Question 1

What does a planned economy rely on a centralized government to do?

Accepted Answer

A)  Support free enterprise in every way possible 
B)  Determine how to allocate all or most factors of production 
C)  Encourage citizens to buy shares of stock in small companies 
D)  Keep its control activities to a minimum 
E)  Direct workers to start their own small businesses 
A)  Support free enterprise in every way possible 
B)  Determine how to allocate all or most factors of production 
C)  Encourage citizens to buy shares of stock in small companies 
D)  Keep its control activities to a minimum 
E)  Direct workers to start their own small businesses

Question 2

What is the basis for a market economy?

Accepted Answer

A)  The ability to pursue an interest with minimal government restriction 
B)  The ability to limit profits on competitors based on government restriction 
C)  The ability to offer a good or service at a variety of price points 
D)  A limitation on the number of competitors the government will allow within a specific geographic region 
E)  The ability of a large number of smaller firms in an industry will limit influence 
A)  The ability to pursue an interest with minimal government restriction 
B)  The ability to limit profits on competitors based on government restriction 
C)  The ability to offer a good or service at a variety of price points 
D)  A limitation on the number of competitors the government will allow within a specific geographic region 
E)  The ability of a large number of smaller firms in an industry will limit influence

Question 3

Which of the following is proven when buyers purchase more of a product when the price drops and less when the price increases?

Accepted Answer

A)  Demand 
B)  Laws of supply 
C)  Laws of demand 
D)  Degree of competition 
E)  Free market economy 
A)  Demand 
B)  Laws of supply 
C)  Laws of demand 
D)  Degree of competition 
E)  Free market economy

Question 4

Which of the following BEST gives the meaning of the term gross domestic product?

Accepted Answer

A)  Total quantity of goods and services produced by an economic system 
B)  Total quantity of goods that a country's citizens can purchase with the currency used in their economic system 
C)  Conditions of the economic system in which an organization operates 
D)  Total value of all goods and services produced within a given period by a national economy through domestic factors of production 
E)  Indicators of available goods and services produced within a specific domestic market 
A)  Total quantity of goods and services produced by an economic system 
B)  Total quantity of goods that a country's citizens can purchase with the currency used in their economic system 
C)  Conditions of the economic system in which an organization operates 
D)  Total value of all goods and services produced within a given period by a national economy through domestic factors of production 
E)  Indicators of available goods and services produced within a specific domestic market

Question 5

Which of the following offers experts statistical information on the strength and performance of an economy?

Accepted Answer

A)  Market price reports 
B)  Supply curves 
C)  Economic indicators 
D)  Demand Curves 
E)  Degrees of competition reports 
A)  Market price reports 
B)  Supply curves 
C)  Economic indicators 
D)  Demand Curves 
E)  Degrees of competition reports

Question 6

Which of the following best explains the difference between a market economy and a planned economy?

Accepted Answer

A)  In a planned economy, consumers have little choice in where people work or what they purchase or pay. In a market economy, there is more choice in where people work or what they purchase or pay. 
B)  In a market economy, consumers must pay what the market demands. 
C)  Capitalism is the root of a planned economy. 
D)  Market economies are also known as mixed market economies. 
E)  Planned economies promote the use of privatization to increase market share. 
A)  In a planned economy, consumers have little choice in where people work or what they purchase or pay. In a market economy, there is more choice in where people work or what they purchase or pay. 
B)  In a market economy, consumers must pay what the market demands. 
C)  Capitalism is the root of a planned economy. 
D)  Market economies are also known as mixed market economies. 
E)  Planned economies promote the use of privatization to increase market share.

Question 7

What is the point at which the supply curve and the demand curve intersect on a graph?

Accepted Answer

A)  Equilibrium price 
B)  Decision point 
C)  Surplus price 
D)  Perfect price 
E)  Parity point 
A)  Equilibrium price 
B)  Decision point 
C)  Surplus price 
D)  Perfect price 
E)  Parity point

Question 8

In the United States,the Federal Reserve System,which is the nation's central bank,can influence the ability and willingness of banks to lend money.

Accepted Answer

A) True 
 B)False

Question 9

How would supply affect the aggregate output of an economy?

Accepted Answer

A)  Supply would decrease aggregate output 
B)  Increases in both would cause inflation 
C)  Aggregate output would grow as supply grows 
D)  Supply would have no direct effect on aggregate output 
E)  Aggregate output would increase the money supply 
A)  Supply would decrease aggregate output 
B)  Increases in both would cause inflation 
C)  Aggregate output would grow as supply grows 
D)  Supply would have no direct effect on aggregate output 
E)  Aggregate output would increase the money supply

Question 10

What does productivity measure?

Accepted Answer

A)  The total value of all goods and services produced by a national economy 
B)  How much a system produces with the resources needed to produce it 
C)  How much output is necessary to produce a certain level of demand 
D)  The standard of living relative to purchasing power parity 
E)  How much gross national product results from inputs of labor 
A)  The total value of all goods and services produced by a national economy 
B)  How much a system produces with the resources needed to produce it 
C)  How much output is necessary to produce a certain level of demand 
D)  The standard of living relative to purchasing power parity 
E)  How much gross national product results from inputs of labor

Question 11

What type of policy is made up of fiscal and monetary policy?

Accepted Answer

A)  Trade 
B)  Employment 
C)  Stabilization 
D)  Tax 
E)  Foreign 
A)  Trade 
B)  Employment 
C)  Stabilization 
D)  Tax 
E)  Foreign

Question 12

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 13

Which of the following is an indication of national economic growth,shown by measuring aggregate output?

Accepted Answer

A)  Gross domestic product 
B)  Standard of living 
C)  Economic indicators 
D)  Gross national product 
E)  Real growth rate 
A)  Gross domestic product 
B)  Standard of living 
C)  Economic indicators 
D)  Gross national product 
E)  Real growth rate

Question 14

Which of the following supports the idea that the prices of similar products in different countries should be about the same?

Accepted Answer

A)  Standard of living 
B)  Real growth rate 
C)  Purchasing power parity 
D)  Trade deficit 
E)  Balance of trade 
A)  Standard of living 
B)  Real growth rate 
C)  Purchasing power parity 
D)  Trade deficit 
E)  Balance of trade

Question 15

Which term refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production?

Accepted Answer

A)  Standard of living 
B)  Aggregate output 
C)  Gross domestic product 
D)  Gross national product 
E)  Purchasing power parity 
A)  Standard of living 
B)  Aggregate output 
C)  Gross domestic product 
D)  Gross national product 
E)  Purchasing power parity

Question 16

What is the term for the physical and intellectual contributions of people while engaged in the production of goods and services?

Accepted Answer

A)  Human resources 
B)  Working capital 
C)  Physical resources 
D)  Planned resources 
E)  Market resources 
A)  Human resources 
B)  Working capital 
C)  Physical resources 
D)  Planned resources 
E)  Market resources

Question 17

An organization's external environment consists of everything outside of the organization that might affect it.

Accepted Answer

A) True 
 B)False

Question 18

Tax increases and decreases are a form of fiscal policy.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is one of the elements required in private enterprise?

Accepted Answer

A)  Adequate representation in the government 
B)  Freedom from foreign competition 
C)  The opportunity for market leadership 
D)  The right to ownership of property 
E)  Numerous regulatory agencies 
A)  Adequate representation in the government 
B)  Freedom from foreign competition 
C)  The opportunity for market leadership 
D)  The right to ownership of property 
E)  Numerous regulatory agencies

Question 20

The amount of money that a government owes its creditors is referred to as that country's

Accepted Answer

A)  GDP. 
B)  national debt. 
C)  consumer price index. 
D)  inflation rate. 
E)  GNP. 
A)  GDP. 
B)  national debt. 
C)  consumer price index. 
D)  inflation rate. 
E)  GNP.

What does a planned economy rely on a centralized government to do?

What is the basis for a market economy?

Which of the following is proven when buyers purchase more of a product when the price drops and less when the price increases?

Which of the following BEST gives the meaning of the term gross domestic product?

Which of the following offers experts statistical information on the strength and performance of an economy?

Which of the following best explains the difference between a market economy and a planned economy?

What is the point at which the supply curve and the demand curve intersect on a graph?

In the United States,the Federal Reserve System,which is the nation's central bank,can influence the ability and willingness of banks to lend money.

How would supply affect the aggregate output of an economy?

What does productivity measure?

What type of policy is made up of fiscal and monetary policy?

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

Which of the following is an indication of national economic growth,shown by measuring aggregate output?

Which of the following supports the idea that the prices of similar products in different countries should be about the same?

Which term refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production?

What is the term for the physical and intellectual contributions of people while engaged in the production of goods and services?

An organization's external environment consists of everything outside of the organization that might affect it.

Tax increases and decreases are a form of fiscal policy.

Which of the following is one of the elements required in private enterprise?

The amount of money that a government owes its creditors is referred to as that country's

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

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

Developing and Pricing Products

Distributing and Promoting Products

Information Technology Itfor Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

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Exam 1: The US Business Environment

What does a planned economy rely on a centralized government to do?

What is the basis for a market economy?

Which of the following is proven when buyers purchase more of a product when the price drops and less when the price increases?

Which of the following BEST gives the meaning of the term gross domestic product?

Which of the following offers experts statistical information on the strength and performance of an economy?

Which of the following best explains the difference between a market economy and a planned economy?

What is the point at which the supply curve and the demand curve intersect on a graph?

In the United States,the Federal Reserve System,which is the nation's central bank,can influence the ability and willingness of banks to lend money.

How would supply affect the aggregate output of an economy?

What does productivity measure?

What type of policy is made up of fiscal and monetary policy?

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

Which of the following is an indication of national economic growth,shown by measuring aggregate output?

Which of the following supports the idea that the prices of similar products in different countries should be about the same?

Which term refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production?

What is the term for the physical and intellectual contributions of people while engaged in the production of goods and services?

An organization's external environment consists of everything outside of the organization that might affect it.

Tax increases and decreases are a form of fiscal policy.

Which of the following is one of the elements required in private enterprise?

The amount of money that a government owes its creditors is referred to as that country's

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

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

Developing and Pricing Products

Distributing and Promoting Products

Information Technology Itfor Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters