Question 1

Many of the gains in U.S.productivity can be attributed to _____.

Accepted Answer

A) technology 
B) deflation 
C) inexpensive labor 
D) budget surplus 
A) technology 
B) deflation 
C) inexpensive labor 
D) budget surplus

Question 2

Monopolistic competition has _____.

Accepted Answer

A) many buyers and sellers,who have some control over price 
B) few sellers,but only one major buyer 
C) many sellers,who sell a homogeneous product 
D) no barriers to keep out new competitors 
A) many buyers and sellers,who have some control over price 
B) few sellers,but only one major buyer 
C) many sellers,who sell a homogeneous product 
D) no barriers to keep out new competitors

Question 3

In the context of fiscal policy,lower taxes and increased government spending:

Accepted Answer

A) cut unemployment rates. 
B) limit economic expansion. 
C) reduce inflation. 
D) reduce the profits of a business. 
A) cut unemployment rates. 
B) limit economic expansion. 
C) reduce inflation. 
D) reduce the profits of a business.

Question 4

The United States,since the 1930s,has not faced another "true" economic depression.

Accepted Answer

A) True 
 B)False

Question 5

Assume that the price of gasoline triples.What will likely happen to the demand for fuel-efficient small cars? The demand curve will shift to the _____ and demand will _____.

Accepted Answer

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

Question 6

Business spending,during a recession,increases but consumer spending remains relatively unchanged.

Accepted Answer

A) True 
 B)False

Question 7

In the recovery stage of the business cycle,the economy emerges from recession.

Accepted Answer

A) True 
 B)False

Question 8

Under which types of competition,individual firms have some control over price?

Accepted Answer

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

Question 9

People mostly work for private-owned enterprises under communism.

Accepted Answer

A) True 
 B)False

Question 10

_____ occurs when workers lack the necessary skills for available jobs or because the skills they have are no longer in demand.

Accepted Answer

A) Structural unemployment 
B) Cyclical unemployment 
C) Seasonal unemployment 
D) Frictional unemployment 
A) Structural unemployment 
B) Cyclical unemployment 
C) Seasonal unemployment 
D) Frictional unemployment

Question 11

In a mixed economy,public enterprises are not expected to produce returns.

Accepted Answer

A) True 
 B)False

Question 12

Assume electric water heaters and gas water heaters are interchangeable,and assume the price of natural gas rises sharply relative to the price of electricity.The demand curve for electric water heaters should shift to the right.

Accepted Answer

A) True 
 B)False

Question 13

Restrictive monetary policy reduces the money supply and helps to reduce inflation.

Accepted Answer

A) True 
 B)False

Question 14

An economist studies the consumer behavior in a particular area.This is an example of _____.

Accepted Answer

A) microeconomics 
B) macroeconomics 
C) sociology 
D) psychology 
A) microeconomics 
B) macroeconomics 
C) sociology 
D) psychology

Question 15

During economic recession:

Accepted Answer

A) unemployment begins to decline as business activity accelerates. 
B) businesses expand by hiring more employees. 
C) people turn to lower-priced retailers for the goods they need. 
D) consumer confidence about the future is optimistic. 
A) unemployment begins to decline as business activity accelerates. 
B) businesses expand by hiring more employees. 
C) people turn to lower-priced retailers for the goods they need. 
D) consumer confidence about the future is optimistic.

Question 16

The government tends to have most of the control under a capitalist system.

Accepted Answer

A) True 
 B)False

Question 17

The sole underlying cause of movement along demand and supply curves is price.

Accepted Answer

A) True 
 B)False

Question 18

Deflation can hurt industries like housing and auto manufacturing.

Accepted Answer

A) True 
 B)False

Question 19

In the context of fiscal policy,increased taxes and reduced government spending:

Accepted Answer

A) restrict economic activities. 
B) create more profits for firms. 
C) increase a nation's gross domestic product 
D) cut unemployment rates. 
A) restrict economic activities. 
B) create more profits for firms. 
C) increase a nation's gross domestic product 
D) cut unemployment rates.

Question 20

During a recession,which of the following businesses is most likely to do well?

Accepted Answer

A) North Sun Ships,a luxury cruise service 
B) Red Couture Inc.,a designer store for clothes and accessories 
C) Save Market,a chain of discount stores 
D) Ink Theory,a store that sells premium pens 
A) North Sun Ships,a luxury cruise service 
B) Red Couture Inc.,a designer store for clothes and accessories 
C) Save Market,a chain of discount stores 
D) Ink Theory,a store that sells premium pens

Many of the gains in U.S.productivity can be attributed to _____.

Monopolistic competition has _____.

In the context of fiscal policy,lower taxes and increased government spending:

The United States,since the 1930s,has not faced another "true" economic depression.

Assume that the price of gasoline triples.What will likely happen to the demand for fuel-efficient small cars? The demand curve will shift to the _ and demand will _.

Business spending,during a recession,increases but consumer spending remains relatively unchanged.

In the recovery stage of the business cycle,the economy emerges from recession.

Under which types of competition,individual firms have some control over price?

People mostly work for private-owned enterprises under communism.

_____ occurs when workers lack the necessary skills for available jobs or because the skills they have are no longer in demand.

In a mixed economy,public enterprises are not expected to produce returns.

Assume electric water heaters and gas water heaters are interchangeable,and assume the price of natural gas rises sharply relative to the price of electricity.The demand curve for electric water heaters should shift to the right.

Restrictive monetary policy reduces the money supply and helps to reduce inflation.

An economist studies the consumer behavior in a particular area.This is an example of _____.

During economic recession:

The government tends to have most of the control under a capitalist system.

The sole underlying cause of movement along demand and supply curves is price.

Deflation can hurt industries like housing and auto manufacturing.

In the context of fiscal policy,increased taxes and reduced government spending:

During a recession,which of the following businesses is most likely to do well?

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

Many of the gains in U.S.productivity can be attributed to _____.

Monopolistic competition has _____.

In the context of fiscal policy,lower taxes and increased government spending:

The United States,since the 1930s,has not faced another "true" economic depression.

Assume that the price of gasoline triples.What will likely happen to the demand for fuel-efficient small cars? The demand curve will shift to the _____ and demand will _____.

Business spending,during a recession,increases but consumer spending remains relatively unchanged.

In the recovery stage of the business cycle,the economy emerges from recession.

Under which types of competition,individual firms have some control over price?

People mostly work for private-owned enterprises under communism.

_____ occurs when workers lack the necessary skills for available jobs or because the skills they have are no longer in demand.

In a mixed economy,public enterprises are not expected to produce returns.

Assume electric water heaters and gas water heaters are interchangeable,and assume the price of natural gas rises sharply relative to the price of electricity.The demand curve for electric water heaters should shift to the right.

Restrictive monetary policy reduces the money supply and helps to reduce inflation.

An economist studies the consumer behavior in a particular area.This is an example of _____.

During economic recession:

The government tends to have most of the control under a capitalist system.

The sole underlying cause of movement along demand and supply curves is price.

Deflation can hurt industries like housing and auto manufacturing.

In the context of fiscal policy,increased taxes and reduced government spending:

During a recession,which of the following businesses is most likely to do well?

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

Assume that the price of gasoline triples.What will likely happen to the demand for fuel-efficient small cars? The demand curve will shift to the _ and demand will _.