Question 1

A private enterprise system rewards businesses for meeting the needs and demands of consumers.

Accepted Answer

A) True 
 B)False

Question 2

MATCHING
Complete the following using the terms listed.
-_____ is an economic situation characterized by price increases that reduce the amount of goods and services people can purchase with a given amount of money.

Accepted Answer

A)  Consumer Price Index (CPI) 
B)  Inflation
C)  Gross domestic product (GDP) 
D)  fiscal policy
E)  monetary policyF) equilibrium priceG) budget deficitH) Pure competitionI) supplyJ) DemandK) ProductivityL) recessionM) microeconomicsN) oligopolyO) monopolyP) G) and L)
Q) F) and J)

Question 3

Individuals who lose their jobs due to structural reasons are generally unemployed only for a short period of time.

Accepted Answer

A) True 
 B)False

Question 4

_____ is the study of the economic choices of individual consumers, families, or businesses.

Accepted Answer

A)   Macroeconomics
B)   Microeconomics
C)   Sociology
D)   StatisticsE) B) and D)
F) None of the above

Question 5

The price of gasoline rises sharply. One likely outcome is that the demand curve for hybrid vehicles should shift to the left.

Accepted Answer

A) True 
 B)False

Question 6

Describe the relationship between productivity and Gross Domestic Product (GDP).

Accepted Answer

Productivity is a widely recognized meas...

Question 7

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.E) B) and C)
F) All of the above

Question 8

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

Accepted Answer

A)   restrict economic activities.
B)   create more profits for firms.
C)   increase a nation's gross domestic product
D)   cut unemployment rates.E) A) and B)
F) A) and C)

Question 9

MATCHING
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 policyF) equilibrium priceG) budget deficitH) Pure competitionI) supplyJ) DemandK) ProductivityL) recessionM) microeconomicsN) oligopolyO) monopolyP) D) and K)
Q) G) and M)

Question 10

Describe the four categories of unemployment.

Accepted Answer

The four categories of unemployment are:...

Question 11

The Federal Reserve can implement both expansionary and restrictive monetary policies.

Accepted Answer

A) True 
 B)False

Question 12

During a recession, business spending falls but consumer spending remains relatively unchanged.

Accepted Answer

A) True 
 B)False

Question 13

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 14

The management of Harvey Inc. is trying to decide the appropriate prices for various products the company sells. This is a focus of _____.

Accepted Answer

A)   microeconomics
B)   macroeconomics
C)   fiscal policy
D)   monetary policyE) None of the above
F) C) and D)

Question 15

Assume that the number of people wanting to buy houses in your locality increases sharply. This will cause the price of houses to increase, which is an example of _____.

Accepted Answer

A)   demand-pull inflation
B)   cost-push inflation
C)   supply-side deflation
D)   credit deflationE) C) and D)
F) B) and D)

Question 16

Describe the major differences between socialism and a mixed economic system.

Accepted Answer

In a socialist economy, the government o...

Question 17

Stephan has a construction job in Boston. During winter, he looks for other work as no construction can take place. Stephan is cyclically unemployed.

Accepted Answer

A) True 
 B)False

Question 18

A demand curve is the schedule that shows the relationship between the price of a product and the _____.

Accepted Answer

A)   overhead costs
B)   social costs
C)   quantity of that product buyers will purchase
D)   quantity of that product manufacturers will supplyE) A) and D)
F) C) and D)

Question 19

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.E) B) and C)
F) B) and D)

Question 20

The study of macroeconomics is _____.

Accepted Answer

A)   concerned with studying a country's overall economic issues
B)   primarily concerned with the economic choices and decisions of individual consumers
C)   not related to microeconomics
D)   not related to government decisions concerning spending and taxesE) A) and B)
F) All of the above

Exam 3: Economic Challenges Facing Contemporary Business

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

Correct AnswerverifiedShow Answer

Stephan has a construction job in Boston. During winter, he looks for other work as no construction can take place. Stephan is cyclically unemployed.

Correct AnswerverifiedShow Answer

Describe the relationship between productivity and Gross Domestic Product (GDP).

Correct AnswerverifiedProductivity is a widely recognized meas...View AnswerShow Answer

A private enterprise system rewards businesses for meeting the needs and demands of consumers.

Correct AnswerverifiedShow Answer

MATCHING 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.

Correct AnswerverifiedShow Answer

Individuals who lose their jobs due to structural reasons are generally unemployed only for a short period of time.

Correct AnswerverifiedShow Answer

The supply curve will shift left when:

Correct AnswerverifiedShow Answer

The study of macroeconomics is _____.

Correct AnswerverifiedShow Answer

The Federal Reserve can implement both expansionary and restrictive monetary policies.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

MATCHING Complete the following using the terms listed. -_____ is an economic situation characterized by price increases that reduce the amount of goods and services people can purchase with a given amount of money.

Correct AnswerverifiedShow Answer

Describe the four categories of unemployment.

Correct AnswerverifiedThe four categories of unemployment are:...View AnswerShow Answer

_____ is the study of the economic choices of individual consumers, families, or businesses.

Correct AnswerverifiedShow Answer

During a recession, business spending falls but consumer spending remains relatively unchanged.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The price of gasoline rises sharply. One likely outcome is that the demand curve for hybrid vehicles should shift to the left.

Correct AnswerverifiedShow Answer

Describe the major differences between socialism and a mixed economic system.

Correct AnswerverifiedIn a socialist economy, the government o...View AnswerShow Answer

Assume that the number of people wanting to buy houses in your locality increases sharply. This will cause the price of houses to increase, which is an example of _____.

Correct AnswerverifiedShow Answer

A demand curve is the schedule that shows the relationship between the price of a product and the _____.

Correct AnswerverifiedShow Answer

The management of Harvey Inc. is trying to decide the appropriate prices for various products the company sells. This is a focus of _____.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Productivity is a widely recognized meas...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The four categories of unemployment are:...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In a socialist economy, the government o...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified