Question 1

Which of the following is true of monetary policy?

Accepted Answer

A) It uses taxation and spending to control economic activities. 
B) It is dictated by international organizations like the United Nations 
C) It is a mechanism to control the flow of foreign currency into a nation by reducing its exports. 
D) It uses variations in interest rate and money supply to influence a nation's economy. 
A) It uses taxation and spending to control economic activities. 
B) It is dictated by international organizations like the United Nations 
C) It is a mechanism to control the flow of foreign currency into a nation by reducing its exports. 
D) It uses variations in interest rate and money supply to influence a nation's economy.

Question 2

Demand and supply never affect employment.

Accepted Answer

A) True 
 B)False

Question 3

The supply curve will shift left when:

Accepted Answer

A) suppliers in the market increase. 
B) taxes increase. 
C) the costs of technologies decrease. 
D) the costs of inputs decrease. 
A) suppliers in the market increase. 
B) taxes increase. 
C) the costs of technologies decrease. 
D) the costs of inputs decrease.

Question 4

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 5

North Korea is currently shifting toward a more market-oriented economy.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

Complete the following using the terms listed.
-In a(n)_____,a single seller dominates trade in a product for which buyers can find no close substitutes.

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

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 10

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 11

Forces of nature,such as a hurricane,can affect the supply curve.

Accepted Answer

A) True 
 B)False

Question 12

United Narva is a nation in which industries like steel,communications,electricity,railways,education,and health care are owned by the government.The leaders of the nation believe that it is detrimental to the public's interest to allow such core industries to be owned by private firms.However,private ownership is encouraged in industries like restaurants,entertainment,and retail shops,which have a lower impact on social welfare.Which of the following economic systems has United Narva adopted?

Accepted Answer

A) Capitalism 
B) Socialism 
C) Individualism 
D) Communism 
A) Capitalism 
B) Socialism 
C) Individualism 
D) Communism

Question 13

_____ 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 14

Complete the following using the terms listed.
-The use of government tax and spending policies to bring about desired changes in the economy 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 15

Complete the following using the terms listed.
-_____ is a market structure in which large number of buyers and sellers exchange homogenous products and no single participant has a significant influence on price.

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 16

Complete the following using the terms listed.
-The point where the supply and demand curves intersect is the _____.

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 17

Deflation can hurt industries like housing and auto manufacturing.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) The steel industry 
B) The market for pet food 
C) The fishing industry 
D) The paper industry 
A) The steel industry 
B) The market for pet food 
C) The fishing industry 
D) The paper industry

Question 19

In the recovery stage of the business cycle,the economy emerges from recession.

Accepted Answer

A) True 
 B)False

Question 20

Changes in overall government spending have a macroeconomic effect.

Accepted Answer

A) True 
 B)False

Which of the following is true of monetary policy?

Demand and supply never affect employment.

The supply curve will shift left when:

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 _____.

North Korea is currently shifting toward a more market-oriented economy.

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.

The equilibrium price is established when the _____.

Complete the following using the terms listed. -In a(n)_____,a single seller dominates trade in a product for which buyers can find no close substitutes.

Pure competition is different form monopolistic competition in that:

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

Forces of nature,such as a hurricane,can affect the supply curve.

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

Complete the following using the terms listed. -The use of government tax and spending policies to bring about desired changes in the economy is called _____.

Complete the following using the terms listed. -_____ is a market structure in which large number of buyers and sellers exchange homogenous products and no single participant has a significant influence on price.

Complete the following using the terms listed. -The point where the supply and demand curves intersect is the _____.

Deflation can hurt industries like housing and auto manufacturing.

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

In the recovery stage of the business cycle,the economy emerges from recession.

Changes in overall government spending have a macroeconomic effect.

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

Which of the following is true of monetary policy?

Demand and supply never affect employment.

The supply curve will shift left when:

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 _____.

North Korea is currently shifting toward a more market-oriented economy.

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.

The equilibrium price is established when the _____.

Complete the following using the terms listed. -In a(n)_____,a single seller dominates trade in a product for which buyers can find no close substitutes.

Pure competition is different form monopolistic competition in that:

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

Forces of nature,such as a hurricane,can affect the supply curve.

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

Complete the following using the terms listed. -The use of government tax and spending policies to bring about desired changes in the economy is called _____.

Complete the following using the terms listed. -_____ is a market structure in which large number of buyers and sellers exchange homogenous products and no single participant has a significant influence on price.

Complete the following using the terms listed. -The point where the supply and demand curves intersect is the _____.

Deflation can hurt industries like housing and auto manufacturing.

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

In the recovery stage of the business cycle,the economy emerges from recession.

Changes in overall government spending have a macroeconomic effect.

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