comprehensive quiz 1 Qs&As

You see a trending article online mentioning that the unemployment rate has decreased by 2% in the last year. This means that:

a bigger percentage of the nation's labor force is working compared to last year.

When Toyota experienced declining sales, it began offering price incentives to new car buyers. Nearly immediately, Ford and General Motors began similar promotions. These businesses:

represent an oligopoly in which there are few sellers, and sellers often match the prices of competitors.

Which of the following is a feature of laissez-faire capitalism?

right to own private property and resources

Which of the following scenarios most accurately describes Adam Smith's view of an economic system that best serves the interests of society?

Individuals in the country may pursue their own economic gain and self-interest by doing whatever is best for them.

Which of the following is the best example of how technology factors affect the business environment?

The cost of a 32" flat screen HDTV is less than half what it was 8 years ago.

If the size of the economy has grown for the last three quarters, but prices overall have dropped, which of the following is true?

The economy is in an expansion phase and CPI is decreasing.

As a farmer, Gary Forsythe is familiar with the economics of perfect competition. How is the price at which he sells his corn determined

The price is determined by combining the actions of all buyers and all sellers together.

If all leading corporations in the soft-drink industry merged, forcing all smaller soft-drink companies out of business, this would:

create a monopoly

As the price of jeans rises, manufacturers that make and sell jeans are likely to:

increase production and thus increase the supply

CPI increased by 10% last month, alarming economists. This news is an indication that:

inflation may be spiraling out of control