. 
B) The quantity demanded will exceed the quantity supplied. 
C) Both the supply curve and the demand curve will shift to the right. 
D) A surplus will exist in the market.

Question 14

Incentive to own and operate businesses is high in nations whose governments are proponents of socialistic practices.

Accepted Answer

A) True 
 B)False

Question 15

__________ unemployment refers to unemployment caused by the restructuring of firms or by a mismatch between the skills of job seekers and the requirements of available jobs.

Accepted Answer

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

Question 16

Roland is a nation with an economic system that closely approximates pure capitalism.While Roland's economy is likely to generate a great deal of wealth,it may do a poor job of providing an acceptable level of income for the elderly or disabled.

Accepted Answer

A) True 
 B)False

Question 17

Capitalism is the foundation of the U.S.economic system.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following would be a topic emphasized in a microeconomics class?

Accepted Answer

A) How a nation's GDP is computed. 
B) The reason's why the unemployment rate for the economy is rising or falling. 
C) How market conditions determine the price of a specific product. 
D) How the government can use fiscal and monetary policies to stabilize the economy. 
A) How a nation's GDP is computed. 
B) The reason's why the unemployment rate for the economy is rising or falling. 
C) How market conditions determine the price of a specific product. 
D) How the government can use fiscal and monetary policies to stabilize the economy.

Question 19

Adam Smith's research focused on determining the best way to distribute a fixed amount of resources,rather than on how to create more wealth.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements about the Federal Reserve Bank the Fed)is most accurate?

Accepted Answer

A) The Fed is an agency of the U.S.Treasury Department that has the responsibility of collecting tax receipts for the IRS. 
B) The Fed manages the U.S.money supply and interest rates. 
C) The Fed is the primary government agency involved in carrying out our nation's fiscal policies. 
D) The Fed is the agency of the government that ensures the U.S.maintains enough gold reserves to pay any foreign debts that result from international trade. 
A) The Fed is an agency of the U.S.Treasury Department that has the responsibility of collecting tax receipts for the IRS. 
B) The Fed manages the U.S.money supply and interest rates. 
C) The Fed is the primary government agency involved in carrying out our nation's fiscal policies. 
D) The Fed is the agency of the government that ensures the U.S.maintains enough gold reserves to pay any foreign debts that result from international trade.

Economics is the study of how a society _________________.

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

Adam Smith believed that incentives to seek personal gain would create wealth,but that the government must then step in to make sure that this wealth is equitably distributed.

A free market is one in which decisions about what to produce and in what quantities are made by:

The price of iPhones™ is falling.In a free-market economic system where everything else is equal,the most likely explanation is:

Monetary policy is directly under the control of the U.S.Department of the Treasury.

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

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

When the market price of a good is above its equilibrium value,and all other determinants are unchanged:

Incentive to own and operate businesses is high in nations whose governments are proponents of socialistic practices.

__________ unemployment refers to unemployment caused by the restructuring of firms or by a mismatch between the skills of job seekers and the requirements of available jobs.

Roland is a nation with an economic system that closely approximates pure capitalism.While Roland's economy is likely to generate a great deal of wealth,it may do a poor job of providing an acceptable level of income for the elderly or disabled.

Capitalism is the foundation of the U.S.economic system.

Which of the following would be a topic emphasized in a microeconomics class?

Adam Smith's research focused on determining the best way to distribute a fixed amount of resources,rather than on how to create more wealth.

Which of the following statements about the Federal Reserve Bank the Fed)is most accurate?

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

Exam 2: Understanding Economics and How It Affects Business

Economics is the study of how a society _________________.

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

Adam Smith believed that incentives to seek personal gain would create wealth,but that the government must then step in to make sure that this wealth is equitably distributed.

A free market is one in which decisions about what to produce and in what quantities are made by:

The price of iPhones™ is falling.In a free-market economic system where everything else is equal,the most likely explanation is:

Monetary policy is directly under the control of the U.S.Department of the Treasury.

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

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

When the market price of a good is above its equilibrium value,and all other determinants are unchanged:

Incentive to own and operate businesses is high in nations whose governments are proponents of socialistic practices.

__________ unemployment refers to unemployment caused by the restructuring of firms or by a mismatch between the skills of job seekers and the requirements of available jobs.

Roland is a nation with an economic system that closely approximates pure capitalism.While Roland's economy is likely to generate a great deal of wealth,it may do a poor job of providing an acceptable level of income for the elderly or disabled.

Capitalism is the foundation of the U.S.economic system.

Which of the following would be a topic emphasized in a microeconomics class?

Adam Smith's research focused on determining the best way to distribute a fixed amount of resources,rather than on how to create more wealth.

Which of the following statements about the Federal Reserve Bank the Fed)is most accurate?

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