Exam 2: Understanding How Economics Affects Business

Jake considers himself to be a follower of Thomas Malthus.Which of the following statements would Jake be most likely to make?

Productivity of workers in the U.S.is helped by the use of better machinery. Level of Learning 1: Knowledge of key terms

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. Level of Learning 3: Application of principles

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. Level of Learning 3: Application of principles

The four basic types of unemployment are frictional,structural,seasonal,and:

Over the past decade,socialist economies have proven to be more successful at creating wealth and jobs than capitalist economies. Level of Learning 1: Knowledge of key terms

In developing nations of the world,population has leveled off and is not expected to increase dramatically in the future. Level of Learning 1: Knowledge of key terms

Under capitalism,the government prohibits people and businesses from competing with each other. Level of Learning 1: Knowledge of key terms

As you scan the national news online,you read about the BXY Utility Company's latest problems.The story describes an expansive retaining wall that collapsed during a flood last week,spewing toxic coal ash,burying homes,and causing a few fatalities.An editorial claims that the company will not be held accountable to the same standards as the asbestos companies of a few years back that paid severe fines and even went out of business due to their lack of attention to environmental clean-up.You agree with the writer because you recently studied about the various competitive markets and utility companies clearly fall under monopolistic competition. Level of Learning 3: Application of principles

The study of how society chooses to employ resources to produce goods and services and to distribute them for consumption among various competing groups and individuals is known as sociology. Level of Learning 1: Knowledge of key terms

For many years,Congressman Ricardo Perez has called for more government regulation of business."After all," the Congressman said recently,"businesspeople are ought to make a profit,not to create jobs or serve their customers.The government must pass more laws to require businesses to take the interests of consumers and workers into account." From these comments,it is clear that Congressman Perez:

Emily recently quit her job at a major corporation because she saw little chance for advancement.Although she is still searching for a new position,Emily believes the economy is healthy and she hears that several firms are hiring people with her qualifications.Which of the following statements about Emily's current situation is most accurate? Emily is:

In order to restrict spending by businesses and households,the Fed would take measures designed to lower interest rates. Level of Learning 2: Understanding of concepts and principles

If the government wants to jump-start the economy resulting in more consumer spending,it will raise taxes. Level of Learning 2: Understanding of concepts and principles

Kathleen's company produces computer monitors and other peripheral devices for computers.About six months ago,Kathleen began to keep track of number of hours worked,and the resulting output at her particular work site.Comparing the results,she found that the number of workers (and the hours they worked)remained relatively steady over the past six months,however,the work site's output increased significantly.This indicates that:

One reason the CPI is monitored very closely by government,businesses,and workers is that:

When the federal government's collection of tax revenues is less than what it spends in a given year,it results in a:

A rising GDP,rising unemployment rate,and rising inflation rate signify a healthy economy. Level of Learning 2: Understanding of concepts and principles

An increase in productivity means that a worker is now able to produce more goods and services in the same amount of time. Level of Learning 1: Knowledge of key terms

An economy is said to be in a recession if GDP declines for two or more consecutive quarters. Level of Learning 1: Knowledge of key terms