Question 1

_____ is the price at which the number of products that businesses are willing to supply equals the number of products consumers are willing to purchase at a point in time.

Accepted Answer

A)  Bundled price
B)  Equilibrium price
C)  Discount price
D)  Competitive price
E)  Maximum retail priceF) A) and C)
G) C) and E)

Question 2

Which of the following is a change that occurred in the U.S.during the Industrial Revolution?

Accepted Answer

A)  Farm production decreased as industrial production increased.
B)  As work became more localized,productivity decreased.
C)  Trade within the country decreased as regions became self-sufficient.
D)  Farmers began to move to cities to find jobs in factories.
E)  Fewer goods were available,and prices of goods increased.F) None of the above
G) D) and E)

Question 3

Using the supply and demand curves shown in the graph that follows,what is the equilibrium price for soft drinks?

Accepted Answer

A)  35 cents
B)  45 cents
C)  50 cents
D)  55 cents
E)  75 centsF) A) and E)
G) A) and D)

Question 4

Which of the following is a similarity between businesses and nonprofit organizations?

Accepted Answer

A)  Both do not have to abide by government regulations.
B)  Both are unaffected by political or social change.
C)  Both of them engage in management and finance activities.
D)  Both of them do not need to adapt to technological changes.
E)  Both aim to maximize financial returns for their owners.F) C) and D)
G) B) and E)

Question 5

Egalitarianism refers to the:

Accepted Answer

A)  exemption of taxes for successful businesses.
B)  restrictions on taking up non-government jobs.
C)  equal distribution of income and social services.
D)  concept of the rich getting richer and the poor getting poorer.
E)  restriction of competition in small businesses by government regulations.F) A) and E)
G) D) and E)

Question 6

In a capitalist economic system,_____.

Accepted Answer

A)  the government owns and operates all businesses
B)  there is little scope for competition
C)  consumers have a limited choice of goods and services
D)  majority of people possesses government jobs
E)  prices of goods and services are determined by demand and supplyF) A) and E)
G) B) and D)

Question 7

Businesses have the right to keep and use their profits as they choose,without limitations.

Accepted Answer

A) True 
 B)False

Question 8

When there is only one business providing a product in a given market,there exists:

Accepted Answer

A)  an oligopoly.
B)  modified competition.
C)  pure competition.
D)  monopolistic competition.
E)  a monopoly.F) A) and D)
G) B) and D)

Question 9

_____ is the number of products that businesses are willing to sell at different prices at a specific time.

Accepted Answer

A)  Equilibrium
B)  Distribution
C)  Cost pricing
D)  Demand
E)  SupplyF) A) and C)
G) A) and E)

Question 10

The difference between what it costs to make and sell a product and what a customer pays for it is referred to as _____.

Accepted Answer

A)  net value
B)  gross price
C)  profit
D)  retail price
E)  stakeF) C) and E)
G) A) and B)

Question 11

Which of the following is done by the American government to counteract economic contraction?

Accepted Answer

A)  It may reduce interest rates.
B)  It decreases its own spending for goods and services.
C)  It raises reserve rate of banks.
D)  It decreases money supply.
E)  It sells securities through the Fed.F) A) and D)
G) C) and D)

Question 12

Which of the following is true of marketers?

Accepted Answer

A)  Marketers are involved primarily in production and management of infrastructure.
B)  Marketers gather information and conduct research to determine what customers want.
C)  Marketers in nonprofit organizations do not use promotion.
D)  Marketers are concerned with acquiring,developing,and using resources.
E)  Marketers plan,organize,staff,and control the tasks required to carry out the work of a company.F) A) and B)
G) C) and D)

Question 13

An entrepreneur has been primarily associated with the willingness to:

Accepted Answer

A)  change employers frequently.
B)  work under authority.
C)  be conservative.
D)  possess a government job.
E)  take risks.F) A) and B)
G) C) and D)

Question 14

Which of the following is a characteristic of economic depression?

Accepted Answer

A)  Unemployment levels are almost low or absent.
B)  Consumer spending is high.
C)  Individuals' incomes increase at the same pace as rising prices.
D)  Buying power of consumers is quadrupled.
E)  Business output is sharply reduced.F) A) and B)
G) A) and C)

Question 15

In the history of the American economy,the period following the Industrial Revolution was known for an increasing emphasis on:

Accepted Answer

A)  services.
B)  artisanship.
C)  manufacturing.
D)  agriculture.
E)  information.F) A) and E)
G) C) and E)

Question 16

_____ indicates the income level of "average" Americans.It is useful in determining how much "average" consumers spend and how much money Americans are earning.

Accepted Answer

A)  Per capita income
B)  GDP
C)  Budget deficit
D)  Consumer price index
E)  Worker productivityF) B) and D)
G) D) and E)

Question 17

Which of the following is a characteristic of a manufacturing economy?

Accepted Answer

A)  It is concerned with the indigenous production of food,clothing,and furniture.
B)  It is devoted to producing goods and services rather than producing agricultural products.
C)  It is characterized by the development of the road and railways.
D)  It is significant for the development of factories along the railways to manufacture farm equipment.
E)  It is particularly important for enabling farmers to send their surplus crops and goods all over the nation for barter or for sale.F) A) and B)
G) C) and D)

Question 18

Identify a true statement about a socialist system of economy.

Accepted Answer

A)  Individuals own and operate the majority of businesses that provide goods and services.
B)  Central planning determines what basic goods and services are produced.
C)  Competition,supply,and demand determine which goods and services are produced and how they are produced.
D)  All economic decisions are made without government intervention.
E)  Consumers have a wide choice of goods and services.F) B) and C)
G) A) and D)

Question 19

An oligopoly exists when:

Accepted Answer

A)  there are very few businesses selling a product
B)  there are many small businesses selling one standardized product.
C)  only one producer of a product is present in a given market.
D)  individual businesses have control over their products' price.
E)  there is a slowdown of the economy characterized by a decline in spending.F) A) and B)
G) A) and C)

Question 20

Finance refers to all activities concerned with obtaining money and using it effectively.

Accepted Answer

A) True 
 B)False

Exam 1: The Dynamics of Business and Economics

Identify a true statement about a socialist system of economy.

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Which of the following is a change that occurred in the U.S.during the Industrial Revolution?

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Which of the following is a characteristic of a manufacturing economy?

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In a capitalist economic system,_____.

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Which of the following is a characteristic of economic depression?

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Finance refers to all activities concerned with obtaining money and using it effectively.

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Which of the following is true of marketers?

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Egalitarianism refers to the:

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An entrepreneur has been primarily associated with the willingness to:

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The difference between what it costs to make and sell a product and what a customer pays for it is referred to as _____.

Correct AnswerverifiedShow Answer

_____ is the number of products that businesses are willing to sell at different prices at a specific time.

Correct AnswerverifiedShow Answer

Businesses have the right to keep and use their profits as they choose,without limitations.

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_____ is the price at which the number of products that businesses are willing to supply equals the number of products consumers are willing to purchase at a point in time.

Correct AnswerverifiedShow Answer

An oligopoly exists when:

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When there is only one business providing a product in a given market,there exists:

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_____ indicates the income level of "average" Americans.It is useful in determining how much "average" consumers spend and how much money Americans are earning.

Correct AnswerverifiedShow Answer

In the history of the American economy,the period following the Industrial Revolution was known for an increasing emphasis on:

Correct AnswerverifiedShow Answer

Which of the following is done by the American government to counteract economic contraction?

Correct AnswerverifiedShow Answer

Using the supply and demand curves shown in the graph that follows,what is the equilibrium price for soft drinks?

Correct AnswerverifiedShow Answer

Which of the following is a similarity between businesses and nonprofit organizations?

Correct AnswerverifiedShow Answer

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