Question 1

Taxing and spending decisions made by governments are part of macroeconomics.

Accepted Answer

A) True 
 B)False

Question 2

Research finds that decisions made by individual consumers and businesses have an insignificant impact on overall economic conditions.

Accepted Answer

A) True 
 B)False

Question 3

During an economic recession,low-priced retailers like Dollar Tree and Dollar General will likely see increased sales.

Accepted Answer

A) True 
 B)False

Question 4

The Consumer Price Index (CPI)excludes these two variables because energy and food prices fluctuate excessively from month to month,

Accepted Answer

A) True 
 B)False

Question 5

An example of a pure monopoly is the market for pet food.

Accepted Answer

A) True 
 B)False

Question 6

A market situation where there are only a few sellers of a good or service,it refers to an oligopoly.

Accepted Answer

A) True 
 B)False

Question 7

The equilibrium price occurs at the point of intersection between the supply and demand curves.

Accepted Answer

A) True 
 B)False

Question 8

During an epidemic,the price of surgical masks increased.Which of the following is most likely to have been a consequence of this increase in price?

Accepted Answer

A) Decrease in the demand for surgical masks 
B) Increase in the tax on surgical masks 
C) Increase in the supply of surgical masks 
D) Decrease in the profits from selling surgical masks 
A) Decrease in the demand for surgical masks 
B) Increase in the tax on surgical masks 
C) Increase in the supply of surgical masks 
D) Decrease in the profits from selling surgical masks

Question 9

Assume that the number of first-time home buyers suddenly increases.The demand curve for houses is likely shift to the right.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

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

Question 11

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

Accepted Answer

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

Question 12

The demand curve will shift to the right if consumers have more money to spend.

Accepted Answer

A) True 
 B)False

Question 13

The state of Brookcliff has granted exclusive rights to the BC Electricity Board for the supply of electricity.This is an example of a(n)_____.

Accepted Answer

A) fiscal policy 
B) regulated monopoly 
C) mixed market economy 
D) oligopoly 
A) fiscal policy 
B) regulated monopoly 
C) mixed market economy 
D) oligopoly

Question 14

The supply curve will shift left when:

Accepted Answer

A) suppliers in the market increase. 
B) taxes increase. 
C) the costs of technologies decrease. 
D) the costs of inputs decrease. 
A) suppliers in the market increase. 
B) taxes increase. 
C) the costs of technologies decrease. 
D) the costs of inputs decrease.

Question 15

Which of these is a commonly used measure of nation's total productivity?

Accepted Answer

A) Gross domestic product 
B) Product mix ratio 
C) Contribution margin 
D) Break-even point 
A) Gross domestic product 
B) Product mix ratio 
C) Contribution margin 
D) Break-even point

Question 16

Which of the following is NOT a source of government funds to cover the annual budget?

Accepted Answer

A) Taxes 
B) Fees 
C) Subsidiaries 
D) Borrowing 
A) Taxes 
B) Fees 
C) Subsidiaries 
D) Borrowing

Question 17

United States of Mahan (USM)is a nation in which industries like steel,communications,electricity,railways,education,and health care are owned by the government.The leaders of the nation believe that it is detrimental to the public's interest to allow such core industries to be owned by private firms.However,private ownership is encouraged in industries like restaurants,entertainment,and retail shops,which have a lower impact on social welfare.Which of the following economic systems has USM adopted?

Accepted Answer

A) Capitalism 
B) Socialism 
C) Individualism 
D) Communism 
A) Capitalism 
B) Socialism 
C) Individualism 
D) Communism

Question 18

According to the annual World Economic Forum,all of the following are key challenges facing business today's economy EXCEPT ________.

Accepted Answer

A) increasing younger workforce 
B) asset bubbles in a major economy 
C) Illicit trade 
D) failure/shortfall of critical infrastructure 
A) increasing younger workforce 
B) asset bubbles in a major economy 
C) Illicit trade 
D) failure/shortfall of critical infrastructure

Question 19

Under which of the following conditions,the equilibrium price is established?

Accepted Answer

A) Prevailing market price of an item is same as the price at which a consumer can buy the item 
B) Demand curve and the supply curve are parallel to each other 
C) Opportunity cost of a product is greater than its production cost 
D) Production cost of an item is greater than its selling price 
A) Prevailing market price of an item is same as the price at which a consumer can buy the item 
B) Demand curve and the supply curve are parallel to each other 
C) Opportunity cost of a product is greater than its production cost 
D) Production cost of an item is greater than its selling price

Question 20

No country is an economic island in today's global economy

Accepted Answer

A) True 
 B)False

Taxing and spending decisions made by governments are part of macroeconomics.

Research finds that decisions made by individual consumers and businesses have an insignificant impact on overall economic conditions.

During an economic recession,low-priced retailers like Dollar Tree and Dollar General will likely see increased sales.

The Consumer Price Index (CPI)excludes these two variables because energy and food prices fluctuate excessively from month to month,

An example of a pure monopoly is the market for pet food.

A market situation where there are only a few sellers of a good or service,it refers to an oligopoly.

The equilibrium price occurs at the point of intersection between the supply and demand curves.

During an epidemic,the price of surgical masks increased.Which of the following is most likely to have been a consequence of this increase in price?

Assume that the number of first-time home buyers suddenly increases.The demand curve for houses is likely shift to the right.

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

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

The demand curve will shift to the right if consumers have more money to spend.

The state of Brookcliff has granted exclusive rights to the BC Electricity Board for the supply of electricity.This is an example of a(n)_____.

The supply curve will shift left when:

Which of these is a commonly used measure of nation's total productivity?

Which of the following is NOT a source of government funds to cover the annual budget?

According to the annual World Economic Forum,all of the following are key challenges facing business today's economy EXCEPT ________.

Under which of the following conditions,the equilibrium price is established?

No country is an economic island in today's global economy

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

Taxing and spending decisions made by governments are part of macroeconomics.

Research finds that decisions made by individual consumers and businesses have an insignificant impact on overall economic conditions.

During an economic recession,low-priced retailers like Dollar Tree and Dollar General will likely see increased sales.

The Consumer Price Index (CPI)excludes these two variables because energy and food prices fluctuate excessively from month to month,

An example of a pure monopoly is the market for pet food.

A market situation where there are only a few sellers of a good or service,it refers to an oligopoly.

The equilibrium price occurs at the point of intersection between the supply and demand curves.

During an epidemic,the price of surgical masks increased.Which of the following is most likely to have been a consequence of this increase in price?

Assume that the number of first-time home buyers suddenly increases.The demand curve for houses is likely shift to the right.

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

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

The demand curve will shift to the right if consumers have more money to spend.

The state of Brookcliff has granted exclusive rights to the BC Electricity Board for the supply of electricity.This is an example of a(n)_____.

The supply curve will shift left when:

Which of these is a commonly used measure of nation's total productivity?

Which of the following is NOT a source of government funds to cover the annual budget?

According to the annual World Economic Forum,all of the following are key challenges facing business today's economy EXCEPT ________.

Under which of the following conditions,the equilibrium price is established?

No country is an economic island in today's global economy

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