Chapter 3 Assignment

Barriers to entry into an industry are highest in ________. a monopoly pure competition monopolistic competition an oligopoly

a monopoly

If the market price is above the equilibrium price, ________. producers will earn large profits consumers will go on strike and not purchase any of the product the demand curve will shift to the right causing the surplus to go away a surplus will occur and prices and production will fall

a surplus will occur and prices and production will fall

Individual and business decisions are ________ by economic conditions and, in turn, economic conditions are ________ by their decisions. not affected; not affected affected; affected affected; not affected not affected; affected

affected; affected

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 ________. an oligopoly monopolistic competition a pure monopoly pure competition

an oligopoly

American growth oriented companies cannot ignore the world market since ______ out of every 22 of the world's population are U. S. residents. 5 10 2 1

1

________ consists of government spending and taxation decisions to control inflation, encourage economic growth, and balance the Federal budget. Expansionary monitory policy National budgeting Structured unemployment Fiscal policy

Fiscal policy

Core inflation rate is the inflation rate of an economy after ______and______ prices are removed. energy; food utilities; education transportation; housing entertainment; clothing

energy; food

By changing ________, the Federal Reserve can expand or shrink funds available to lend. fees charged on household and business checking and savings accounts spending taxes interest rates

interest rates

If the number of buyers decreases, the demand curve will shift to the ________ and the price will ________. left; rise left; fall right; fall right; rise

left; fall

If the prices of substitute goods decrease, the demand curve will shift to the ________ and the price will ________. left; rise right; fall left; fall right; rise

left; fall

A shortage will occur when ________. the demand curve is shifting to the left price is below the equilibrium point prices are falling production quantities are rising

price is below the equilibrium point

Holding supply constant and decreasing demand will cause ________. prices and production both to rise prices to rise and production to fall prices to fall and production to rise prices and production both to fall

prices and production both to fall

Most industrialized nations operate economies based on ________. socialist systems private enterprise systems planned economies communist systems

private enterprise systems

The conversion of the postal service from government-owned and operated into privately held businesses would be an example of ________. pure competition deregulation regulated monopolies privatization

privatization

The equilibrium price is established when the quantity ________. supplied is equal to the amount of raw materials available bought is equal to the quantity demanded demanded is equal to the quantity supplied at a lower price purchased is equal to the quantity offered

purchased is equal to the quantity offered

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 ________. an oligopoly a pure monopoly pure competition monopolistic competition

pure competition

The four different types of market structure in a private enterprise system are ________. communism, socialism, capitalism, and mixed systems mixed, socialism, communism, and pure competition pure competition, monopolistic competition, oligopoly, and monopoly socialism, oligopoly, monopoly, and pure competition

pure competition, monopolistic competition, oligopoly, and monopoly

The four basic types of competition that take shape in a private enterprise system are: recession, depression, inflation, and deflation. pure competition, monopolistic competition, oligopoly, and monopoly. socialism, democracy, communism, and capitalism. macroeconomics, microeconomics, monopoly, and capitalism.

pure competition, monopolistic competition, oligopoly, and monopoly.

Supply and demand correct a shortage by ________. keeping the price the same but decreasing production reducing the product price to decrease production raising the price to decrease production raising the price to increase production

raising the price to increase production

Consumers often turn to lower-priced retailers for the goods they need during a business cycle of ________. recession recovery prosperity depression

recession

As the number of suppliers of a product increases, the supply curve shifts to the ________ and the price will ________. left; fall right; fall left; rise right; rise

right; fall

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 ________. left; increase right; increase right; decrease left; decrease

right; increase

The Federal Reserve slows the growth in the supply of money and credit. Interest rates will likely ________, which is an example of ________ policy. fall; fiscal rise; monetary rise; fiscal fall; monetary

rise; monetary

________ is the relationship between the goods and services produced in a nation each year and workers, raw materials, and other inputs necessary to produce them. Per capita income Prosperity Productivity GDP (gross domestic product)

Productivity

During which stage of the business cycle does unemployment rise and inflation fall? Recession Growth Decline Prosperity

Recession

________ provides a running measure of consumer price changes. The Consumer Price Index (CPI) Devaluation Per capita income The Producer Price Index (PPI)

The Consumer Price Index (CPI)

Which of the following is NOT a current economic challenge? The aging of the world's population. The economic threat of continued international terrorism. They are all current economic challenges. The growth of China and India.

They are all current economic challenges.

According to a supply curve, ________. as prices rise, quantity of a product supplied falls as prices rise, consumers will buy in larger quantities as prices rise, the quantity of a product that is supplied also rises as prices fall, quantity of a product supplied increases

as prices rise, the quantity of a product that is supplied also rises

A demand curve will shift to the left if the ________. number of buyers increases future expectations become more optimistic buyers' incomes decrease prices of substitute goods increase

buyers' incomes decrease

Fiscal policy ________. can be used to increase economic activity always results in increasing the national debt reduces the money supply increases the money supply

can be used to increase economic activity

Natural resources include all of the following except land. building sites. mineral deposits. capitalsim.

capitalsim.

All of the following can shift the demand curve to either the right or left EXCEPT ________. change in the cost of inputs change in the income of buyers change in the number of buyers buyers' attitudes about the future

change in the cost of inputs

Which form of unemployment can best be addressed by economic stimulus actions? frictional structural cyclical seasonal

cyclical

If labor hours increase, the use of natural resources remains the same and output remains the same, productivity will decrease. cannot be determined. increase. remain the same.

decrease.

In general, as the price of a good or service increases, the quantity demanded: decreases increases depends on the type of product or service stays the same

decreases

An increase in consumers' incomes causes the ________. supply curve to shift to the left demand curve to shift to the left supply curve to shift to the right demand curve to shift to the right

demand curve to shift to the right

The four types of unemployment are ________. recessional, inflation, frictional, and cyclical recessional, frictional, cyclical, and structural inflation, frictional, cyclical, and structural frictional, cyclical, structural, and seasonal

frictional, cyclical, structural, and seasonal

The U.S. population is ________. less diverse that it was 30 years ago declining expanding too rapidly getting older

getting older

Monopolistic competition has ________. many buyers and sellers, and the sellers have some control over price many buyers and sellers, none of whom can control prices only one seller only a few sellers

many buyers and sellers, and the sellers have some control over price

Hailey's research firm was hired by a discount superstore to provide a detailed evaluation regarding consumer preferences. Hailey's analysis involves the study of ________. economics macroeconomics private enterprise system microeconomics

microeconomics

A country has a strong private sector, along with publicly owned enterprises. Entrepreneurs and private-sector investors are entitled to profits, after taxes, and even state-owned enterprises are expected to at least break even. What type of economic system does this country have? communism capitalism socialism mixed economy

mixed economy

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 monopoly an oligopoly pure competition monopolistic competition

monopolistic competition

In which market structure are there large numbers of buyers and sellers, each of whom has some control over price? oligopoly monopoly pure competition monopolistic competition

monopolistic competition

The market structure that is most likely to be regulated is monopolistic competition. oligopoly. pure competition. monopoly.

monopoly.

Which of the following market structures best describes the U.S. auto industry? oligopoly monopolistic competition monopoly pure competition

oligopoly

A surplus will occur when ________. the demand curve is shifting to the right price is below the equilibrium point production quantities are falling price is above the equilibrium point

price is above the equilibrium point

Business borrowing becomes more difficult when ________. the Federal Reserve increases the money supply the federal government increases spending the federal government decreases spending the Federal Reserve decreases the money supply

the Federal Reserve decreases the money supply

The equilibrium point is constant. easy to predict. the prevailing market price. set by suppliers.

the prevailing market price.

Industries were deregulated in the 1980s and 1990s to reduce aggressive competition. to counteract outsourcing. by an act of Congress. to improve customer service and reduce prices.

to improve customer service and reduce prices.

Economists refer to a nation's ________ as an indicator of its economic health. recession rate consumer price index unemployment rate inflation rate

unemployment rate