Question 1

Which of the following is true of monetary policy?

Accepted Answer

A)  It uses taxation and spending to control economic activities. 
B)  It is dictated by international organizations like the United Nations 
C)  It is a mechanism to control the flow of foreign currency into a nation by reducing its exports. 
D)  It uses variations in interest rate and money supply to influence a nation's economy. 
A)  It uses taxation and spending to control economic activities. 
B)  It is dictated by international organizations like the United Nations 
C)  It is a mechanism to control the flow of foreign currency into a nation by reducing its exports. 
D)  It uses variations in interest rate and money supply to influence a nation's economy.

Question 2

The government of a country owns the railways, utilities, energy companies, and financial institutions. Ownership of small, less critical businesses is in private hands. This is an example of socialism.

Accepted Answer

A) True 
 B)False

Question 3

_____ is the relationship between the goods and services produced in a nation each year and the inputs necessary to produce them.

Accepted Answer

A)  Gross domestic product 
B)  Per capita income 
C)  Prosperity 
D)  Productivity 
A)  Gross domestic product 
B)  Per capita income 
C)  Prosperity 
D)  Productivity

Question 4

Under a capitalistic system, the government tends to have most of the control.

Accepted Answer

A) True 
 B)False

Question 5

If the number of buyers decreases, the demand curve will shift to the _____ and the price will _____.

Accepted Answer

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

Question 6

List the factors that should cause a supply curve to shift to the left.

Accepted Answer

The factors that cause a supply curve to

Question 7

What is monetary policy? What governmental agency controls monetary policy? Describe actions that are used to influence economic activity.

Accepted Answer

Monetary policy involves government acti

Question 8

Economic growth leads to expanded job opportunities, improved wages, and an increased standard of living.

Accepted Answer

A) True 
 B)False

Question 9

MATCHING
Complete the following using the terms listed.
-If the government spends more than the amount of money it raises through taxes, then a(n) _____ occurs.

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 10

United Narva is a nation in which industries like steel, communications, electricity, railways, education, and health care are owned by the government. The leaders of the nation believe that it is detrimental to the public's interest to allow such core industries to be owned by private firms. However, private ownership is encouraged in industries like restaurants, entertainment, and retail shops, which have a lower impact on social welfare. Which of the following economic systems has United Narva adopted?

Accepted Answer

A)  Capitalism 
B)  Socialism 
C)  Individualism 
D)  Communism 
A)  Capitalism 
B)  Socialism 
C)  Individualism 
D)  Communism

Question 11

A graph showing the amount of a product that buyers will purchase at different prices is the _____ curve.

Accepted Answer

A)  production possibility 
B)  supply 
C)  utility 
D)  demand 
A)  production possibility 
B)  supply 
C)  utility 
D)  demand

Question 12

_____ is an economic system in which private property is eliminated.

Accepted Answer

A)  Socialism 
B)  Capitalism 
C)  Individualism 
D)  Communism 
A)  Socialism 
B)  Capitalism 
C)  Individualism 
D)  Communism

Question 13

MATCHING
Complete the following using the terms listed.
-_____ is a market structure in which large number of buyers and sellers exchange homogenous products and no single participant has a significant influence on price.

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 14

_____ occurs when workers lack the necessary skills for available jobs or because the skills they have are no longer in demand.

Accepted Answer

A)  Structural unemployment 
B)  Cyclical unemployment 
C)  Seasonal unemployment 
D)  Frictional unemployment 
A)  Structural unemployment 
B)  Cyclical unemployment 
C)  Seasonal unemployment 
D)  Frictional unemployment

Question 15

Since the 1930s, the United States has not faced another "true" economic depression.

Accepted Answer

A) True 
 B)False

Question 16

Natural resources include technology, tools, information, physical facilities, and financial capabilities.

Accepted Answer

A) True 
 B)False

Question 17

Most industrialized nations operate economies based on _____.

Accepted Answer

A)  planned economies 
B)  private enterprise systems 
C)  communist systems 
D)  socialist systems 
A)  planned economies 
B)  private enterprise systems 
C)  communist systems 
D)  socialist systems

Question 18

Under the economic system of communism, _____.

Accepted Answer

A)  individual rights to profits are not allowed 
B)  government interference is limited 
C)  employees have the complete freedom to choose their own occupation 
D)  businesses are owned by individuals 
A)  individual rights to profits are not allowed 
B)  government interference is limited 
C)  employees have the complete freedom to choose their own occupation 
D)  businesses are owned by individuals

Question 19

_____ is a commonly used measure of nation's total productivity.

Accepted Answer

A)  Gross domestic product 
B)  Product mix ratio 
C)  Contribution margin 
D)  Break-even point 
A)  Gross domestic product 
B)  Product mix ratio 
C)  Contribution margin 
D)  Break-even point

Question 20

In general, as price of a good or service increases, the quantity demanded:

Accepted Answer

A)  declines. 
B)  remains the same irrespective of the product type. 
C)  increases. 
D)  first increases and then decreases irrespective of the product type. 
A)  declines. 
B)  remains the same irrespective of the product type. 
C)  increases. 
D)  first increases and then decreases irrespective of the product type.

Which of the following is true of monetary policy?

The government of a country owns the railways, utilities, energy companies, and financial institutions. Ownership of small, less critical businesses is in private hands. This is an example of socialism.

_____ is the relationship between the goods and services produced in a nation each year and the inputs necessary to produce them.

Under a capitalistic system, the government tends to have most of the control.

If the number of buyers decreases, the demand curve will shift to the _ and the price will _.

List the factors that should cause a supply curve to shift to the left.

What is monetary policy? What governmental agency controls monetary policy? Describe actions that are used to influence economic activity.

Economic growth leads to expanded job opportunities, improved wages, and an increased standard of living.

MATCHING Complete the following using the terms listed. -If the government spends more than the amount of money it raises through taxes, then a(n) _____ occurs.

A graph showing the amount of a product that buyers will purchase at different prices is the _____ curve.

_____ is an economic system in which private property is eliminated.

MATCHING Complete the following using the terms listed. -_____ is a market structure in which large number of buyers and sellers exchange homogenous products and no single participant has a significant influence on price.

_____ occurs when workers lack the necessary skills for available jobs or because the skills they have are no longer in demand.

Since the 1930s, the United States has not faced another "true" economic depression.

Natural resources include technology, tools, information, physical facilities, and financial capabilities.

Most industrialized nations operate economies based on _____.

Under the economic system of communism, _____.

_____ is a commonly used measure of nation's total productivity.

In general, as price of a good or service increases, the quantity demanded:

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

Which of the following is true of monetary policy?

The government of a country owns the railways, utilities, energy companies, and financial institutions. Ownership of small, less critical businesses is in private hands. This is an example of socialism.

_____ is the relationship between the goods and services produced in a nation each year and the inputs necessary to produce them.

Under a capitalistic system, the government tends to have most of the control.

If the number of buyers decreases, the demand curve will shift to the _____ and the price will _____.

List the factors that should cause a supply curve to shift to the left.

What is monetary policy? What governmental agency controls monetary policy? Describe actions that are used to influence economic activity.

Economic growth leads to expanded job opportunities, improved wages, and an increased standard of living.

MATCHING Complete the following using the terms listed. -If the government spends more than the amount of money it raises through taxes, then a(n) _____ occurs.

A graph showing the amount of a product that buyers will purchase at different prices is the _____ curve.

_____ is an economic system in which private property is eliminated.

MATCHING Complete the following using the terms listed. -_____ is a market structure in which large number of buyers and sellers exchange homogenous products and no single participant has a significant influence on price.

_____ occurs when workers lack the necessary skills for available jobs or because the skills they have are no longer in demand.

Since the 1930s, the United States has not faced another "true" economic depression.

Natural resources include technology, tools, information, physical facilities, and financial capabilities.

Most industrialized nations operate economies based on _____.

Under the economic system of communism, _____.

_____ is a commonly used measure of nation's total productivity.

In general, as price of a good or service increases, the quantity demanded:

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 number of buyers decreases, the demand curve will shift to the _ and the price will _.