Question 1

Most communist countries today are suffering from severe economic problems.

Accepted Answer

A) True 
 B)False

Question 2

In perfect competition,each firm produces a product that is clearly differentiated from the products of other firms in the same market.

Accepted Answer

A) True 
 B)False

Question 3

____________ 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 4

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 5

In the newspaper this morning,you read about the downfall of a multi-national entertainment business,and a report that the company's CEO enjoyed a 9% increase in his salary during the same year that the company's profits were down 35%.As you read further,you learn that the company's board of directors approved undeserved salary increases.Clearly,this is an example of how inequality and greed can infiltrate the free-market economic system.

Accepted Answer

A) True 
 B)False

Question 6

In a mixed economy,the government's goal is to grow the economy and maintain some measure of social equality.

Accepted Answer

A) True 
 B)False

Question 7

Countries that wish to avoid shortages and surpluses of goods should adopt a communist system.

Accepted Answer

A) True 
 B)False

Question 8

A major distinction between capitalism and socialism concerns the distribution of income.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The presence of competition in free markets:

Accepted Answer

A)  Is undesirable because it results in unnecessary duplication of efforts. 
B)  Usually results in better quality and lower prices. 
C)  Is rare,since most markets eventually evolve into monopolies. 
D)  Is undesirable,because one big firm can usually produce goods more efficiently than a large number of small firms. 
A)  Is undesirable because it results in unnecessary duplication of efforts. 
B)  Usually results in better quality and lower prices. 
C)  Is rare,since most markets eventually evolve into monopolies. 
D)  Is undesirable,because one big firm can usually produce goods more efficiently than a large number of small firms.

Question 11

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 12

A __________ is a very severe recession that is usually accompanied by deflation.

Accepted Answer

A)  stagflation 
B)  retraction 
C)  depression 
D)  dissolution 
A)  stagflation 
B)  retraction 
C)  depression 
D)  dissolution

Question 13

Like most nations,the United States has a mixed economy.

Accepted Answer

A) True 
 B)False

Question 14

Senator Spendital made a speech deploring the continuous deficits in the federal budget.He is proposing an increase in tax rates to raise more revenue for the government and thus gradually reduce the size of the national debt over a period of several years.The strategy Senator Spendital is proposing is a common type of monetary policy.

Accepted Answer

A) True 
 B)False

Question 15

Adam Smith believed the self-interest of businesspeople would lead them to create needed goods,services,and jobs.

Accepted Answer

A) True 
 B)False

Question 16

Some wages,tax brackets,interest rates,and government benefits are based on the CPI.

Accepted Answer

A) True 
 B)False

Question 17

__________ is a condition in which the average level of prices is actually falling.

Accepted Answer

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

Question 18

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 19

A professor of economics at a prominent university recently urged government policy makers to cut taxes and increase government spending in order to pull the economy out of its current downturn.The policy measures called for by the professor are examples of fiscal policy.

Accepted Answer

A) True 
 B)False

Question 20

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.

Most communist countries today are suffering from severe economic problems.

In perfect competition,each firm produces a product that is clearly differentiated from the products of other firms in the same market.

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

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.

In a mixed economy,the government's goal is to grow the economy and maintain some measure of social equality.

Countries that wish to avoid shortages and surpluses of goods should adopt a communist system.

A major distinction between capitalism and socialism concerns the distribution of income.

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

The presence of competition in free markets:

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

A __________ is a very severe recession that is usually accompanied by deflation.

Like most nations,the United States has a mixed economy.

Adam Smith believed the self-interest of businesspeople would lead them to create needed goods,services,and jobs.

Some wages,tax brackets,interest rates,and government benefits are based on the CPI.

__________ is a condition in which the average level of prices is actually falling.

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

A professor of economics at a prominent university recently urged government policy makers to cut taxes and increase government spending in order to pull the economy out of its current downturn.The policy measures called for by the professor are examples of fiscal policy.

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

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

Adapting Organizations to Todays Markets

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employee-Management Issues and Relationships

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

Appendix A: Using Technology to Manage Information

Appendix B: Managing Risk

Filters

Exam 2: Understanding How Economics Affects Business

Most communist countries today are suffering from severe economic problems.

In perfect competition,each firm produces a product that is clearly differentiated from the products of other firms in the same market.

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

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.

In a mixed economy,the government's goal is to grow the economy and maintain some measure of social equality.

Countries that wish to avoid shortages and surpluses of goods should adopt a communist system.

A major distinction between capitalism and socialism concerns the distribution of income.

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

The presence of competition in free markets:

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

A __________ is a very severe recession that is usually accompanied by deflation.

Like most nations,the United States has a mixed economy.

Adam Smith believed the self-interest of businesspeople would lead them to create needed goods,services,and jobs.

Some wages,tax brackets,interest rates,and government benefits are based on the CPI.

__________ is a condition in which the average level of prices is actually falling.

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

A professor of economics at a prominent university recently urged government policy makers to cut taxes and increase government spending in order to pull the economy out of its current downturn.The policy measures called for by the professor are examples of fiscal policy.

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

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

Adapting Organizations to Todays Markets

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employee-Management Issues and Relationships

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

Appendix A: Using Technology to Manage Information

Appendix B: Managing Risk

Filters