Busi 22 Ch 2 Quiz

Which of the following is the best example of an​ oligopoly? A.Automobile manufacturers in the United States B.Hair salons in Los Angeles .C.Chinese restaurants in San Francisco D.Microsoft's Windows operating system E.Universities and colleges in the United States

A. Automobile manufacturers in the United States

Which of the following statements is true of complementary​ goods? A.Complementary goods are typically consumed together. B. Complementary goods are consumed separately. C.A decrease in demand of one good would increase demand of its complementary good. D.Complementary goods decrease the value and demand of a related good. E.Complementary goods are not a determinant of demand.

A. Complementary goods are typically consumed together. Your answer is correct.

Which of the following statements regarding shortages is​ true? A.Shortages can lead to higher prices. B.Shortages often lead sellers to clear out excess inventory. C.Shortages do not occur after a price decrease. D.Shortages do not happen in communist countries. E.Shortages often lead to sellers to reduce the price of a good or service.

A. Shortages can lead to higher prices.

Currency​ __________. A.is a unit of exchange used for the purchase of goods and services B.is based on the value of gold in the United States C.uses barter for a means of exchange D.is inconsistent in an economy E.means the price for a good or service cannot change

A.is a unit of exchange used for the purchase of goods and services

Which of the following best describes​ capitalism? A.An economic system where most products and services are provided by businesses and​ individuals, but some products and services are provided by the government B.An economic system where individuals and businesses are responsible for producing and selling goods and services based on customer needs and wants .C.A planned economic system D.An economic system focused on adherence to government policy and procedure E.A system where the government controls the production of products and services

B. An economic system where individuals and businesses are responsible for producing and selling goods and services based on customer needs and wants

Which of the following is true of the law of​ supply? A.Higher prices lead to less supply. B.Suppliers will provide more of a good when its price is high. C.Price decreases result in suppliers providing more goods. D.Supply is driven by a​ supplier's desire to minimize profits. E.Lower profit margins leads to more supply.

B. Suppliers will provide more of a good when its price is high.

Macroeconomics​ __________. A.includes the study of the consuming habits of individuals B.focuses on studying the economy as a whole Your answer is correct. C.is primarily concerned with the study of local businesses D.does not include studying the impact of housing on the overall economy E.does not take into account the unemployment rate

B. focuses on studying the economy as a whole

The equilibrium price​ __________. A.results in higher demand for goods and services B.occurs when supply equals demand for a good or service .C.is dictated by consumers D.means a product shortage exists E.only affects goods but not services

B. occurs when supply equals demand for a good or service

Which of the following statements is true of​ duopolies? A.Duopolies result in decreased demand for goods and services. B.In​ duopolies, there are many firms that sell a product or service. C.Duopolies have great influence over the pricing and the availability of the products and services they sell. .D.Consumers have many purchasing options in duopolies. E.Duopolies encourage competition.

C. Duopolies have great influence over the pricing and the availability of the products and services they sell.

Which of the following is NOT one of the major groups of products and services used by the U.S. Bureau of Labor Statistics in determining the consumer price index​ (CPI)? A.Food and beverages B.Medical care C.income taxes .D.Transportation E.Recreation

C. Income taxes This is the correct answer.

All of the following statements are true about socialism​ EXCEPT: A.The government usually runs social services such as​ education, health​ care, retirement and utilities. B.The government is in control of production of many basic businesses and distributes the profits from those businesses evenly among the people. .C.The majority of economic systems in the world are purely socialist economies. D.Countries characterized by socialism tend to have high tax rates. E.Socialism tends to disincentivize labor.

C. The majority of economic systems in the world are purely socialist economies.

In which type of economic system is the focus on efficiency and​ profitability? A.Mixed market economy B.Socialism C. Capitalism D.Communism E.Planned economic system

C. Capitalism an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.

Which of the following best describes a​ monopoly? A.Monopolies have very little control in dictating prices to consumers. B.Monopolies have little control over sales of goods and services. C.Monopolies are not subject to government oversight. D.A monopoly has complete control over an entire industry. E.Monopolies have many competitors.

D. A monopoly has complete control over an entire industry.

Which of the following is true about​ demand? A.A substitute good or service increases demand for the original good or service. B.Demand is at its greatest level during an economic depression. C.Demand has no impact on the price of a good or service. D.Demand decreases as prices increase. E.Demand is greater when more supply is available.

D. Demand decreases as prices increase.

Which of the following best describes​ communism? A.It is an economy in which most products and services are provided by businesses and​ individuals, and some products and services are provided by the government. B.It is a completely unplanned economy. C.It is an economy in which businesses are focused on efficiency and profitability. D.It is an economic system in which the government controls production. .E.It is a​ free-market economy in which individuals and businesses are responsible for determining what products and services to produce.

D. It is an economic system in which the government controls production.

Which of the following is true about the discount​ rate? A.The discount rate is determined by the U.S. Treasury. B.The discount rate is the same as the federal funds rate. C.The discount rate is decreased during economic boom times. D.The discount rate is the interest rate charged to banks when they borrow emergency funds from the Federal Reserve. E.The discount rate has no impact on economic growth.

D. The discount rate is the interest rate charged to banks when they borrow emergency funds from the Federal Reserve.

Which of the following statements is true of a mixed​ economy? A.The government has a very low degree of control in a mixed economy. .B.The government is in complete control of all goods and services in a mixed economy. C.The economy is completely unplanned and is focused on maximum profitability in a mixed economy. D.The government supplies some goods and services in a mixed economy. .E.Social programs are nonexistent in a mixed economy.

D. The government supplies some goods and services in a mixed economy.

All of the following factors will shift supply of a good or service​ EXCEPT: A.Price expectations. B.The number of substitute goods. C.The number of suppliers. D.Changes in resource prices. .E.Complementary goods.

E. Complementary goods.

A recession​ __________. A.is unlikely to occur in a​ free-market economy B.only happens every 50​ years, on average C.means that suppliers are likely to increase the prices of their goods and services D.occurs when an economy slows down for one quarter E.is a decline in the gross domestic product​ (GDP) for two or more consecutive quarters

E. is a decline in the gross domestic product​ (GDP) for two or more consecutive quarters

Disinflation​ __________. A.occurs when prices decrease over time .B.has no impact on prices for goods and services C.is a sign of a healthy economy D.occurs when the prices for goods and services increase dramatically over a short period of time E.is when the rate of inflation decreases

E. is when the rate of inflation decreases

Which of the following is true of frictional​ unemployment? A.Frictional unemployment is when an industry closes and no longer needs certain types of employees. B.Frictional unemployment occurs during an economic downturn as employers lay off employees and hire them back once the demand for products and services increase. C.Frictional unemployment occurs when employers only have need for employees during certain times of the year. D.Frictional unemployment occurs when an employee is still working for a company but looking for a new job. E.Frictional unemployment is temporary in nature.

E.Frictional unemployment is temporary in nature.

Which of the following best describes seasonal​ unemployment? A.Seasonal unemployment does not involve agricultural workers. B.Seasonal unemployment is not an important type of unemployment. C.Seasonal unemployment is a permanent type of unemployment. D.Seasonal unemployment is a type of structural unemployment. E.Seasonal unemployment involves businesses or industries that need workers only at certain times of the year.

E.Seasonal unemployment involves businesses or industries that need workers only at certain times of the year.

Which of the following is NOT a stage of the business​ cycle? A.Recession B.Expansion or recovery C.Trough D.Peak E.Stagnation

E.Stagnation

A depression​ __________. A.is the height of the business cycle B.results in higher demand for goods and services C.is a​ short-term situation D.can only be resolved through government intervention Your answer is not correct. E.is usually associated with falling prices​ (deflation)

E.is usually associated with falling prices​ (deflation)

Perfect competition​ __________. A.occurs when a few large companies compete with another for business .B.is unlikely to occur in a​ free-market economy C.puts consumers at a disadvantage due to higher prices D.makes it easy for sellers to control the prices of their goods and services E.makes it impossible for any single seller to set the price for their products

E.makes it impossible for any single seller to set the price for their products