Module 1c

Which of the following is the BEST definition of an oligopoly?

A market or industry characterized by a handful of sellers with the power to influence the prices of their products

Which of the following is the BEST definition of a monopoly?

A market or industry in which there is only one producer that can singularly control the prices of its products

Which of the following is the BEST definition of socialism?

A system in which the government owns and operates only selected major sources of production and private ownership of smaller businesses is permitted

Which of the following is an example of an economic indicator?

Aggregate output

Which of the following is a measure of the prices of typical products purchased by consumers living in urban areas?

Consumer price index

Which of the following is NOT an element of the external environment that would affect a business?

Corporate culture

To determine the for a given country for a given year, you need to know the total value of all goods and services a national economy produces during one year using its domestic factors of production plus its population.

GDP per capita

Because the price of grapes has decreased steadily in recent years, Marco has decided to sell off some of his vineyard because he no longer needs to produce as much. Which of the following supports that Marco has made the right decision?

Law of demand

Because the price of grapes has risen steadily in recent years, Marco has decided to expand his vineyard so that he can offer more grapes to his buyers. Which of the following supports that Marco has made the right decision?

Law of supply

Which of the following describes the situation when the quantity of goods demanded matches the quantity of goods supplied?

Market price

Which of the following is a characteristic of the economic environment?

Monopolistic competition

Which of the following terms refers to a market or industry in which there is only one producer that can singularly control the prices of its products?

Monopoly

Which of the following statements BEST describes a planned economy?

One in which the government owns and controls factors of production, such as labor

is a planned economic system in which the government owns and operates only selected major sources of production.

Socialism

Which is an example of an information resource?

Stock market quote

Gross domestic product would be BEST defined as which of the following?

The total value of all goods and services produced within a given period by a national economy through domestic factors of production

is the economic indicator that describes the level of joblessness among individuals who are actively taking steps to get a job.

Unemployment

Which of the following situations describes the market price?

When the quantity of goods demanded matches the quantity of goods supplied

Capital is .

a means to finance a new business and sustain that business throughout its life

The economy in which the government owns and controls factors of production, such as labor, is best known as _______.

a planned economy

To finance a new business and sustain that business throughout its life, companies need .

capital

Characteristics such as information resources, demand and supply, and monopolistic competition determine the in which a business operates.

economic environment

Human resources are examples of .

factors of production

Labor and capital are examples of .

factors of production

In the United States, the federal government uses to manage its revenues.

fiscal policies

For sellers to sell goods or services and for buyers to purchase goods and services, a method for the exchange that takes place between the two parties, called a , is used.

market

The government raises taxes or sells bonds in order to acquire more money to pay back its creditors. This amount of money is an economic indicator known as .

national debt

The relationship between the amount of resources needed to produce a good and the number of goods produced is known as _______.

productivity

The domestic business environment is .

the external environment in which a company operates in proximity to its customers and gets its revenues