Question 1

When Mary Robb purchased a dozen cupcakes for her son's birthday party, she was pleasantly surprised to find the box contained 13 cupcakes instead of the 12 she had paid for. The bakery used this technique to accomplish which of the following?

Accepted Answer

A)  to make sure the customer would not be concerned about product quality 
B)  to respond to competitive industries in the global marketplace 
C)  to cement its customer-supplier relationship with Robin Hood flour 
D)  to build, maintain, and enhance relationships with its customers

Question 2

When an analyst is evaluating the construction industry in terms of interest rates, employment cycles, and the rate of new home building nationwide, he is looking at microeconomics.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a form of unemployment?

Accepted Answer

A)  unseasonal unemployment 
B)  fractional unemployment 
C)  cyclical unemployment 
D)  fiscal unemployment

Question 4

The state of the economy affects which two groups?

Accepted Answer

A)  people and businesses 
B)  people and communities 
C)  provinces and businesses 
D)  municipalities and nonprofits

Question 5

If one of the reasons for the growing inflation rate is due to increases in production costs of goods and services that occurred as a result of a decline in a suitable labour force, this would be an example of which type of inflation?

Accepted Answer

A)  cost-push 
B)  supply-side 
C)  cost-pull 
D)  demand-push

Question 6

For a time, only Xerox could produce dry-paper copiers because Xerox held all the patents on the process. Until the patents expire, Xerox could be said to operate in which type of market structure?

Accepted Answer

A)  monopolistic competition 
B)  perfect competitive 
C)  pure monopoly 
D)  oligopoly

Question 7

No true examples of a pure monopoly exist today.

Accepted Answer

A) True 
 B)False

Question 8

If you were told the output of goods and services produced in Luxembourg had increased by 6 percent in 2010, you would correctly refer to this increase as which type of growth?

Accepted Answer

A)  an example of recessionary growth 
B)  growth standardization 
C)  economic growth 
D)  nationalized growth

Question 9

Full employment means all those who want to work are employed.

Accepted Answer

A) True 
 B)False

Question 10

To examine how the sectors of the economy interact, you should think in terms of which of the following figures?

Accepted Answer

A)  diamond shape 
B)  linear graph 
C)  economic hierarchy 
D)  circular flow

Question 11

What is a decline in real GDP for at least two consecutive quarters?

Accepted Answer

A)  economic downsizing 
B)  recession 
C)  depression 
D)  resource divestment

Question 12

Which one characteristic most clearly defines a market structure?

Accepted Answer

A)  the number of suppliers in a market 
B)  the market share 
C)  the type of product sold 
D)  how the company is organized

Question 13

Using fiscal policy, how can the government stimulate the economy?

Accepted Answer

A)  decrease spending and cut taxes 
B)  decrease spending and raise taxes 
C)  increase spending and cut taxes 
D)  increase spending and raise taxes

Question 14

The implementation of a contractionary policy by the Bank of Canada would result in which of the following?

Accepted Answer

A)  lower unemployment 
B)  increased economic growth 
C)  lower interest rates 
D)  lower inflation

Question 15

Which of the following statements about demand and supply accurately describes the direction one of the curves will take if one variable is altered?

Accepted Answer

A)  The supply curve will shift to the left if taxes are decreased. 
B)  The demand curve will shift to the left if buyers' incomes increase. 
C)  The demand curve will shift to the right if the number of buyers decreases. 
D)  The supply curve will shift to the left if the number of suppliers increases.

Question 16

As soon as Kazakhstan, a former member of the Soviet Union, had experienced two consecutive quarterly declines in its gross national product, Kazakhstan was in which economic situation?

Accepted Answer

A)  regression 
B)  recession 
C)  adjustment period 
D)  depression

Question 17

An industry in which a few companies produce most or all of the output of a product and in which large amounts of capital are needed is known as which of the following?

Accepted Answer

A)  perfect competition 
B)  an oligopoly 
C)  monopolistic competition 
D)  imperfect competition

Question 18

A market economy is also known as capitalism.

Accepted Answer

A) True 
 B)False

Question 19

Which type of inflation occurs when the demand for goods and services is greater than the supply?

Accepted Answer

A)  demand-push 
B)  cost-push 
C)  demand-pull 
D)  supply-side

Question 20

What is the term used to describe the point at which customers' demands for a product equal the amount made available by the producer?

Accepted Answer

The answer of What is the term used to describe...

Exam 2: Economic Environment

When Mary Robb purchased a dozen cupcakes for her son's birthday party, she was pleasantly surprised to find the box contained 13 cupcakes instead of the 12 she had paid for. The bakery used this technique to accomplish which of the following?

When an analyst is evaluating the construction industry in terms of interest rates, employment cycles, and the rate of new home building nationwide, he is looking at microeconomics.

Which of the following is a form of unemployment?

The state of the economy affects which two groups?

If one of the reasons for the growing inflation rate is due to increases in production costs of goods and services that occurred as a result of a decline in a suitable labour force, this would be an example of which type of inflation?

For a time, only Xerox could produce dry-paper copiers because Xerox held all the patents on the process. Until the patents expire, Xerox could be said to operate in which type of market structure?

No true examples of a pure monopoly exist today.

If you were told the output of goods and services produced in Luxembourg had increased by 6 percent in 2010, you would correctly refer to this increase as which type of growth?

Full employment means all those who want to work are employed.

To examine how the sectors of the economy interact, you should think in terms of which of the following figures?

What is a decline in real GDP for at least two consecutive quarters?

Which one characteristic most clearly defines a market structure?

Using fiscal policy, how can the government stimulate the economy?

The implementation of a contractionary policy by the Bank of Canada would result in which of the following?

Which of the following statements about demand and supply accurately describes the direction one of the curves will take if one variable is altered?

As soon as Kazakhstan, a former member of the Soviet Union, had experienced two consecutive quarterly declines in its gross national product, Kazakhstan was in which economic situation?

An industry in which a few companies produce most or all of the output of a product and in which large amounts of capital are needed is known as which of the following?

A market economy is also known as capitalism.

Which type of inflation occurs when the demand for goods and services is greater than the supply?

What is the term used to describe the point at which customers' demands for a product equal the amount made available by the producer?