Question 1

If the number of buyers decreases,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 2

If productivity rises,profits and wages can rise without inflation.

Accepted Answer

A) True 
 B)False

Question 3

Inflation benefits borrowers with fixed-rate mortgages.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  agriculture 
B)  the airline industry 
C)  the electric and gas utility industries 
D)  Major League Baseball 
A)  agriculture 
B)  the airline industry 
C)  the electric and gas utility industries 
D)  Major League Baseball

Question 5

What is monetary policy? What governmental agency controls monetary policy? Describe actions that are used to influence economic activity.

Accepted Answer

Monetary policy involves government acti

Question 6

_____ is the relationship between the goods and services produced in a nation each year and the inputs needed to produce them.

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

Define the Consumer Price Index,and explain how it is measured.

Accepted Answer

The Consumer Price Index measures the mo

Question 9

Which of the following factors will NOT result in a shift in the supply curve?

Accepted Answer

A)  Change in the number of suppliers 
B)  Change in the price of substitute goods 
C)  Cost savings resulting from new technology 
D)  Change in the costs of labour 
A)  Change in the number of suppliers 
B)  Change in the price of substitute goods 
C)  Cost savings resulting from new technology 
D)  Change in the costs of labour

Question 10

If the government spends more than it collects in taxes,then a(n)_____ occurs.

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

Fiscal policy is used primarily to increase or decrease interest rates.

Accepted Answer

A) True 
 B)False

Question 12

If the equilibrium price is below the market price,a shortage of a good or service will likely result.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following does not make up part of the national debt?

Accepted Answer

A)  Taxes 
B)  Treasury bills 
C)  Treasury notes 
D)  Treasury bonds 
A)  Taxes 
B)  Treasury bills 
C)  Treasury notes 
D)  Treasury bonds

Question 14

Incentives to motivate employees to perform at their highest level are strongest in ________ systems.

Accepted Answer

A)  capitalist 
B)  communist 
C)  socialist 
D)  monopolistic 
A)  capitalist 
B)  communist 
C)  socialist 
D)  monopolistic

Question 15

Price increases that reduce the amount of goods and services people can purchase with a given amount of money are the result of ____________.

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 16

During recessions,both cyclical and seasonal unemployment rise.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements about demand curves is true?

Accepted Answer

A)  When the price rises,demand increases. 
B)  When the price falls,demand decreases. 
C)  When the price falls,demand increases. 
D)  When the price falls,supply increases. 
A)  When the price rises,demand increases. 
B)  When the price falls,demand decreases. 
C)  When the price falls,demand increases. 
D)  When the price falls,supply increases.

Question 18

The purpose of a restrictive monetary policy is to:

Accepted Answer

A)  stimulate spending 
B)  reduce the cost of borrowing 
C)  stimulate employment 
D)  curb rising prices and overexpansion 
A)  stimulate spending 
B)  reduce the cost of borrowing 
C)  stimulate employment 
D)  curb rising prices and overexpansion

Question 19

Andrew has a construction job in the Boston area.During the winter,he is cyclically unemployed and looks for other work until the spring.

Accepted Answer

A) True 
 B)False

Question 20

In recent years,China has been moving from communism toward a more market-oriented economy.

Accepted Answer

A) True 
 B)False

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

If productivity rises,profits and wages can rise without inflation.

Inflation benefits borrowers with fixed-rate mortgages.

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

What is monetary policy? What governmental agency controls monetary policy? Describe actions that are used to influence economic activity.

_____ is the relationship between the goods and services produced in a nation each year and the inputs needed to produce them.

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

Define the Consumer Price Index,and explain how it is measured.

Which of the following factors will NOT result in a shift in the supply curve?

If the government spends more than it collects in taxes,then a(n)_____ occurs.

Fiscal policy is used primarily to increase or decrease interest rates.

If the equilibrium price is below the market price,a shortage of a good or service will likely result.

Which of the following does not make up part of the national debt?

Incentives to motivate employees to perform at their highest level are strongest in ________ systems.

Price increases that reduce the amount of goods and services people can purchase with a given amount of money are the result of ____________.

During recessions,both cyclical and seasonal unemployment rise.

Which of the following statements about demand curves is true?

The purpose of a restrictive monetary policy is to:

Andrew has a construction job in the Boston area.During the winter,he is cyclically unemployed and looks for other work until the spring.

In recent years,China has been moving from communism toward a more market-oriented 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 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

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

If productivity rises,profits and wages can rise without inflation.

Inflation benefits borrowers with fixed-rate mortgages.

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

What is monetary policy? What governmental agency controls monetary policy? Describe actions that are used to influence economic activity.

_____ is the relationship between the goods and services produced in a nation each year and the inputs needed to produce them.

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

Define the Consumer Price Index,and explain how it is measured.

Which of the following factors will NOT result in a shift in the supply curve?

If the government spends more than it collects in taxes,then a(n)_____ occurs.

Fiscal policy is used primarily to increase or decrease interest rates.

If the equilibrium price is below the market price,a shortage of a good or service will likely result.

Which of the following does not make up part of the national debt?

Incentives to motivate employees to perform at their highest level are strongest in ________ systems.

Price increases that reduce the amount of goods and services people can purchase with a given amount of money are the result of ____________.

During recessions,both cyclical and seasonal unemployment rise.

Which of the following statements about demand curves is true?

The purpose of a restrictive monetary policy is to:

Andrew has a construction job in the Boston area.During the winter,he is cyclically unemployed and looks for other work until the spring.

In recent years,China has been moving from communism toward a more market-oriented 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 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

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