Question 1

When the Federal Reserve Bank buys or sells U.S.securities,it changes the level of reserves in the banking system,which has an effect on interest rates.

Accepted Answer

A) True 
 B)False

Question 2

How might a decrease in income levels lead to population changes?

Accepted Answer

A decrease in income levels might lead t

Question 3

A planned economy is one in which ________.

Accepted Answer

A)  the government or other centralized group determines wages, sets prices, and distributes resources and products to the common group 
B)  individuals produce enough for personal survival with few resources or goods left over to trade or barter 
C)  individual income ultimately controls purchasing decisions 
D)  government distributes some goods and services through selected social programs, and individual income determines purchasing decisions for other goods and services 
E)  the production and pricing of goods and services is determined through the operation of a market 
A)  the government or other centralized group determines wages, sets prices, and distributes resources and products to the common group 
B)  individuals produce enough for personal survival with few resources or goods left over to trade or barter 
C)  individual income ultimately controls purchasing decisions 
D)  government distributes some goods and services through selected social programs, and individual income determines purchasing decisions for other goods and services 
E)  the production and pricing of goods and services is determined through the operation of a market

Question 4

________ unemployment measures those out of work during the off-season,such as those employed in snow- or beach-related industries,agriculture,and/or holiday activities.

Accepted Answer

A)  Seasonal 
B)  Frictional 
C)  Structural 
D)  Cyclical 
E)  Temporary 
A)  Seasonal 
B)  Frictional 
C)  Structural 
D)  Cyclical 
E)  Temporary

Question 5

Describe how the consumer price index (CPI)uses the "market basket" to measure price changes.

Accepted Answer

The CPI measures price changes by creati

Question 6

The government can influence the economy through its fiscal policy by making changes in the money supply.

Accepted Answer

A) True 
 B)False

Question 7

What is the money supply?

Accepted Answer

A)  the total amount of money held in the Federal Reserve Bank 
B)  the combined amount of money available in privately owned accounts 
C)  the combined amount of money available within the economy 
D)  the amount of money the government is allowed to spend to stimulate economic growth 
E)  all the coins and bills held by people, businesses, and banks 
A)  the total amount of money held in the Federal Reserve Bank 
B)  the combined amount of money available in privately owned accounts 
C)  the combined amount of money available within the economy 
D)  the amount of money the government is allowed to spend to stimulate economic growth 
E)  all the coins and bills held by people, businesses, and banks

Question 8

Mae's Country Kitchen sells out of her cinnamon rolls every morning before 8:30 a.m.,and her later customers ask her to make more.The next day,Mae makes an additional two dozen cinnamon rolls and raises the price of an individual cinnamon roll by 50¢.She sells all but one of them.Mae has found the ________ price of her cinnamon rolls.

Accepted Answer

A)  market 
B)  supply 
C)  demand 
D)  determinant 
E)  surplus 
A)  market 
B)  supply 
C)  demand 
D)  determinant 
E)  surplus

Question 9

________ occurs when there are many buyers and sellers and little differentiation between products,but perceived differences between products among consumers.

Accepted Answer

A)  Monopolistic competition 
B)  A monopoly 
C)  An oligopoly 
D)  Perfect competition 
E)  A duopoly 
A)  Monopolistic competition 
B)  A monopoly 
C)  An oligopoly 
D)  Perfect competition 
E)  A duopoly

Question 10

Describe how each of the four degrees of competition affect supply and demand.

Accepted Answer

(1)In a monopoly,there is only one suppl

Question 11

A mixed economy is one in which ________.

Accepted Answer

A)  both resources and means of production are extremely limited and generally confined to agricultural produce 
B)  the government or other centralized group determines and controls all resources and means of production 
C)  both individuals and government control resources and determine production methods 
D)  either individuals or private firms control resources and determine production methods 
E)  there is no government intervention whatsoever in industry 
A)  both resources and means of production are extremely limited and generally confined to agricultural produce 
B)  the government or other centralized group determines and controls all resources and means of production 
C)  both individuals and government control resources and determine production methods 
D)  either individuals or private firms control resources and determine production methods 
E)  there is no government intervention whatsoever in industry

Question 12

ArmiLiza,a popular United States-based brand of handbags,has built a second factory in Mexico.The majority of the new factory's employees are Mexican citizens or Honduran immigrants.On which country's gross domestic product will the second factory's goods be counted?

Accepted Answer

A)  the United States 
B)  Mexico 
C)  Honduras 
D)  They will be split between the United States and Mexico. 
E)  They will be split among all three countries. 
A)  the United States 
B)  Mexico 
C)  Honduras 
D)  They will be split between the United States and Mexico. 
E)  They will be split among all three countries.

Question 13

Supply refers to how much of a product or service is available for purchase at a given time.

Accepted Answer

A) True 
 B)False

Question 14

Divya owns a small boutique in a busy neighborhood.She has been thinking of expanding her business hours and hiring a sales associate to work evenings and weekends.She sees on the news that the GDP is down and decides to hold off on expanding her business for the time being.Why?

Accepted Answer

A downward-moving GDP indicates problems

Question 15

The term "business cycle" refers to ________.

Accepted Answer

A)  the periodic increases and decreases of the economy 
B)  the periodic purchases of goods and services by the government 
C)  the increases and decreases in the rate of inflation 
D)  the periodic growth of the Federal Reserve system 
E)  the periodic increases and decreases in the GDP due to seasonal factors 
A)  the periodic increases and decreases of the economy 
B)  the periodic purchases of goods and services by the government 
C)  the increases and decreases in the rate of inflation 
D)  the periodic growth of the Federal Reserve system 
E)  the periodic increases and decreases in the GDP due to seasonal factors

Question 16

What is the MOST likely scenario in a monopoly,where only one seller supplies a product or service?

Accepted Answer

A)  Demand may be low. 
B)  Demand may vary. 
C)  Supply may be abundant. 
D)  Supply may be limited. 
E)  Prices will be low. 
A)  Demand may be low. 
B)  Demand may vary. 
C)  Supply may be abundant. 
D)  Supply may be limited. 
E)  Prices will be low.

Question 17

Prices become higher when a unique and highly desirable item is auctioned ________.

Accepted Answer

A)  because the supply and demand are equal 
B)  because the demand is higher than the supply 
C)  because the supply is higher than the demand 
D)  because the supply and demand are kept unknown 
E)  because the demand is lower than the supply 
A)  because the supply and demand are equal 
B)  because the demand is higher than the supply 
C)  because the supply is higher than the demand 
D)  because the supply and demand are kept unknown 
E)  because the demand is lower than the supply

Question 18

The government determines the appropriate level of taxes and spending through its ________.

Accepted Answer

A)  monetary policy 
B)  domestic policy 
C)  foreign policy 
D)  fiscal policy 
E)  currency policy 
A)  monetary policy 
B)  domestic policy 
C)  foreign policy 
D)  fiscal policy 
E)  currency policy

Question 19

The discount rate is the interest rate banks are charged when they borrow money from the Fed.

Accepted Answer

A) True 
 B)False

Question 20

A demand curve illustrates ________.

Accepted Answer

A)  the effects of price on quantity demanded 
B)  that as price increases, demand stays the same 
C)  the effects of supply on quantity demanded 
D)  that as demand decreases, the price increases 
E)  the effects on population changes on demand 
A)  the effects of price on quantity demanded 
B)  that as price increases, demand stays the same 
C)  the effects of supply on quantity demanded 
D)  that as demand decreases, the price increases 
E)  the effects on population changes on demand

When the Federal Reserve Bank buys or sells U.S.securities,it changes the level of reserves in the banking system,which has an effect on interest rates.

How might a decrease in income levels lead to population changes?

A planned economy is one in which ________.

________ unemployment measures those out of work during the off-season,such as those employed in snow- or beach-related industries,agriculture,and/or holiday activities.

Describe how the consumer price index (CPI)uses the "market basket" to measure price changes.

The government can influence the economy through its fiscal policy by making changes in the money supply.

What is the money supply?

________ occurs when there are many buyers and sellers and little differentiation between products,but perceived differences between products among consumers.

Describe how each of the four degrees of competition affect supply and demand.

A mixed economy is one in which ________.

ArmiLiza,a popular United States-based brand of handbags,has built a second factory in Mexico.The majority of the new factory's employees are Mexican citizens or Honduran immigrants.On which country's gross domestic product will the second factory's goods be counted?

Supply refers to how much of a product or service is available for purchase at a given time.

Divya owns a small boutique in a busy neighborhood.She has been thinking of expanding her business hours and hiring a sales associate to work evenings and weekends.She sees on the news that the GDP is down and decides to hold off on expanding her business for the time being.Why?

The term "business cycle" refers to ________.

What is the MOST likely scenario in a monopoly,where only one seller supplies a product or service?

Prices become higher when a unique and highly desirable item is auctioned ________.

The government determines the appropriate level of taxes and spending through its ________.

The discount rate is the interest rate banks are charged when they borrow money from the Fed.

A demand curve illustrates ________.

Business Basics

Ethics in Business

Business in a Global Economy

Small Business and the Entrepreneur

Forms of Business Ownership

Business Management and Organization

Motivation, Leadership, and Teamwork

Human Resource Management

Online Business and Technology

Production, operations, and the Supply Chain

Marketing and Consumer Behavior

Product Development and Pricing Strategies

Promotion and Distribution

Financing and Tracking Business Operations

Investment Opportunities in the Securities Market

Business Law

Constructing an Effective Business Plan

Business Communications

Finding a Job

Personal Finance

Filters

Exam 2: Economics and Banking

When the Federal Reserve Bank buys or sells U.S.securities,it changes the level of reserves in the banking system,which has an effect on interest rates.

How might a decrease in income levels lead to population changes?

A planned economy is one in which ________.

________ unemployment measures those out of work during the off-season,such as those employed in snow- or beach-related industries,agriculture,and/or holiday activities.

Describe how the consumer price index (CPI)uses the "market basket" to measure price changes.

The government can influence the economy through its fiscal policy by making changes in the money supply.

What is the money supply?

________ occurs when there are many buyers and sellers and little differentiation between products,but perceived differences between products among consumers.

Describe how each of the four degrees of competition affect supply and demand.

A mixed economy is one in which ________.

ArmiLiza,a popular United States-based brand of handbags,has built a second factory in Mexico.The majority of the new factory's employees are Mexican citizens or Honduran immigrants.On which country's gross domestic product will the second factory's goods be counted?

Supply refers to how much of a product or service is available for purchase at a given time.

Divya owns a small boutique in a busy neighborhood.She has been thinking of expanding her business hours and hiring a sales associate to work evenings and weekends.She sees on the news that the GDP is down and decides to hold off on expanding her business for the time being.Why?

The term "business cycle" refers to ________.

What is the MOST likely scenario in a monopoly,where only one seller supplies a product or service?

Prices become higher when a unique and highly desirable item is auctioned ________.

The government determines the appropriate level of taxes and spending through its ________.

The discount rate is the interest rate banks are charged when they borrow money from the Fed.

A demand curve illustrates ________.

Business Basics

Ethics in Business

Business in a Global Economy

Small Business and the Entrepreneur

Forms of Business Ownership

Business Management and Organization

Motivation, Leadership, and Teamwork

Human Resource Management

Online Business and Technology

Production, operations, and the Supply Chain

Marketing and Consumer Behavior

Product Development and Pricing Strategies

Promotion and Distribution

Financing and Tracking Business Operations

Investment Opportunities in the Securities Market

Business Law

Constructing an Effective Business Plan

Business Communications

Finding a Job

Personal Finance

Filters