Question 1

The Federal Trade Commission (FTC)is charged with which of the following duties?

Accepted Answer

A)  overseeing communication by telephone, telegraph, radio, and television 
B)  regulating and overseeing carriers engaged in interstate transportation 
C)  enforcing laws and regulations to prevent distribution of harmful foods and drugs 
D)  protecting the national transportation infrastructure 
E)  enforcing laws regarding unfair business practices and deceptive advertising 
A)  overseeing communication by telephone, telegraph, radio, and television 
B)  regulating and overseeing carriers engaged in interstate transportation 
C)  enforcing laws and regulations to prevent distribution of harmful foods and drugs 
D)  protecting the national transportation infrastructure 
E)  enforcing laws regarding unfair business practices and deceptive advertising

Question 2

Which of the following is TRUE of the pricing in a market of monopolistic competition?

Accepted Answer

A)  No single firm can grow large enough to influence prices across the market. 
B)  Firms that excel in one or more aspects can gain some control over pricing. 
C)  All firms have considerable control over pricing. 
D)  Suppliers have total control over the pricing of products. 
E)  Prices are set by government mandate. 
A)  No single firm can grow large enough to influence prices across the market. 
B)  Firms that excel in one or more aspects can gain some control over pricing. 
C)  All firms have considerable control over pricing. 
D)  Suppliers have total control over the pricing of products. 
E)  Prices are set by government mandate.

Question 3

Frictional unemployment is caused by economic fluctuations.

Accepted Answer

A) True 
 B)False

Question 4

What type of economic system lies between capitalism and communism? Explain why it is more effective than other economic systems.

Accepted Answer

Socialism is an economic system with a f

Question 5

If consumer demand for a product decreases,the demand curve ________.

Accepted Answer

A)  moves downward 
B)  moves upward 
C)  moves to the right 
D)  moves to the left 
E)  remains stationary 
A)  moves downward 
B)  moves upward 
C)  moves to the right 
D)  moves to the left 
E)  remains stationary

Question 6

Compare and contrast between trade-offs and opportunity costs.

Accepted Answer

Due to universal scarcity of resources,c

Question 7

Economics is the study of how a society uses its scarce resources to produce and distribute goods and services to its citizens.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an example of deregulation?

Accepted Answer

A)  lifting redundant restrictions on airline competition 
B)  banning the sale of tobacco to minors under the age of 18 
C)  lowering the speed limit on an interstate highway 
D)  approving a proposed merger between Google and Microsoft 
E)  establishing economic development zones to attract new businesses 
A)  lifting redundant restrictions on airline competition 
B)  banning the sale of tobacco to minors under the age of 18 
C)  lowering the speed limit on an interstate highway 
D)  approving a proposed merger between Google and Microsoft 
E)  establishing economic development zones to attract new businesses

Question 9

When the number of competitors in a market is quite small,a situation known as ________ is created.

Accepted Answer

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

Question 10

Demand refers to the quantities of a good or service that producers will provide on a particular date at various prices.

Accepted Answer

A) True 
 B)False

Question 11

Retail sales,on the day after Thanksgiving,are usually a good indicator of overall retail sales for the Christmas season.This is an example of a ________ indicator.

Accepted Answer

A)  leading 
B)  conversionary 
C)  lagging 
D)  current 
E)  latent 
A)  leading 
B)  conversionary 
C)  lagging 
D)  current 
E)  latent

Question 12

Which of the following is a characteristic feature of economic contraction?

Accepted Answer

A)  decreased unemployment rates 
B)  decreased consumer spending 
C)  increased income 
D)  increased employment 
E)  increased demand 
A)  decreased unemployment rates 
B)  decreased consumer spending 
C)  increased income 
D)  increased employment 
E)  increased demand

Question 13

Deflation is an economic condition in which prices fall steadily throughout the economy.

Accepted Answer

A) True 
 B)False

Question 14

The ________ measures the rate of inflation by comparing changes in the prices of a representative basket of goods and services such as clothing,food,housing,and utilities.

Accepted Answer

A)  gross domestic product (GDP) 
B)  producer price index (PPI) 
C)  inflationary stability index (ISI) 
D)  consumer price index (CPI) 
E)  economic stimulus index (ESI) 
A)  gross domestic product (GDP) 
B)  producer price index (PPI) 
C)  inflationary stability index (ISI) 
D)  consumer price index (CPI) 
E)  economic stimulus index (ESI)

Question 15

A ________ is an economic system in which individuals and companies are largely free to decide what products to produce,how to produce them,whom to sell them to,and at what price to sell them.

Accepted Answer

A)  planned system 
B)  regulated economy 
C)  socialist economy 
D)  free-market system 
E)  communist economy 
A)  planned system 
B)  regulated economy 
C)  socialist economy 
D)  free-market system 
E)  communist economy

Question 16

The situation in which one supplier thoroughly dominates a market and essentially shuts out other competitors is called monopoly.

Accepted Answer

A) True 
 B)False

Question 17

While gross domestic product (GDP)considers where the production occurs,________ considers who is responsible for the production.

Accepted Answer

A)  human development index (HDI) 
B)  producer price index (PPI) 
C)  gross national product (GNP) 
D)  consumer price index (CPI) 
E)  economic stability index (ESI) 
A)  human development index (HDI) 
B)  producer price index (PPI) 
C)  gross national product (GNP) 
D)  consumer price index (CPI) 
E)  economic stability index (ESI)

Question 18

Compare and contrast between monetary and fiscal policies.

Accepted Answer

Monetary policy involves adjusting the n

Question 19

"As the supply and demand curves are dynamic,so is the equilibrium point." Explain this statement with an example.

Accepted Answer

As variables affecting supply and demand

Question 20

In practice,no economy is truly a free-market economy.

Accepted Answer

A) True 
 B)False

The Federal Trade Commission (FTC)is charged with which of the following duties?

Which of the following is TRUE of the pricing in a market of monopolistic competition?

Frictional unemployment is caused by economic fluctuations.

What type of economic system lies between capitalism and communism? Explain why it is more effective than other economic systems.

If consumer demand for a product decreases,the demand curve ________.

Compare and contrast between trade-offs and opportunity costs.

Economics is the study of how a society uses its scarce resources to produce and distribute goods and services to its citizens.

Which of the following is an example of deregulation?

When the number of competitors in a market is quite small,a situation known as ________ is created.

Demand refers to the quantities of a good or service that producers will provide on a particular date at various prices.

Retail sales,on the day after Thanksgiving,are usually a good indicator of overall retail sales for the Christmas season.This is an example of a ________ indicator.

Which of the following is a characteristic feature of economic contraction?

Deflation is an economic condition in which prices fall steadily throughout the economy.

The ________ measures the rate of inflation by comparing changes in the prices of a representative basket of goods and services such as clothing,food,housing,and utilities.

A ________ is an economic system in which individuals and companies are largely free to decide what products to produce,how to produce them,whom to sell them to,and at what price to sell them.

The situation in which one supplier thoroughly dominates a market and essentially shuts out other competitors is called monopoly.

While gross domestic product (GDP)considers where the production occurs,________ considers who is responsible for the production.

Compare and contrast between monetary and fiscal policies.

"As the supply and demand curves are dynamic,so is the equilibrium point." Explain this statement with an example.

In practice,no economy is truly a free-market economy.

Developing a Business Mindset

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters

Exam 2: Understanding Basic Economics

The Federal Trade Commission (FTC)is charged with which of the following duties?

Which of the following is TRUE of the pricing in a market of monopolistic competition?

Frictional unemployment is caused by economic fluctuations.

What type of economic system lies between capitalism and communism? Explain why it is more effective than other economic systems.

If consumer demand for a product decreases,the demand curve ________.

Compare and contrast between trade-offs and opportunity costs.

Economics is the study of how a society uses its scarce resources to produce and distribute goods and services to its citizens.

Which of the following is an example of deregulation?

When the number of competitors in a market is quite small,a situation known as ________ is created.

Demand refers to the quantities of a good or service that producers will provide on a particular date at various prices.

Retail sales,on the day after Thanksgiving,are usually a good indicator of overall retail sales for the Christmas season.This is an example of a ________ indicator.

Which of the following is a characteristic feature of economic contraction?

Deflation is an economic condition in which prices fall steadily throughout the economy.

The ________ measures the rate of inflation by comparing changes in the prices of a representative basket of goods and services such as clothing,food,housing,and utilities.

A ________ is an economic system in which individuals and companies are largely free to decide what products to produce,how to produce them,whom to sell them to,and at what price to sell them.

The situation in which one supplier thoroughly dominates a market and essentially shuts out other competitors is called monopoly.

While gross domestic product (GDP)considers where the production occurs,________ considers who is responsible for the production.

Compare and contrast between monetary and fiscal policies.

"As the supply and demand curves are dynamic,so is the equilibrium point." Explain this statement with an example.

In practice,no economy is truly a free-market economy.

Developing a Business Mindset

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters