Exam 3: Economic Challenges Facing Business Today

________ amounts to a balance between what we want and what we can afford.

Capitalism also is referred to as a private enterprise system.

Which of these is an economic situation characterized by soaring prices?

Pure competition is different form monopolistic competition in that:

Monopolistic competition and pure competition are the same concept.

The prevailing market price at which consumers can buy an item is called the equilibrium price.

The U.S.Postal Service's delivery of first-class mail is an example of a regulated monopoly.

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

The supply curve should shift to the left if the cost of producing an item declines due to improved technology.

Assume that the number of people wanting to buy houses in your locality increases sharply.This will cause the price of houses to increase,which is an example of _____.

If the actual market price differs from the equilibrium price,buyers and sellers tend to make economic choices that restore the equilibrium level.

Ali has a construction job in Boston.During winter,he looks for other work as no construction can take place.Ali is cyclically unemployed.

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

Which of these is caused by increases in the prices of raw materials and other factors of production?

Factors of production play a central role in determining the overall supply of goods and services.

When Vincent,a manager at Beauty Products International,tries to evaluate the price and the quantity of a product that will be sold,he is dealing with microeconomics.

Global Flowers Inc.(GFI),an exporter of flowers across the globe,operates in an industry where there are many sellers and buyers.This makes it difficult for any one single seller or buyer to influence the market price of the flowers.Also,it is difficult for sellers or exporters to differentiate their products from each other.What type of market structure does this illustrate?

Which of these happens,according to a supply curve?

Demand and supply never affect employment.

In the Midwest part of the United States,farm laborers are out of work for some months after they have harvested and sold their produce.This is an example of _____.