Question 1

In general,as price of a good or service increases,the quantity demanded:

Accepted Answer

A) declines. 
B) remains the same irrespective of the product type. 
C) increases. 
D) first increases and then decreases irrespective of the product type. 
A) declines. 
B) remains the same irrespective of the product type. 
C) increases. 
D) first increases and then decreases irrespective of the product type.

Question 2

There is no direct competition in a particular industry,yet a firm operating in such an industry will have almost no control over pricing.This industry is an example of _____.

Accepted Answer

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

Question 3

No country is an economic island in today's global economy

Accepted Answer

A) True 
 B)False

Question 4

If the number of buyers decreases,the demand curve will shift to the _____ and the price will ____.

Accepted Answer

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

Question 5

A particular industry has only a few competitors,who have some control over price.However,high start-up costs make entry into the industry difficult.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 6

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 7

Equilibrium price is the prevailing market price at which consumers can buy an item.

Accepted Answer

A) True 
 B)False

Question 8

Describe the four categories of unemployment.

Accepted Answer

The four categories of unemployment are:

Question 9

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

Accepted Answer

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

Question 10

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 11

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 12

Most industrialized nations operate economies based on _____.

Accepted Answer

A) planned economies 
B) private enterprise systems 
C) communist systems 
D) socialist systems 
A) planned economies 
B) private enterprise systems 
C) communist systems 
D) socialist systems

Question 13

Since the 1930s,the United States has not faced another "true" economic depression.

Accepted Answer

A) True 
 B)False

Question 14

Naomi graduated from college in May and is currently looking for a job.This is an example of _____.

Accepted Answer

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

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Not-for-profit organizations must also make economic decisions just like other business organizations.

Accepted Answer

A) True 
 B)False

Question 17

In the context of fiscal policy,lower taxes and increased government spending:

Accepted Answer

A) cut unemployment rates. 
B) limit economic expansion. 
C) reduce inflation. 
D) reduce the profits of a business. 
A) cut unemployment rates. 
B) limit economic expansion. 
C) reduce inflation. 
D) reduce the profits of a business.

Question 18

Assume electric water heaters and gas water heaters are interchangeable,and assume the price of natural gas rises sharply relative to the price of electricity.The demand curve for electric water heaters should shift to the right.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

In general,as price of a good or service increases,the quantity demanded:

There is no direct competition in a particular industry,yet a firm operating in such an industry will have almost no control over pricing.This industry is an example of _____.

No country is an economic island in today's global economy

If the number of buyers decreases,the demand curve will shift to the _ and the price will .

A particular industry has only a few competitors,who have some control over price.However,high start-up costs make entry into the industry difficult.This industry is an example of _____.

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?

Equilibrium price is the prevailing market price at which consumers can buy an item.

Describe the four categories of unemployment.

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

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

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.

Most industrialized nations operate economies based on _____.

Since the 1930s,the United States has not faced another "true" economic depression.

Naomi graduated from college in May and is currently looking for a job.This is an example of _____.

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

Not-for-profit organizations must also make economic decisions just like other business organizations.

In the context of fiscal policy,lower taxes and increased government spending:

Assume electric water heaters and gas water heaters are interchangeable,and assume the price of natural gas rises sharply relative to the price of electricity.The demand curve for electric water heaters should shift to the right.

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

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.

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

Trends in E-Commerce

Filters

Exam 3: Economic Challenges Facing Todays Business

In general,as price of a good or service increases,the quantity demanded:

There is no direct competition in a particular industry,yet a firm operating in such an industry will have almost no control over pricing.This industry is an example of _____.

No country is an economic island in today's global economy

If the number of buyers decreases,the demand curve will shift to the _____ and the price will ____.

A particular industry has only a few competitors,who have some control over price.However,high start-up costs make entry into the industry difficult.This industry is an example of _____.

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?

Equilibrium price is the prevailing market price at which consumers can buy an item.

Describe the four categories of unemployment.

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

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

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.

Most industrialized nations operate economies based on _____.

Since the 1930s,the United States has not faced another "true" economic depression.

Naomi graduated from college in May and is currently looking for a job.This is an example of _____.

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

Not-for-profit organizations must also make economic decisions just like other business organizations.

In the context of fiscal policy,lower taxes and increased government spending:

Assume electric water heaters and gas water heaters are interchangeable,and assume the price of natural gas rises sharply relative to the price of electricity.The demand curve for electric water heaters should shift to the right.

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

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.

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

Trends in E-Commerce

Filters

If the number of buyers decreases,the demand curve will shift to the _ and the price will .

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