Question 1

The ___________ index measures changes in the prices of goods and services such as food,housing,and apparel.

Accepted Answer

A)  market price
B)  producer price
C)  wholesale price
D)  consumer priceE) A) and C)
F) B) and D)

Question 2

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 3

Kathleen manages a manufacturing plant for ScanRite,Inc.,a producer of scanners and other input devices connected to computers.About six months ago,Kathleen asked an assistant to keep track of both work hours and output at her plant.She has compared these figures,and has found that even though the number of workers (and the hours they worked) remained relatively steady over the past six months,the plant's output increased significantly.This indicates that:

Accepted Answer

A)  the productivity of workers at the ScanRite plant has increased.
B)  the ScanRite plant must have sold off some of its excess inventory.
C)  ScanRite prices have increased faster than the wages it pays to its workers.
D)  Kathleen should hire more workers.E) B) and C)
F) C) and D)

Question 4

In an effort to promote rapid growth,the government of Goldinia has kept taxes low,done little to regulate business activities,and implemented only modest social programs.The government is now facing political pressure to do more to clean up the environment and reduce the inequalities of income and wealth.Which of the following statements is most accurate? Goldinia's government is currently taking:

Accepted Answer

A)  a purely capitalist approach to achieve its economic goals,and is likely to continue doing so in the future.
B)  a purely socialist approach to achieve its economics goals,and is likely to continue doing so in the future.
C)  a predominately socialist approach to achieving economic goals,but the current pressures it faces suggest it is likely to adopt a more capitalist approach in the future.
D)  a predominately capitalist approach toward achieving economic goals,but the current pressures it faces suggest it is likely to adopt a more socialist approach in the future.E) None of the above
F) A) and B)

Question 5

In command economies,the government plays a major role in deciding which goods will be produced and who will get them.

Accepted Answer

A) True 
 B)False

Question 6

The total value of final goods and services produced within a nation's borders in a given year is known as that nation's:

Accepted Answer

A)  aggregate production quota.
B)  aggregate domestic output.
C)  index of aggregate economic output.
D)  gross domestic product.E) C) and D)
F) B) and C)

Question 7

In a free market system,decisions about what to produce and in what quantities are made by the market.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  CPI
B)  structural unemployment
C)  productivity
D)  GDPE) A) and D)
F) A) and C)

Question 9

Which of the following statements most accurately identifies a serious limitation of the free-market economic system?

Accepted Answer

A)  Free-market economies offer little opportunity for the poor to work their way out of poverty.
B)  Free-market economies have been unable to create wealth as rapidly as other types of economic systems.
C)  Free-market economies often are plagued by shortages of needed consumer goods.
D)  Free-market economies result in a very unequal distribution of wealth.E) B) and C)
F) A) and C)

Question 10

A key assumption of socialism is that:

Accepted Answer

A)  government ownership of some basic businesses is desirable because it helps achieve a more equal distribution of profits among the people.
B)  the most important economic function of government is to promote rapid economic growth.
C)  economic growth requires strict government control over population growth.
D)  tax rates should be kept as low as possible in order to give consumers the maximum possible purchasing power.E) All of the above
F) A) and B)

Question 11

Macroeconomics is the economic perspective that looks at the operation of a nation's economy as a whole.

Accepted Answer

A) True 
 B)False

Question 12

The government of Nexico has made progress in its efforts to bring Nexico's rapid inflation under control.Although prices are still rising,the rate of increase has slowed considerably.This suggests that Nexico currently is experiencing disinflation.

Accepted Answer

A) True 
 B)False

Exam 2: How Economic Issues Affect Business

Correct Answer
verified

The ___________ index measures changes in the prices of goods and services such as food,housing,and apparel.

Correct Answer
verified

Which of the following statements most accurately identifies a serious limitation of the free-market economic system?

Correct Answer
verified

A key assumption of socialism is that:

Correct Answer
verified

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

Correct Answer
verified

In a free market system,decisions about what to produce and in what quantities are made by the market.

Correct Answer
verified

Macroeconomics is the economic perspective that looks at the operation of a nation's economy as a whole.

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

The total value of final goods and services produced within a nation's borders in a given year is known as that nation's:

Correct Answer
verified

The government of Nexico has made progress in its efforts to bring Nexico's rapid inflation under control.Although prices are still rising,the rate of increase has slowed considerably.This suggests that Nexico currently is experiencing disinflation.

Correct Answer
verified

In command economies,the government plays a major role in deciding which goods will be produced and who will get them.

Correct Answer
verified

Exam 2: How Economic Issues Affect Business

Correct AnswerverifiedShow Answer

The ___________ index measures changes in the prices of goods and services such as food,housing,and apparel.

Correct AnswerverifiedShow Answer

Which of the following statements most accurately identifies a serious limitation of the free-market economic system?

Correct AnswerverifiedShow Answer

A key assumption of socialism is that:

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

In a free market system,decisions about what to produce and in what quantities are made by the market.

Correct AnswerverifiedShow Answer

Macroeconomics is the economic perspective that looks at the operation of a nation's economy as a whole.

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

The total value of final goods and services produced within a nation's borders in a given year is known as that nation's:

Correct AnswerverifiedShow Answer

The government of Nexico has made progress in its efforts to bring Nexico's rapid inflation under control.Although prices are still rising,the rate of increase has slowed considerably.This suggests that Nexico currently is experiencing disinflation.

Correct AnswerverifiedShow Answer

In command economies,the government plays a major role in deciding which goods will be produced and who will get them.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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