FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Understanding Economics and How It Affects Business

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

True/False

Review LaterAdd Note

Review Later

The producer price index measures what is happening to prices at the wholesale level.

A) True
B) False

Correct Answer

verified

Show Answer

Question 62

True/False

Review LaterAdd Note

Review Later

The concept of the invisible hand begins with the assumption that the primary motivation of entrepreneurs is that they will prosper from their own hard work.

A) True
B) False

Correct Answer

verified

Show Answer

Question 63

True/False

Review LaterAdd Note

The most fundamental of all rights in capitalism is the right to private property.

One of the drawbacks of free markets is the fact that competition in such markets undermines the ability of price to adjust to its equilibrium value in the long run.

Maureen is the office manager of a service company. She recently approved the installation of new computers and office equipment for all workers in her office. If Maureen's company is like most service companies, she will probably see a big jump in the productivity figures reported for workers in her office.

There are some restrictions on freedom of assembly and freedom of speech under a system.

In socialist economies, the government owns some, if not most basic businesses such as telecommunications systems and utilities.

Which of the following is an important premise of Smith's conclusions about economic prosperity?

The higher the measurement of productivity, the higher the likely costs of production.

Countries that rely on a free market system are plagued by persistent shortages or surpluses of goods and services.

There is general agreement in the United States on the degree to which the government should be involved in the economy.

If the quantity supplied in a market exceeds the quantity demanded, a shortage will exist.

Which of the following is a basic right under capitalism?

A rising GDP, rising unemployment rate, and rising inflation rate signify a healthy economy.

Macroeconomics is the economic perspective that looks at the operation of a nation's economy as a whole.

Senator Spendital made a speech deploring the continuous deficits in the federal budget. He is proposing an increase in tax rates to raise more revenue for the government and thus gradually reduce the size of the national debt over a period of several years. The strategy Senator Spendital is proposing is a common type of monetary policy.

unemployment results when the demand for labor varies during the year.

In order to restrict spending by businesses and households, the Fed would take measures designed to lower interest rates.

Like most nations, the United States has a mixed economy.

The four basic types of unemployment are frictional, structural, seasonal, and: