Deck 3: Economic Challenges Facing Contemporary Business

Question 1

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
Price increases that reduce the amount of goods and services people can purchase with a given amount of money are the result of ____________.

Answer 1

B

Question 2

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
The point where the supply and demand curves meet is the _____.

Answer 2

F

Question 3

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
A(n)_____ is characterized by relatively few sellers and barriers to entry due to high start-up costs.

Answer 3

N

Question 4

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
The use of government tax and spending policies to bring about desired changes in the economy is called _____.

Question 5

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
_____ is the relationship between the goods and services produced in a nation each year and the inputs needed to produce them.

Question 6

What is economics? Why is understanding economics important in your life?

Question 7

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
_____ refers to the willingness and ability of buyers to purchase goods and services at various prices.

Question 8

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
The amount of goods and services available at various prices is known as _____________.

Question 9

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
During a(n)_____,consumers frequently postpone major purchases and shift buying patterns toward basic,functional products carrying low prices.

Question 10

List the factors that should cause a demand curve to shift to the right.

Question 11

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
The study of small economic units,such as individual consumers,families,and businesses,is called _____________.

Question 12

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
_____ is a market structure characterized by a large number of buyers and sellers exchanging relatively homogenous products,with no single participant having a significant influence on price.

Question 13

Differentiate between macroeconomics and microeconomics.What types of economic activities might be included in each category?

Question 14

List the factors that should cause a supply curve to shift to the left.

Question 15

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
In a(n)_____,a single seller dominates trade in a product for which buyers can find no close substitute.

Question 16

List the four factors of production and provide an example of each factor.

Question 17

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
_____ is the sum of all goods and services produced within a country's borders.

Question 18

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
Attempting to bring about changes in economic activity through changes in the size of the nation's money supply is called _____.

Question 19

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
_____ measures the monthly average change in prices of goods and services.

Question 20

MATCHING
Complete the following using the terms listed.
a.Consumer Price Index (CPI)
b.inflation
c.gross domestic product (GDP)
d.fiscal policy
e.monetary policy
f.equilibrium price
g.budget deficit
h.pure competition
i.supply
j.demand
k.productivity
l.recession
m.microeconomics
n.oligopoly
o.monopoly
If the government spends more than it collects in taxes,then a(n)_____ occurs.

Question 21

The study of macroeconomics is ________.

A)concerned with studying the overall economy
B)primarily concerned with individual businesses and decisions
C)not related to microeconomics
D)not related to government decisions concerning spending and taxes

Question 22

Describe the major differences between socialism and a mixed economic system.

Question 23

Describe how changes in household income affect demand.

Question 24

Williams & Co.management is trying to decide the appropriate prices for various products sold by the firm.This is a focus of ________.

A)microeconomics
B)macroeconomics
C)fiscal policy
D)monetary policy

Question 25

Briefly describe budget deficit,national debt,budget surplus,and balance budget and how the terms relate to the government finances.

Question 26

Individual and business decisions are ________ by economic conditions and,in turn,economic conditions are ________ by their decisions.

A)affected;not affected
B)not affected;affected
C)not affected;not affected
D)affected;affected

Question 27

________ refers to the willingness and ability of buyers to purchase goods and services.

A)Consumer behavior
B)Customer preference
C)Supply
D)Demand

Question 28

In general,as price of a good or service increases,the quantity demanded:

A)decreases
B)stays the same
C)increases
D)depends on the type of product or service

Question 29

Describe what drives demand.

Question 30

List and describe each of the four stages of the business cycle.

Question 31

Describe how worker incentives vary in each of the four economic systems.

Question 32

________ is the study of the economic choices of individual consumers,families,or businesses.

A)Macroeconomics
B)Microeconomics
C)Entrepreneurship
D)Consumer behavior

Question 33

Which of the following fields is concerned with understanding the choices people make in using scarce resources?

A)economy
B)statistics
C)economics
D)psychology

Question 34

What is monetary policy? What governmental agency controls monetary policy? Describe actions that are used to influence economic activity.

Question 35

Describe the four categories of unemployment.

Question 36

Describe the relationship between productivity and Gross Domestic Product (GDP).

Question 37

Jamie's research firm was hired by a discount superstore to provide a detailed evaluation regarding consumer preferences.Jamie's analysis involves the study of ________.

A)economics
B)private enterprise system
C)microeconomics
D)macroeconomics

Question 38

Define pure competition.

Question 39

The willingness and ability of sellers to provide goods and services for sale in a market is referred to as ________.

A)the equilibrium price
B)demand
C)microeconomics
D)supply

Question 40

If the number of buyers decreases,the demand curve will shift to the ________ and the price will ________.

A)left;fall
B)right;fall
C)right;rise
D)left;rise

Question 41

A shortage will occur when ________.

A)production quantities are rising
B)prices are falling
C)price is below the equilibrium point
D)the demand curve is shifting to the left

Question 42

An increase in consumers' incomes causes the ________.

A)supply curve to shift to the right
B)demand curve to shift to the right
C)supply curve to shift to the left
D)demand curve to shift to the left

Question 43

A supply curve is a(n)________.

A)upward sloping curve
B)downward sloping curve
C)vertical line
D)horizontal line

Question 44

If the market price is above the equilibrium price,________.

A)producers will earn large profits
B)consumers will go on strike and not purchase any of the product
C)the demand curve will shift to the right causing the surplus to go away
D)a surplus will occur and prices and production will fall

Question 45

A demand curve will shift to the left if the ________.

A)number of buyers increases
B)future expectations become more optimistic
C)buyers' incomes decrease
D)prices of substitute goods increase

Question 46

A demand curve is the schedule that shows the relationship between the price of a product and ________.

A)overhead costs
B)the costs of marketing the product
C)the quantity of that product that buyers demand at that price
D)the quantity supplied at each price

Question 47

If buyers' incomes increase,the demand curve will shift to the ________ and the price will ________.

A)right;rise
B)left;fall
C)right;fall
D)left;rise

Question 48

Holding supply constant and decreasing demand will cause ________.

A)prices to rise and production to fall
B)prices to fall and production to rise
C)prices and production both to fall
D)prices and production both to rise

Question 49

A surplus will occur when ________.

A)production quantities are falling
B)price is below the equilibrium point
C)price is above the equilibrium point
D)the demand curve is shifting to the right

Question 50

If the prices of substitute goods decrease,the demand curve will shift to the ________ and the price will ________.

A)right;fall
B)left;fall
C)right;rise
D)left;rise

Question 51

Assume the price of gasoline triples.What will likely happen to the demand for small cars? The demand curve will shift to the ________ and demand will ________.

A)right;decrease
B)left;increase
C)right;increase
D)left;decrease

Question 52

Which of the following factors will NOT result in a shift in the supply curve?

A)Change in the number of suppliers
B)Change in the price of substitute goods
C)Cost savings resulting from new technology
D)Change in the costs of labor

Question 53

If the cost of producing a good or service increases,the supply curve will shift to the ________ and the price will ________.

A)right;fall
B)right;rise
C)left;fall
D)left;rise

Question 54

The equilibrium price is established when the quantity ________.

A)purchased is equal to the quantity offered
B)supplied is equal to the amount of raw materials available
C)bought is equal to the quantity demanded
D)demanded is equal to the quantity supplied at a lower price

Question 55

As the number of suppliers of a product increases,the supply curve shifts to the ________ and the price will ________.

A)right;fall
B)right;rise
C)left;fall
D)left;rise

Question 56

Supply and demand corrects a shortage by ________.

A)raising the price to increase production
B)raising the price to decrease production
C)keeping the price the same but decreasing production
D)reducing the product price to decrease production

Question 57

The curve that shows the relationship between different prices and the quantity requested at each price is the ________ curve.

A)equilibrium
B)supply
C)buying
D)demand

Question 58

Which of the following statements about demand curves is true?

A)When the price falls,demand increases.
B)When the price rises,demand stays the same.
C)When the price rises,demand increases.
D)When the price falls,supply increases.

Question 59

All of the following can shift the demand curve to either the right or left EXCEPT ________.

A)change in the number of buyers
B)buyers' attitudes about the future
C)change in the income of buyers
D)change in the cost of inputs

Question 60

According to a supply curve,________.

A)as prices rise,quantity of a product supplied falls
B)as prices fall,quantity of a product supplied increases
C)as prices rise,the quantity of a product that is supplied also rises
D)as prices rise,consumers will buy in larger quantities

Question 61

A particular industry has only a few competitors,who have at least some control over price.Entry into the industry is difficult.This industry is an example of ________.

A)pure competition
B)monopolistic competition
C)an oligopoly
D)a pure monopoly

Question 62

Under communism,________.

A)profits are not acceptable and the right to choose one's occupation is widely restricted
B)there is minimal government interference
C)management represents the owners
D)businesses are owned by individuals

Question 63

Most industrialized nations operate economies based on ________.

A)planned economies
B)private enterprise systems
C)communist systems
D)socialist systems

Question 64

Before the patent expired on allergy medicine Claritin,pharmaceutical company Schering-Plough was able to set its own price in the marketplace.From which type of competition did the company benefit?

A)oligopoly
B)pure competition
C)monopolistic competition
D)monopoly

Question 65

The four different types of market structure in a private enterprise system are ________.

A)pure competition,monopolistic competition,oligopoly,and monopoly
B)communism,socialism,capitalism,and mixed systems
C)socialism,oligopoly,monopoly,and pure competition
D)mixed,socialism,communism,and pure competition

Question 66

The success of one seller often attracts new competitors to such a market in this type of market structure:

A)monopolistic competition
B)oligopoly
C)monopoly
D)pure competition

Question 67

Barriers to entry into an industry are highest in ________.

A)pure competition
B)pure oligopoly
C)an oligopoly
D)monopolistic competition

Question 68

Which of the following market structures best describes the U.S.auto industry?

A)monopolistic competition
B)pure competition
C)oligopoly
D)monopoly

Question 69

Incentives to motivate employees to perform at their highest level are strongest in ________ systems.

A)capitalist
B)communist
C)socialist
D)monopolistic

Question 70

In a ________ system,the government owns all of the nation's major industries but still allows private ownership in less crucial areas.

A)communism
B)socialism
C)capitalism
D)mixed economy

Question 71

In a particular country,the government owns all the transportation companies,the utilities,the energy suppliers,and major manufacturing firms.Small businesses are privately owned.What type of economic system does this country have?

A)capitalism
B)communism
C)socialism
D)mixed economy

Question 72

The three major types of economic systems are ________.

A)capitalism,oligopoly,and planned economies
B)capitalism,pure competition,and planned economies
C)capitalism,monopoly,and mixed economies
D)capitalism,planned economies,and mixed economies

Question 73

Monopolistic competition has ________.

A)many buyers and sellers,and the sellers have some control over price
B)many buyers and sellers,none of whom can control prices
C)only one seller
D)only a few sellers

Question 74

Control over price by individual firms is highest in a(n)________.

A)pure monopoly
B)regulated monopoly
C)oligopoly
D)monopolistically competitive industry

Question 75

A particular industry has many competitors,each of whom has little control over price.In addition,it is fairly easy to enter the industry.This industry is an example of ________.

A)pure competition
B)monopolistic competition
C)an oligopoly
D)a pure monopoly

Question 76

Which of the following is considered to be the BEST example of pure competition in today's business environment?

A)the electric and gas utility industries
B)the airline industry
C)agriculture
D)Major League Baseball

Question 77

Entrepreneurs have the most economic freedom in which type of economy?

A)socialism
B)capitalism
C)communism
D)mixed economy

Question 78

Unless it is regulated or only temporary,the market situation called ________ is prohibited in the United States through antitrust legislation.

A)communism
B)monopoly
C)oligopoly
D)monopolistic competition

Question 79

Consumers can choose from hundreds of different kinds and producers of cheese,each with a slightly different flavor and texture.This type of market structure is known as ________.

A)pure competition
B)monopolistic competition
C)a monopoly
D)an oligopoly

Question 80

There is no direct competition in a particular industry,yet the firms have almost no control over pricing.This industry is an example of ________.

A)monopolistic competition
B)a regulated monopoly
C)an oligopoly
D)a pure monopoly