Question 1

List and describe each of the four stages of the business cycle.

Accepted Answer

The four stages of a business cycle are:

Question 2

Cyclical unemployment occurs when the economy slows down and some mid-level managers, for example, are laid off.

Accepted Answer

A) True 
 B)False

Question 3

A pure monopoly occurs when a firm possesses unique characteristics so important to competition in its industry that they form barriers to prevent entry by would-be competitors.

Accepted Answer

A) True 
 B)False

Question 4

The willingness and ability of sellers to provide goods and services for sale at different prices is referred to as _____.

Accepted Answer

A)  want 
B)  demand 
C)  utility 
D)  supply 
A)  want 
B)  demand 
C)  utility 
D)  supply

Question 5

A country with a mixed economy is a combination of socialism and communism with a stronger public sector.

Accepted Answer

A) True 
 B)False

Question 6

Assume that the number of first-time home buyers suddenly increases. The demand curve for houses is likely shift to the right.

Accepted Answer

A) True 
 B)False

Question 7

A nation will achieve a balanced budget when:

Accepted Answer

A)  the amount of savings equal the amount of borrowings from banks. 
B)  the consumer price index is equal to the producer price index. 
C)  imports are equal to its exports. 
D)  total revenues raised by taxes equal the total proposed spending for the year. 
A)  the amount of savings equal the amount of borrowings from banks. 
B)  the consumer price index is equal to the producer price index. 
C)  imports are equal to its exports. 
D)  total revenues raised by taxes equal the total proposed spending for the year.

Question 8

Which of the following market structures best describes the U.S. aircraft industry?

Accepted Answer

A)  Perfect competition 
B)  Pure competition 
C)  Oligopoly 
D)  Monopoly 
A)  Perfect competition 
B)  Pure competition 
C)  Oligopoly 
D)  Monopoly

Question 9

Which of the following is NOT a source of government funds to cover the annual budget?

Accepted Answer

A)  Taxes 
B)  Fees 
C)  Subsidiaries 
D)  Borrowing 
A)  Taxes 
B)  Fees 
C)  Subsidiaries 
D)  Borrowing

Question 10

An economic recession lasts for three months or shorter.

Accepted Answer

A) True 
 B)False

Question 11

Monopolistic competition and pure competition are the same concept.

Accepted Answer

A) True 
 B)False

Question 12

The recent recession has left Anya, a manager previously in a hotel, unemployed. This is an example of_____.

Accepted Answer

A)  cyclical unemployment 
B)  frictional unemployment 
C)  structural unemployment 
D)  seasonal unemployment 
A)  cyclical unemployment 
B)  frictional unemployment 
C)  structural unemployment 
D)  seasonal unemployment

Question 13

Which of the following terms is best described as the sum of all goods and services produced within a nation's boundaries during a specific time period?

Accepted Answer

A)  Return on investment 
B)  Gross domestic product 
C)  Return on equity 
D)  Net asset value 
A)  Return on investment 
B)  Gross domestic product 
C)  Return on equity 
D)  Net asset value

Question 14

In a mixed economy, private firms do not compete with public enterprises.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is considered to be the BEST example of pure competition in today's business environment?

Accepted Answer

A)  The steel industry 
B)  The market for pet food 
C)  The fishing industry 
D)  The paper industry 
A)  The steel industry 
B)  The market for pet food 
C)  The fishing industry 
D)  The paper industry

Question 16

Changes in overall government spending have a macroeconomic effect.

Accepted Answer

A) True 
 B)False

Question 17

During a recession, which of the following businesses is most likely to do well?

Accepted Answer

A)  North Sun Ships, a luxury cruise service 
B)  Red Couture Inc., a designer store for clothes and accessories 
C)  Save Market, a chain of discount stores 
D)  Ink Theory, a store that sells premium pens 
A)  North Sun Ships, a luxury cruise service 
B)  Red Couture Inc., a designer store for clothes and accessories 
C)  Save Market, a chain of discount stores 
D)  Ink Theory, a store that sells premium pens

Question 18

MATCHING
Complete the following using the terms listed.
-During a(n) _____, consumers frequently postpone major purchases and shift buying patterns toward basic, functional products carrying low prices.

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 19

Deflation can hurt industries like housing and auto manufacturing.

Accepted Answer

A) True 
 B)False

Question 20

Flora Cult Inc., an exporter of flowers across the globe, operates in an industry where there are many sellers and buyers. This makes it difficult for any one single seller or buyer to influence the market price of the flowers. Also, it is difficult for sellers or exporters to differentiate their products from each other. What type of market structure does this illustrate?

Accepted Answer

A)  Oligopoly 
B)  Pure competition 
C)  Monopoly 
D)  Monopolistic competition 
A)  Oligopoly 
B)  Pure competition 
C)  Monopoly 
D)  Monopolistic competition

List and describe each of the four stages of the business cycle.

Cyclical unemployment occurs when the economy slows down and some mid-level managers, for example, are laid off.

A pure monopoly occurs when a firm possesses unique characteristics so important to competition in its industry that they form barriers to prevent entry by would-be competitors.

The willingness and ability of sellers to provide goods and services for sale at different prices is referred to as _____.

A country with a mixed economy is a combination of socialism and communism with a stronger public sector.

Assume that the number of first-time home buyers suddenly increases. The demand curve for houses is likely shift to the right.

A nation will achieve a balanced budget when:

Which of the following market structures best describes the U.S. aircraft industry?

Which of the following is NOT a source of government funds to cover the annual budget?

An economic recession lasts for three months or shorter.

Monopolistic competition and pure competition are the same concept.

The recent recession has left Anya, a manager previously in a hotel, unemployed. This is an example of_____.

Which of the following terms is best described as the sum of all goods and services produced within a nation's boundaries during a specific time period?

In a mixed economy, private firms do not compete with public enterprises.

Which of the following is considered to be the BEST example of pure competition in today's business environment?

Changes in overall government spending have a macroeconomic effect.

During a recession, which of the following businesses is most likely to do well?

MATCHING Complete the following using the terms listed. -During a(n) _____, consumers frequently postpone major purchases and shift buying patterns toward basic, functional products carrying low prices.

Deflation can hurt industries like housing and auto manufacturing.

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

List and describe each of the four stages of the business cycle.

Cyclical unemployment occurs when the economy slows down and some mid-level managers, for example, are laid off.

A pure monopoly occurs when a firm possesses unique characteristics so important to competition in its industry that they form barriers to prevent entry by would-be competitors.

The willingness and ability of sellers to provide goods and services for sale at different prices is referred to as _____.

A country with a mixed economy is a combination of socialism and communism with a stronger public sector.

Assume that the number of first-time home buyers suddenly increases. The demand curve for houses is likely shift to the right.

A nation will achieve a balanced budget when:

Which of the following market structures best describes the U.S. aircraft industry?

Which of the following is NOT a source of government funds to cover the annual budget?

An economic recession lasts for three months or shorter.

Monopolistic competition and pure competition are the same concept.

The recent recession has left Anya, a manager previously in a hotel, unemployed. This is an example of_____.

Which of the following terms is best described as the sum of all goods and services produced within a nation's boundaries during a specific time period?

In a mixed economy, private firms do not compete with public enterprises.

Which of the following is considered to be the BEST example of pure competition in today's business environment?

Changes in overall government spending have a macroeconomic effect.

During a recession, which of the following businesses is most likely to do well?

MATCHING Complete the following using the terms listed. -During a(n) _____, consumers frequently postpone major purchases and shift buying patterns toward basic, functional products carrying low prices.

Deflation can hurt industries like housing and auto manufacturing.

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