Question 1

Restrictive monetary policy reduces the money supply and helps to reduce inflation.

Accepted Answer

A) True 
 B)False

Question 2

If the actual market price differs from the equilibrium price, buyers and sellers tend to make economic choices that restore the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 3

The equilibrium price is established when the _____.

Accepted Answer

A)  prevailing market price of an item is same as the price at which a consumer can buy the item 
B)  demand curve and the supply curve are parallel to each other 
C)  opportunity cost of a product is greater than its production cost 
D)  production cost of an item is greater than its selling price 
A)  prevailing market price of an item is same as the price at which a consumer can buy the item 
B)  demand curve and the supply curve are parallel to each other 
C)  opportunity cost of a product is greater than its production cost 
D)  production cost of an item is greater than its selling price

Question 4

List the factors that should cause a demand curve to shift to the right.

Accepted Answer

The factors that cause a demand curve to

Question 5

Socialism is one of the four market structures found in a private enterprise system.

Accepted Answer

A) True 
 B)False

Question 6

_____ has a blend of both planned economy and private enterprise system.

Accepted Answer

A)  Capitalism 
B)  Communism 
C)  A mixed market economy 
D)  A free market economy 
A)  Capitalism 
B)  Communism 
C)  A mixed market economy 
D)  A free market economy

Question 7

List four challenges to maintain global competitiveness.

Accepted Answer

Businesses face four key globa

Question 8

MATCHING
Complete the following using the terms listed.
-_____ is the sum of all goods and services produced within a country's borders.

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 9

According to a supply curve, _____.

Accepted Answer

A)  as prices rise, quantity of a product supplied falls 
B)  as prices fall, consumers will buy in smaller quantities 
C)  as prices rise, the quantity of a product that is supplied also rises 
D)  as prices rise, consumers will buy in larger quantities 
A)  as prices rise, quantity of a product supplied falls 
B)  as prices fall, consumers will buy in smaller quantities 
C)  as prices rise, the quantity of a product that is supplied also rises 
D)  as prices rise, consumers will buy in larger quantities

Question 10

Demand and supply never affect employment.

Accepted Answer

A) True 
 B)False

Question 11

_____ provides a running measurement of changes in consumer prices.

Accepted Answer

A)  The Consumer Price Index (CPI) 
B)  Gross national income 
C)  Per capita income 
D)  The Producer Price Index (PPI) 
A)  The Consumer Price Index (CPI) 
B)  Gross national income 
C)  Per capita income 
D)  The Producer Price Index (PPI)

Question 12

If buyers' incomes increase, the demand curve will shift to the _____ and the prices will _____.

Accepted Answer

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

Question 13

Pure competition is different form monopolistic competition in that:

Accepted Answer

A)  buyers in pure competition see little difference between the goods offered by competitors 
B)  new competitors cannot easily enter a purely competitive market 
C)  buyers in monopolistic competition have no control over prices 
D)  sellers in monopolistic competition can never exit the industry 
A)  buyers in pure competition see little difference between the goods offered by competitors 
B)  new competitors cannot easily enter a purely competitive market 
C)  buyers in monopolistic competition have no control over prices 
D)  sellers in monopolistic competition can never exit the industry

Question 14

During economic recession:

Accepted Answer

A)  unemployment begins to decline as business activity accelerates. 
B)  businesses expand by hiring more employees. 
C)  people turn to lower-priced retailers for the goods they need. 
D)  consumer confidence about the future is optimistic. 
A)  unemployment begins to decline as business activity accelerates. 
B)  businesses expand by hiring more employees. 
C)  people turn to lower-priced retailers for the goods they need. 
D)  consumer confidence about the future is optimistic.

Question 15

Supply refers to buyers' willingness and ability to purchase goods and services.

Accepted Answer

A) True 
 B)False

Question 16

_____ is caused by increases in the prices of raw materials and other factors of production.

Accepted Answer

A)  Negative amortization 
B)  Supply-side deflation 
C)  Cost-push inflation 
D)  Price penetration 
A)  Negative amortization 
B)  Supply-side deflation 
C)  Cost-push inflation 
D)  Price penetration

Question 17

MATCHING
Complete the following using the terms listed.
-_____ measures the monthly average change in prices of goods and services.

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

MATCHING
Complete the following using the terms listed.
-Attempting to bring about changes in economic activity through changes in the size of the nation's money supply 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 19

The federal government raises corporate taxes in order to reduce the budget deficit. This is an example of the government using _____ policy as a tool to _____ economic activities.

Accepted Answer

A)  political; restrict 
B)  social; fuel 
C)  monetary; increase 
D)  fiscal; decrease 
A)  political; restrict 
B)  social; fuel 
C)  monetary; increase 
D)  fiscal; decrease

Question 20

Define pure competition.

Accepted Answer

Pure competition is a market structure,

Restrictive monetary policy reduces the money supply and helps to reduce inflation.

If the actual market price differs from the equilibrium price, buyers and sellers tend to make economic choices that restore the equilibrium level.

The equilibrium price is established when the _____.

List the factors that should cause a demand curve to shift to the right.

Socialism is one of the four market structures found in a private enterprise system.

_____ has a blend of both planned economy and private enterprise system.

List four challenges to maintain global competitiveness.

MATCHING Complete the following using the terms listed. -_____ is the sum of all goods and services produced within a country's borders.

According to a supply curve, _____.

Demand and supply never affect employment.

_____ provides a running measurement of changes in consumer prices.

If buyers' incomes increase, the demand curve will shift to the _ and the prices will _.

Pure competition is different form monopolistic competition in that:

During economic recession:

Supply refers to buyers' willingness and ability to purchase goods and services.

_____ is caused by increases in the prices of raw materials and other factors of production.

MATCHING Complete the following using the terms listed. -_____ measures the monthly average change in prices of goods and services.

MATCHING Complete the following using the terms listed. -Attempting to bring about changes in economic activity through changes in the size of the nation's money supply is called _____.

The federal government raises corporate taxes in order to reduce the budget deficit. This is an example of the government using _ policy as a tool to _ economic activities.

Define pure competition.

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

Restrictive monetary policy reduces the money supply and helps to reduce inflation.

If the actual market price differs from the equilibrium price, buyers and sellers tend to make economic choices that restore the equilibrium level.

The equilibrium price is established when the _____.

List the factors that should cause a demand curve to shift to the right.

Socialism is one of the four market structures found in a private enterprise system.

_____ has a blend of both planned economy and private enterprise system.

List four challenges to maintain global competitiveness.

MATCHING Complete the following using the terms listed. -_____ is the sum of all goods and services produced within a country's borders.

According to a supply curve, _____.

Demand and supply never affect employment.

_____ provides a running measurement of changes in consumer prices.

If buyers' incomes increase, the demand curve will shift to the _____ and the prices will _____.

Pure competition is different form monopolistic competition in that:

During economic recession:

Supply refers to buyers' willingness and ability to purchase goods and services.

_____ is caused by increases in the prices of raw materials and other factors of production.

MATCHING Complete the following using the terms listed. -_____ measures the monthly average change in prices of goods and services.

MATCHING Complete the following using the terms listed. -Attempting to bring about changes in economic activity through changes in the size of the nation's money supply is called _____.

The federal government raises corporate taxes in order to reduce the budget deficit. This is an example of the government using _____ policy as a tool to _____ economic activities.

Define pure competition.

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 buyers' incomes increase, the demand curve will shift to the _ and the prices will _.

The federal government raises corporate taxes in order to reduce the budget deficit. This is an example of the government using _ policy as a tool to _ economic activities.