Question 1

In a mixed economy, public enterprises are not expected to produce returns.

Accepted Answer

A) True 
 B)False

Question 2

Monopolistic competition has _____.

Accepted Answer

A)  many buyers and sellers, who have some control over price 
B)  few sellers, but only one major buyer 
C)  many sellers, who sell a homogeneous product 
D)  no barriers to keep out new competitors 
A)  many buyers and sellers, who have some control over price 
B)  few sellers, but only one major buyer 
C)  many sellers, who sell a homogeneous product 
D)  no barriers to keep out new competitors

Question 3

The U.S. government is trending away from deregulation and toward regulated monopolies.

Accepted Answer

A) True 
 B)False

Question 4

Low-priced retailers like Dollar Tree and Dollar General will likely see increased sales during an economic recession.

Accepted Answer

A) True 
 B)False

Question 5

If the government of a country takes in more money than it spends, it is said to have a _____.

Accepted Answer

A)  trade deficit 
B)  budget surplus 
C)  balanced budget 
D)  negative balance of payment 
A)  trade deficit 
B)  budget surplus 
C)  balanced budget 
D)  negative balance of payment

Question 6

Under the market situation of pure competition, there are definitely a handful of buyers who have a significant control over price.

Accepted Answer

A) True 
 B)False

Question 7

A country has a strong private sector, along with publicly-owned enterprises. Entrepreneurs and private-sector investors are entitled to profits after paying taxes, and even state-owned enterprises are expected to generate returns. What type of economic system does this country have?

Accepted Answer

A)  Mixed economy 
B)  Communism 
C)  Socialism 
D)  Self-managed economy 
A)  Mixed economy 
B)  Communism 
C)  Socialism 
D)  Self-managed economy

Question 8

Microeconomics examines not just the economic policies of individual nations, but the ways in which those individual policies affect the overall world economy.

Accepted Answer

A) True 
 B)False

Question 9

If number of buyers increase, the demand curve for most products will shift to the left.

Accepted Answer

A) True 
 B)False

Question 10

The graph showing the relationship between different prices and the quantities of a good or service that sellers will offer for sale is called a demand curve.

Accepted Answer

A) True 
 B)False

Question 11

As prices of goods and services rise, the quantity demanded will generally decline.

Accepted Answer

A) True 
 B)False

Question 12

Briefly describe budget deficit, national debt, budget surplus, and balance budget and how the terms relate to the government finances.

Accepted Answer

Taxes don't always generate enough funds

Question 13

The purpose of a restrictive monetary policy is to:

Accepted Answer

A)  stimulate spending. 
B)  reduce the cost of borrowing. 
C)  stimulate employment. 
D)  curb rising prices and overexpansion. 
A)  stimulate spending. 
B)  reduce the cost of borrowing. 
C)  stimulate employment. 
D)  curb rising prices and overexpansion.

Question 14

Capitalism also is referred to as a private enterprise system.

Accepted Answer

A) True 
 B)False

Question 15

In order to control the rising price of housing, the county council enacts rent controls. This mandated price is below the equilibrium price. Consequently, a shortage in the supply of housing may result.

Accepted Answer

A) True 
 B)False

Question 16

During an economic recession, consumer spending _____ and unemployment _____.

Accepted Answer

A)  increases; increases 
B)  increases; decreases 
C)  decreases; increases 
D)  decreases; decreases 
A)  increases; increases 
B)  increases; decreases 
C)  decreases; increases 
D)  decreases; decreases

Question 17

MATCHING
Complete the following using the terms listed.
-The amount of goods and services for sale at different prices is known as _____.

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

A particular industry has many competitors, each of whom has no significant control over price. In addition, it is fairly easy to enter the industry. This industry is an example of _____.

Accepted Answer

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

Question 19

Which of the following is an implication of demand curves sloping downward?

Accepted Answer

A)  Buyers will purchase greater quantities of a good or service as its price falls. 
B)  Sellers will supply greater quantities of a good or service as its prices fall. 
C)  Buyers will purchase greater quantities of a good or service as their incomes fall. 
D)  Sellers will supply greater quantities of a good or service as taxes increase. 
A)  Buyers will purchase greater quantities of a good or service as its price falls. 
B)  Sellers will supply greater quantities of a good or service as its prices fall. 
C)  Buyers will purchase greater quantities of a good or service as their incomes fall. 
D)  Sellers will supply greater quantities of a good or service as taxes increase.

In a mixed economy, public enterprises are not expected to produce returns.

Monopolistic competition has _____.

The U.S. government is trending away from deregulation and toward regulated monopolies.

Low-priced retailers like Dollar Tree and Dollar General will likely see increased sales during an economic recession.

If the government of a country takes in more money than it spends, it is said to have a _____.

Under the market situation of pure competition, there are definitely a handful of buyers who have a significant control over price.

A country has a strong private sector, along with publicly-owned enterprises. Entrepreneurs and private-sector investors are entitled to profits after paying taxes, and even state-owned enterprises are expected to generate returns. What type of economic system does this country have?

Microeconomics examines not just the economic policies of individual nations, but the ways in which those individual policies affect the overall world economy.

If number of buyers increase, the demand curve for most products will shift to the left.

The graph showing the relationship between different prices and the quantities of a good or service that sellers will offer for sale is called a demand curve.

As prices of goods and services rise, the quantity demanded will generally decline.

Briefly describe budget deficit, national debt, budget surplus, and balance budget and how the terms relate to the government finances.

The purpose of a restrictive monetary policy is to:

Capitalism also is referred to as a private enterprise system.

In order to control the rising price of housing, the county council enacts rent controls. This mandated price is below the equilibrium price. Consequently, a shortage in the supply of housing may result.

During an economic recession, consumer spending _ and unemployment _.

MATCHING Complete the following using the terms listed. -The amount of goods and services for sale at different prices is known as _____.

A particular industry has many competitors, each of whom has no significant control over price. In addition, it is fairly easy to enter the industry. This industry is an example of _____.

Which of the following is an implication of demand curves sloping downward?

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

In a mixed economy, public enterprises are not expected to produce returns.

Monopolistic competition has _____.

The U.S. government is trending away from deregulation and toward regulated monopolies.

Low-priced retailers like Dollar Tree and Dollar General will likely see increased sales during an economic recession.

If the government of a country takes in more money than it spends, it is said to have a _____.

Under the market situation of pure competition, there are definitely a handful of buyers who have a significant control over price.

A country has a strong private sector, along with publicly-owned enterprises. Entrepreneurs and private-sector investors are entitled to profits after paying taxes, and even state-owned enterprises are expected to generate returns. What type of economic system does this country have?

Microeconomics examines not just the economic policies of individual nations, but the ways in which those individual policies affect the overall world economy.

If number of buyers increase, the demand curve for most products will shift to the left.

The graph showing the relationship between different prices and the quantities of a good or service that sellers will offer for sale is called a demand curve.

As prices of goods and services rise, the quantity demanded will generally decline.

Briefly describe budget deficit, national debt, budget surplus, and balance budget and how the terms relate to the government finances.

The purpose of a restrictive monetary policy is to:

Capitalism also is referred to as a private enterprise system.

In order to control the rising price of housing, the county council enacts rent controls. This mandated price is below the equilibrium price. Consequently, a shortage in the supply of housing may result.

During an economic recession, consumer spending _____ and unemployment _____.

MATCHING Complete the following using the terms listed. -The amount of goods and services for sale at different prices is known as _____.

A particular industry has many competitors, each of whom has no significant control over price. In addition, it is fairly easy to enter the industry. This industry is an example of _____.

Which of the following is an implication of demand curves sloping downward?

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

During an economic recession, consumer spending _ and unemployment _.