Exam 3: Economic Challenges Facing Contemporary Business

Inflation benefits consumers with fixed incomes.

A demand curve will shift to the left if the _____.

Forces of nature, such as a hurricane, can affect the supply curve.

Not-for-profit organizations must also make economic decisions just like other business organizations.

If the prices of substitute goods decrease, the demand curve will shift to the _____ and the price will _____.

Assume that the federal government raises taxes in order to balance its budget. This action will tend to speed up the rate of economic growth.

Which of the following fields is concerned with understanding the choices people make in using scarce resources?

The cost of producing an item declines due to improved technology. The supply curve should shift to the left.

Describe how changes in household income affect demand.

Many of the gains in U.S. productivity can be attributed to _____.

The U.S. Postal Service's delivery of first-class mail is an example of a regulated monopoly.

Microeconomics and macroeconomics have no correlation.

In a socialist economy, incentives usually are limited in state enterprises but do motivate workers in the private sector.

In which of the following types of economic systems do entrepreneurs and investors have the most amount of freedom with regard to controlling business ownership, profits, and resource allocations?

True Market, a research firm, was hired by a discount superstore to provide a detailed evaluation on how demand is affected by consumer preferences. True Market's analysis can be narrowed down to the study of _____.

The demand curve will shift to the right if consumers have more money to spend.

Describe what drives demand.

All banks must keep some percentage of their checking and savings funds on deposit at the Federal Reserve System.

List the four factors of production and provide an example of each factor.

Incentives to motivate employees to perform at their highest level are strongest in _____ systems.