BA 101 quiz #1

PGE supplies all of the electricity to Portland, Oregon. PGE is an example of:

a pure monopoly

The most basic measure of economic growth is the:

gross domestic product

Demography is the study of:

people's vital statistics

A decline in real GDP that lasts for two consecutive quarters is called a(n):

recession

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

inflation

_____ refers to a government's programs for controlling the amount of money in circulation.

monetary policy

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

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

capitalism

Inputs, such as natural resources, labor, capital, and entrepreneurship, are known as:

factors of production

The government of Cuba owns or controls all of the basic industries in their economy. Cuba operates in which type of economic system?

Communism

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

fiscal policy

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

oligopoly

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

At prices below equilibrium, demand exceeds supply.

____ is the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes.

Profit

Today companies are focusing on _____, which involves building, maintaining, and enhancing interactions with customers and other parties so as to develop long-term satisfaction through mutually beneficial partnerships.

Relationship Selling, Or Consultative Selling

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

actively looking for work

_____ is the money a company earns from providing services or selling goods to customers.

Revenue

What is the primary difference between a good and a service?

A good is tangible, and a service is intangible

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

competitive market

The economic system under which basic industries are operated by the government or owned by the private sector under strong government control is called:

socialism