Question 1

MATCHING
Complete the following using the terms listed.
-The point where the supply and demand curves intersect is the _____.

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 2

When a constant amount of inputs generates increased outputs, an increase in productivity occurs.

Accepted Answer

A) True 
 B)False

Question 3

In a pure monopoly:

Accepted Answer

A)  demand and supply are regulated by the government. 
B)  buyers have complete control over prices. 
C)  barriers to prevent entry by would-be competitors are high. 
D)  sellers typically market homogenous products. 
A)  demand and supply are regulated by the government. 
B)  buyers have complete control over prices. 
C)  barriers to prevent entry by would-be competitors are high. 
D)  sellers typically market homogenous products.

Question 4

No country is an economic island in today's global economy

Accepted Answer

A) True 
 B)False

Question 5

MATCHING
Complete the following using the terms listed.
-The study of small economic units, such as individual consumers, families, and businesses, is called _____.

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 6

Unless it is regulated or only temporary, the market situation called _____ is prohibited in the United States through antitrust legislation.

Accepted Answer

A)  pure competition 
B)  a pure monopoly 
C)  an oligopoly 
D)  monopolistic competition 
A)  pure competition 
B)  a pure monopoly 
C)  an oligopoly 
D)  monopolistic competition

Question 7

Economists refer to a nation's _____ as an indicator of its economic health.

Accepted Answer

A)  residual value 
B)  liquidation value 
C)  morbidity rate 
D)  unemployment rate 
A)  residual value 
B)  liquidation value 
C)  morbidity rate 
D)  unemployment rate

Question 8

Fiscal policy is used primarily to increase or decrease interest rates.

Accepted Answer

A) True 
 B)False

Question 9

The equilibrium price occurs at the point of intersection between the supply and demand curves.

Accepted Answer

A) True 
 B)False

Question 10

An oligopoly is a market situation where there are only a few sellers of a good or service.

Accepted Answer

A) True 
 B)False

Question 11

The cost of the raw materials used to manufacture a product falls. The supply curve is likely to shift down and to the left.

Accepted Answer

A) True 
 B)False

Question 12

Assume electric water heaters and gas water heaters are interchangeable, and assume the price of natural gas rises sharply relative to the price of electricity. The demand curve for electric water heaters should shift to the right.

Accepted Answer

A) True 
 B)False

Question 13

What is economics? Why is understanding economics important in one's life?

Accepted Answer

Economics is a social science that analy

Question 14

Fiscal policy involves:

Accepted Answer

A)  curbing political activities by limiting the spending on political campaigns. 
B)  controlling the flow of foreign currency by reducing exports and increasing imports. 
C)  adjusting money supply by varying the exchange rate of the national currency. 
D)  influencing economic activities by making decisions about taxes and government spending. 
A)  curbing political activities by limiting the spending on political campaigns. 
B)  controlling the flow of foreign currency by reducing exports and increasing imports. 
C)  adjusting money supply by varying the exchange rate of the national currency. 
D)  influencing economic activities by making decisions about taxes and government spending.

Question 15

All of the following can shift the demand curve to either the right or left EXCEPT a change in the _____.

Accepted Answer

A)  number of buyers 
B)  attitudes of buyers about the future 
C)  income of buyers 
D)  opportunity cost of suppliers 
A)  number of buyers 
B)  attitudes of buyers about the future 
C)  income of buyers 
D)  opportunity cost of suppliers

Question 16

If the cost of producing a good or service increases, the supply curve will shift to the _____ and the price will _____.

Accepted Answer

A)  right; fall 
B)  right; rise 
C)  left; fall 
D)  left; rise 
A)  right; fall 
B)  right; rise 
C)  left; fall 
D)  left; rise

Question 17

MATCHING
Complete the following using the terms listed.
-_____ is the relationship between the goods and services produced in a nation each year and the inputs needed to produce them.

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 18

Because there are only a few manufacturers of computer chips, the product is sold in a purely competitive market.

Accepted Answer

A) True 
 B)False

Question 19

Price is the sole underlying cause of movement along demand and supply curves.

Accepted Answer

A) True 
 B)False

Question 20

Differentiate between macroeconomics and microeconomics. What types of economic activities might be included in each category?

Accepted Answer

Macroeconomics deals with a country's ov

MATCHING Complete the following using the terms listed. -The point where the supply and demand curves intersect is the _____.

When a constant amount of inputs generates increased outputs, an increase in productivity occurs.

In a pure monopoly:

No country is an economic island in today's global economy

MATCHING Complete the following using the terms listed. -The study of small economic units, such as individual consumers, families, and businesses, is called _____.

Unless it is regulated or only temporary, the market situation called _____ is prohibited in the United States through antitrust legislation.

Economists refer to a nation's _____ as an indicator of its economic health.

Fiscal policy is used primarily to increase or decrease interest rates.

The equilibrium price occurs at the point of intersection between the supply and demand curves.

An oligopoly is a market situation where there are only a few sellers of a good or service.

The cost of the raw materials used to manufacture a product falls. The supply curve is likely to shift down and to the left.

Assume electric water heaters and gas water heaters are interchangeable, and assume the price of natural gas rises sharply relative to the price of electricity. The demand curve for electric water heaters should shift to the right.

What is economics? Why is understanding economics important in one's life?

Fiscal policy involves:

All of the following can shift the demand curve to either the right or left EXCEPT a change in the _____.

If the cost of producing a good or service increases, the supply curve will shift to the _ and the price will _.

MATCHING Complete the following using the terms listed. -_____ is the relationship between the goods and services produced in a nation each year and the inputs needed to produce them.

Because there are only a few manufacturers of computer chips, the product is sold in a purely competitive market.

Price is the sole underlying cause of movement along demand and supply curves.

Differentiate between macroeconomics and microeconomics. What types of economic activities might be included in each category?

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

MATCHING Complete the following using the terms listed. -The point where the supply and demand curves intersect is the _____.

When a constant amount of inputs generates increased outputs, an increase in productivity occurs.

In a pure monopoly:

No country is an economic island in today's global economy

MATCHING Complete the following using the terms listed. -The study of small economic units, such as individual consumers, families, and businesses, is called _____.

Unless it is regulated or only temporary, the market situation called _____ is prohibited in the United States through antitrust legislation.

Economists refer to a nation's _____ as an indicator of its economic health.

Fiscal policy is used primarily to increase or decrease interest rates.

The equilibrium price occurs at the point of intersection between the supply and demand curves.

An oligopoly is a market situation where there are only a few sellers of a good or service.

The cost of the raw materials used to manufacture a product falls. The supply curve is likely to shift down and to the left.

Assume electric water heaters and gas water heaters are interchangeable, and assume the price of natural gas rises sharply relative to the price of electricity. The demand curve for electric water heaters should shift to the right.

What is economics? Why is understanding economics important in one's life?

Fiscal policy involves:

All of the following can shift the demand curve to either the right or left EXCEPT a change in the _____.

If the cost of producing a good or service increases, the supply curve will shift to the _____ and the price will _____.

MATCHING Complete the following using the terms listed. -_____ is the relationship between the goods and services produced in a nation each year and the inputs needed to produce them.

Because there are only a few manufacturers of computer chips, the product is sold in a purely competitive market.

Price is the sole underlying cause of movement along demand and supply curves.

Differentiate between macroeconomics and microeconomics. What types of economic activities might be included in each category?

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

If the cost of producing a good or service increases, the supply curve will shift to the _ and the price will _.