Question 1

The study of macroeconomics is _____.

Accepted Answer

A)  concerned with studying a country's overall economic issues 
B)  primarily concerned with the economic choices and decisions of individual consumers 
C)  not related to microeconomics 
D)  not related to government decisions concerning spending and taxes 
A)  concerned with studying a country's overall economic issues 
B)  primarily concerned with the economic choices and decisions of individual consumers 
C)  not related to microeconomics 
D)  not related to government decisions concerning spending and taxes

Question 2

Describe the major differences between socialism and a mixed economic system.

Accepted Answer

In a socialist economy, the government o

Question 3

MATCHING
Complete the following using the terms listed.
-In a(n) _____, a single seller dominates trade in a product for which buyers can find no close substitutes.

Accepted Answer

A) Consumer Price Index (CPI) 
B) Inflation 
C) Gross domestic product (GDP) 
D) fiscal policy 
E) monetary policy
F)equilibrium price
G)budget deficit
H)Pure competition
I)supply
J)Demand
K)Productivity
L)recession
M)microeconomics
N)oligopoly
O)monopoly 
A) Consumer Price Index (CPI) 
B) Inflation 
C) Gross domestic product (GDP) 
D) fiscal policy 
E) monetary policy
F)equilibrium price
G)budget deficit
H)Pure competition
I)supply
J)Demand
K)Productivity
L)recession
M)microeconomics
N)oligopoly
O)monopoly

Question 4

A private enterprise system rewards businesses for meeting the needs and demands of consumers.

Accepted Answer

A) True 
 B)False

Question 5

Describe the four categories of unemployment.

Accepted Answer

The four categories of unemployment are:

Question 6

A demand curve is the schedule that shows the relationship between the price of a product and the _____.

Accepted Answer

A)  overhead costs 
B)  social costs 
C)  quantity of that product buyers will purchase 
D)  quantity of that product manufacturers will supply 
A)  overhead costs 
B)  social costs 
C)  quantity of that product buyers will purchase 
D)  quantity of that product manufacturers will supply

Question 7

Describe the relationship between productivity and Gross Domestic Product (GDP).

Accepted Answer

Productivity is a widely recognized meas

Question 8

Assume that the number of people wanting to buy houses in your locality increases sharply. This will cause the price of houses to increase, which is an example of _____.

Accepted Answer

A)  demand-pull inflation 
B)  cost-push inflation 
C)  supply-side deflation 
D)  credit deflation 
A)  demand-pull inflation 
B)  cost-push inflation 
C)  supply-side deflation 
D)  credit deflation

Question 9

In the context of fiscal policy, lower taxes and increased government spending:

Accepted Answer

A)  cut unemployment rates. 
B)  limit economic expansion. 
C)  reduce inflation. 
D)  reduce the profits of a business. 
A)  cut unemployment rates. 
B)  limit economic expansion. 
C)  reduce inflation. 
D)  reduce the profits of a business.

Question 10

During a recession, business spending falls but consumer spending remains relatively unchanged.

Accepted Answer

A) True 
 B)False

Question 11

In the context of fiscal policy, increased taxes and reduced government spending:

Accepted Answer

A)  restrict economic activities. 
B)  create more profits for firms. 
C)  increase a nation's gross domestic product 
D)  cut unemployment rates. 
A)  restrict economic activities. 
B)  create more profits for firms. 
C)  increase a nation's gross domestic product 
D)  cut unemployment rates.

Question 12

The supply curve will shift left when:

Accepted Answer

A)  suppliers in the market increase. 
B)  taxes increase. 
C)  the costs of technologies decrease. 
D)  the costs of inputs decrease. 
A)  suppliers in the market increase. 
B)  taxes increase. 
C)  the costs of technologies decrease. 
D)  the costs of inputs decrease.

Question 13

Because energy and food prices fluctuate excessively from month to month, the Consumer Price Index (CPI) excludes these two variables.

Accepted Answer

A) True 
 B)False

Question 14

MATCHING
Complete the following using the terms listed.
-_____ is an economic situation characterized by price increases that reduce the amount of goods and services people can purchase with a given amount of money.

Accepted Answer

A) Consumer Price Index (CPI) 
B) Inflation 
C) Gross domestic product (GDP) 
D) fiscal policy 
E) monetary policy
F)equilibrium price
G)budget deficit
H)Pure competition
I)supply
J)Demand
K)Productivity
L)recession
M)microeconomics
N)oligopoly
O)monopoly 
A) Consumer Price Index (CPI) 
B) Inflation 
C) Gross domestic product (GDP) 
D) fiscal policy 
E) monetary policy
F)equilibrium price
G)budget deficit
H)Pure competition
I)supply
J)Demand
K)Productivity
L)recession
M)microeconomics
N)oligopoly
O)monopoly

Question 15

The Federal Reserve can implement both expansionary and restrictive monetary policies.

Accepted Answer

A) True 
 B)False

Question 16

Individuals who lose their jobs due to structural reasons are generally unemployed only for a short period of time.

Accepted Answer

A) True 
 B)False

Question 17

_____ is the study of the economic choices of individual consumers, families, or businesses.

Accepted Answer

A)  Macroeconomics 
B)  Microeconomics 
C)  Sociology 
D)  Statistics 
A)  Macroeconomics 
B)  Microeconomics 
C)  Sociology 
D)  Statistics

Question 18

Stephan has a construction job in Boston. During winter, he looks for other work as no construction can take place. Stephan is cyclically unemployed.

Accepted Answer

A) True 
 B)False

Question 19

The price of gasoline rises sharply. One likely outcome is that the demand curve for hybrid vehicles should shift to the left.

Accepted Answer

A) True 
 B)False

Question 20

The management of Harvey Inc. is trying to decide the appropriate prices for various products the company sells. This is a focus of _____.

Accepted Answer

A)  microeconomics 
B)  macroeconomics 
C)  fiscal policy 
D)  monetary policy 
A)  microeconomics 
B)  macroeconomics 
C)  fiscal policy 
D)  monetary policy

The study of macroeconomics is _____.

Describe the major differences between socialism and a mixed economic system.

MATCHING Complete the following using the terms listed. -In a(n) _____, a single seller dominates trade in a product for which buyers can find no close substitutes.

A private enterprise system rewards businesses for meeting the needs and demands of consumers.

Describe the four categories of unemployment.

A demand curve is the schedule that shows the relationship between the price of a product and the _____.

Describe the relationship between productivity and Gross Domestic Product (GDP).

Assume that the number of people wanting to buy houses in your locality increases sharply. This will cause the price of houses to increase, which is an example of _____.

In the context of fiscal policy, lower taxes and increased government spending:

During a recession, business spending falls but consumer spending remains relatively unchanged.

In the context of fiscal policy, increased taxes and reduced government spending:

The supply curve will shift left when:

Because energy and food prices fluctuate excessively from month to month, the Consumer Price Index (CPI) excludes these two variables.

MATCHING Complete the following using the terms listed. -_____ is an economic situation characterized by price increases that reduce the amount of goods and services people can purchase with a given amount of money.

The Federal Reserve can implement both expansionary and restrictive monetary policies.

Individuals who lose their jobs due to structural reasons are generally unemployed only for a short period of time.

_____ is the study of the economic choices of individual consumers, families, or businesses.

Stephan has a construction job in Boston. During winter, he looks for other work as no construction can take place. Stephan is cyclically unemployed.

The price of gasoline rises sharply. One likely outcome is that the demand curve for hybrid vehicles should shift to the left.

The management of Harvey Inc. is trying to decide the appropriate prices for various products the company sells. This is a focus of _____.

The Changing Face of Business

Business Ethics and Social Responsibility

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters

Exam 3: Economic Challenges Facing Contemporary Business

The study of macroeconomics is _____.

Describe the major differences between socialism and a mixed economic system.

MATCHING Complete the following using the terms listed. -In a(n) _____, a single seller dominates trade in a product for which buyers can find no close substitutes.

A private enterprise system rewards businesses for meeting the needs and demands of consumers.

Describe the four categories of unemployment.

A demand curve is the schedule that shows the relationship between the price of a product and the _____.

Describe the relationship between productivity and Gross Domestic Product (GDP).

Assume that the number of people wanting to buy houses in your locality increases sharply. This will cause the price of houses to increase, which is an example of _____.

In the context of fiscal policy, lower taxes and increased government spending:

During a recession, business spending falls but consumer spending remains relatively unchanged.

In the context of fiscal policy, increased taxes and reduced government spending:

The supply curve will shift left when:

Because energy and food prices fluctuate excessively from month to month, the Consumer Price Index (CPI) excludes these two variables.

MATCHING Complete the following using the terms listed. -_____ is an economic situation characterized by price increases that reduce the amount of goods and services people can purchase with a given amount of money.

The Federal Reserve can implement both expansionary and restrictive monetary policies.

Individuals who lose their jobs due to structural reasons are generally unemployed only for a short period of time.

_____ is the study of the economic choices of individual consumers, families, or businesses.

Stephan has a construction job in Boston. During winter, he looks for other work as no construction can take place. Stephan is cyclically unemployed.

The price of gasoline rises sharply. One likely outcome is that the demand curve for hybrid vehicles should shift to the left.

The management of Harvey Inc. is trying to decide the appropriate prices for various products the company sells. This is a focus of _____.

The Changing Face of Business

Business Ethics and Social Responsibility

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters