Question 1

Which of the following is a distinct characteristic of a pure monopolistic economy?

Accepted Answer

A)  many small suppliers, with virtually identical products 
B)  small number of suppliers with products, which can be distinguished in important ways 
C)  only one supplier, with monopoly granted by government mandate 
D)  only one supplier, with monopoly achieved by innovation and specialization 
E)  few suppliers, with products that can be distinguished but are similar enough to be replacements

Question 2

Explain the different factors of production.

Accepted Answer

The answer of Explain the different factors of production....

Question 3

Capital is the collective intelligence of an organization.

Accepted Answer

A) True 
 B)False

Question 4

Inflation is a major concern for consumers,businesses,and government leaders because it ________.

Accepted Answer

A)  is a precursor to recession 
B)  decreases the purchasing power of consumers 
C)  decreases the production costs 
D)  increases the demand for commodities 
E)  decreases the opportunity cost of holding cash balances

Question 5

Colonel's Burgers sells 2500 of its flagship burger,Colonel's Treat,each month at a price of $10 each.The customers are willing to buy 2500 Colonel's Treat burgers each month at the same price.Hence,the price of $10 per burger is the ________.

Accepted Answer

A)  sunk cost 
B)  break-even price 
C)  equilibrium price 
D)  opportunity cost 
E)  incremental cost

Question 6

________ lies somewhere between capitalism and communism,with a fairly high degree of government planning and some government ownership of capital resources.

Accepted Answer

A)  Totalitarianism 
B)  Liberalism 
C)  Authoritarianism 
D)  Socialism 
E)  Anarchism

Question 7

The term ________ is used to characterize the fluctuations in an economy's rate of growth over a period of several years.

Accepted Answer

A)  microeconomics 
B)  competitive pressures 
C)  cyclical machinations 
D)  business cycles 
E)  economic repercussions

Question 8

________ is the spirit of innovation,the initiative,and the willingness to take the risks involved in creating and operating businesses.

Accepted Answer

A)  Capitalization 
B)  Socialization 
C)  Merchandizing 
D)  Automation 
E)  Entrepreneurship

Question 9

What is economics? Compare and contrast between microeconomics and macroeconomics.

Accepted Answer

The answer of What is economics? Compare and contrast between...

Question 10

The demand curve will shift to the left if the price of substitute products increases.

Accepted Answer

A) True 
 B)False

Question 11

Explain,with the help of an example,why socialism and capitalism are not mutually exclusive.

Accepted Answer

The answer of Explain,with the help of an example,why socialism...

Question 12

Microeconomics is the study of ________.

Accepted Answer

A)  the costs of production as a means of stimulating the economy and policies that raise capital and labor output by increasing the incentive to produce 
B)  economic and financial data of the country by the application of mathematics and statistics 
C)  the overall working of an economy in the society including its monetary and fiscal policies 
D)  economic behavior among consumers, businesses, and industries that collectively determine the quantity of goods and services demanded and supplied at different prices 
E)  a nation's economic issues, such as the effect of government policies and the ownership of factors of production

Question 13

Workers in a country are unable to find jobs that match their qualifications and the employers are unable to find employees with the skills required to perform the job.This has led to ________ unemployment in this country.

Accepted Answer

A)  frictional 
B)  seasonal 
C)  structural 
D)  cyclical 
E)  intrinsic

Question 14

________ refers to the quantities of a good or service that producers will provide on a particular date at various prices.

Accepted Answer

A)  Necessity 
B)  Supply 
C)  Demand 
D)  Utility 
E)  Want

Question 15

________ is a concept that refers to the finite supply of resources.

Accepted Answer

A)  Redundancy 
B)  Scarcity 
C)  Deficit 
D)  Stringency 
E)  Shortage

Question 16

A(n)________ is a graph showing the relationship between the amount of product that buyers will purchase at various prices,all other factors being equal.

Accepted Answer

A)  supply curve 
B)  inflation rate 
C)  demand curve 
D)  deflation rate 
E)  competitive balance

Question 17

Which of the following is characteristic of a country with a planned economic system?

Accepted Answer

A)  The economy relies chiefly on market forces to allocate goods and resources and to determine prices. 
B)  The economic system combines private and state enterprises with limited intervention from the government. 
C)  The economy subscribes to capitalistic competition, where private parties own and operate the majority of businesses. 
D)  The economic system is primarily capitalistic but there is some degree of government ownership of the means of production. 
E)  The economy is largely controlled by the government and freedom of choice is limited in order to accomplish government goals.

Question 18

Cyclical unemployment is caused by a mismatch between workers' skills and current employer needs.

Accepted Answer

A) True 
 B)False

Question 19

________ taxes,levied on the earnings of individuals and businesses,are the government's largest single source of revenue.

Accepted Answer

A)  Income 
B)  Property 
C)  Sales 
D)  Excise 
E)  Payroll

Question 20

The ________ measures price at the producer or wholesaler level,reflecting what businesses are paying for the products they need.

Accepted Answer

A)  gross domestic product (GDP) 
B)  producer price index (PPI) 
C)  inflationary stability index (ISI) 
D)  consumer price index (CPI) 
E)  economic stimulus index (ESI)

Exam 2: Understanding Basic Economics

Which of the following is a distinct characteristic of a pure monopolistic economy?

Explain the different factors of production.

Capital is the collective intelligence of an organization.

Inflation is a major concern for consumers,businesses,and government leaders because it ________.

Colonel's Burgers sells 2500 of its flagship burger,Colonel's Treat,each month at a price of $10 each.The customers are willing to buy 2500 Colonel's Treat burgers each month at the same price.Hence,the price of $10 per burger is the ________.

________ lies somewhere between capitalism and communism,with a fairly high degree of government planning and some government ownership of capital resources.

The term ________ is used to characterize the fluctuations in an economy's rate of growth over a period of several years.

________ is the spirit of innovation,the initiative,and the willingness to take the risks involved in creating and operating businesses.

What is economics? Compare and contrast between microeconomics and macroeconomics.

The demand curve will shift to the left if the price of substitute products increases.

Explain,with the help of an example,why socialism and capitalism are not mutually exclusive.

Microeconomics is the study of ________.

Workers in a country are unable to find jobs that match their qualifications and the employers are unable to find employees with the skills required to perform the job.This has led to ________ unemployment in this country.

________ refers to the quantities of a good or service that producers will provide on a particular date at various prices.

________ is a concept that refers to the finite supply of resources.

A(n) ________ is a graph showing the relationship between the amount of product that buyers will purchase at various prices,all other factors being equal.

Which of the following is characteristic of a country with a planned economic system?

Cyclical unemployment is caused by a mismatch between workers' skills and current employer needs.

________ taxes,levied on the earnings of individuals and businesses,are the government's largest single source of revenue.

The ________ measures price at the producer or wholesaler level,reflecting what businesses are paying for the products they need.