Deck 2: Making Ethical Decisions and Managing a Socially Responsible Business

Question 1

In an oligopoly,prices for products from different companies tend to be close to the same.

Answer 1

True

Question 2

Hot dogs,candy,and personal computers are products that are sold under monopolistic competition.

Answer 2

True

Question 3

Perfect competition exists when there are many sellers in a market and no seller is large enough to dictate the price of a product.

Answer 3

True

Question 4

Economics is the study of how society chooses to employ resources to produce goods and service and distribute them for consumption among various competing groups and individuals.

Question 5

The business cycle refers to the periodic rises and falls that occur in all economies over time.

Question 6

The loss of the best and brightest people to other countries is called "brain drain".

Question 7

The ideal economic situation is when our economy is at equilibrium.

Question 8

Macroeconomics examines the behavior of people and organizations in particular markets.

Question 9

Microeconomics looks at the operation of a nation's economy as a whole.

Question 10

A free market is one in which those wanting something of value,"buy" it by using a barter system.

Question 11

Another name for the business cycle is the economic cycle.

Question 12

Monopolistic competition exists when just a few sellers dominate the market.

Question 13

The invisible hand is a theory developed by Thomas Malthus.

Question 14

Socialism is an economic system based on the premise that all businesses should be owned by the government.

Question 15

A monopoly occurs when there is only one seller that controls the total supply of a product and its price.

Question 16

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

Question 17

Demand prefers to the quantity of products that manufacturers or owners are willing to sell at different prices at a specific time.

Question 18

An oligopoly is a form of competition in which a large number of sellers produce products that are very similar but are perceived by buyers as different.

Question 19

Adam Smith was one of the first people to imagine a system for creating wealth and improving lives of everyone.

Question 20

Resource development is the study of how to increase resources and to create the conditions that will make better use of those resources.

Question 21

The unemployment rate refers to the number of civilians at least 16 years old who are unemployed and who have tried to find a job within the prior four weeks.

Question 22

Communism is an economic and political system in which the state (government)makes almost all economic decisions and owns almost all the major factors of production,including housing for its people.

Question 23

___________ examines the behavior of people and organizations in particular markets.

Question 24

Inflation means that prices are actually declining.

Question 25

Another name for a free market economy is capitalism.

Question 26

Gross Domestic Product is the total value of final goods and services produced in a country in a given year.

Question 27

Stagflation is especially harmful to a country because it means that prices are rising while people are losing their jobs or do not have jobs.
Stagflation occurs when both inflation and unemployment are high and occurring at the same time.

Question 28

Mixed economies exist where some allocation of resources is made by the market and some by the government.

Question 29

Monetary policy is ultimately what adds or subtracts money from the economy.

Question 30

Resource development is the study of how to increase resources and to create the conditions that will make better use of those resources.

Question 31

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

Question 32

_________ is the study of how society chooses to employ the factors of production.

Question 33

A recession occurs when two or more quarters show increases in the GDP.

Question 34

Command economies exist when the government largely decides what goods and services get produced,who gets them and how the economy grows.

Question 35

A price index helps to measure the health of the economy.

Question 36

The basis of Adam Smith's general economic theory is the desire for improving one's own condition in life.

Question 37

___________ is 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.

Question 38

_________ refers to the quantity of products that manufacturers or owners are willing to sell at different prices at a specific time.

Question 39

Mixed economies exist where some allocation of resources is made by the market and some by the government.

Question 40

According to economists,businesses that discover new energy sources or new ways of growing food are practicing _________ development.

Question 41

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

Question 42

A(n)__________ occurs when there is only one seller that controls the total supply of a product and its price.

Question 43

The __________ rate refers to the number of civilians at least 16 years old who do not have a job and who have tried to find a job within the prior four weeks.

Question 44

Generally the quantities of demand will __________ as the price increases.

A) Increase
B) Decrease
C) Increase exponentially
D) Quantity has no relationship with price

Question 45

The development of genetically modified foods,which require less water and can produce large crops on smaller pieces of land,is called __________.

A) Macroeconomics
B) Microeconomics
C) Resource development
D) Business development

Question 46

__________ means that prices are actually declining.

Question 47

Under __________ theory,businesspeople don't necessarily deliberately set out to help others.

A) Thomas Malthus'
B) Adam Smith's
C) Peter Drucker's
D) Thomas Carlyle's

Question 48

The _________ point is the point where the amount of goods sought by buyers is equal to the amount of goods produced by suppliers.

Question 49

__________ is an economic and political system in which the state makes almost all economic decisions and owns almost all the major factors of production,including housing for its people.

Question 50

__________ exists when a large number of sellers produce products that are very similar but are perceived by buyers as different.

A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly

Question 51

A(n)__________ is a severe recession.

Question 52

The __________ turns self-directed gain into social and economic benefits for all.

A) Profitable heart
B) Invisible hand
C) Complete economic theory
D) Golden eye

Question 53

__________ is an economic system based on the premise that some,if not most,basic businesses-such as steel mills,coal mines and utilities-should be owned by the government so that profits can be evenly distributed among all the people.

Question 54

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

A) Profit
B) Supply
C) Demand
D) Resource equivalence

Question 55

__________ exists when there are many sellers in a market and no seller is large enough to dictate the price of a product.

A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly

Question 56

__________ refers to the quantity of products that manufacturers or owners are willing to sell at different prices at a specific time.

A) Demand
B) Liability
C) Supply
D) Dividend

Question 57

A(n)__________ is a form of competition in which just a few sellers dominate a market.

Question 58

A __________ is one in which decisions about what to produce and in what quantities are made by the market.

A) Free market
B) Socialist market
C) Communist market
D) Green market

Question 59

_________ competition exists when there are many sellers in a market and no seller is large enough to dictate the price of a product.

Question 60

__________ is 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.

A) Business
B) Management
C) Economics
D) Statistics

Question 61

Breakfast cereals,automobiles,and soft drinks are examples of products that are produced under which type of competition?

A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly

Question 62

Which of the following economic systems in which the state makes almost all economic decisions and owns almost all the major factors of production,including housing for its people?

A) Capitalism
B) Socialism
C) Communism
D) Mixed

Question 63

A(n)__________ occurs when there is only one seller that controls the total supply of a product and its price.

A) Perfect competitor
B) Monopolistic competitor
C) Oligopoly
D) Monopoly

Question 64

Utilities such as natural gas and water generally compete as:

A) Perfect competitors
B) Monopolistic competitors
C) Oligopolies
D) Monopolies

Question 65

A __________ economy exists where some allocation of resources is made by the market and some by the government.

A) Communist
B) Socialist
C) Command
D) Mixed

Question 66

Define supply and demand and explain what a point of equilibrium is.

Question 67

A major indicator of economic conditions is:

A) The gross domestic product (GDP)
B) The unemployment rate
C) The price index
D) All of the responses are correct

Question 68

Which of the following economic systems is based on the premise that some,if not most,basic businesses should be government owned so that profits can be evenly distributed among all the people?

A) Capitalism
B) Socialism
C) Communism
D) Mixed

Question 69

Explain the difference between microeconomics and macroeconomics.

Question 70

Define the four basic types of competition.

Question 71

Which of the following statements about monetary policy is most true?

A) This policy is what adds or subtracts money from the country.
B) Monetary policy is controlled by the Federal Reserve System.
C) The most obvious role of the Federal Reserve System is to raise and lower interest rates.
D) All of the responses are correct

Question 72

What are the three major indicators of economic conditions?

Question 73

Which of the following is a negative consequence of socialism?

A) Brain drain
B) Social equity
C) Unequal distribution of outcomes
D) Severe economic depression

Question 74

As a result of political or economic forces _________ unemployment means there are not enough jobs for people who want work.

A) Seasonal
B) Structural
C) Cyclical
D) Frictional

Question 75

A(n)___________ is a form of competition in which just a few sellers dominate a market.

A) Perfect competitor
B) Monopolistic competitor
C) Oligopoly
D) Monopoly

Question 76

Hot dogs,candy and personal computers are examples of products that are produced under which type of competition?

A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly

Question 77

Agricultural products are generally produced under which type of competition?

A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly

Question 78

Which of the following would likely occur in a free market if all of us decided we wanted to buy a Pittsburgh Steelers t-shirt?

A) The government would regulate the t-shirt industry.
B) The price of these t-shirts would go up.
C) The number of clothing companies making Steelers t-shirts would increase.
D) All of the responses are correct

Question 79

In a free market __________ has/have immense power to determine the price of items and the availability of items.

A) The government
B) Producers
C) Consumers
D) Entrepreneurs