Chapter 3 Assignment

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Business borrowing becomes more difficult when ________. the Federal Reserve increases the money supply the federal government increases spending the federal government decreases spending the Federal Reserve decreases the money supply
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the Federal Reserve decreases the money supply
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Fiscal policy ________. can be used to increase economic activity always results in increasing the national debt reduces the money supply increases the money supply
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can be used to increase economic activity
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By changing ________, the Federal Reserve can expand or shrink funds available to lend. fees charged on household and business checking and savings accounts spending taxes interest rates
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interest rates
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The Federal Reserve slows the growth in the supply of money and credit. Interest rates will likely ________, which is an example of ________ policy. fall; fiscal rise; monetary rise; fiscal fall; monetary
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rise; monetary
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The U.S. population is ________. less diverse that it was 30 years ago declining expanding too rapidly getting older
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getting older
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Individual and business decisions are ________ by economic conditions and, in turn, economic conditions are ________ by their decisions. not affected; not affected affected; affected affected; not affected not affected; affected
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affected; affected
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In general, as the price of a good or service increases, the quantity demanded: decreases increases depends on the type of product or service stays the same
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decreases
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Hailey’s research firm was hired by a discount superstore to provide a detailed evaluation regarding consumer preferences. Hailey’s analysis involves the study of ________. economics macroeconomics private enterprise system microeconomics
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microeconomics
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If the number of buyers decreases, the demand curve will shift to the ________ and the price will ________. left; rise left; fall right; fall right; rise
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left; fall
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If the prices of substitute goods decrease, the demand curve will shift to the ________ and the price will ________. left; rise right; fall left; fall right; rise
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left; fall
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A demand curve will shift to the left if the ________. number of buyers increases future expectations become more optimistic buyers’ incomes decrease prices of substitute goods increase
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buyers’ incomes decrease
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All of the following can shift the demand curve to either the right or left EXCEPT ________. change in the cost of inputs change in the income of buyers change in the number of buyers buyers’ attitudes about the future
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change in the cost of inputs
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An increase in consumers’ incomes causes the ________. supply curve to shift to the left demand curve to shift to the left supply curve to shift to the right demand curve to shift to the right
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demand curve to shift to the right
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According to a supply curve, ________. as prices rise, quantity of a product supplied falls as prices rise, consumers will buy in larger quantities as prices rise, the quantity of a product that is supplied also rises as prices fall, quantity of a product supplied increases
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as prices rise, the quantity of a product that is supplied also rises
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As the number of suppliers of a product increases, the supply curve shifts to the ________ and the price will ________. left; fall right; fall left; rise right; rise
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right; fall
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Assume the price of gasoline triples. What will likely happen to the demand for small cars? The demand curve will shift to the ________ and demand will ________. left; increase right; increase right; decrease left; decrease
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right; increase
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The equilibrium price is established when the quantity ________. supplied is equal to the amount of raw materials available bought is equal to the quantity demanded demanded is equal to the quantity supplied at a lower price purchased is equal to the quantity offered
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purchased is equal to the quantity offered
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If the market price is above the equilibrium price, ________. producers will earn large profits consumers will go on strike and not purchase any of the product the demand curve will shift to the right causing the surplus to go away a surplus will occur and prices and production will fall
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a surplus will occur and prices and production will fall
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A surplus will occur when ________. the demand curve is shifting to the right price is below the equilibrium point production quantities are falling price is above the equilibrium point
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price is above the equilibrium point
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A shortage will occur when ________. the demand curve is shifting to the left price is below the equilibrium point prices are falling production quantities are rising
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price is below the equilibrium point
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Supply and demand correct a shortage by ________. keeping the price the same but decreasing production reducing the product price to decrease production raising the price to decrease production raising the price to increase production
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raising the price to increase production
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Holding supply constant and decreasing demand will cause ________. prices and production both to rise prices to rise and production to fall prices to fall and production to rise prices and production both to fall
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prices and production both to fall
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Most industrialized nations operate economies based on ________. socialist systems private enterprise systems planned economies communist systems
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private enterprise systems
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A particular industry has many competitors, each of whom has little control over price. In addition, it is fairly easy to enter the industry. This industry is an example of ________. an oligopoly a pure monopoly pure competition monopolistic competition
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pure competition
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Monopolistic competition has ________. many buyers and sellers, and the sellers have some control over price many buyers and sellers, none of whom can control prices only one seller only a few sellers
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many buyers and sellers, and the sellers have some control over price
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Consumers can choose from hundreds of different kinds and producers of cheese, each with a slightly different flavor and texture. This type of market structure is known as ________. a monopoly an oligopoly pure competition monopolistic competition
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monopolistic competition
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The four different types of market structure in a private enterprise system are ________. communism, socialism, capitalism, and mixed systems mixed, socialism, communism, and pure competition pure competition, monopolistic competition, oligopoly, and monopoly socialism, oligopoly, monopoly, and pure competition
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pure competition, monopolistic competition, oligopoly, and monopoly
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A particular industry has only a few competitors, who have at least some control over price. Entry into the industry is difficult. This industry is an example of ________. an oligopoly monopolistic competition a pure monopoly pure competition
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an oligopoly
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Which of the following market structures best describes the U.S. auto industry? oligopoly monopolistic competition monopoly pure competition
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oligopoly
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Barriers to entry into an industry are highest in ________. a monopoly pure competition monopolistic competition an oligopoly
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a monopoly
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A country has a strong private sector, along with publicly owned enterprises. Entrepreneurs and private-sector investors are entitled to profits, after taxes, and even state-owned enterprises are expected to at least break even. What type of economic system does this country have? communism capitalism socialism mixed economy
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mixed economy
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The conversion of the postal service from government-owned and operated into privately held businesses would be an example of ________. pure competition deregulation regulated monopolies privatization
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privatization
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Consumers often turn to lower-priced retailers for the goods they need during a business cycle of ________. recession recovery prosperity depression
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recession
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________ is the relationship between the goods and services produced in a nation each year and workers, raw materials, and other inputs necessary to produce them. Per capita income Prosperity Productivity GDP (gross domestic product)
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Productivity
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________ provides a running measure of consumer price changes. The Consumer Price Index (CPI) Devaluation Per capita income The Producer Price Index (PPI)
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The Consumer Price Index (CPI)
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Economists refer to a nation’s ________ as an indicator of its economic health. recession rate consumer price index unemployment rate inflation rate
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unemployment rate
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The four types of unemployment are ________. recessional, inflation, frictional, and cyclical recessional, frictional, cyclical, and structural inflation, frictional, cyclical, and structural frictional, cyclical, structural, and seasonal
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frictional, cyclical, structural, and seasonal
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The equilibrium point is constant. easy to predict. the prevailing market price. set by suppliers.
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the prevailing market price.
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If labor hours increase, the use of natural resources remains the same and output remains the same, productivity will decrease. cannot be determined. increase. remain the same.
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decrease.
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Natural resources include all of the following except land. building sites. mineral deposits. capitalsim.
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capitalsim.
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The market structure that is most likely to be regulated is monopolistic competition. oligopoly. pure competition. monopoly.
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monopoly.
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In which market structure are there large numbers of buyers and sellers, each of whom has some control over price? oligopoly monopoly pure competition monopolistic competition
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monopolistic competition
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The four basic types of competition that take shape in a private enterprise system are: recession, depression, inflation, and deflation. pure competition, monopolistic competition, oligopoly, and monopoly. socialism, democracy, communism, and capitalism. macroeconomics, microeconomics, monopoly, and capitalism.
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pure competition, monopolistic competition, oligopoly, and monopoly.
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During which stage of the business cycle does unemployment rise and inflation fall? Recession Growth Decline Prosperity
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Recession
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Core inflation rate is the inflation rate of an economy after ______and______ prices are removed. energy; food utilities; education transportation; housing entertainment; clothing
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energy; food
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Industries were deregulated in the 1980s and 1990s to reduce aggressive competition. to counteract outsourcing. by an act of Congress. to improve customer service and reduce prices.
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to improve customer service and reduce prices.
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Which form of unemployment can best be addressed by economic stimulus actions? frictional structural cyclical seasonal
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cyclical
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________ consists of government spending and taxation decisions to control inflation, encourage economic growth, and balance the Federal budget. Expansionary monitory policy National budgeting Structured unemployment Fiscal policy
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Fiscal policy
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Which of the following is NOT a current economic challenge? The aging of the world’s population. The economic threat of continued international terrorism. They are all current economic challenges. The growth of China and India.
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They are all current economic challenges.
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American growth oriented companies cannot ignore the world market since ______ out of every 22 of the world’s population are U. S. residents. 5 10 2 1
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1

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