Question 1

A monopoly occurs when there is a single seller for a product or service.

Accepted Answer

A) True 
 B)False

Question 2

Gig started Giganeers to earn a profit,but by working hard and increasing his market share,he was able to create jobs for others.This is an example of the ______________ concept.

Accepted Answer

A)  circular flow
B)  invisible hand
C)  equitable income
D)  social dividendE) A) and B)
F) B) and C)

Question 3

Explain the significance of "price" in a free-market economic system.

Accepted Answer

In a free-market economy,the mechanism o...

Question 4

A major trend in the world today is that:

Accepted Answer

A)  Free-market economies are moving more toward socialism and socialist economies are moving more toward capitalism.
B)  Productivity in the service sector is increasing much more rapidly than productivity in agriculture and manufacturing.
C)  Governments in socialist economies are increasing their use of social programs and relying on higher tax rates to finance these programs.
D)  Governments in countries with capitalist economies are paying less attention to environmental concerns and issues involving social equality.E) A) and D)
F) None of the above

Question 5

__________ unemployment refers to persons who purposefully quit their jobs and have not yet found a new job.

Accepted Answer

A)  Frictional
B)  Structural
C)  Cyclical
D)  SeasonalE) B) and D)
F) None of the above

Question 6

Fiscal policy involves the federal government's efforts to stabilize the economy by increasing or decreasing taxes and/or government spending.

Accepted Answer

A) True 
 B)False

Question 7

The main goal of resource development is to find ways to:

Accepted Answer

A)  Increase the amount of resources and create conditions that will make better use of those resources.
B)  Allocate existing resources more efficiently among competing uses.
C)  Find the right balance between policies that promote economic growth and policies designed to promote other goals such as a fair distribution of income.
D)  Promote the central planning of resource utilization so that resources can be allocated to the uses that will benefit society the most.E) C) and D)
F) B) and C)

Question 8

One drawback of socialism is that it may result in a reduction in the individual's incentive to work hard.

Accepted Answer

A) True 
 B)False

Question 9

Global economics and politics have no significant influence on businesses in the United States.

Accepted Answer

A) True 
 B)False

Question 10

___________ studies the operation of a nation's economy as a whole.

Accepted Answer

A)  Microeconomics
B)  Socioeconomics
C)  Econometrics
D)  MacroeconomicsE) C) and D)
F) A) and D)

Question 11

Core inflation figures omit healthcare prices,but not energy prices.

Accepted Answer

A) True 
 B)False

Question 12

Most communist countries today are suffering from severe economic problems.

Accepted Answer

A) True 
 B)False

Question 13

There are some restrictions on freedom of assembly and freedom of speech under a ____________ system.

Accepted Answer

A)  capitalist
B)  socialist
C)  mixed economy
D)  communistE) None of the above
F) C) and D)

Question 14

Sweetland is a nation that publicly supports a free market economy with private ownership of businesses.Over time,the government of Sweetland has developed policies designed to help the needy and reduce the level of income inequality.It pays for these programs by levying relatively high taxes on businesses and workers.These arrangements suggest that the economy of Sweetland is trending toward pure capitalism.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following people would tend to favor a socialist economy?

Accepted Answer

A)  John wants to live in a country with low marginal tax rates.
B)  Robin wants to live in a country that encourages rapid economic growth.
C)  Liz wants to live in a country with limited government regulation.
D)  Fred prefers to live in a country that promotes social equality.E) B) and C)
F) A) and D)

Question 16

Monica notices that just a few big companies produce the vast majority of soft drinks.She would be correct in describing the soft drink industry as an oligopoly.

Accepted Answer

A) True 
 B)False

Question 17

High tax rates in socialist countries is a major reason these nations have experienced a brain drain.

Accepted Answer

A) True 
 B)False

Question 18

A depression is a severe recession that is often accompanied by deflation.

Accepted Answer

A) True 
 B)False

Question 19

Senator Gong Lee is alarmed at the state of the economy.Unemployment is high and GDP is low.Senator Lee has called for Congress to take action to increase government spending and cut taxes in order to stimulate the economy.The actions called for by Senator Lee are examples of:

Accepted Answer

A)  Monetary policy.
B)  Fiscal policy.
C)  Discretionary income policy.
D)  Social investment policy.E) None of the above
F) A) and B)

Question 20

Resource development is:

Accepted Answer

A)  The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.
B)  The study of how to increase the amount of available resources and create conditions that will make better use of these resources.
C)  The part of economics that looks at the operation of a nation's economy as a whole.
D)  The part of economics that looks at particular markets.E) C) and D)
F) A) and D)

Exam 2: Understanding Economics and How It Affects Business

Correct Answer
verified

Most communist countries today are suffering from severe economic problems.

Correct Answer
verified

High tax rates in socialist countries is a major reason these nations have experienced a brain drain.

Correct Answer
verified

Global economics and politics have no significant influence on businesses in the United States.

Correct Answer
verified

Monica notices that just a few big companies produce the vast majority of soft drinks.She would be correct in describing the soft drink industry as an oligopoly.

Correct Answer
verified

Fiscal policy involves the federal government's efforts to stabilize the economy by increasing or decreasing taxes and/or government spending.

Correct Answer
verified

Core inflation figures omit healthcare prices,but not energy prices.

Correct Answer
verified

Gig started Giganeers to earn a profit,but by working hard and increasing his market share,he was able to create jobs for others.This is an example of the ______________ concept.

Correct Answer
verified

___________ studies the operation of a nation's economy as a whole.

Correct Answer
verified

Resource development is:

Correct Answer
verified

__________ unemployment refers to persons who purposefully quit their jobs and have not yet found a new job.

Correct Answer
verified

A monopoly occurs when there is a single seller for a product or service.

Correct Answer
verified

There are some restrictions on freedom of assembly and freedom of speech under a ____________ system.

Correct Answer
verified

One drawback of socialism is that it may result in a reduction in the individual's incentive to work hard.

Correct Answer
verified

Which of the following people would tend to favor a socialist economy?

Correct Answer
verified

A major trend in the world today is that:

Correct Answer
verified

Explain the significance of "price" in a free-market economic system.

Correct Answer
verified
In a free-market economy,the mechanism o...
View Answer

The main goal of resource development is to find ways to:

Correct Answer
verified

A depression is a severe recession that is often accompanied by deflation.

Correct Answer
verified

Senator Gong Lee is alarmed at the state of the economy.Unemployment is high and GDP is low.Senator Lee has called for Congress to take action to increase government spending and cut taxes in order to stimulate the economy.The actions called for by Senator Lee are examples of:

Correct Answer
verified

Exam 2: Understanding Economics and How It Affects Business

Correct AnswerverifiedShow Answer

Most communist countries today are suffering from severe economic problems.

Correct AnswerverifiedShow Answer

High tax rates in socialist countries is a major reason these nations have experienced a brain drain.

Correct AnswerverifiedShow Answer

Global economics and politics have no significant influence on businesses in the United States.

Correct AnswerverifiedShow Answer

Monica notices that just a few big companies produce the vast majority of soft drinks.She would be correct in describing the soft drink industry as an oligopoly.

Correct AnswerverifiedShow Answer

Fiscal policy involves the federal government's efforts to stabilize the economy by increasing or decreasing taxes and/or government spending.

Correct AnswerverifiedShow Answer

Core inflation figures omit healthcare prices,but not energy prices.

Correct AnswerverifiedShow Answer

Gig started Giganeers to earn a profit,but by working hard and increasing his market share,he was able to create jobs for others.This is an example of the ______________ concept.

Correct AnswerverifiedShow Answer

___________ studies the operation of a nation's economy as a whole.

Correct AnswerverifiedShow Answer

Resource development is:

Correct AnswerverifiedShow Answer

__________ unemployment refers to persons who purposefully quit their jobs and have not yet found a new job.

Correct AnswerverifiedShow Answer

A monopoly occurs when there is a single seller for a product or service.

Correct AnswerverifiedShow Answer

There are some restrictions on freedom of assembly and freedom of speech under a ____________ system.

Correct AnswerverifiedShow Answer

One drawback of socialism is that it may result in a reduction in the individual's incentive to work hard.

Correct AnswerverifiedShow Answer

Which of the following people would tend to favor a socialist economy?

Correct AnswerverifiedShow Answer

A major trend in the world today is that:

Correct AnswerverifiedShow Answer

Explain the significance of "price" in a free-market economic system.

Correct AnswerverifiedIn a free-market economy,the mechanism o...View AnswerShow Answer

The main goal of resource development is to find ways to:

Correct AnswerverifiedShow Answer

A depression is a severe recession that is often accompanied by deflation.

Correct AnswerverifiedShow Answer

Senator Gong Lee is alarmed at the state of the economy.Unemployment is high and GDP is low.Senator Lee has called for Congress to take action to increase government spending and cut taxes in order to stimulate the economy.The actions called for by Senator Lee are examples of:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In a free-market economy,the mechanism o...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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