Question 1

With a communist economy system:

Accepted Answer

A) there is complete freedom of trade 
B) consumers can expect a mixed economic reaction 
C) there are strong incentives for workers 
D) basic industries such as railroads and utilities are owned by government, while other industries are owned by the private sector 
E) none of the above is true

Question 2

A decline in real GDP that lasts for two consecutive quarters is called a(n):

Accepted Answer

A) economic downsizing 
B) depression 
C) recession 
D) resource divestment 
E) economic regression

Question 3

No true examples of a pure monopoly exist today.

Accepted Answer

A) True 
 B)False

Question 4

List the four types of unemployment.

Accepted Answer

The answer of List the four types of unemployment....

Question 5

The laborers displaced due to assembly line automation at the textile plant may not have the skills needed to operate the computerized machines that replaced them.This is an example of _____ unemployment.

Accepted Answer

A) cyclical 
B) frictional 
C) structural 
D) operational 
E) fiscal

Question 6

In a large metropolitan market, it is relatively easy to set up a law office.The ease of entry explains why you will find hundreds of lawyers listed in the New York City phone book.Each lawyer is a close substitute for another but with slight differences.Which of the following market structures best describes the one in which lawyers operate?

Accepted Answer

A) pure competition 
B) perfect monopoly 
C) monopolistic competition 
D) oligopoly 
E) none of the above

Question 7

Which of the following is NOT an example of a factor of production?

Accepted Answer

A) entrepreneurship 
B) capital 
C) competition 
D) natural resources 
E) labor

Question 8

_____ is the money a company earns from providing services or selling goods to customers.

Accepted Answer

A) Profit 
B) Opportunity 
C) Gross margin 
D) Revenue 
E) Amortization

Question 9

An industry in which a few firms produce most or all of the output of a product and in which large amounts of capital are needed is called a(n):

Accepted Answer

A) perfect competition 
B) imperfect competition 
C) monopoly 
D) monopolistic competition 
E) oligopoly

Question 10

A(n)_____ occurs if a country's total expenditures are higher than the revenues received from the taxes it gathers.

Accepted Answer

A) national surplus 
B) federal budget deficit 
C) annual expenditure surplus 
D) national priority deficit 
E) expenditure-tax gap

Question 11

The implementation of an expansionary policy by the Federal Reserve would result in:

Accepted Answer

A) lower interest rates 
B) decreased economic growth 
C) higher unemployment 
D) lower inflation 
E) decreased spending

Question 12

The national debt is the accumulation of deficits that have occurred in the past as a result of expenditures exceeding tax revenues.

Accepted Answer

A) True 
 B)False

Question 13

A(n) _____ is a market structure in which a single firm accounts for all industry sales and in which there are barriers to entry.

Accepted Answer

The answer of A(n) _____ is a market structure in...

Question 14

Demography is the study of how people use their free time, how people integrate their hobbies and their vocations, and how people make their purchase decisions.

Accepted Answer

A) True 
 B)False

Question 15

Understanding the external business environment requires marketers to be aware of:

Accepted Answer

A) their customers' wants and needs 
B) how employees are interacting with customers 
C) how employees are interacting with other employees 
D) changes in the law which impact how business is conducted 
E) how managers interrelate with employees

Question 16

The major difference between a good and a service is how the producer uses the factors of production to create each.

Accepted Answer

A) True 
 B)False

Question 17

When determining the GDP in 2006 for Chile, the economists adjusted the current market prices by 3.1 percent to correct for inflated values.This adjusted GDP is called the nation's _____ GDP.

Accepted Answer

A) interpreted 
B) real 
C) frictional 
D) cyclical 
E) non-inflated

Question 18

At the equilibrium point, quantity demanded equals quantity supplied.

Accepted Answer

A) True 
 B)False

Question 19

PGE supplies all of the electricity to Portland, Oregon.PGE is an example of:

Accepted Answer

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

Question 20

Which of the following is an example of a demographic factor?

Accepted Answer

A) a person's attitude toward premarital sex 
B) a person's love of reading 
C) a person's value system 
D) a person's age 
E) all of the above

Exam 1: Understanding Economic Systems and Business

With a communist economy system:

A decline in real GDP that lasts for two consecutive quarters is called a(n) :

No true examples of a pure monopoly exist today.

List the four types of unemployment.

The laborers displaced due to assembly line automation at the textile plant may not have the skills needed to operate the computerized machines that replaced them.This is an example of _____ unemployment.

Which of the following is NOT an example of a factor of production?

_____ is the money a company earns from providing services or selling goods to customers.

An industry in which a few firms produce most or all of the output of a product and in which large amounts of capital are needed is called a(n) :

A(n) _____ occurs if a country's total expenditures are higher than the revenues received from the taxes it gathers.

The implementation of an expansionary policy by the Federal Reserve would result in:

The national debt is the accumulation of deficits that have occurred in the past as a result of expenditures exceeding tax revenues.

A(n) _____ is a market structure in which a single firm accounts for all industry sales and in which there are barriers to entry.

Demography is the study of how people use their free time, how people integrate their hobbies and their vocations, and how people make their purchase decisions.

Understanding the external business environment requires marketers to be aware of:

The major difference between a good and a service is how the producer uses the factors of production to create each.

When determining the GDP in 2006 for Chile, the economists adjusted the current market prices by 3.1 percent to correct for inflated values.This adjusted GDP is called the nation's _____ GDP.

At the equilibrium point, quantity demanded equals quantity supplied.

PGE supplies all of the electricity to Portland, Oregon.PGE is an example of:

Which of the following is an example of a demographic factor?