Exam 3: Economic Challenges Facing Contemporary Business

Lowering taxes is an example of fiscal policy.

There is no direct competition in a particular industry,yet the firms have almost no control over pricing.This industry is an example of ________.

The government owns the railroads,utilities,energy companies,and financial institutions.Ownership of small businesses is in private hands.This is an example of socialism.

All of the following are key challenges facing business in the new century EXCEPT ________.

Deflation is ideal for consumers and strengthens a nation's economy.

________ refers to the willingness and ability of buyers to purchase goods and services.

Typically,the lower the price,the larger the quantity offered for sale.

As technological communication expands,customer service will become less important in the global economy.

Macroeconomics deals with taxing and spending decisions made by governments.

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 gas water heaters should shift to the left.

Rising unemployment and slowing inflation may indicate that the economy is headed into a recession.

Which of the following best describes your local cable TV company?

One of the 21st century's major economic challenges is the shift to a global information economy.

The three major types of economic systems are ________.

Capitalism also is referred to as a public enterprise system.

Consumers often turn to lower-priced retailers for the goods they need during a business cycle of ________.

Benito worked as a manager at a grocery chain that recently experienced a number of layoffs due to an economic slow time.Benito's employment would be described as ________.

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

Gross domestic product (GDP)is the sum of all goods and services produced within a nation's borders each year.

In a particular country,the government owns all the transportation companies,the utilities,the energy suppliers,and major manufacturing firms.Small businesses are privately owned.What type of economic system does this country have?