Question 1

A key economic goal is to provide a deep understanding of past choices that can be used to guide future business decisions.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is the measurement of the total value of all goods and services produced within a nation's borders over a given period of time?

Accepted Answer

A)  consumer price index
B)  net national production
C)  production function
D)  gross domestic product

Question 3

The nation of High Land has seen a steady increase in the output of goods and services produced within its borders in the last year.What would this indicate?

Accepted Answer

A)  a rise in High Land's unemployment rate
B)  a decline in the national tax rate
C)  a rise in High Land's CPI
D)  a rise in High Land's GDP

Question 4

Microeconomics is the study of broad,economy-wide issues such as the unemployment rate,gross domestic product,and inflation.

Accepted Answer

A) True 
 B)False

Question 5

What does macroeconomics focus on?

Accepted Answer

A)  the minor issues facing the national economy
B)  the role of government, while microeconomics focuses on the private sector
C)  the small individual units operating within the economy
D)  the major issues facing the national economy

Question 6

Karl Marx envisioned communism as a system that would improve the lot of the common worker.

Accepted Answer

A) True 
 B)False

Question 7

What does the consumer price index (CPI) measure?

Accepted Answer

A)  the change in prices of a set of goods that represent the minimum acceptable standard of living for the nation's consumers
B)  the change in the rate of inflation over time
C)  the change in weighted average price over time in a "market basket" of goods and services bought by the typical consumer
D)  the percentage of income consumers must use to pay for goods relative to their average incomes in the same time period

Question 8

Which of the following would be studied in the greatest detail in a macroeconomics course?

Accepted Answer

A)  how a firm in an oligopolistic market would respond to a change in the pricing strategy of other firms in its market
B)  how various factors influence the nation's unemployment rate
C)  how a large automobile manufacturer decides how many SUVs to produce in a given model year
D)  how consumers would respond if a restaurant raised its prices

Question 9

To measure productivity,multiply the number of inputs by the cost of each input.

Accepted Answer

A) True 
 B)False

Question 10

The study of economics falls into two broad categories called meta-economics and econometrics.

Accepted Answer

A) True 
 B)False

Question 11

Natasha is very unhappy with conditions in her country.She has very little economic or political freedom.Virtually all productive enterprises are owned by the government,and they seem to be run very inefficiently.The result is frequent shortages and surpluses of goods and services.These conditions suggest that Natasha's country relies on what type of economic system?

Accepted Answer

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

Question 12

The complexity of the economy makes economic forecasting an inexact process.

Accepted Answer

A) True 
 B)False

Question 13

How would the economies of virtually all nations today be classified?

Accepted Answer

A)  communism
B)  pure socialism
C)  pure capitalism
D)  mixed economies

Question 14

Communism is an economic and political system in which a strong central government owns and controls almost all productive enterprises.

Accepted Answer

A) True 
 B)False

Question 15

What does the economy represent as a system?

Accepted Answer

A)  the means of production only
B)  the non-efficient use of material resources
C)  the flow of resources from production through consumption
D)  the means of capitalistic systems

Question 16

What are the two key terms of the business cycle?

Accepted Answer

A)  contraction and expansion
B)  inflation and recession
C)  trend and random variation
D)  inflation and deflation

Question 17

Why can changes in the producer price index (PPI) predict changes in the consumer price index (CPI) ?

Accepted Answer

A)  They are computed using the same market basket.
B)  Consumers and producers often buy the same goods.
C)  Producers often pass along price increases to consumers.
D)  Consumers pay what retailers charge.

Question 18

What occurs when tax revenue is higher than government expenditures?

Accepted Answer

A)  windfall
B)  budget surplus
C)  budget deficit
D)  national debt

Question 19

Identify and explain the three key tools the Bank of Canada uses to expand and contract the money supply.

Accepted Answer

The Bank of Canada uses three key tools ...

Question 20

What is the term for a market structure with many competitors selling virtually identical products?

Accepted Answer

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

Exam 4: Economics: the Framework for Business

What occurs when tax revenue is higher than government expenditures?

Correct Answer
verified

Microeconomics is the study of broad,economy-wide issues such as the unemployment rate,gross domestic product,and inflation.

Correct Answer
verified

What are the two key terms of the business cycle?

Correct Answer
verified

Correct Answer
verified

Which of the following would be studied in the greatest detail in a macroeconomics course?

Correct Answer
verified

What does macroeconomics focus on?

Correct Answer
verified

How would the economies of virtually all nations today be classified?

Correct Answer
verified

What does the economy represent as a system?

Correct Answer
verified

Which of the following is the measurement of the total value of all goods and services produced within a nation's borders over a given period of time?

Correct Answer
verified

What does the consumer price index (CPI) measure?

Correct Answer
verified

Identify and explain the three key tools the Bank of Canada uses to expand and contract the money supply.

Correct Answer
verified
The Bank of Canada uses three key tools ...
View Answer

Communism is an economic and political system in which a strong central government owns and controls almost all productive enterprises.

Correct Answer
verified

The nation of High Land has seen a steady increase in the output of goods and services produced within its borders in the last year.What would this indicate?

Correct Answer
verified

What is the term for a market structure with many competitors selling virtually identical products?

Correct Answer
verified

Karl Marx envisioned communism as a system that would improve the lot of the common worker.

Correct Answer
verified

A key economic goal is to provide a deep understanding of past choices that can be used to guide future business decisions.

Correct Answer
verified

The complexity of the economy makes economic forecasting an inexact process.

Correct Answer
verified

To measure productivity,multiply the number of inputs by the cost of each input.

Correct Answer
verified

The study of economics falls into two broad categories called meta-economics and econometrics.

Correct Answer
verified

Why can changes in the producer price index (PPI) predict changes in the consumer price index (CPI) ?

Correct Answer
verified

Exam 4: Economics: the Framework for Business

What occurs when tax revenue is higher than government expenditures?

Correct AnswerverifiedShow Answer

Microeconomics is the study of broad,economy-wide issues such as the unemployment rate,gross domestic product,and inflation.

Correct AnswerverifiedShow Answer

What are the two key terms of the business cycle?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following would be studied in the greatest detail in a macroeconomics course?

Correct AnswerverifiedShow Answer

What does macroeconomics focus on?

Correct AnswerverifiedShow Answer

How would the economies of virtually all nations today be classified?

Correct AnswerverifiedShow Answer

What does the economy represent as a system?

Correct AnswerverifiedShow Answer

Which of the following is the measurement of the total value of all goods and services produced within a nation's borders over a given period of time?

Correct AnswerverifiedShow Answer

What does the consumer price index (CPI) measure?

Correct AnswerverifiedShow Answer

Identify and explain the three key tools the Bank of Canada uses to expand and contract the money supply.

Correct AnswerverifiedThe Bank of Canada uses three key tools ...View AnswerShow Answer

Communism is an economic and political system in which a strong central government owns and controls almost all productive enterprises.

Correct AnswerverifiedShow Answer

The nation of High Land has seen a steady increase in the output of goods and services produced within its borders in the last year.What would this indicate?

Correct AnswerverifiedShow Answer

What is the term for a market structure with many competitors selling virtually identical products?

Correct AnswerverifiedShow Answer

Karl Marx envisioned communism as a system that would improve the lot of the common worker.

Correct AnswerverifiedShow Answer

A key economic goal is to provide a deep understanding of past choices that can be used to guide future business decisions.

Correct AnswerverifiedShow Answer

The complexity of the economy makes economic forecasting an inexact process.

Correct AnswerverifiedShow Answer

To measure productivity,multiply the number of inputs by the cost of each input.

Correct AnswerverifiedShow Answer

The study of economics falls into two broad categories called meta-economics and econometrics.

Correct AnswerverifiedShow Answer

Why can changes in the producer price index (PPI) predict changes in the consumer price index (CPI) ?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The Bank of Canada uses three key tools ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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