Question 1

What is cyclical unemployment?

Accepted Answer

Cyclical unemployment is unemployment th

Question 2

In the city of Westminster, Christmas trees are being sold for $25. At this price, buyers are able to satisfy their demand, though some trees remain unsold. What is the term used to describe this market condition?

Accepted Answer

A)  surplus 
B)  stoppage 
C)  shortage 
D)  demand deficit 
E)  equilibrium price 
A)  surplus 
B)  stoppage 
C)  shortage 
D)  demand deficit 
E)  equilibrium price

Question 3

Which of the following, if True, would most strongly support Jonathan's contention?

Accepted Answer

A)  AB Distributor is a relatively new company. 
B)  AB Distributor is a for-profit company. 
C)  AB Distributor's costs have decreased from the previous year. 
D)  AB Distributor's competitors have had increased revenue. 
E)  AB Distributor has hired more employees recently. 
A)  AB Distributor is a relatively new company. 
B)  AB Distributor is a for-profit company. 
C)  AB Distributor's costs have decreased from the previous year. 
D)  AB Distributor's competitors have had increased revenue. 
E)  AB Distributor has hired more employees recently.

Question 4

Many in the Sponeto government agree that increasing the money supply to the nation's economy would be of significant help to the country. The national bank's reserve, however, is short on the funds needed, and suggests asking for them from the International Monetary Fund (IMF). Which of the following, if True, would strengthen the case for this course of action?

Accepted Answer

A)  The IMF has been known to force donor countries to drop tariffs put in place to protect domestic industries. 
B)  The IMF has been known to force donor countries to privatize national companies. 
C)  The IMF contributes money as well as financial advice to help countries with economies suffering from balance-of-payment problems. 
D)  IMF loans typically come with many conditions attached that may result in increased poverty in the donor country. 
E)  A number of developing countries have suffered financial disasters from following IMF advice. 
A)  The IMF has been known to force donor countries to drop tariffs put in place to protect domestic industries. 
B)  The IMF has been known to force donor countries to privatize national companies. 
C)  The IMF contributes money as well as financial advice to help countries with economies suffering from balance-of-payment problems. 
D)  IMF loans typically come with many conditions attached that may result in increased poverty in the donor country. 
E)  A number of developing countries have suffered financial disasters from following IMF advice.

Question 5

Which term refers to the total quantity and quality of goods and services that people living in an economic system can purchase?

Accepted Answer

A)  business cycle 
B)  demand and supply schedule 
C)  standard of living 
D)  aggregate output 
E)  consumer price index 
A)  business cycle 
B)  demand and supply schedule 
C)  standard of living 
D)  aggregate output 
E)  consumer price index

Question 6

Which of the following would be included in the gross domestic product of Brazil?

Accepted Answer

A)  the profits earned by a U.S.-owned automobile plant in Brazil 
B)  the profits earned by a Brazilian coffee company operating in the United States 
C)  the profits earned by a Brazilian coffee company operating in Peru 
D)  the profits earned by U.S. suppliers to Brazil operating in the United States 
E)  the profits earned by Peruvian companies operating outside Brazil 
A)  the profits earned by a U.S.-owned automobile plant in Brazil 
B)  the profits earned by a Brazilian coffee company operating in the United States 
C)  the profits earned by a Brazilian coffee company operating in Peru 
D)  the profits earned by U.S. suppliers to Brazil operating in the United States 
E)  the profits earned by Peruvian companies operating outside Brazil

Question 7

What type of economic system exists in New Vermont? Support your conclusions.

Accepted Answer

It appears that New Vermont operates und

Question 8

If productivity increases, prices charged to consumers will tend to increase as well.

Accepted Answer

A) True 
 B)False

Question 9

In perfect competition, which of the following conditions must prevail?

Accepted Answer

A)  All firms must adhere to cost and pricing standards. 
B)  The number of firms in the industry must be limited. 
C)  A single firm is able to influence the price of its product. 
D)  It is relatively difficult to enter the industry. 
E)  All firms in a given industry must be small. 
A)  All firms must adhere to cost and pricing standards. 
B)  The number of firms in the industry must be limited. 
C)  A single firm is able to influence the price of its product. 
D)  It is relatively difficult to enter the industry. 
E)  All firms in a given industry must be small.

Question 10

Explain the role of private enterprise in a market economy. Include an explanation of the elements that comprise free enterprise.

Accepted Answer

Market economies rely on a private enter

Question 11

What term do economists use for the pattern of short-term expansions and contractions in the economy?

Accepted Answer

A)  business cycle 
B)  aggregate output 
C)  standard of living 
D)  consumer price index 
E)  purchasing power parity 
A)  business cycle 
B)  aggregate output 
C)  standard of living 
D)  consumer price index 
E)  purchasing power parity

Question 12

How does inflation affect purchasing power?

Accepted Answer

Inflation is the occurrence of widesprea

Question 13

Describe monopolistic competition.

Accepted Answer

In a market characterized by monopolisti

Question 14

A new U.S. company plans to introduce an inexpensive, high-quality line of shoes to the American market. It has found a manufacturer in another country that can produce the shoes at a low enough cost that they will still be cheaper than other brands of the same quality. Which of the following represents a potential ethical implication that the company should consider before beginning production?

Accepted Answer

A)  the country's existing labor laws and the factory working conditions 
B)  the average exchange rate of the country's currency over a ten-year period 
C)  the challenges of doing business in a country with a nonconvertible currency 
D)  the energy demands of the manufacturer's facility 
E)  the basic international business strategy it will use 
A)  the country's existing labor laws and the factory working conditions 
B)  the average exchange rate of the country's currency over a ten-year period 
C)  the challenges of doing business in a country with a nonconvertible currency 
D)  the energy demands of the manufacturer's facility 
E)  the basic international business strategy it will use

Question 15

Inflation results in increased purchasing power for the consumer.

Accepted Answer

A) True 
 B)False

Question 16

The consumer price index is expressed as a percentage of prices as compared to a base period.

Accepted Answer

A) True 
 B)False

Question 17

Assuming other factors remain constant, Anon would have the most power to raise prices if Widgets were which of the following?

Accepted Answer

A)  life-saving drugs 
B)  automobiles 
C)  beverages 
D)  toys 
E)  jewelry 
A)  life-saving drugs 
B)  automobiles 
C)  beverages 
D)  toys 
E)  jewelry

Question 18

Name one factor that may be detrimental to Expert Electronics' productivity.

Accepted Answer

Productivity is the measure of economic

Question 19

The main measure of growth in the business cycle is aggregate output.

Accepted Answer

A) True 
 B)False

Question 20

What occurs when the quantity demanded exceeds the quantity supplied?

Accepted Answer

A)  demand deficit 
B)  surplus 
C)  equilibrium point 
D)  shortage 
E)  supply schedule 
A)  demand deficit 
B)  surplus 
C)  equilibrium point 
D)  shortage 
E)  supply schedule

What is cyclical unemployment?

In the city of Westminster, Christmas trees are being sold for $25. At this price, buyers are able to satisfy their demand, though some trees remain unsold. What is the term used to describe this market condition?

Which of the following, if True, would most strongly support Jonathan's contention?

Which term refers to the total quantity and quality of goods and services that people living in an economic system can purchase?

Which of the following would be included in the gross domestic product of Brazil?

What type of economic system exists in New Vermont? Support your conclusions.

If productivity increases, prices charged to consumers will tend to increase as well.

In perfect competition, which of the following conditions must prevail?

Explain the role of private enterprise in a market economy. Include an explanation of the elements that comprise free enterprise.

What term do economists use for the pattern of short-term expansions and contractions in the economy?

How does inflation affect purchasing power?

Describe monopolistic competition.

Inflation results in increased purchasing power for the consumer.

The consumer price index is expressed as a percentage of prices as compared to a base period.

Assuming other factors remain constant, Anon would have the most power to raise prices if Widgets were which of the following?

Name one factor that may be detrimental to Expert Electronics' productivity.

The main measure of growth in the business cycle is aggregate output.

What occurs when the quantity demanded exceeds the quantity supplied?

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

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Exam 1: The Us Business Environment

What is cyclical unemployment?

In the city of Westminster, Christmas trees are being sold for $25. At this price, buyers are able to satisfy their demand, though some trees remain unsold. What is the term used to describe this market condition?

Which of the following, if True, would most strongly support Jonathan's contention?

Which term refers to the total quantity and quality of goods and services that people living in an economic system can purchase?

Which of the following would be included in the gross domestic product of Brazil?

What type of economic system exists in New Vermont? Support your conclusions.

If productivity increases, prices charged to consumers will tend to increase as well.

In perfect competition, which of the following conditions must prevail?

Explain the role of private enterprise in a market economy. Include an explanation of the elements that comprise free enterprise.

What term do economists use for the pattern of short-term expansions and contractions in the economy?

How does inflation affect purchasing power?

Describe monopolistic competition.

Inflation results in increased purchasing power for the consumer.

The consumer price index is expressed as a percentage of prices as compared to a base period.

Assuming other factors remain constant, Anon would have the most power to raise prices if Widgets were which of the following?

Name one factor that may be detrimental to Expert Electronics' productivity.

The main measure of growth in the business cycle is aggregate output.

What occurs when the quantity demanded exceeds the quantity supplied?

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters