Deck 3: Economic Challenges Facing Contemporary Business

Question 1

List the factors that should cause a demand curve to shift to the right.

Answer 1

The factors are an increase in customer preferences,increase in the number of buyers,increase in buyers' incomes,increase in the prices of substitute goods,decrease in the price of complementary goods, and more optimistic expectations concerning the future.

Question 2

MATCHING

The point where the supply and demand curves meet is the _____.

Answer 2

f

Question 3

MATCHING

The study of small economic units,such as individual consumers,families,and businesses,is called _____________.

Answer 3

m

Question 4

MATCHING

Attempting to bring about changes in economic activity through changes in the size of the nation's money supply is called _____.

Question 5

MATCHING

Price increases that reduce the amount of goods and services people can purchase with a given amount of money are the result of ____________.

Question 6

MATCHING

_____ is the relationship between the goods and services produced in a nation each year and the inputs needed to produce them.

Question 7

Differentiate between macroeconomics and microeconomics.What types of economic activities might be included in each category?

Question 8

MATCHING

_____ measures the monthly average change in prices of goods and services.

Question 9

MATCHING

_____ is the sum of all goods and services produced within a country's borders.

Question 10

MATCHING

_____ is a market structure characterized by a large number of buyers and sellers exchanging relatively homogenous products,with no single participant having a significant influence on price.

Question 11

MATCHING

During a(n)_____,consumers frequently postpone major purchases and shift buying patterns toward basic,functional products carrying low prices.

Question 12

MATCHING

If the government spends more than it collects in taxes,then a(n)_____ occurs.

Question 13

Distinguish between the demand curve and the supply curve.

Question 14

List the factors that should cause a supply curve to shift to the left.

Question 15

MATCHING

_____ refers to the willingness and ability of buyers to purchase goods and services at various prices.

Question 16

MATCHING

The use of government tax and spending policies to bring about desired changes in the economy is called _____.

Question 17

What is economics? Why is understanding economics important in your life?

Question 18

MATCHING

In a(n)_____,a single seller dominates trade in a product for which buyers can find no close substitute.

Question 19

MATCHING

A(n)_____ is characterized by relatively few sellers and barriers to entry due to high start-up costs.

Question 20

MATCHING

The amount of goods and services available at various prices is known as _____________.

Question 21

In general,as price of a good or service increases,the quantity demanded:

A) increases
B) decreases
C) stays the same
D) depends on the type of product or service

Question 22

Individual and business decisions are ________ by economic conditions and,in turn,economic conditions are ________ by their decisions.

A) affected;not affected
B) affected;affected
C) not affected;not affected
D) not affected;affected

Question 23

List the four factors of production and provide an example of each factor.

Question 24

List and describe each of the four stages of the business cycle.

Question 25

List five challenges to maintain global competitiveness.

Question 26

Describe the four categories of unemployment.

Question 27

Describe how worker incentives vary in each of the four economic systems.

Question 28

Describe the major differences between socialism and a mixed economic system.

Question 29

Explain how the interaction of supply and demand will correct a surplus or shortage.

Question 30

The study of macroeconomics is ________.

A) not related to microeconomics
B) primarily concerned with individual businesses and decisions
C) concerned with studying the overall economy
D) not related to government decisions concerning spending and taxes

Question 31

Differentiate between a monopoly and an oligopoly in the private enterprise system.

Question 32

Define the Consumer Price Index,and explain how it is measured.

Question 33

Distinguish between demand-pull inflation and cost-push inflation.Give an example of each.

Question 34

The willingness and ability of sellers to provide goods and services for sale in a market is referred to as ________.

A) supply
B) the equilibrium price
C) microeconomics
D) demand

Question 35

Hailey's research firm was hired by a discount superstore to provide a detailed evaluation regarding consumer preferences.Hailey's analysis involves the study of ________.

A) economics
B) private enterprise system
C) microeconomics
D) macroeconomics

Question 36

Which of the following fields is concerned with understanding the choices people make in using scarce resources?

A) statistics
B) psychology
C) accounting
D) economics

Question 37

What is monetary policy? What governmental agency controls monetary policy? Describe actions that are used to influence economic activity.

Question 38

________ is the study of the economic choices of individual consumers,families,or businesses.

A) Macroeconomics
B) Microeconomics
C) Entrepreneurship
D) Consumer behaviour

Question 39

Williams & Co.management is trying to decide the appropriate prices for various products sold by the firm.This is a focus of ________.

A) microeconomics
B) macroeconomics
C) fiscal policy
D) monetary policy

Question 40

What is fiscal policy? How does fiscal policy affect economic conditions?

Question 41

If the number of buyers decreases,the demand curve will shift to the ________ and the price will ________.

A) right;fall
B) left;fall
C) right;rise
D) left;rise

Question 42

As the number of suppliers of a product increases,the supply curve shifts to the ________ and the price will ________.

A) right;fall
B) right;rise
C) left;fall
D) left;rise

Question 43

According to a supply curve,________.

A) as prices rise,quantity of a product supplied falls
B) as prices fall,quantity of a product supplied increases
C) as prices rise,consumers will buy in larger quantities
D) as prices rise,the quantity of a product that is supplied also rises

Question 44

________ refers to the willingness and ability of buyers to purchase goods and services.

A) Consumer behaviour
B) Customer preference
C) Supply
D) Demand

Question 45

If buyers' incomes increase,the demand curve will shift to the ________ and the price will ________.

A) right;fall
B) left;fall
C) right;rise
D) left;rise

Question 46

A surplus will occur when ________.

A) production quantities are falling
B) price is above the equilibrium point
C) price is below the equilibrium point
D) the demand curve is shifting to the right

Question 47

Which of the following statements about demand curves is true?

A) When the price rises,demand increases.
B) When the price falls,demand decreases.
C) When the price falls,demand increases.
D) When the price falls,supply increases.

Question 48

Which of the following factors will NOT result in a shift in the supply curve?

A) Change in the number of suppliers
B) Change in the price of substitute goods
C) Cost savings resulting from new technology
D) Change in the costs of labour

Question 49

A demand curve will shift to the left if the ________.

A) number of buyers increases
B) buyers' incomes decrease
C) future expectations become more optimistic
D) prices of substitute goods increase

Question 50

A demand curve is the schedule that shows the relationship between the price of a product and ________.

A) overhead costs
B) the costs of marketing the product
C) the quantity of that product that buyers demand at that price
D) the quantity supplied at each price

Question 51

If the cost of producing a good or service increases,the supply curve will shift to the ________ and the price will ________.

A) right;fall
B) right;rise
C) left;fall
D) left;rise

Question 52

A supply curve is a(n)________.

A) upward sloping curve
B) downward sloping curve
C) vertical line
D) horizontal line

Question 53

Assume the price of gasoline triples.What will likely happen to the demand for small cars? The demand curve will shift to the ________ and demand will ________.

A) left;decrease
B) left;increase
C) right;decrease
D) right;increase

Question 54

The equilibrium price is established when the quantity ________.

A) purchased is equal to the quantity offered
B) supplied is equal to the amount of raw materials available
C) bought is equal to the quantity demanded
D) demanded is equal to the quantity supplied at a lower price

Question 55

The curve that shows the relationship between different prices and the quantity requested at each price is the ________ curve.

A) equilibrium
B) supply
C) buying
D) demand

Question 56

All of the following can shift the demand curve to either the right or left EXCEPT ________.

A) change in the cost of inputs
B) change in the number of buyers
C) change in the income of buyers
D) buyers' attitudes about the future

Question 57

If the prices of substitute goods decrease,the demand curve will shift to the ________ and the price will ________.

A) right;fall
B) left;fall
C) right;rise
D) left;rise

Question 58

An increase in consumers' incomes causes the ________.

A) supply curve to shift to the right
B) demand curve to shift to the right
C) supply curve to shift to the left
D) demand curve to shift to the left

Question 59

If the market price is above the equilibrium price,________.

A) producers will earn large profits
B) consumers will go on strike and not purchase any of the product
C) the demand curve will shift to the right causing the surplus to go away
D) a surplus will occur and prices and production will fall

Question 60

A shortage will occur when ________.

A) production quantities are rising
B) prices are falling
C) prices are below the equilibrium point
D) the demand curve is shifting to the left

Question 61

The four different types of market structure in a private enterprise system are ________.

A) communism,socialism,capitalism,and mixed systems
B) pure competition,monopolistic competition,oligopoly,and monopoly
C) socialism,oligopoly,monopoly,and pure competition
D) mixed,socialism,communism,and pure competition

Question 62

Which of the following market structures best describes the Canadian auto industry?

A) monopoly
B) pure competition
C) monopolistic competition
D) oligopoly

Question 63

Before the patent expired on allergy medicine Claritin,pharmaceutical company Schering-Plough was able to set its own price in the marketplace.From which type of competition did the company benefit?

A) oligopoly
B) pure competition
C) monopolistic competition
D) monopoly

Question 64

Entrepreneurs have the most economic freedom in which type of economy?

A) communism
B) socialism
C) capitalism
D) mixed economy

Question 65

Monopolistic competition has ________.

A) only one seller
B) many buyers and sellers,none of whom can control prices
C) only a few sellers
D) many buyers and sellers,and the sellers have some control over price

Question 66

Which of the following best describes your local cable TV company?

A) pure monopoly
B) oligopoly
C) monopolistic competition
D) regulated monopoly

Question 67

The three major types of economic systems are ________.

A) capitalism,planned economies,and mixed economies
B) capitalism,pure competition,and planned economies
C) capitalism,monopoly,and mixed economies
D) capitalism,oligopoly,and planned economies

Question 68

Most industrialized nations operate economies based on ________.

A) planned economies
B) private enterprise systems
C) communist systems
D) socialist systems

Question 69

Which of the following is considered to be the BEST example of pure competition in today's business environment?

A) agriculture
B) the airline industry
C) the electric and gas utility industries
D) Major League Baseball

Question 70

Incentives to motivate employees to perform at their highest level are strongest in ________ systems.

A) capitalist
B) communist
C) socialist
D) monopolistic

Question 71

________ is an economic system in which private property is eliminated.

A) socialism
B) capitalism
C) monopoly
D) communism

Question 72

A particular industry has many competitors,each of whom has little control over price.In addition,it is fairly easy to enter the industry.This industry is an example of ________.

A) pure competition
B) monopolistic competition
C) an oligopoly
D) a pure monopoly

Question 73

A particular industry has only a few competitors,who have at least some control over price.Entry into the industry is difficult.This industry is an example of ________.

A) pure competition
B) monopolistic competition
C) an oligopoly
D) a pure monopoly

Question 74

Holding supply constant and decreasing demand will cause ________.

A) prices to rise and production to fall
B) prices to fall and production to rise
C) prices and production both to fall
D) prices and production both to rise

Question 75

Barriers to entry into an industry are highest in ________.

A) pure competition
B) an oligopoly
C) a monopoly
D) monopolistic competition

Question 76

Control over price by individual firms is highest in a(n)________.

A) regulated monopoly
B) oligopoly
C) pure monopoly
D) monopolistically competitive industry

Question 77

Consumers can choose from hundreds of different kinds and producers of cheese,each with a slightly different flavour and texture.This type of market structure is known as ________.

A) pure competition
B) monopolistic competition
C) a monopoly
D) an oligopoly

Question 78

Unless it is regulated or only temporary,the market situation called ________ is prohibited in Canada through antitrust legislation.

A) communism
B) monopoly
C) oligopoly
D) monopolistic competition

Question 79

There is no direct competition in a particular industry,yet the firms have almost no control over pricing.This industry is an example of ________.

A) monopolistic competition
B) a regulated monopoly
C) an oligopoly
D) a pure monopoly

Question 80

Supply and demand can be used to correct a shortage by ________.

A) reducing the product price to decrease production
B) raising the price to decrease production
C) keeping the price the same but decreasing production
D) raising the price to increase production