Question 1

Imagine that you were reading an international marketing text in which you learned that the GDP for a nation that was a member of the former Soviet Union was $1.56 billion.A few pages later in the same text, the book states that that nation's real GDP was $800,000.From reading this information, you would know that:

Accepted Answer

A)  this former member of the Soviet Union had a high rate of inflation
B)  the various methods used to calculate GDP do not produce the same results
C)  GDP is an approximation of the actual total value and is never precise
D)  the second GDP measurement reflected only the value of the products produced in the nation and did not include the value of services
E)  the former member of the Soviet Union was experiencing a recessionF) All of the above
G) A) and B)

Question 2

The unemployment rate is the percentage of the total work force that is not working but is:

Accepted Answer

A)  drawing unemployment checks
B)  physically and mentally able to work
C)  actively looking for work
D)  on vacation
E)  laid off, terminated, or downsized due to some economic activity outside of their controlF) B) and E)
G) A) and B)

Question 3

The situation in which the average of all prices of products is rising is called:

Accepted Answer

A)  deflation
B)  inflation
C)  upsizing
D)  purchase power acceleration
E)  rejuvenationF) A) and D)
G) None of the above

Question 4

The most basic measure of economic growth is the:

Accepted Answer

A)  consumer price index
B)  gross domestic product
C)  producer price index
D)  total of all goods and services produced
E)  combined producer and consumer price indicesF) B) and E)
G) A) and B)

Question 5

Iris Souza started the summer with $30.She took $10 and made signs for her dog walking service.She posted the signs all over her neighborhood.She used the other $20 to buy a stout leash and a pooper-scooper.At the end of the summer, after buying herself a new pair of shoes for $50 (she had worn her other shoes out walking dogs) , she had $125 left.Calculate Souza's costs for her summer job?

Accepted Answer

A)  $30
B)  $50
C)  $80
D)  $125
E)  $175F) A) and E)
G) A) and D)

Question 6

Demography is the study of:

Accepted Answer

A)  people's vital statistics
B)  people's attitudes, interests, and values
C)  emerging technology
D)  social trends
E)  global competitionF) B) and C)
G) A) and B)

Question 7

The Federal Reserve System can print money and raise taxes.

Accepted Answer

A) True 
 B)False

Question 8

A key element in capitalism is:

Accepted Answer

A)  a low standard of living
B)  individual ownership of property
C)  government ownership of property
D)  government control of market
E)  continued growthF) D) and E)
G) A) and C)

Question 9

The main incentive in capitalism is:

Accepted Answer

A)  high wages
B)  profit
C)  low taxation
D)  reasonable interest rates
E)  a shorter work weekF) C) and D)
G) C) and E)

Question 10

Individual ownership of property is a key element in:

Accepted Answer

A)  socialism
B)  capitalism
C)  communism
D)  a command economy
E)  utopianismF) A) and B)
G) A) and C)

Question 11

What is another name for a strategic alliance?

Accepted Answer

strategic ...

Question 12

What is the major source of revenue for the United States?

Accepted Answer

The answer of What is the major source of revenue...

Question 13

When Congress passes a law to raise individual tax rates, it is creating fiscal policy.

Accepted Answer

A) True 
 B)False

Question 14

Forty-five percent of the labor force in Armenia is involved in the agricultural sector, but the economic growth in the nation comes from industry and tourism.What type of unemployment would such a mismatch of ability and job requirements cause?

Accepted Answer

A)  frictional
B)  predictable
C)  mechanical
D)  structural
E)  operationalF) A) and C)
G) B) and C)

Question 15

Members of millennial generation:

Accepted Answer

A)  represent the first generation of latchkey children
B)  are more likely to be unemployed or underemployed than any other previous generation
C)  cherish savings and cling to their money
D)  were born between 1946 and 1964
E)  are not accurately described by any of the aboveF) A) and E)
G) C) and D)

Question 16

In a _____ market structure, many firms are in the market, the firms in the market sell similar but not identical products, and the market is relatively easy to enter.

Accepted Answer

monopolist...

Question 17

Which of the following is the BEST example of a not-for-profit business?

Accepted Answer

A)  the American Cancer Society
B)  McDonald's
C)  Kellogg's
D)  FedEx delivery service
E)  Hightower Construction CompanyF) A) and E)
G) A) and D)

Question 18

Which of the following statement about oligopolies is true?

Accepted Answer

A)  Market entry into an oligopoly is easy.
B)  In an oligopoly, there are many firms selling identical products.
C)  Capital requirements are minimal for entering an oligopolistic market.
D)  In an oligopoly, three or four firms usually dominate the marketplace.
E)  Antitrust cases are rare in oligopolies.F) B) and C)
G) A) and B)

Question 19

Which of the following is NOT a component of the consumer price index?

Accepted Answer

A)  gas purchased by commuters
B)  pizzas ordered delivered to a birthday party
C)  entry fees to state and national parks
D)  tickets to baseball and football games
E)  lumber used in the construction industryF) B) and D)
G) None of the above

Question 20

How has diversity impacted the marketing and customization of products?

Accepted Answer

A)  The buying power of Asian Americans is declining.
B)  There are no significant differences in the various segments of the Hispanic population.
C)  The United States will never be a multicultural society.
D)  Along with their numbers, the buying power of minorities is growing.
E)  The size of the Hispanic market is declining.F) B) and E)
G) C) and D)

Exam 1: Understanding Economic Systems and Business

The situation in which the average of all prices of products is rising is called:

Correct Answer
verified

What is the major source of revenue for the United States?

Correct Answer
verified

The most basic measure of economic growth is the:

Correct Answer
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Which of the following is the BEST example of a not-for-profit business?

Correct Answer
verified

The unemployment rate is the percentage of the total work force that is not working but is:

Correct Answer
verified

A key element in capitalism is:

Correct Answer
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When Congress passes a law to raise individual tax rates, it is creating fiscal policy.

Correct Answer
verified

Individual ownership of property is a key element in:

Correct Answer
verified

Correct Answer
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Which of the following statement about oligopolies is true?

Correct Answer
verified

Demography is the study of:

Correct Answer
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How has diversity impacted the marketing and customization of products?

Correct Answer
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Members of millennial generation:

Correct Answer
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What is another name for a strategic alliance?

Correct Answer
verified
strategic ...
View Answer

The main incentive in capitalism is:

Correct Answer
verified

Which of the following is NOT a component of the consumer price index?

Correct Answer
verified

In a _____ market structure, many firms are in the market, the firms in the market sell similar but not identical products, and the market is relatively easy to enter.

Correct Answer
verified
monopolist...
View Answer

The Federal Reserve System can print money and raise taxes.

Correct Answer
verified

Forty-five percent of the labor force in Armenia is involved in the agricultural sector, but the economic growth in the nation comes from industry and tourism.What type of unemployment would such a mismatch of ability and job requirements cause?

Correct Answer
verified

Correct Answer
verified

Exam 1: Understanding Economic Systems and Business

The situation in which the average of all prices of products is rising is called:

Correct AnswerverifiedShow Answer

What is the major source of revenue for the United States?

Correct AnswerverifiedShow Answer

The most basic measure of economic growth is the:

Correct AnswerverifiedShow Answer

Which of the following is the BEST example of a not-for-profit business?

Correct AnswerverifiedShow Answer

The unemployment rate is the percentage of the total work force that is not working but is:

Correct AnswerverifiedShow Answer

A key element in capitalism is:

Correct AnswerverifiedShow Answer

When Congress passes a law to raise individual tax rates, it is creating fiscal policy.

Correct AnswerverifiedShow Answer

Individual ownership of property is a key element in:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statement about oligopolies is true?

Correct AnswerverifiedShow Answer

Demography is the study of:

Correct AnswerverifiedShow Answer

How has diversity impacted the marketing and customization of products?

Correct AnswerverifiedShow Answer

Members of millennial generation:

Correct AnswerverifiedShow Answer

What is another name for a strategic alliance?

Correct Answerverifiedstrategic ...View AnswerShow Answer

The main incentive in capitalism is:

Correct AnswerverifiedShow Answer

Which of the following is NOT a component of the consumer price index?

Correct AnswerverifiedShow Answer

In a _____ market structure, many firms are in the market, the firms in the market sell similar but not identical products, and the market is relatively easy to enter.

Correct Answerverifiedmonopolist...View AnswerShow Answer

The Federal Reserve System can print money and raise taxes.

Correct AnswerverifiedShow Answer

Forty-five percent of the labor force in Armenia is involved in the agricultural sector, but the economic growth in the nation comes from industry and tourism.What type of unemployment would such a mismatch of ability and job requirements cause?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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strategic ...
View Answer

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monopolist...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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