Exam 3: Economic Challenges Facing Contemporary Business

Under a pure monopoly, no single producer has a significant amount of control over price.

If the cost of producing a good or service increases, the supply curve will shift to the ______ and the price will ______.

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

There is no direct competition in a particular industry, yet the firms have almost no control over pricing. This industry is an example of ______.

The Bank of Canada slows the growth in the supply of money and credit. Interest rates will likely ______, which is an example of ______ policy.

A shortage will occur if the market price is below the equilibrium price.

The equilibrium price occurs at the point of intersection between the supply and demand curves.

Assume that the federal government raises taxes in order to balance its budget. This action will tend to slow the rate of economic growth.

What is the difference between monetary and fiscal policy?

Andrew has a construction job in the Boston area. During the winter, he is cyclically unemployed and looks for other work until the spring.

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

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

Consumers often turn to lower-priced retailers for the goods they need during a business cycle of ______.

The airplane manufacturing industry has few large competitors who have some control over price. Entry into the industry is difficult. This type of industry is known as a(n) ______.

If the equilibrium price is below the market price, a shortage of a good or service will likely result.

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

The Canadian population is ______.

Holding supply constant and decreasing demand will cause ______.

Williams & Co. management is trying to decide the appropriate prices for various products sold by the firm. This is a focus of ______.

Changes along the supply curve occur when prices of goods and services change. The higher the price, the higher the quantity supplied. The entire curve could also move to the left or right depending on certain factors besides price. Under what circumstance will the curve move to the left or right?