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Introduction to Economics quiz #11

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  • Which of the following services or businesses would likely not be found in a lower-order settlement?
    Specialty medical clinics.
  • Which of these actions is not a way a firm can obtain new products?
    Ignoring market research.
  • How does a market economy support nonprofit organizations?
    By allowing voluntary donations and competition for resources.
  • What is one of the three measures used to determine the Human Development Index (HDI) of a country?
    Life expectancy.
  • Which of the following is a function of firms in the market economy?
    Producing goods and services.
  • Which is not one of the four types of economies countries use?
    Feudal economy.
  • Which region has the highest NIR?
    Sub-Saharan Africa.
  • Which of the following is not one of the four major market structures?
    Duopoly.
  • Why would commodity money be hard to use in most societies?
    It is bulky and not easily divisible.
  • Which economic system do most countries operate under today?
    Most countries have mixed economies.
  • What do all three economic systems have in common?
    They allocate scarce resources.
  • In what type of market is a buyer cautioned against asking for personal items?
    In a formal retail market.
  • When do prices serve as signals and incentives for producers to enter a market?
    When prices rise due to increased demand.
  • What drives the choices of consumers and producers in a market economy?
    Self-interest and price signals.
  • How has the internet dramatically reduced search costs?
    By making information easily accessible.
  • Are firms primarily buyers or sellers in the goods and services market? In the labor market?
    Firms are sellers in goods markets, buyers in labor markets.
  • Which of the following is an economic issue which seems to have a direct impact on crime?
    Unemployment.
  • What unfair business practice do cartels use?
    Price fixing.
  • Which economic condition typically occurs during a popular vacation destination’s off–season?
    Lower demand and reduced prices.
  • What are the nine attributes of money?
    Portability, durability, divisibility, uniformity, acceptability, limited supply, stability, recognizability, and fungibility.
  • Which of the following shifts aggregate demand to the left?
    A decrease in consumer spending.
  • Peak business organizations focus on which of the following goals?
    Maximizing profits.
  • Which of the following is not one of Porter's generic business level strategies?
    Diversification.
  • How does a mixed economy decide 'how to produce?'
    Through both market forces and government regulation.
  • Check understanding: How is a society’s economic system defined?
    By how it allocates resources and organizes production.
  • Which of the following best represents fiat money?
    Paper currency with no intrinsic value.
  • Which of the following is a function of households in the market economy?
    Supplying labor and consuming goods.
  • Which of the following is one of the quickest and least costly ways to conduct exploratory research?
    Surveys.
  • Which of the following drive the market for EVs?
    Consumer demand and government incentives.
  • Which of the following accounts for the eight general forms of market competition?
    Market structure classification.
  • Which phrase defines 'consumerism' best?
    The protection and promotion of consumer interests.
  • Why might economic interest groups find more success than public interest groups?
    They have more resources and focused goals.
  • How did high tariffs hurt many Americans?
    By raising prices and reducing trade.
  • New careers emerge in response to which of the following?
    Technological change.
  • Which statement best explains why money was invented?
    To facilitate exchange and overcome barter limitations.
  • Which economic system can change direction quickly and drastically?
    Command economy.
  • What is the movement of people from rural to urban areas called?
    Urbanization.
  • If Pepsi goes on sale, what happens to demand?
    Demand increases.
  • Which of the following is a potential benefit of inflation?
    It can reduce the real burden of debt.
  • Why might buying a home during a recession be a good decision for some consumers?
    Home prices may be lower.