Question 1

A typical supply curve shows a relationship between the:

Accepted Answer

A)  amount of time required to produce a good and the relevant production costs.
B)  amount of a good a firm produces and the total profit it earns.
C)  amount of labour a firm hires and the amount of output it can produce.
D)  price of a good and the quantity sellers would be willing to offer for sale.E) C) and D)
F) B) and C)

Question 2

Which of the following statements provides the most accurate comparison of socialism and communism?

Accepted Answer

A)  Under socialism the government owns most businesses,while under communism the church owns most businesses.
B)  Communism believes that the government should always strive to balance its budget,while socialism accepts deficit spending as the price of achieving true equality.
C)  Socialism strives for an equal distribution of income but communism wants income to go primarily to those who own and operate private businesses.
D)  Both socialism and communism want to achieve a more equal distribution of income and wealth,but under communism the government takes more control over people's lives.E) All of the above
F) A) and B)

Question 3

A depression is a severe recession usually accompanied by inflation.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

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

Question 5

The greed of businesspeople represents the greatest danger to the operation of a free market system.

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

Demand refers to the quantity of products that people are willing to buy at different prices at a specific time.

Accepted Answer

A) True 
 B)False

Question 8

Francine is a bright and talented woman.She recently quit her job at a major corporation because she and her boss didn't get along and she saw little chance for advancement.Francine has not yet found another job,but the economy appears healthy and lots of firms are hiring people with her qualifications.Thus,Francine is confident that she will find a job in the near future.Which of the following statements about Francine's current situation is most accurate? Francine is:

Accepted Answer

A)  most likely to find employment quickly if she seeks training in a different field.
B)  not considered unemployed because she voluntarily quit her job.
C)  an example of cyclical unemployment.
D)  an example of frictional unemployment.E) A) and B)
F) A) and C)

Question 9

_________is a condition in which the average level of prices is actually falling.

Accepted Answer

A)  Stagflation
B)  Deflation
C)  De-inflation
D)  DisinflationE) None of the above
F) A) and B)

Question 10

The consumer price index (CPI)measures what is happening to prices at the wholesale level.

Accepted Answer

A) True 
 B)False

Question 11

An increase in_______ means that a given number of workers can produce more output than before.

Accepted Answer

A)  productivity
B)  structural unemployment
C)  CPI
D)  GDPE) All of the above
F) None of the above

Question 12

Resource development is the system that has led to wealth creation in much of the world.

Accepted Answer

A) True 
 B)False

Question 13

Socialists believe that the primary economic function of the government is to promote rapid economic growth.

Accepted Answer

A) True 
 B)False

Question 14

According to Statistics Canada,to be classified as frictional unemployed,a person must have tried to find a job within the past four weeks.

Accepted Answer

A) True 
 B)False

Question 15

A strength of a free-market economic system is that it emphasizes the fair and humane treatment of the less fortunate in society.

Accepted Answer

A) True 
 B)False

Question 16

Skeeden is a nation with an economic system that features free markets with private ownership of businesses.It still relies on those businesses to create most wealth.However,over time the government of Skeeden has developed some programs and 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 Skeeden is moving closer to the adoption of pure capitalism.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements would a follower of Adam Smith be most likely to make?

Accepted Answer

A)  Market economies are flawed because they put too much emphasis on economic growth and not enough on environmental problems.
B)  The federal government should use its ability to spend and tax to guide the decisions of businesses and consumers.
C)  If people are given the freedom to follow their own interests,they will end up promoting economic growth that benefits society as a whole.
D)  Overpopulation is the main danger confronting modern economies.E) All of the above
F) A) and B)

Question 18

A supply curve typically _______

Accepted Answer

A)  Decreases from right to left.
B)  Rises from right to left.
C)  Rises from left to right.
D)  Decreases from left to right.E) B) and C)
F) A) and B)

Question 19

Maureen is the office manager of a service company.She has recently spent a lot of money installing new computers and office equipment that will be used by the workers in her office as they provide services to clients.If Maureen's company is like most service companies,she will probably see a big jump in the productivity figures reported for workers in her office.

Accepted Answer

A) True 
 B)False

Question 20

A major trend in the world today is that:

Accepted Answer

A)  governments in countries with capitalist economies are paying less attention to environmental concerns and issues involving social equality.
B)  governments in socialist economies are increasing their use of social programs and relying on higher tax rates to finance these programs.
C)  free-market economies are moving more toward socialism and socialist economies are moving more toward capitalism.
D)  productivity in the service sector is increasing much more rapidly than productivity in agriculture and manufacturing.E) B) and C)
F) A) and D)

Exam 2: How Economic Issues Affect Business

A typical supply curve shows a relationship between the:

Correct Answer
verified

The greed of businesspeople represents the greatest danger to the operation of a free market system.

Correct Answer
verified

Which of the following statements would a follower of Adam Smith be most likely to make?

Correct Answer
verified

Correct Answer
verified

An increase in_______ means that a given number of workers can produce more output than before.

Correct Answer
verified

Correct Answer
verified

A strength of a free-market economic system is that it emphasizes the fair and humane treatment of the less fortunate in society.

Correct Answer
verified

Which of the following statements provides the most accurate comparison of socialism and communism?

Correct Answer
verified

According to Statistics Canada,to be classified as frictional unemployed,a person must have tried to find a job within the past four weeks.

Correct Answer
verified

A supply curve typically _______

Correct Answer
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Correct Answer
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Demand refers to the quantity of products that people are willing to buy at different prices at a specific time.

Correct Answer
verified

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

Correct Answer
verified

A depression is a severe recession usually accompanied by inflation.

Correct Answer
verified

The consumer price index (CPI)measures what is happening to prices at the wholesale level.

Correct Answer
verified

_________is a condition in which the average level of prices is actually falling.

Correct Answer
verified

Socialists believe that the primary economic function of the government is to promote rapid economic growth.

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

Resource development is the system that has led to wealth creation in much of the world.

Correct Answer
verified

A major trend in the world today is that:

Correct Answer
verified

Exam 2: How Economic Issues Affect Business

A typical supply curve shows a relationship between the:

Correct AnswerverifiedShow Answer

The greed of businesspeople represents the greatest danger to the operation of a free market system.

Correct AnswerverifiedShow Answer

Which of the following statements would a follower of Adam Smith be most likely to make?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An increase in_______ means that a given number of workers can produce more output than before.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A strength of a free-market economic system is that it emphasizes the fair and humane treatment of the less fortunate in society.

Correct AnswerverifiedShow Answer

Which of the following statements provides the most accurate comparison of socialism and communism?

Correct AnswerverifiedShow Answer

According to Statistics Canada,to be classified as frictional unemployed,a person must have tried to find a job within the past four weeks.

Correct AnswerverifiedShow Answer

A supply curve typically _______

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Demand refers to the quantity of products that people are willing to buy at different prices at a specific time.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A depression is a severe recession usually accompanied by inflation.

Correct AnswerverifiedShow Answer

The consumer price index (CPI)measures what is happening to prices at the wholesale level.

Correct AnswerverifiedShow Answer

_________is a condition in which the average level of prices is actually falling.

Correct AnswerverifiedShow Answer

Socialists believe that the primary economic function of the government is to promote rapid economic growth.

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

Resource development is the system that has led to wealth creation in much of the world.

Correct AnswerverifiedShow Answer

A major trend in the world today is that:

Correct AnswerverifiedShow Answer

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