Question 1

Some regions of China do not allow their citizens to practices certain religions,change jobs,or move to another town.This is an example of:

Accepted Answer

A)  socialism
B)  free-market
C)  capitalism
D)  communismE) All of the above
F) A) and B)

Question 2

An oligopoly is a market that is characterized by:

Accepted Answer

A)  one firm that totally dominates the supply of the product.
B)  a large number of small firms all producing very similar products.
C)  a few large sellers who dominate the market supply.
D)  several small firms that compete primarily by differentiating their products.E) B) and C)
F) All of the above

Question 3

Almost every discussion about a country's economy is based on gross domestic product.GDP is the:

Accepted Answer

A)  total output of goods and services in a given period divided by the total hours of labour required to provide them
B)  amount of goods and services people can buy with the money they have
C)  general well-being of a society in terms of political freedom
D)  total value of goods and services produced in a country in a given yearE) A) and C)
F) A) and B)

Question 4

What is the difference between macroeconomics and microeconomics?

Accepted Answer

Macroeconomics looks at the operation of...

Question 5

A typical demand curve shows that:

Accepted Answer

A)  as people earn more income,they buy more of a good.
B)  as supply increases,the amount purchased decreases.
C)  people tend to buy more of a good than they really want.
D)  people tend to buy more of a good when its price decreases.E) A) and B)
F) A) and C)

Question 6

The CPI is based on what is happening to the prices of a "basket" of goods and services for an average family.

Accepted Answer

A) True 
 B)False

Question 7

As economies start to develop in third world countries,command economy is one of the options considered.With this option,

Accepted Answer

A)  both government and private business jointly produce goods and services.
B)  neither communism nor socialism is a preferred means of running the economy.
C)  foreign private businesses are encouraged to invest.
D)  the government owns and operates a number of businesses.E) None of the above
F) B) and C)

Question 8

In the nation of Equalia,many businesses are privately owned,but the government owns some of the basic businesses and has developed many social programs designed to promote social equality.The economy of Equalia would be considered an example of:

Accepted Answer

A)  pure capitalism.
B)  socialism.
C)  mercantilism.
D)  communism.E) A) and B)
F) None of the above

Question 9

Current measures of productivity in the service sector provide an accurate measure of changes in the quality of output.

Accepted Answer

A) True 
 B)False

Question 10

The total value of a country's output of final goods and services in a given year is known as the nation's gross domestic product (GDP).

Accepted Answer

A) True 
 B)False

Question 11

A typical supply curve shows a relationship between the:

Accepted Answer

A)  amount of labour a firm hires and the amount of output it can produce.
B)  amount of time required to produce a good and the relevant production costs.
C)  price of a good and the quantity sellers would be willing to offer for sale.
D)  amount of a good a firm produces and the total profit it earns.E) C) and D)
F) None of the above

Question 12

Three of the major indicators of the economic condition of Canada are the gross domestic product (GDP) ,the price indices,and the:

Accepted Answer

A)  debt to equity ratio (DER) .
B)  gross resource utilization index (GRUI) .
C)  unemployment rate.
D)  index of capital formation.E) A) and B)
F) B) and C)

Question 13

In the small nation of Equalia,the government owns all of the key businesses.There are severe shortages of many key items,such as food.These features of Equalia's economy are consistent with a communist economic system.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following results would be the clearest indication that an economy was experiencing deflation?

Accepted Answer

A)  a decrease in the unemployment rate
B)  a decrease in GDP
C)  an increase in the PPI
D)  a decrease in the CPIE) B) and C)
F) A) and B)

Question 15

Peter Principal is the prime minister of the nation of Urbania.Peter has called for Urbania's legislature to enact new legislation designed to shift his economy away from socialism toward a more capitalistic system.Peter has acknowledged that such a radical change will entail some hardships,and that some citizens will be unhappy with the changes in the economy.The most likely source of unhappiness associated with a move toward capitalism is:

Accepted Answer

A)  less wealth will be created.
B)  people will have less economic freedom.
C)  tax rates will have to increase.
D)  the distribution of wealth will become less equal.E) A) and B)
F) A) and C)

Question 16

The nation of Tryland has seen the total value of the goods and services it produces increase rapidly over the past year.This would show up most clearly as a:

Accepted Answer

A)  rise in Tryland's GDP.
B)  rise in Tryland's CPI.
C)  rise in Tryland's unemployment rate.
D)  decline in the number of workers who are structurally unemployed.E) B) and D)
F) A) and B)

Question 17

One of the most serious types of unemployment is __________.It occurs because of a recession or a similar downturn in the business cycle.

Accepted Answer

A)  seasonal
B)  frictional
C)  structural
D)  cyclicalE) All of the above
F) B) and D)

Question 18

The four basic types of employment are frictional,structural,seasonal,and:

Accepted Answer

A)  cyclical.
B)  procedural.
C)  industrial.
D)  traditional.E) B) and C)
F) A) and D)

Question 19

One reason the CPI is followed very closely by the government,businesses,and workers is that:

Accepted Answer

A)  it indicates whether we are running a budget surplus or a deficit.
B)  some wages,interest rates,tax rates,and government benefits are tied to changes in the value of the CPI.
C)  it is the best measure of worker productivity in the service sector.
D)  the gross national product is computed from the reported increases in the CPI.E) A) and B)
F) A) and C)

Question 20

In perfect competition,each firm produces a product that is clearly differentiated from the products of other firms in the same market.

Accepted Answer

A) True 
 B)False

Exam 2: How Economic Issues Affect Business

Current measures of productivity in the service sector provide an accurate measure of changes in the quality of output.

Correct Answer
verified

In the nation of Equalia,many businesses are privately owned,but the government owns some of the basic businesses and has developed many social programs designed to promote social equality.The economy of Equalia would be considered an example of:

Correct Answer
verified

One reason the CPI is followed very closely by the government,businesses,and workers is that:

Correct Answer
verified

Three of the major indicators of the economic condition of Canada are the gross domestic product (GDP) ,the price indices,and the:

Correct Answer
verified

A typical supply curve shows a relationship between the:

Correct Answer
verified

In perfect competition,each firm produces a product that is clearly differentiated from the products of other firms in the same market.

Correct Answer
verified

Correct Answer
verified

Some regions of China do not allow their citizens to practices certain religions,change jobs,or move to another town.This is an example of:

Correct Answer
verified

The nation of Tryland has seen the total value of the goods and services it produces increase rapidly over the past year.This would show up most clearly as a:

Correct Answer
verified

One of the most serious types of unemployment is __________.It occurs because of a recession or a similar downturn in the business cycle.

Correct Answer
verified

An oligopoly is a market that is characterized by:

Correct Answer
verified

A typical demand curve shows that:

Correct Answer
verified

The four basic types of employment are frictional,structural,seasonal,and:

Correct Answer
verified

In the small nation of Equalia,the government owns all of the key businesses.There are severe shortages of many key items,such as food.These features of Equalia's economy are consistent with a communist economic system.

Correct Answer
verified

The CPI is based on what is happening to the prices of a "basket" of goods and services for an average family.

Correct Answer
verified

What is the difference between macroeconomics and microeconomics?

Correct Answer
verified
Macroeconomics looks at the operation of...
View Answer

As economies start to develop in third world countries,command economy is one of the options considered.With this option,

Correct Answer
verified

The total value of a country's output of final goods and services in a given year is known as the nation's gross domestic product (GDP).

Correct Answer
verified

Which of the following results would be the clearest indication that an economy was experiencing deflation?

Correct Answer
verified

Almost every discussion about a country's economy is based on gross domestic product.GDP is the:

Correct Answer
verified

Exam 2: How Economic Issues Affect Business

Current measures of productivity in the service sector provide an accurate measure of changes in the quality of output.

Correct AnswerverifiedShow Answer

In the nation of Equalia,many businesses are privately owned,but the government owns some of the basic businesses and has developed many social programs designed to promote social equality.The economy of Equalia would be considered an example of:

Correct AnswerverifiedShow Answer

One reason the CPI is followed very closely by the government,businesses,and workers is that:

Correct AnswerverifiedShow Answer

Three of the major indicators of the economic condition of Canada are the gross domestic product (GDP) ,the price indices,and the:

Correct AnswerverifiedShow Answer

A typical supply curve shows a relationship between the:

Correct AnswerverifiedShow Answer

In perfect competition,each firm produces a product that is clearly differentiated from the products of other firms in the same market.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Some regions of China do not allow their citizens to practices certain religions,change jobs,or move to another town.This is an example of:

Correct AnswerverifiedShow Answer

The nation of Tryland has seen the total value of the goods and services it produces increase rapidly over the past year.This would show up most clearly as a:

Correct AnswerverifiedShow Answer

One of the most serious types of unemployment is __________.It occurs because of a recession or a similar downturn in the business cycle.

Correct AnswerverifiedShow Answer

An oligopoly is a market that is characterized by:

Correct AnswerverifiedShow Answer

A typical demand curve shows that:

Correct AnswerverifiedShow Answer

The four basic types of employment are frictional,structural,seasonal,and:

Correct AnswerverifiedShow Answer

In the small nation of Equalia,the government owns all of the key businesses.There are severe shortages of many key items,such as food.These features of Equalia's economy are consistent with a communist economic system.

Correct AnswerverifiedShow Answer

The CPI is based on what is happening to the prices of a "basket" of goods and services for an average family.

Correct AnswerverifiedShow Answer

What is the difference between macroeconomics and microeconomics?

Correct AnswerverifiedMacroeconomics looks at the operation of...View AnswerShow Answer

As economies start to develop in third world countries,command economy is one of the options considered.With this option,

Correct AnswerverifiedShow Answer

The total value of a country's output of final goods and services in a given year is known as the nation's gross domestic product (GDP).

Correct AnswerverifiedShow Answer

Which of the following results would be the clearest indication that an economy was experiencing deflation?

Correct AnswerverifiedShow Answer

Almost every discussion about a country's economy is based on gross domestic product.GDP is the:

Correct AnswerverifiedShow Answer

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verified
Macroeconomics looks at the operation of...
View Answer

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