Question 1

Under the economic system of communism,_____.

Accepted Answer

A) individual rights to profits are not allowed 
B) government interference is limited 
C) employees have the complete freedom to choose their own occupation 
D) businesses are owned by individuals 
A) individual rights to profits are not allowed 
B) government interference is limited 
C) employees have the complete freedom to choose their own occupation 
D) businesses are owned by individuals

Question 2

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

Accepted Answer

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

Question 3

A demand curve is the graph showing the relationship between different prices and the quantities of a good or service that sellers will offer for sale.

Accepted Answer

A) True 
 B)False

Question 4

Inflation benefits consumers with fixed incomes.

Accepted Answer

A) True 
 B)False

Question 5

The price of gasoline rises sharply.One likely outcome is that the demand curve for hybrid vehicles should shift to the left.

Accepted Answer

A) True 
 B)False

Question 6

In which of the following types of economic systems do entrepreneurs and investors have the most amount of freedom with regard to controlling business ownership,profits,and resource allocations?

Accepted Answer

A) Socialism 
B) Capitalism 
C) Communism 
D) Mixed economy 
A) Socialism 
B) Capitalism 
C) Communism 
D) Mixed economy

Question 7

Two goods are substitute goods if an increase in the price of one causes a fall in demand for the other.

Accepted Answer

A) True 
 B)False

Question 8

As price of a good or service increases,in general,the quantity demanded:

Accepted Answer

A) declines. 
B) remains the same irrespective of the product type. 
C) increases. 
D) first increases and then decreases irrespective of the product type. 
A) declines. 
B) remains the same irrespective of the product type. 
C) increases. 
D) first increases and then decreases irrespective of the product type.

Question 9

Which of these is caused by an increase in consumers' incomes?

Accepted Answer

A) Break-even point to shift to the right 
B) Demand curve to shift to the right 
C) Break-even point to shift to the left 
D) Demand curve to shift to the left 
A) Break-even point to shift to the right 
B) Demand curve to shift to the right 
C) Break-even point to shift to the left 
D) Demand curve to shift to the left

Question 10

Individuals who lose their jobs due to structural reasons are generally unemployed only for a short period of time.

Accepted Answer

A) True 
 B)False

Question 11

Quinn cultivates and sells sugarcane to a sugar manufacturing company.Brett is a retailer for pet food.Which of the following is a difference between Quinn's and Brett's businesses?

Accepted Answer

A) Unlike John,David has very few competitors. 
B) Unlike John,David is eligible for tax exemptions. 
C) Unlike John,David has no control over the pricing of his product. 
D) Unlike John,David can patent his product. 
A) Unlike John,David has very few competitors. 
B) Unlike John,David is eligible for tax exemptions. 
C) Unlike John,David has no control over the pricing of his product. 
D) Unlike John,David can patent his product.

Question 12

During an economic recession,consumer spending _____ and unemployment _____.

Accepted Answer

A) increases; increases 
B) increases; decreases 
C) decreases; increases 
D) decreases; decreases 
A) increases; increases 
B) increases; decreases 
C) decreases; increases 
D) decreases; decreases

Question 13

In which of these,a local,state,or federal government grants exclusive rights in a certain market to a single firm.

Accepted Answer

A) Pure competition 
B) Oligopolies 
C) Regulated monopolies 
D) Monopolistic competition 
A) Pure competition 
B) Oligopolies 
C) Regulated monopolies 
D) Monopolistic competition

Question 14

Which of the following best describes the study of macroeconomics? It is:

Accepted Answer

A) concerned with studying a country's overall economic issues 
B) primarily concerned with the economic choices and decisions of individual consumers 
C) not related to microeconomics 
D) not related to government decisions concerning spending and taxes 
A) concerned with studying a country's overall economic issues 
B) primarily concerned with the economic choices and decisions of individual consumers 
C) not related to microeconomics 
D) not related to government decisions concerning spending and taxes

Question 15

In a socialist economy,incentives usually are limited in state enterprises but do motivate workers in the private sector.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following should developing countries follow to modernize their economies?

Accepted Answer

A) Increase their tax rates 
B) Allow citizens to own property 
C) Restrict new businesses 
D) Increase trade barriers 
A) Increase their tax rates 
B) Allow citizens to own property 
C) Restrict new businesses 
D) Increase trade barriers

Question 17

Two goods are ________ good if an increase in the price of one causes a fall in demand for the other.

Accepted Answer

A) substitute 
B) complementary 
C) supply-driven 
D) opposite 
A) substitute 
B) complementary 
C) supply-driven 
D) opposite

Question 18

The supply curve is likely to shift down and to the left if the cost of the raw materials used to manufacture a product falls.

Accepted Answer

A) True 
 B)False

Question 19

Because a monopoly market lacks the benefits of competition,many governments regulate monopolies.

Accepted Answer

A) True 
 B)False

Question 20

As prices of goods and services rise,the quantity demanded will generally decline.

Accepted Answer

A) True 
 B)False

Under the economic system of communism,_____.

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

A demand curve is the graph showing the relationship between different prices and the quantities of a good or service that sellers will offer for sale.

Inflation benefits consumers with fixed incomes.

The price of gasoline rises sharply.One likely outcome is that the demand curve for hybrid vehicles should shift to the left.

In which of the following types of economic systems do entrepreneurs and investors have the most amount of freedom with regard to controlling business ownership,profits,and resource allocations?

Two goods are substitute goods if an increase in the price of one causes a fall in demand for the other.

As price of a good or service increases,in general,the quantity demanded:

Which of these is caused by an increase in consumers' incomes?

Individuals who lose their jobs due to structural reasons are generally unemployed only for a short period of time.

Quinn cultivates and sells sugarcane to a sugar manufacturing company.Brett is a retailer for pet food.Which of the following is a difference between Quinn's and Brett's businesses?

During an economic recession,consumer spending _ and unemployment _.

In which of these,a local,state,or federal government grants exclusive rights in a certain market to a single firm.

Which of the following best describes the study of macroeconomics? It is:

In a socialist economy,incentives usually are limited in state enterprises but do motivate workers in the private sector.

Which of the following should developing countries follow to modernize their economies?

Two goods are ________ good if an increase in the price of one causes a fall in demand for the other.

The supply curve is likely to shift down and to the left if the cost of the raw materials used to manufacture a product falls.

Because a monopoly market lacks the benefits of competition,many governments regulate monopolies.

As prices of goods and services rise,the quantity demanded will generally decline.

The Changing Face of Business

Business Ethics and Social Responsibility

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management,leadership,and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment,teamwork,and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Trends in E-Commerce

Filters

Exam 3: Economic Challenges Facing Business Today

Under the economic system of communism,_____.

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

A demand curve is the graph showing the relationship between different prices and the quantities of a good or service that sellers will offer for sale.

Inflation benefits consumers with fixed incomes.

The price of gasoline rises sharply.One likely outcome is that the demand curve for hybrid vehicles should shift to the left.

In which of the following types of economic systems do entrepreneurs and investors have the most amount of freedom with regard to controlling business ownership,profits,and resource allocations?

Two goods are substitute goods if an increase in the price of one causes a fall in demand for the other.

As price of a good or service increases,in general,the quantity demanded:

Which of these is caused by an increase in consumers' incomes?

Individuals who lose their jobs due to structural reasons are generally unemployed only for a short period of time.

Quinn cultivates and sells sugarcane to a sugar manufacturing company.Brett is a retailer for pet food.Which of the following is a difference between Quinn's and Brett's businesses?

During an economic recession,consumer spending _____ and unemployment _____.

In which of these,a local,state,or federal government grants exclusive rights in a certain market to a single firm.

Which of the following best describes the study of macroeconomics? It is:

In a socialist economy,incentives usually are limited in state enterprises but do motivate workers in the private sector.

Which of the following should developing countries follow to modernize their economies?

Two goods are ________ good if an increase in the price of one causes a fall in demand for the other.

The supply curve is likely to shift down and to the left if the cost of the raw materials used to manufacture a product falls.

Because a monopoly market lacks the benefits of competition,many governments regulate monopolies.

As prices of goods and services rise,the quantity demanded will generally decline.

The Changing Face of Business

Business Ethics and Social Responsibility

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management,leadership,and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment,teamwork,and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Trends in E-Commerce

Filters

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

During an economic recession,consumer spending _ and unemployment _.