Exam 3: Economic Challenges Facing Contemporary Business

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

Regulated monopolies are illegal in Canada.

Real GDP accounts for the changes in prices and currency values.

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

Benito worked as a manager at a grocery chain that recently experienced a number of layoffs due to an economic slow time. Benito's employment would be described as ______.

No two countries have exactly the same economic system.

Assume the number of new home buyers suddenly increases. The demand curve for homes will likely shift upward and to the right.

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

Typically, the lower the price, the larger the quantity offered for sale.

______ is a commonly used measure of productivity.

Because energy and food prices fluctuate excessively from month to month, the Consumer Price Index (CPI) excludes these two variables.

A particular industry has many competitors, each of whom has little control over price. In addition, it is fairly easy to enter the industry. This industry is an example of ______.

Assume that the number of people wanting to buy homes increases sharply in your local area. The price of homes will likely ______, which is an example of ______.

The equilibrium price is established when the quantity ______.

Business borrowing becomes more difficult when ______.

Decisions made by individuals and businesses have little impact on overall economic conditions.

All of the following are key challenges facing business in the new century EXCEPT ______.

Equilibrium price refers to the intersection of the supply and demand curves.

Economics deals only with the allocation of abundant resources by businesses.

Inflation benefits borrowers with fixed-rate mortgages.