BUS 100 Final Exam || with A+ Guaranteed Solutions.
Which of the following best describes capitalism?
A. An economic system focused on adherence to government policy and procedure
B. A system where the government controls the production of products and services
C. A planned economic system
D. An economic system where most products and services are provided by businesses and individuals, but some products and services are provided by the government
E. An economic system where individuals and businesses are responsible for producing and selling goods and services based on customer needs and wants correct answers An economic system where individuals and businesses are responsible for producing and selling goods and services based on customer needs and wants
Which of the following best describes communism?
A. It is an economic system in which the government controls production.
B. It is a free-market economy in which individuals and businesses are responsible for determining what products and services to produce.
C. It is an economy in which businesses are focused on efficiency and profitability.
D. It is a completely unplanned economy.
E. It is an economy in which most products and services are provided by businesses and individuals, and some products and services are provided by the government. correct answers It is an economic system in which the government controls production.
In which type of economic system is the focus on efficiency and profitability?
A. Communism
B. Capitalism
C. Mixed market economy
D. Planned economic system
E. Socialism correct answers Capitalism
Macroeconomics __________.
A. does not take into account the unemployment rate
B. includes the study of the consuming habits of individuals
C. does not include studying the impact of housing on the overall economy
D. is primarily concerned with the study of local businesses
E. focuses on studying the economy as a whole correct answers focuses on studying the economy
as a whole
Which of the following statements is true of a mixed economy?
A. The government is in complete control of all goods and services in a mixed economy.
B. The government has a very low degree of control in a mixed economy.
C. Social programs are nonexistent in a mixed economy.
D. The economy is completely unplanned and is focused on maximum profitability in a mixed economy.
E. The government supplies some goods and services in a mixed economy. correct answers The government supplies some goods and services in a mixed economy. All of the following statements are true about socialism EXCEPT:
A. The government is in control of production of many basic businesses and distributes the profits from those businesses evenly among the people.
B. Socialism tends to disincentivize labor.
C. The majority of economic systems in the world are purely socialist economies.
D. The government usually runs social services such as education, health care, retirement and utilities.
E. Countries characterized by socialism tend to have high tax rates. correct answers The majority
of economic systems in the world are purely socialist economies.
Which of the following statements is true of complementary goods?
A. A decrease in demand of one good would increase demand of its complementary good.
B. Complementary goods decrease the value and demand of a related good.
C. Complementary goods are not a determinant of demand.
D. Complementary goods are typically consumed together.
E. Complementary goods are consumed separately. correct answers Complementary goods are typically consumed together.
Currency __________.
A. is a unit of exchange used for the purchase of goods and services
B. is based on the value of gold in the United States
C. means the price for a good or service cannot change
D. is inconsistent in an economy
E. uses barter for a means of exchange correct answers is a unit of exchange used for the purchase of goods and services
Which of the following is true about demand?
A. Demand is at its greatest level during an economic depression.
B. Demand decreases as prices increase.
C. Demand has no impact on the price of a good or service.
D. Demand is greater when more supply is available.
E. A substitute good or service increases demand for the original good or service. correct answers Demand decreases as prices increase.
The equilibrium price __________.
A. occurs when supply equals demand for a good or service
B. is dictated by consumers
C. results in higher demand for goods and services
D. only affects goods but not services
E. means a product shortage exists correct answers occurs when supply equals demand for a good or service
Which of the following is true of the law of supply?
A. Supply is driven by a supplier's desire to minimize profits.
B. Lower profit margins leads to more supply. C. Price decreases result in suppliers providing more goods.
D. Suppliers will provide more of a good when its price is high.
E. Higher prices lead to less supply. correct answers Suppliers will provide more of a good when
its price is high.
Which of the following statements regarding shortages is true?
A. Shortages can lead to higher prices.
B. Shortages often lead to sellers to reduce the price of a good or service.
C. Shortages do not happen in communist countries.
D. Shortages do not occur after a price decrease.
E. Shortages often lead sellers to clear out excess inventory. correct answers Shortages can lead to higher prices.
All of the following factors will shift supply of a good or service EXCEPT:
A. The number of substitute goods.
B. Price expectations.
C. The number of suppliers.
D. Changes in resource prices.
E. Complementary goods. correct answers Complementary goods.
Which of the following statements is true of duopolies?
A. In duopolies, there are many firms that sell a product or service.
B. Duopolies encourage competition.
C. Duopolies result in decreased demand for goods and services.
D. Duopolies have great influence over the pricing and the availability of the products and services they sell.
E. Consumers have many purchasing options in duopolies. correct answers Duopolies have great influence over the pricing and the availability of the products and services they sell.
Which of the following best describes a monopoly?
A. Monopolies have very little control in dictating prices to consumers.
B. A monopoly has complete control over an entire industry.
C. Monopolies have many competitors.
D. Monopolies have little control over sales of goods and services.
E. Monopolies are not subject to government oversight. correct answers A monopoly has complete control over an entire industry.
Which of the following is the best example of an oligopoly?
A. Chinese restaurants in San Francisco
B. Universities and colleges in the United States
C. Automobile manufacturers in the United States
D. Hair salons in Los Angeles
E. Microsoft's Windows operating system correct answers Automobile manufacturers in the United States
Perfect competition __________. A. makes it impossible for any single seller to set the price for their products
B. is unlikely to occur in a free-market economy
C. makes it easy for sellers to control the prices of their goods and services
D. occurs when a few large companies compete with another for business
E. puts consumers at a disadvantage due to higher prices correct answers makes it impossible for any single seller to set the price for their products
Which of the following is NOT one of the major groups of products and services used by the U.S. Bureau of Labor Statistics in determining the consumer price index (CPI)?
A. Food and beverages
B. Income taxes
C. Medical care
D. Recreation
E. Transportation correct answers Income taxes
Disinflation __________.
A. is when the rate of inflation decreases
B. occurs when the prices for goods and services increase dramatically over a short period of time
C. has no impact on prices for goods and services
D. occurs when prices decrease over time
E. is a sign of a healthy economy correct answers is when the rate of inflation decreases
Which of the following is true of frictional unemployment?
A. Frictional unemployment occurs when employers only have need for employees during certain times of the year.
B. Frictional unemployment occurs during an economic downturn as employers lay off employees and hire them back once the demand for products and services increase.
C. Frictional unemployment occurs when an employee is still working for a company but looking for a new job.
D. Frictional unemployment is temporary in nature.
E. Frictional unemployment is when an industry closes and no longer needs certain types of employees. correct answers Frictional unemployment is temporary in nature.
Which of the following best describes seasonal unemployment?
A. Seasonal unemployment is a type of structural unemployment.
B. Seasonal unemployment involves businesses or industries that need workers only at certain times of the year.
C. Seasonal unemployment is not an important type of unemployment.
D. Seasonal unemployment is a permanent type of unemployment.
E. Seasonal unemployment does not involve agricultural workers. correct answers Seasonal unemployment involves businesses or industries that need workers only at certain times of the year.
Which of the following is NOT a stage of the business cycle?
A. Expansion or recovery
Which of the following best describes capitalism?
A. An economic system focused on adherence to government policy and procedure
B. A system where the government controls the production of products and services
C. A planned economic system
D. An economic system where most products and services are provided by businesses and individuals, but some products and services are provided by the government
E. An economic system where individuals and businesses are responsible for producing and selling goods and services based on customer needs and wants correct answers An economic system where individuals and businesses are responsible for producing and selling goods and services based on customer needs and wants
Which of the following best describes communism?
A. It is an economic system in which the government controls production.
B. It is a free-market economy in which individuals and businesses are responsible for determining what products and services to produce.
C. It is an economy in which businesses are focused on efficiency and profitability.
D. It is a completely unplanned economy.
E. It is an economy in which most products and services are provided by businesses and individuals, and some products and services are provided by the government. correct answers It is an economic system in which the government controls production.
In which type of economic system is the focus on efficiency and profitability?
A. Communism
B. Capitalism
C. Mixed market economy
D. Planned economic system
E. Socialism correct answers Capitalism
Macroeconomics __________.
A. does not take into account the unemployment rate
B. includes the study of the consuming habits of individuals
C. does not include studying the impact of housing on the overall economy
D. is primarily concerned with the study of local businesses
E. focuses on studying the economy as a whole correct answers focuses on studying the economy
as a whole
Which of the following statements is true of a mixed economy?
A. The government is in complete control of all goods and services in a mixed economy.
B. The government has a very low degree of control in a mixed economy.
C. Social programs are nonexistent in a mixed economy.
D. The economy is completely unplanned and is focused on maximum profitability in a mixed economy.
E. The government supplies some goods and services in a mixed economy. correct answers The government supplies some goods and services in a mixed economy. All of the following statements are true about socialism EXCEPT:
A. The government is in control of production of many basic businesses and distributes the profits from those businesses evenly among the people.
B. Socialism tends to disincentivize labor.
C. The majority of economic systems in the world are purely socialist economies.
D. The government usually runs social services such as education, health care, retirement and utilities.
E. Countries characterized by socialism tend to have high tax rates. correct answers The majority
of economic systems in the world are purely socialist economies.
Which of the following statements is true of complementary goods?
A. A decrease in demand of one good would increase demand of its complementary good.
B. Complementary goods decrease the value and demand of a related good.
C. Complementary goods are not a determinant of demand.
D. Complementary goods are typically consumed together.
E. Complementary goods are consumed separately. correct answers Complementary goods are typically consumed together.
Currency __________.
A. is a unit of exchange used for the purchase of goods and services
B. is based on the value of gold in the United States
C. means the price for a good or service cannot change
D. is inconsistent in an economy
E. uses barter for a means of exchange correct answers is a unit of exchange used for the purchase of goods and services
Which of the following is true about demand?
A. Demand is at its greatest level during an economic depression.
B. Demand decreases as prices increase.
C. Demand has no impact on the price of a good or service.
D. Demand is greater when more supply is available.
E. A substitute good or service increases demand for the original good or service. correct answers Demand decreases as prices increase.
The equilibrium price __________.
A. occurs when supply equals demand for a good or service
B. is dictated by consumers
C. results in higher demand for goods and services
D. only affects goods but not services
E. means a product shortage exists correct answers occurs when supply equals demand for a good or service
Which of the following is true of the law of supply?
A. Supply is driven by a supplier's desire to minimize profits.
B. Lower profit margins leads to more supply. C. Price decreases result in suppliers providing more goods.
D. Suppliers will provide more of a good when its price is high.
E. Higher prices lead to less supply. correct answers Suppliers will provide more of a good when
its price is high.
Which of the following statements regarding shortages is true?
A. Shortages can lead to higher prices.
B. Shortages often lead to sellers to reduce the price of a good or service.
C. Shortages do not happen in communist countries.
D. Shortages do not occur after a price decrease.
E. Shortages often lead sellers to clear out excess inventory. correct answers Shortages can lead to higher prices.
All of the following factors will shift supply of a good or service EXCEPT:
A. The number of substitute goods.
B. Price expectations.
C. The number of suppliers.
D. Changes in resource prices.
E. Complementary goods. correct answers Complementary goods.
Which of the following statements is true of duopolies?
A. In duopolies, there are many firms that sell a product or service.
B. Duopolies encourage competition.
C. Duopolies result in decreased demand for goods and services.
D. Duopolies have great influence over the pricing and the availability of the products and services they sell.
E. Consumers have many purchasing options in duopolies. correct answers Duopolies have great influence over the pricing and the availability of the products and services they sell.
Which of the following best describes a monopoly?
A. Monopolies have very little control in dictating prices to consumers.
B. A monopoly has complete control over an entire industry.
C. Monopolies have many competitors.
D. Monopolies have little control over sales of goods and services.
E. Monopolies are not subject to government oversight. correct answers A monopoly has complete control over an entire industry.
Which of the following is the best example of an oligopoly?
A. Chinese restaurants in San Francisco
B. Universities and colleges in the United States
C. Automobile manufacturers in the United States
D. Hair salons in Los Angeles
E. Microsoft's Windows operating system correct answers Automobile manufacturers in the United States
Perfect competition __________. A. makes it impossible for any single seller to set the price for their products
B. is unlikely to occur in a free-market economy
C. makes it easy for sellers to control the prices of their goods and services
D. occurs when a few large companies compete with another for business
E. puts consumers at a disadvantage due to higher prices correct answers makes it impossible for any single seller to set the price for their products
Which of the following is NOT one of the major groups of products and services used by the U.S. Bureau of Labor Statistics in determining the consumer price index (CPI)?
A. Food and beverages
B. Income taxes
C. Medical care
D. Recreation
E. Transportation correct answers Income taxes
Disinflation __________.
A. is when the rate of inflation decreases
B. occurs when the prices for goods and services increase dramatically over a short period of time
C. has no impact on prices for goods and services
D. occurs when prices decrease over time
E. is a sign of a healthy economy correct answers is when the rate of inflation decreases
Which of the following is true of frictional unemployment?
A. Frictional unemployment occurs when employers only have need for employees during certain times of the year.
B. Frictional unemployment occurs during an economic downturn as employers lay off employees and hire them back once the demand for products and services increase.
C. Frictional unemployment occurs when an employee is still working for a company but looking for a new job.
D. Frictional unemployment is temporary in nature.
E. Frictional unemployment is when an industry closes and no longer needs certain types of employees. correct answers Frictional unemployment is temporary in nature.
Which of the following best describes seasonal unemployment?
A. Seasonal unemployment is a type of structural unemployment.
B. Seasonal unemployment involves businesses or industries that need workers only at certain times of the year.
C. Seasonal unemployment is not an important type of unemployment.
D. Seasonal unemployment is a permanent type of unemployment.
E. Seasonal unemployment does not involve agricultural workers. correct answers Seasonal unemployment involves businesses or industries that need workers only at certain times of the year.
Which of the following is NOT a stage of the business cycle?
A. Expansion or recovery
