Exam 3: Economic Challenges Facing Todays Business

_____ occurs when workers lack the necessary skills for available jobs or because the skills they have are no longer in demand.

The cost of producing an item declines due to improved technology.The supply curve should shift to the left.

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

What is economics? Why is understanding economics important in one's life?

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

Fiscal policy involves:

Which of the following should developing countries follow to modernize their economies?

Monopolistic competition and pure competition are the same concept.

An economist studies the consumer behavior in a particular area.This is an example of _____.

In which of the following types of economic systems do entrepreneurs and investors have the most amount of freedom with regard to controlling business ownership,profits,and resource allocations?

Among the types of competition in a private enterprise system,control over price by individual firms is high in a(n)_____.

The cost of the raw materials used to manufacture a product falls.The supply curve is likely to shift down and to the left.

Before the patent on its allergy medicine expired,Renova Pharma Inc.was able to set its own market price for the drug.From which type of market structure did the company benefit?

A pure monopoly occurs when a firm possesses unique characteristics so important to competition in its industry that they form barriers to prevent entry by would-be competitors.

Assume that the price of gasoline triples.What will likely happen to the demand for fuel-efficient small cars? The demand curve will shift to the _____ and demand will _____.

Henry ventures into a new business with few competitors and requires a huge investment.Soon after entering the business,one of Henry's competitors introduces a price cut that forces Henry to reduce the prices of his products as well.In this scenario,Henry has ventured into _____.

Differentiate between macroeconomics and microeconomics.What types of economic activities might be included in each category?

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

Tom has been unemployed for a long time because he has not been able to find a job in which he can apply his specialized knowledge about the Robostic Data System (RDS),a computer system that is now obsolete.What type of unemployment is Tom facing?

The three major types of economic systems are _____.