Question 1

The cost of the raw materials used to produce a product falls.The supply curve will likely shift down and to the left.

Accepted Answer

A) True 
 B)False

Question 2

The Bank of Canada reduces the amount of money banks can lend.As a result,interest rates will ________ and economic growth will ________.

Accepted Answer

A)  increase;increase 
B)  fall;fall 
C)  fall;increase 
D)  increase;fall 
A)  increase;increase 
B)  fall;fall 
C)  fall;increase 
D)  increase;fall

Question 3

According to a supply curve,________.

Accepted Answer

A)  as prices rise,quantity of a product supplied falls 
B)  as prices fall,quantity of a product supplied increases 
C)  as prices rise,consumers will buy in larger quantities 
D)  as prices rise,the quantity of a product that is supplied also rises 
A)  as prices rise,quantity of a product supplied falls 
B)  as prices fall,quantity of a product supplied increases 
C)  as prices rise,consumers will buy in larger quantities 
D)  as prices rise,the quantity of a product that is supplied also rises

Question 4

Under communism,________.

Accepted Answer

A)  businesses are owned by individuals 
B)  management represents the owners 
C)  there is minimal government interference 
D)  profits are not acceptable and the right to choose one's occupation is widely restricted 
A)  businesses are owned by individuals 
B)  management represents the owners 
C)  there is minimal government interference 
D)  profits are not acceptable and the right to choose one's occupation is widely restricted

Question 5

Monetary policy ________.

Accepted Answer

A)  uses interest rate variations and availability of funds to influence the nation's economy 
B)  is of limited use in controlling inflation 
C)  is of little use in expanding business spending 
D)  frequently causes taxes to rise 
A)  uses interest rate variations and availability of funds to influence the nation's economy 
B)  is of limited use in controlling inflation 
C)  is of little use in expanding business spending 
D)  frequently causes taxes to rise

Question 6

Decisions made by individuals and businesses have little impact on overall economic conditions.

Accepted Answer

A) True 
 B)False

Question 7

In a(n)_____,a single seller dominates trade in a product for which buyers can find no close substitute.

Accepted Answer

A) Consumer Price Index (CPI) 
B) inflation 
C) gross domestic product (GDP) 
D) fiscal policy 
E) monetary policy
F)equilibrium price
G)budget deficit
H)pure competition
I)supply
J)demand
K)productivity
L)recession
M)microeconomics
N)oligopoly
O)monopoly 
A) Consumer Price Index (CPI) 
B) inflation 
C) gross domestic product (GDP) 
D) fiscal policy 
E) monetary policy
F)equilibrium price
G)budget deficit
H)pure competition
I)supply
J)demand
K)productivity
L)recession
M)microeconomics
N)oligopoly
O)monopoly

Question 8

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

Accepted Answer

A)  taxes 
B)  fees 
C)  borrowing 
D)  monetary policy 
A)  taxes 
B)  fees 
C)  borrowing 
D)  monetary policy

Question 9

Economists refer to a nation's ________ as an indicator of its economic health.

Accepted Answer

A)  consumer price index 
B)  inflation rate 
C)  recession rate 
D)  unemployment rate 
A)  consumer price index 
B)  inflation rate 
C)  recession rate 
D)  unemployment rate

Question 10

_____ is the sum of all goods and services produced within a country's borders.

Accepted Answer

A) Consumer Price Index (CPI) 
B) inflation 
C) gross domestic product (GDP) 
D) fiscal policy 
E) monetary policy
F)equilibrium price
G)budget deficit
H)pure competition
I)supply
J)demand
K)productivity
L)recession
M)microeconomics
N)oligopoly
O)monopoly 
A) Consumer Price Index (CPI) 
B) inflation 
C) gross domestic product (GDP) 
D) fiscal policy 
E) monetary policy
F)equilibrium price
G)budget deficit
H)pure competition
I)supply
J)demand
K)productivity
L)recession
M)microeconomics
N)oligopoly
O)monopoly

Question 11

Before the patent expired on allergy medicine Claritin,pharmaceutical company Schering-Plough was able to set its own price in the marketplace.From which type of competition did the company benefit?

Accepted Answer

A)  oligopoly 
B)  pure competition 
C)  monopolistic competition 
D)  monopoly 
A)  oligopoly 
B)  pure competition 
C)  monopolistic competition 
D)  monopoly

Question 12

Individual and business decisions are ________ by economic conditions and,in turn,economic conditions are ________ by their decisions.

Accepted Answer

A)  affected;not affected 
B)  affected;affected 
C)  not affected;not affected 
D)  not affected;affected 
A)  affected;not affected 
B)  affected;affected 
C)  not affected;not affected 
D)  not affected;affected

Question 13

No two countries have exactly the same economic system.

Accepted Answer

A) True 
 B)False

Question 14

Distinguish between the demand curve and the supply curve.

Accepted Answer

The dem and curve is a graph of the amou

Question 15

A demand curve is the schedule that shows the relationship between the price of a product and ________.

Accepted Answer

A)  overhead costs 
B)  the costs of marketing the product 
C)  the quantity of that product that buyers demand at that price 
D)  the quantity supplied at each price 
A)  overhead costs 
B)  the costs of marketing the product 
C)  the quantity of that product that buyers demand at that price 
D)  the quantity supplied at each price

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

Holding supply constant and decreasing demand will cause ________.

Accepted Answer

A)  prices to rise and production to fall 
B)  prices to fall and production to rise 
C)  prices and production both to fall 
D)  prices and production both to rise 
A)  prices to rise and production to fall 
B)  prices to fall and production to rise 
C)  prices and production both to fall 
D)  prices and production both to rise

Question 19

List the factors that should cause a supply curve to shift to the left.

Accepted Answer

The factors are an increase in

Question 20

A particular industry has only a few competitors,who have at least some control over price.Entry into the industry is difficult.This industry is an example of ________.

Accepted Answer

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

The cost of the raw materials used to produce a product falls.The supply curve will likely shift down and to the left.

The Bank of Canada reduces the amount of money banks can lend.As a result,interest rates will and economic growth will .

According to a supply curve,________.

Under communism,________.

Monetary policy ________.

Decisions made by individuals and businesses have little impact on overall economic conditions.

In a(n)_____,a single seller dominates trade in a product for which buyers can find no close substitute.

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

Economists refer to a nation's ________ as an indicator of its economic health.

_____ is the sum of all goods and services produced within a country's borders.

Before the patent expired on allergy medicine Claritin,pharmaceutical company Schering-Plough was able to set its own price in the marketplace.From which type of competition did the company benefit?

Individual and business decisions are by economic conditions and,in turn,economic conditions are by their decisions.

No two countries have exactly the same economic system.

Distinguish between the demand curve and the supply curve.

A demand curve is the schedule that shows the relationship between the price of a product and ________.

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

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

Holding supply constant and decreasing demand will cause ________.

List the factors that should cause a supply curve to shift to the left.

A particular industry has only a few competitors,who have at least some control over price.Entry into the industry is difficult.This industry is an example of ________.

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 Labour 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

Filters

Exam 3: Economic Challenges Facing Contemporary Business

The cost of the raw materials used to produce a product falls.The supply curve will likely shift down and to the left.

The Bank of Canada reduces the amount of money banks can lend.As a result,interest rates will ________ and economic growth will ________.

According to a supply curve,________.

Under communism,________.

Monetary policy ________.

Decisions made by individuals and businesses have little impact on overall economic conditions.

In a(n)_____,a single seller dominates trade in a product for which buyers can find no close substitute.

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

Economists refer to a nation's ________ as an indicator of its economic health.

_____ is the sum of all goods and services produced within a country's borders.

Before the patent expired on allergy medicine Claritin,pharmaceutical company Schering-Plough was able to set its own price in the marketplace.From which type of competition did the company benefit?

Individual and business decisions are ________ by economic conditions and,in turn,economic conditions are ________ by their decisions.

No two countries have exactly the same economic system.

Distinguish between the demand curve and the supply curve.

A demand curve is the schedule that shows the relationship between the price of a product and ________.

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

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

Holding supply constant and decreasing demand will cause ________.

List the factors that should cause a supply curve to shift to the left.

A particular industry has only a few competitors,who have at least some control over price.Entry into the industry is difficult.This industry is an example of ________.

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 Labour 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

Filters

The Bank of Canada reduces the amount of money banks can lend.As a result,interest rates will and economic growth will .

Individual and business decisions are by economic conditions and,in turn,economic conditions are by their decisions.

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