BUA 105-01 CHAPTER 2 QUIZ UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. In a free-market economic system, if consumers perceive
the price for a state-of-the-art smartphone as too high
for the value received, they are likely to avoid buying it. In
the same light, if the __________.
consumer's desired price is too low, producers will want
to produce an abundance of the product
seller's price is too low, consumers will definitely consider
it of poor quality
consumer's desired price is too low, producers may limit
the amount produced
consumer's desired price is too low, producers will refuse
to make a substitute
Answer:
consumer's desired price is too low, producers may limit the amount produced
Question:
2. In order for the value of goods and services to be
counted as part of a nation's gross domestic product, the
goods and services must be ___________.
produced by a company that was first established in that
particular nation
purchased by the government or citizens of that
particular nation, as opposed to other governments and
people of other nations
produced within the physical boundaries of a particular
nation
those that are purchased with disposable income
Answer:
produced within the physical boundaries of a particular nation
Question:
3. The sum of all the federal deficits over time is known as
the:
fiscal policy
aggregate demand for money
gross national debt
national debt
Answer:
national debt
, Question:
4. The CPI (consumer price index) measures ________________
and ________________.
inflation and deflation- includes energy and food as part
of the market basket of goods and services that it
measures
rising and falling prices of goods, but not services-
provides a 10-year comparison
inflation and deflation excludes energy and food as part
of the market basket of goods and services that it
measures
inflation- excludes apparel, health care, and education
Answer:
inflation and deflation- includes energy and food as part of the market basket of
goods and services that it measures
Question:
5. In terms of economic systems, the trend has been for:
countries that are mostly capitalist to move toward more
socialism.
countries that are mostly socialist to move toward
communist systems.
countries that are capitalist to move toward communism.
countries to remain primarily within the economic system
the country has in place.
Answer:
countries that are mostly capitalist to move toward more socialism.
Question:
6. Charlie Hayes owns his own landscaping business,
including all the land on which they grow their plants, and
all the equipment. Charlie's son Josh has just graduated
from college with an architectural landscaping degree.
Charlie hopes to retire in a few years and turn the
business over to Josh, and Josh will inherit the business
when Charlie dies. This is an example of the ______________ in
a capitalist system.
right to private property
right to freedom of choice
right to have a job
right to compete
Answer:
right to private property
QUESTIONS AND CORRECT ANSWERS
Question:
1. In a free-market economic system, if consumers perceive
the price for a state-of-the-art smartphone as too high
for the value received, they are likely to avoid buying it. In
the same light, if the __________.
consumer's desired price is too low, producers will want
to produce an abundance of the product
seller's price is too low, consumers will definitely consider
it of poor quality
consumer's desired price is too low, producers may limit
the amount produced
consumer's desired price is too low, producers will refuse
to make a substitute
Answer:
consumer's desired price is too low, producers may limit the amount produced
Question:
2. In order for the value of goods and services to be
counted as part of a nation's gross domestic product, the
goods and services must be ___________.
produced by a company that was first established in that
particular nation
purchased by the government or citizens of that
particular nation, as opposed to other governments and
people of other nations
produced within the physical boundaries of a particular
nation
those that are purchased with disposable income
Answer:
produced within the physical boundaries of a particular nation
Question:
3. The sum of all the federal deficits over time is known as
the:
fiscal policy
aggregate demand for money
gross national debt
national debt
Answer:
national debt
, Question:
4. The CPI (consumer price index) measures ________________
and ________________.
inflation and deflation- includes energy and food as part
of the market basket of goods and services that it
measures
rising and falling prices of goods, but not services-
provides a 10-year comparison
inflation and deflation excludes energy and food as part
of the market basket of goods and services that it
measures
inflation- excludes apparel, health care, and education
Answer:
inflation and deflation- includes energy and food as part of the market basket of
goods and services that it measures
Question:
5. In terms of economic systems, the trend has been for:
countries that are mostly capitalist to move toward more
socialism.
countries that are mostly socialist to move toward
communist systems.
countries that are capitalist to move toward communism.
countries to remain primarily within the economic system
the country has in place.
Answer:
countries that are mostly capitalist to move toward more socialism.
Question:
6. Charlie Hayes owns his own landscaping business,
including all the land on which they grow their plants, and
all the equipment. Charlie's son Josh has just graduated
from college with an architectural landscaping degree.
Charlie hopes to retire in a few years and turn the
business over to Josh, and Josh will inherit the business
when Charlie dies. This is an example of the ______________ in
a capitalist system.
right to private property
right to freedom of choice
right to have a job
right to compete
Answer:
right to private property
