QUESTION Which of the following is NOT a type of free market? A) monopoly B) oligopoly C) managed competition D) monopolistic competition E) perfect competition ANSWER Answer: C Explanation: C) Managed competition is a term used in the health care industry.
Date: September 3rd, 2020
QUESTION Which of the following goods and services available in the United States is NOT factored into counting GDP? A) Apple software produced in Silicon Valley B) education at the University of Iowa C) Ford trucks manufactured in Michigan D) Toblerone chocolate manufactured in Switzerland E) Honda sedans manufactured in Kentucky ANSWER Answer: D […]
Date: September 3rd, 2020
QUESTION Harry is a cynical character who thinks life is rigged against “the little guy.” He says whenever you want to buy something these days, there are only a few stores that offer virtually the same thing and they basically run the table. Which industry does NOT fit Harry’s definition? A) airlines B) automobiles C) […]
Date: September 3rd, 2020
QUESTION After a prolonged recession, businesses are investing and consumers are spending freely again. The unemployment rate is well below the historical average and exports have increased substantially. What term best describes this point in the business cycle? A) peak B) expansion C) recovery D) prosperity E) trough ANSWER Answer: D Explanation: D) Prosperity […]
Date: September 3rd, 2020
QUESTION Jason owns a dozen fast food hamburger franchises in the area. To distinguish his stores from the other burger options in the area and increase sales, he is implementing a delivery service. Which free-market model characterizes Jason’s restaurants? A) perfect competition B) oligopoly C) monopoly D) service economy E) monopolistic competition ANSWER Answer: […]
Date: September 3rd, 2020
QUESTION For the following points (x, y) on the demand curve and supply curve, x = quantity and y = price. Demand curve points: (10,5) (20,4) (30, 3) (40, 2) (50, 1) Supply curve points: (10, 1) (20, 2) (30, 3) (40, 4) (50, 5) What is the market price? A) 1 B) 2 C) […]
Date: September 3rd, 2020
QUESTION The equilibrium price is determined by the interaction of what two factors? A) demand and supply B) demand and price C) supply and production D) risk and demand E) price and production ANSWER Answer: A Explanation: A) The equilibrium price is the one at which the quantity supplied to the market is equal […]
Date: September 3rd, 2020
QUESTION The large businesses operating in an oligopoly benefit from lower costs as the number of customers they serve increases. What is the term for this dynamic? A) the equilibrium price point B) perfect competition C) producer sovereignty D) economies of scale E) managed competition ANSWER Answer: D Explanation: D) Smaller businesses in this […]
Date: September 3rd, 2020
QUESTION In a free-market economy, what drives the amount of production? A) demand B) supply C) competition D) price E) scarcity ANSWER Answer: D Explanation: D) In a free market, people with wants come together with people who can fill those wants to negotiate a price. That price tells producers how much to produce.
Date: September 3rd, 2020
QUESTION For a particular product, what is set by the point at which the quantity supplied equals the quantity demanded? A) benchmark price B) fair price C) wholesale price D) price ceiling E) market price ANSWER Answer: E Explanation: E) The market price is set by the equilibrium of supply and demand. This is […]
Date: September 3rd, 2020
