BUSN 11 Complete Exam Questions and
Answers
Oligopoly - correct answer-a state of limited competition, in which a market is shared by
a small number of producers or sellers.
BRICS - correct answer-five major emerging national economies: Brazil, Russia, India,
China and South Africa
Economies that were formerly centrally planned that have embraced free market forms
PIIGS - correct answer-Portugal, Italy, Ireland, Greece, Spain
Economies that did not embrace the free market forms
Capitalism is when free markets determine what is to be produced (supply) and what is
to be consumed (demand) T / F - correct answer-T
When starting a business, a new owner will be asked for this document by capital
suppliers, key employees and possible supplier - correct answer-A business plan
Business forms that are designed to limit liability to owners, limit the amount an owner
can lose to - correct answer-The amount they have invested in the company
What is the most closely followed stock market index, which gauges the direction of the
market - correct answer-Dow Jones Industrial Average
What happens when the value of the U.S. dollar increases, relative to other currencies -
correct answer-The trade deficit increases
Capitalism - correct answer-an economic and political system in which a country's trade
and industry are controlled by private owners for profit, rather than by the state.
Production Era - correct answer-In the early 1900s, businesses refined production
process and created greater efficiencies
Marketing Era - correct answer-After WWII, businesses began to develop brands to help
consumers understand the differences among products
liar loan - correct answer-when they can't verify your income
, the great recession - correct answer-huge expansion in the late 90s fueled by Y2K and
the web
M1 Money Supply - correct answer-includes all currency plus checking accounts and
traveler's checks
M2 money supply - correct answer-Includes all of M1 money supply plus most savings
accounts, money market accounts, and certificates of deposit.
Fed tools - correct answer-open market operations, discount rate, reserve requirement
rights of capitalism - correct answer-Right to own a business and keep after-tax profits
Right to private property
Right to free choice
Right to fair competition
pure - correct answer-many sellers selling virtually the same product
Monopolistic - correct answer-a market structure in which many companies sell
products that are similar but not identical
Socialism - correct answer-A system in which society, usually in the form of the
government, owns and controls the means of production.
Hyperinflation - correct answer-A very rapid rise in the price level; an extremely high
rate of inflation.
Consumer Price Index (CPI) - correct answer-evaluates the change in the weighted
average price of goods that an average of consumers buy each month
Producer Price Index (PPI) - correct answer-Evaluates the change over time in the
weighted average wholesale prices
Reasons for International Trade - correct answer-access to factors of production,
reduced risk, inflow of innovation
competitive advantage - correct answer-a set of unique features of a company and its
products that are perceived by the target market as significant and superior to those of
the competition
opportunity cost - correct answer-the most desirable alternative given up as the result of
a decision
absolute advantage - correct answer-the ability to produce more of a given product
using a given amount of resources
Answers
Oligopoly - correct answer-a state of limited competition, in which a market is shared by
a small number of producers or sellers.
BRICS - correct answer-five major emerging national economies: Brazil, Russia, India,
China and South Africa
Economies that were formerly centrally planned that have embraced free market forms
PIIGS - correct answer-Portugal, Italy, Ireland, Greece, Spain
Economies that did not embrace the free market forms
Capitalism is when free markets determine what is to be produced (supply) and what is
to be consumed (demand) T / F - correct answer-T
When starting a business, a new owner will be asked for this document by capital
suppliers, key employees and possible supplier - correct answer-A business plan
Business forms that are designed to limit liability to owners, limit the amount an owner
can lose to - correct answer-The amount they have invested in the company
What is the most closely followed stock market index, which gauges the direction of the
market - correct answer-Dow Jones Industrial Average
What happens when the value of the U.S. dollar increases, relative to other currencies -
correct answer-The trade deficit increases
Capitalism - correct answer-an economic and political system in which a country's trade
and industry are controlled by private owners for profit, rather than by the state.
Production Era - correct answer-In the early 1900s, businesses refined production
process and created greater efficiencies
Marketing Era - correct answer-After WWII, businesses began to develop brands to help
consumers understand the differences among products
liar loan - correct answer-when they can't verify your income
, the great recession - correct answer-huge expansion in the late 90s fueled by Y2K and
the web
M1 Money Supply - correct answer-includes all currency plus checking accounts and
traveler's checks
M2 money supply - correct answer-Includes all of M1 money supply plus most savings
accounts, money market accounts, and certificates of deposit.
Fed tools - correct answer-open market operations, discount rate, reserve requirement
rights of capitalism - correct answer-Right to own a business and keep after-tax profits
Right to private property
Right to free choice
Right to fair competition
pure - correct answer-many sellers selling virtually the same product
Monopolistic - correct answer-a market structure in which many companies sell
products that are similar but not identical
Socialism - correct answer-A system in which society, usually in the form of the
government, owns and controls the means of production.
Hyperinflation - correct answer-A very rapid rise in the price level; an extremely high
rate of inflation.
Consumer Price Index (CPI) - correct answer-evaluates the change in the weighted
average price of goods that an average of consumers buy each month
Producer Price Index (PPI) - correct answer-Evaluates the change over time in the
weighted average wholesale prices
Reasons for International Trade - correct answer-access to factors of production,
reduced risk, inflow of innovation
competitive advantage - correct answer-a set of unique features of a company and its
products that are perceived by the target market as significant and superior to those of
the competition
opportunity cost - correct answer-the most desirable alternative given up as the result of
a decision
absolute advantage - correct answer-the ability to produce more of a given product
using a given amount of resources
