BUS 120

Individual ownership of property is a key element in: 1. socialism 2. capitalism 3. communism 4. a command economy 5. utopianism

2. capitalism

A "mixed economy" is an economic system that: 1. combines socialism and communism 2. combines private and government ownership of the factors of production 3. is owned collectively by the people 4. emphasizes government-controlled monopolies 5. relies on a combination of oligopoly and monopoly

2. combines private and government ownership of the factors of production

The most basic measure of economic growth is the: 1. consumer price index 2. gross domestic product 3. producer price index 4. total of all goods and services produced 5. combined producer and consumer price indices

2. gross domestic product

Thom Nielssen owns 500 acres of woodland. His forest is an example of which factor of production? 1. capital 2. natural resources 3. entrepreneurship 4. labor 5. expense

2. natural resources

An industry in which a few firms produce most or all of the output of a product and in which large amounts of capital are needed is called a(n):

2. oligopoly

Which of the following is an example of a factor of production? 1. economy of scale 2. competition 3. free market 4. labor 5. mass production

4. labor

When demand and supply meet, the price of the product or service is established. This is the point of: 1. price intersection 2. monetary value 3. interaction 4. equilibrium

equilibrium

_____ is the quantity of a good or service that people are willing to buy at various prices. 1. Demand 2. Supply 3. Market potential 4. Market share 5. Capacity

1. Demand

_____ refers to a government's programs for controlling the amount of money in circulation 1. Macroeconomics 2. Monetary policy 3. Microeconomics 4. Fiscal policy 5. Economic control

2. Monetary policy

When a single firm accounts for 100 percent of industry sales, it is an example of: 1. an oligopoly 2. a pure monopoly 3. monopolistic competition 4. imperfect compeetition

2. a pure monopoly

In perfect competition, there is: 1. only one producer 2. a large number of buyers and few sellers 3. no relationship between supply and demand 4. a large number of sellers producing nearly identical products

a large number of sellers producing nearly identical products

Iris Souza started the summer with $30. She took $10 and made signs for her dog walking service. She posted the signs all over her neighborhood. She used the other $20 to buy a stout leash and a pooper-scooper. At the end of the summer, after buying herself a new pair of shoes for $50 (she had worn her other shoes out walking dogs), she had $125 left. What was Souza's profit for her summer job? 1. $30 2. $80 3. $125 4. $175 5. $205

3. $125

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

3. monopolistic competition

A decline in real GDP that lasts for two consecutive quarters is called a(n): 1. economic downsizing 2. depression 3. recession 4. resource divestment 5. economic regression

3. recession

How has diversity impacted the marketing and customization of products? 1. The buying power of Asian Americans is declining. 2. There are no significant differences in the various segments of the Hispanic population. 3. The United States will never be a multicultural society. 4. Along with their numbers, the buying power of minorities is growing. 5. The size of the Hispanic market is declining.

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

Which of the following is an example of a demographic factor? 1. a person's attitude toward premarital sex 2. a person's love of reading 3. a person's value system 4. a person's age 5. all of the above

4. a person's age

The standard of living in any country is: 1. measured by subtracting the supply of goods and services from the demand for goods and services 2. determined by the money left over after all expenses are paid 3. the general level of human happiness based on such things as life expectancy, educational standards, health, sanitation, and leisure time 4. measured by the output of goods and services people can buy with the money they have 5. higher for less developed countries like Angola, Bangladesh, and Ceylon than it is for the U.S.

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

Which of the following statements about a socialist economic system is true? 1. The government owns or controls the major industries. 2. The government owns no major industries. 3. Private individuals own and control the major industries. 4. Private individuals own all companies and industries. 5. Major industries are internationally-owned.

1. The government owns or controls the major industries.

When the government raises taxes on consumers and businesses, it is dealing with _____ policy. 1. fiscal 2. monetary 3. inflationary 4. recessionary 5. expansionary

1. fiscal

With a communist economy system: A. there is complete freedom of trade B. consumers can expect a mixed economic reac on C. there are strong incen ves for workers D. basic industries such as railroads and u li es are owned by government, while other industries are owned by the private sector E. none of the above is true

none of the above is true