C201 Business Acumen Exam Questions With
Correct Answers
Demand /- /correct /answer(s) /✔✔ /refers /to /the /willingness /and /ability /of /buyers /to /purchase
/goods /and /services /at /different /prices
Supply /- /correct /answer(s) /✔✔ /the /amount /of /goods /and /services /for /sale /at /different /prices
Economics /- /correct /answer(s) /✔✔ /amounts /to /a /balance /between /what /we /want /and /what
/we /can /afford
Demand /Curve /- /correct /answer(s) /✔✔ /is /a /graph /of /the /amount /of /a /product /that /buyers
/will /purchase /at /different /prices
Supply /curve /- /correct /answer(s) /✔✔ /shows /the /relationship /between /different /prices /and
/the /quantities /that /will /supply /or /offer /for /sale, /regardless /of /demand
Macroeconomics /- /correct /answer(s) /✔✔ /the /study /of /a /country's /overall /economic /issues
Capitalism /- /correct /answer(s) /✔✔ /economic /system /that /rewards /companies /for /their /ability
/to /perceive /and /serve /the /needs /and /demands /of /consumers
Pure /Competition /- /correct /answer(s) /✔✔ /large /number /of /buyers /and /sellers /exchange
/homogenous /products /and /no /single /participant /has /a /significant /influence /on /price
,Monopolistic /Competition /- /correct /answer(s) /✔✔ /large /number /of /buyers /and /sellers
/exchange /heterogenous /products /so /each /participant /has /some /control /over /price
Oligopoly /- /correct /answer(s) /✔✔ /market /structure /in /which /relatively /few /sellers /compete
/and /high /start /up /costs /form /barriers /to /keep /out /new /competitors
Monopoly /- /correct /answer(s) /✔✔ /a /single /seller /dominates /trade /in /a /good /or /service /for
/which /buyers /can /find /no /close /substitutions
Planned /Economy /- /correct /answer(s) /✔✔ /Government /controls /determine /business
/ownership, /profits, /and /resource /allocation /to /accomplish /government /goals /rather /than
/those /set /by /individual /firms
Socialism /- /correct /answer(s) /✔✔ /Characterized /by /government /ownership /and /operation /of
/major /industries /such /as /communication
Communism /- /correct /answer(s) /✔✔ /economic /system /in /which /all /property /would /be /shared
/equally /by /the /people /of /a /community /under /the /direction /of /a /strong /central /government
Mixed /Market /Economies /- /correct /answer(s) /✔✔ /economic /system /that /draw /from /both
/types /of /economies, /to /different /degrees
Privatization /- /correct /answer(s) /✔✔ /conversion /of /government /owned /and /operated
/companies /into /privately /held /businesses
Recession /- /correct /answer(s) /✔✔ /a /cyclical /economic /contraction /that /lasts /for /six /months /or
/longer /- /consumers /frequently /postpone /major /purchases /and /shift /buying /patters /towards
/basic, /functional /products /carrying /low /prices
, Productivity /- /correct /answer(s) /✔✔ /the /relationship /between /the /goods /and /services
/produced /in /a /nation /each /year /and /the /inputs /needed /to /produce /them
Gross /Domestic /Product /- /correct /answer(s) /✔✔ /the /sum /of /all /goods /and /services /produced
/within /its /boundaries. /Based /on /the /per /capita /output /of /a /country
Inflation /- /correct /answer(s) /✔✔ /rising /prices /caused /by /a /combination /of /excess /consumer
/demand /and /increases /in /the /costs /of /raw /materials, /component /parts, /human /resources,
/and /other /factors /of /production
Hyperinflation /- /correct /answer(s) /✔✔ /an /economic /situation /characterized /by /soaring /prices
Deflation /- /correct /answer(s) /✔✔ /occurs /when /prices /continue /to /fall
Consumer /Price /Index /(CPI) /- /correct /answer(s) /✔✔ /measures /the /monthly /average /change /in
/price /in /goods /and /services
Monetary /policy /- /correct /answer(s) /✔✔ /government /actions /to /increase /or /decrease /the
/money /supply /and /changing /banking /requirements /and /interest /rates /to /influence /spending
/by /altering /bankers' /willingness /to /make /loans
Expansionary /monetary /policy /- /correct /answer(s) /✔✔ /increases /the /money /supply /in /an
/effort /to /cut /the /cost /of /borrowing, /which /encourages /business /decision /makers /to /make
/new /investments, /in /turn /stimulating /employment /and /economic /growth
Restrictive /monetary /policy /- /correct /answer(s) /✔✔ /reduces /the /money /supply /to /curb /rising
/prices, /overexpansion, /and /concerns /about /rapid /economic /growth
Correct Answers
Demand /- /correct /answer(s) /✔✔ /refers /to /the /willingness /and /ability /of /buyers /to /purchase
/goods /and /services /at /different /prices
Supply /- /correct /answer(s) /✔✔ /the /amount /of /goods /and /services /for /sale /at /different /prices
Economics /- /correct /answer(s) /✔✔ /amounts /to /a /balance /between /what /we /want /and /what
/we /can /afford
Demand /Curve /- /correct /answer(s) /✔✔ /is /a /graph /of /the /amount /of /a /product /that /buyers
/will /purchase /at /different /prices
Supply /curve /- /correct /answer(s) /✔✔ /shows /the /relationship /between /different /prices /and
/the /quantities /that /will /supply /or /offer /for /sale, /regardless /of /demand
Macroeconomics /- /correct /answer(s) /✔✔ /the /study /of /a /country's /overall /economic /issues
Capitalism /- /correct /answer(s) /✔✔ /economic /system /that /rewards /companies /for /their /ability
/to /perceive /and /serve /the /needs /and /demands /of /consumers
Pure /Competition /- /correct /answer(s) /✔✔ /large /number /of /buyers /and /sellers /exchange
/homogenous /products /and /no /single /participant /has /a /significant /influence /on /price
,Monopolistic /Competition /- /correct /answer(s) /✔✔ /large /number /of /buyers /and /sellers
/exchange /heterogenous /products /so /each /participant /has /some /control /over /price
Oligopoly /- /correct /answer(s) /✔✔ /market /structure /in /which /relatively /few /sellers /compete
/and /high /start /up /costs /form /barriers /to /keep /out /new /competitors
Monopoly /- /correct /answer(s) /✔✔ /a /single /seller /dominates /trade /in /a /good /or /service /for
/which /buyers /can /find /no /close /substitutions
Planned /Economy /- /correct /answer(s) /✔✔ /Government /controls /determine /business
/ownership, /profits, /and /resource /allocation /to /accomplish /government /goals /rather /than
/those /set /by /individual /firms
Socialism /- /correct /answer(s) /✔✔ /Characterized /by /government /ownership /and /operation /of
/major /industries /such /as /communication
Communism /- /correct /answer(s) /✔✔ /economic /system /in /which /all /property /would /be /shared
/equally /by /the /people /of /a /community /under /the /direction /of /a /strong /central /government
Mixed /Market /Economies /- /correct /answer(s) /✔✔ /economic /system /that /draw /from /both
/types /of /economies, /to /different /degrees
Privatization /- /correct /answer(s) /✔✔ /conversion /of /government /owned /and /operated
/companies /into /privately /held /businesses
Recession /- /correct /answer(s) /✔✔ /a /cyclical /economic /contraction /that /lasts /for /six /months /or
/longer /- /consumers /frequently /postpone /major /purchases /and /shift /buying /patters /towards
/basic, /functional /products /carrying /low /prices
, Productivity /- /correct /answer(s) /✔✔ /the /relationship /between /the /goods /and /services
/produced /in /a /nation /each /year /and /the /inputs /needed /to /produce /them
Gross /Domestic /Product /- /correct /answer(s) /✔✔ /the /sum /of /all /goods /and /services /produced
/within /its /boundaries. /Based /on /the /per /capita /output /of /a /country
Inflation /- /correct /answer(s) /✔✔ /rising /prices /caused /by /a /combination /of /excess /consumer
/demand /and /increases /in /the /costs /of /raw /materials, /component /parts, /human /resources,
/and /other /factors /of /production
Hyperinflation /- /correct /answer(s) /✔✔ /an /economic /situation /characterized /by /soaring /prices
Deflation /- /correct /answer(s) /✔✔ /occurs /when /prices /continue /to /fall
Consumer /Price /Index /(CPI) /- /correct /answer(s) /✔✔ /measures /the /monthly /average /change /in
/price /in /goods /and /services
Monetary /policy /- /correct /answer(s) /✔✔ /government /actions /to /increase /or /decrease /the
/money /supply /and /changing /banking /requirements /and /interest /rates /to /influence /spending
/by /altering /bankers' /willingness /to /make /loans
Expansionary /monetary /policy /- /correct /answer(s) /✔✔ /increases /the /money /supply /in /an
/effort /to /cut /the /cost /of /borrowing, /which /encourages /business /decision /makers /to /make
/new /investments, /in /turn /stimulating /employment /and /economic /growth
Restrictive /monetary /policy /- /correct /answer(s) /✔✔ /reduces /the /money /supply /to /curb /rising
/prices, /overexpansion, /and /concerns /about /rapid /economic /growth
