Intro to Business

Which of the following is an example of a business?

Lawson & Tyler law offices Wal-Mart Ford Motor Company Jack & Jill, a specialty clothing store for young children All of the ABOVE

Members of millennial generation:

are not accurately described by any of the above

Upward and downward changes in aggregate economic activity, as measured by GDP, are called:

business cycles

The slope of the demand curve is:

downward and to the right

The implementation of an expansionary policy by the Federal Reserve would result in:

lower interest rates

The standard of living in any country is:

measured by the output of goods and services people can buy with the money they have

A market in which there are a large number of firms that differentiate their products is called:

monopolistic competition

Think about all the restaurants that are located near your campus. You have probably noted some new ones appearing, and others closing because of lack of business. What type of competition exists in the restaurant business?

monopolistic competition

Thom Nielssen owns 500 acres of woodland. His forest is an example of which factor of production?

natural resources

In a(n) _____, a few sellers can exert substantial control over prices.

oligopoly

When the Federal Reserve implements a(n) ______, it increases the growth of the money supply

expansionary policy

How has diversity impacted the marketing and customization of products?

Along with their numbers, the buying power of minorities is growing.

Which of the following statements about the interaction of demand and supply is true?

At prices below equilibrium, demand exceeds supply.

_____ combine the inputs in the production of goods and services for what are intended to be profitable ventures.

Entrepreneurs

_____ is the quantity of a good or service that people are willing to buy at various prices.

Demand

When the government raises taxes on consumers and businesses, it is dealing with _____ policy.

fiscal

Jarvis Washington recently quit his job as a veterinarian's assistant and is now trying to find a job with another veterinarian. This is an example of _____ unemployment.

frictional RATIONALE: Structural unemployment is caused by a mismatch between the available jobs and the skills of the available workers.

In Canada, the government owns the communications, transportation, and utilities industries, while most other activity is carried on by private enterprise. Canada is an example of:

a mixed economy

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

actively looking for work

The government does not consider full employment to mean 100 percent of its citizens are employed because:

all of the above conditions can and do existRATIONALE: The unemployment rate is the percentage of the total labor force that is actually looking for work but is not actually working.

An economic system based on competition in the marketplace and private ownership of the factors of production is known as:

capitalism

In a _____, the factors of production are owned collectively rather than individually, and no incentives to work harder or to produce quality products are provided.

communist economic system

When the Federal Reserve implements a _____, it tightens the money supply by selling government securities or raising interest rates.

contractionary policy

When the economy is in a recession, many companies must lay off workers, which causes _____ unemployment.

cyclical

When demand and supply meet, the price of the product or service is established. This is the point of:

equilibrium

The average price of construction materials increased by 8.1 percent in 2005. The head of the Home Builders Association said it was due totally to increases in lumber, metal, and labor costs. The 8.1 percent increase is probably an example of:

inflation

The laborers displaced due to assembly line automation at the textile plant may not have the skills needed to operate the computerized machines that replaced them. This is an example of _____ unemployment.

structural

Fiscal policy is concerned with:

taxation and spending

Which of the following countries has a high standard of living?

the United States

Which of the following is the best example of a service?

the pleasure you derive from seeing a good play