Solution Manual for Better Business 5th Edition by
Solomon Poatsy and Martin
Better g;Business, g;5e g;(Solomon/Poatsy/Martin)
g; Chapter g;2 g;Economics g;and g;Banking
1) The g;main g;function g;of g;economics g;is g;to g;study .
A) the g;exchange g;of g;goods g;and g;services g;between g;individuals, g;businesses, g;and g;nations
B) the g;exchange g;of g;cultural g;information g;in g;a g;diverse g;society
C) the g;stock g;exchange
D) the g;exchange g;of g;diplomatic g;relations g;between g;nations
E) the g;exchange g;of g;ideas g;about g;motivation g;and g;behavior g;in g;the
g; workplace g;Answer: g ; A
Explanation: g;Economics g;is g;the g;study g;of g;how g;individuals g;and g;businesses g;make g;decisions g;to
g; best g;satisfy g;wants, g;needs, g;and g;desires g;with g;limited g;resources. g;It g;is g;about g;businesses
g; making g;goods g;or g;supplying g;services g;that g;we g;want g;or g;need g;to g;buy.
Diff: g;1
AACSB: g;Reflective g;Thinking
LO: g;2.1: g;Define g;economics, g;and g;describe g;the g;different g;types g;of g;economic
g; systems. g;Classification: g ; Concept
2) Celeste g;is g;interested g;in g;studying g;the g;effects g;that g;natural g;disasters g;have g;on g;the g;value g;of
goods g;and g;services g;in g;the g;affected g;areas. g;Her g;area g;of g;study g;should g;be
g; .
A) marketing
B) microeconomics
C) macroeconomics
D) sociology
E) sustainability
g; Answer: g;B
Explanation: g;Microeconomics g;is g;the g;study g;of g;how g;individuals, g;businesses, g;households, g;and
g; consumers g;allocate g;their g;resources g;in g;exchange g;for g;goods g;and g;services. g;Marketing g;is g;the
g; process g;or g;technique g;of g;selling g;goods g;to g;consumers. g;Macroeconomics g;is g;the g;studyg;of g;the
g; behavior g;of g;the g;economy g;as g;a g;whole. g;Sociology g;is g;the g;study g;of g;social g;relations g;and
, change. g;Sustainability g;is g;the g;use g;of g;resources g;without g;permanently g;depleting g;or g;damaging
g;
the g;resource.
g;
Diff: g;2
AACSB: g;Reflective g;Thinking
LO: g;2.1: g;Define g;economics, g;and g;describe g;the g;different g;types g;of g;economic g;systems.
g; Classification: g ; Application
,3) Joseph g;took g;a g;class g;in g;macroeconomics, g;which g;means g;that g;he g;was g;studying g;the g;behavior g;of
.
A) individual g;businesses
B) people g;with g;limited g;resources
C) the g;overall g;economy
D) corporate g;executives
E) Fortune g;500 g;companies
g; Answer: g ; C
Explanation: g;Macroeconomics g;is g;the g;study g;of g;the g;behavior g;of g;the g;economy g;as g;a g;whole.
g; The g;studyg;o f g;behavior g;of g;individual g;businesses, g;people g;with g;limited g;resources, g;corporate
g; executives, g;and g;Fortune g;500 g;companies g;would g;fall g;under g;the g;area g;of g;microeconomics.
Diff: g;1
AACSB: g;Reflective g;Thinking
LO: g;2.1: g;Define g;economics, g;and g;describe g;the g;different g;types g;of g;economic g;systems.
g; Classification: g ; Concept
4) A g;free g;market g;economy g;is g;one g;in g;which .
A) the g;government g;or g;other g;centralized g;group g;determines g;what g;to g;produce
B) individuals g;determine g;what g;to g;produce g;with g;some g;level g;of g;government g;involvement
C) the g;government g;controls g;healthcare g;while g;privately g;owned g;businesses g;operate g;in g;other
market g;sectors
g;
D) individuals g;and g;private g;firms g;make g;decisions g;based g;on g;consumer g;needs g;and g;wants
E) privately g;owned, g;profit-seeking g;enterprises g;are g;converted g;to g;government-owned
g; production g;and g;services
Answer: g ; D
Explanation: g;A g;market g;economy g;is g;run g;entirely g;by g;individuals g;and g;businesses
g; with g;no g;government g;involvement. g;The g;other g;responses g;refer g;to g;planned g;and
g; mixed g;economies. g;Diff: g;1
AACSB: g;Reflective g;Thinking
LO: g;2.1: g;Define g;economics, g;and g;describe g;the g;different g;types g;of g;economic
g; systems. g;Classification: g ; Concept
Learning g;Outcome: g;Compare g;and g;contrast g;different g;economic g;systems
, 5) A g;mixed g;economy g;is g;one g;in g;which .
A) both g;resources g;and g;means g;of g;production g;are g;extremely g;limited g;and g;generally
confined g;to g;agricultural g;produce
g;
B) the g;government g;or g;other g;centralized g;group g;determines g;and g;controls g;all g;resources g;and
g; means g;of g;production
C) both g;individuals g;and g;government g;control g;resources g;and g;determine g;production g;methods
D) either g;individuals g;or g;private g;firms, g;but g;not g;both, g;control g;resources g;and g;determine
g; production g;methods
E) there g;is g;no g;government g;intervention g;whatsoever g;in
g; industry g;Answer: g ; C
Explanation: g;A g;mixed g;economy g;is g;one g;in g;which g;individuals, g;businesses, g;and g;government
g; share g;responsibility g;for g;determining g;allocation g;of g;resources g;and g;methods g;of g;production.
g; The g;other g;responses g;refer g;to g;planned g;economies g;or g;market g;economies.
Diff: g;1
AACSB: g;Reflective g;Thinking
LO: g;2.1: g;Define g;economics, g;and g;describe g;the g;different g;types g;of g;economic g;systems.
g; Classification: g ; Concept
Learning g;Outcome: g;Compare g;and g;contrast g;different g;economic g;systems
6) A g;planned g;economy g;is g;one g;in g;which .
A) the g;government g;or g;other g;centralized g;group g;determines g;wages, g;sets g;prices, g;and
g; distributes g;resources g;and g;products g;to g;the g;common g;group
B) individuals g;and g;businesses g;determine g;the g;production g;methods, g;with g;a g;focus g;on g;efficiency
and g;productivity
g;
C) individual g;income g;ultimately g;controls g;purchasing g;decisions
D) the g;government g;distributes g;some g;goods g;and g;services g;through g;selected g;social g;programs,
g; and g;individual g;income g;determines g;purchasing g;decisions g;for g;other g;goods g;and g;services
E) the g;production g;and g;pricing g;of g;goods g;and g;services g;is g;determined g;through g;the g;operation
g; ofg;a g;market
Answer: g ; A
Explanation: g;A g;planned g;economy g;is g;one g;in g;which g;the g;government g;controls g;the g;distribution
g; of g;goods g;and g;resources. g;The g;other g;responses g;refer g;to g;market g;economies g;and g;mixed
g; economies. g;Diff: g;1
AACSB: g;Reflective g;Thinking
Solomon Poatsy and Martin
Better g;Business, g;5e g;(Solomon/Poatsy/Martin)
g; Chapter g;2 g;Economics g;and g;Banking
1) The g;main g;function g;of g;economics g;is g;to g;study .
A) the g;exchange g;of g;goods g;and g;services g;between g;individuals, g;businesses, g;and g;nations
B) the g;exchange g;of g;cultural g;information g;in g;a g;diverse g;society
C) the g;stock g;exchange
D) the g;exchange g;of g;diplomatic g;relations g;between g;nations
E) the g;exchange g;of g;ideas g;about g;motivation g;and g;behavior g;in g;the
g; workplace g;Answer: g ; A
Explanation: g;Economics g;is g;the g;study g;of g;how g;individuals g;and g;businesses g;make g;decisions g;to
g; best g;satisfy g;wants, g;needs, g;and g;desires g;with g;limited g;resources. g;It g;is g;about g;businesses
g; making g;goods g;or g;supplying g;services g;that g;we g;want g;or g;need g;to g;buy.
Diff: g;1
AACSB: g;Reflective g;Thinking
LO: g;2.1: g;Define g;economics, g;and g;describe g;the g;different g;types g;of g;economic
g; systems. g;Classification: g ; Concept
2) Celeste g;is g;interested g;in g;studying g;the g;effects g;that g;natural g;disasters g;have g;on g;the g;value g;of
goods g;and g;services g;in g;the g;affected g;areas. g;Her g;area g;of g;study g;should g;be
g; .
A) marketing
B) microeconomics
C) macroeconomics
D) sociology
E) sustainability
g; Answer: g;B
Explanation: g;Microeconomics g;is g;the g;study g;of g;how g;individuals, g;businesses, g;households, g;and
g; consumers g;allocate g;their g;resources g;in g;exchange g;for g;goods g;and g;services. g;Marketing g;is g;the
g; process g;or g;technique g;of g;selling g;goods g;to g;consumers. g;Macroeconomics g;is g;the g;studyg;of g;the
g; behavior g;of g;the g;economy g;as g;a g;whole. g;Sociology g;is g;the g;study g;of g;social g;relations g;and
, change. g;Sustainability g;is g;the g;use g;of g;resources g;without g;permanently g;depleting g;or g;damaging
g;
the g;resource.
g;
Diff: g;2
AACSB: g;Reflective g;Thinking
LO: g;2.1: g;Define g;economics, g;and g;describe g;the g;different g;types g;of g;economic g;systems.
g; Classification: g ; Application
,3) Joseph g;took g;a g;class g;in g;macroeconomics, g;which g;means g;that g;he g;was g;studying g;the g;behavior g;of
.
A) individual g;businesses
B) people g;with g;limited g;resources
C) the g;overall g;economy
D) corporate g;executives
E) Fortune g;500 g;companies
g; Answer: g ; C
Explanation: g;Macroeconomics g;is g;the g;study g;of g;the g;behavior g;of g;the g;economy g;as g;a g;whole.
g; The g;studyg;o f g;behavior g;of g;individual g;businesses, g;people g;with g;limited g;resources, g;corporate
g; executives, g;and g;Fortune g;500 g;companies g;would g;fall g;under g;the g;area g;of g;microeconomics.
Diff: g;1
AACSB: g;Reflective g;Thinking
LO: g;2.1: g;Define g;economics, g;and g;describe g;the g;different g;types g;of g;economic g;systems.
g; Classification: g ; Concept
4) A g;free g;market g;economy g;is g;one g;in g;which .
A) the g;government g;or g;other g;centralized g;group g;determines g;what g;to g;produce
B) individuals g;determine g;what g;to g;produce g;with g;some g;level g;of g;government g;involvement
C) the g;government g;controls g;healthcare g;while g;privately g;owned g;businesses g;operate g;in g;other
market g;sectors
g;
D) individuals g;and g;private g;firms g;make g;decisions g;based g;on g;consumer g;needs g;and g;wants
E) privately g;owned, g;profit-seeking g;enterprises g;are g;converted g;to g;government-owned
g; production g;and g;services
Answer: g ; D
Explanation: g;A g;market g;economy g;is g;run g;entirely g;by g;individuals g;and g;businesses
g; with g;no g;government g;involvement. g;The g;other g;responses g;refer g;to g;planned g;and
g; mixed g;economies. g;Diff: g;1
AACSB: g;Reflective g;Thinking
LO: g;2.1: g;Define g;economics, g;and g;describe g;the g;different g;types g;of g;economic
g; systems. g;Classification: g ; Concept
Learning g;Outcome: g;Compare g;and g;contrast g;different g;economic g;systems
, 5) A g;mixed g;economy g;is g;one g;in g;which .
A) both g;resources g;and g;means g;of g;production g;are g;extremely g;limited g;and g;generally
confined g;to g;agricultural g;produce
g;
B) the g;government g;or g;other g;centralized g;group g;determines g;and g;controls g;all g;resources g;and
g; means g;of g;production
C) both g;individuals g;and g;government g;control g;resources g;and g;determine g;production g;methods
D) either g;individuals g;or g;private g;firms, g;but g;not g;both, g;control g;resources g;and g;determine
g; production g;methods
E) there g;is g;no g;government g;intervention g;whatsoever g;in
g; industry g;Answer: g ; C
Explanation: g;A g;mixed g;economy g;is g;one g;in g;which g;individuals, g;businesses, g;and g;government
g; share g;responsibility g;for g;determining g;allocation g;of g;resources g;and g;methods g;of g;production.
g; The g;other g;responses g;refer g;to g;planned g;economies g;or g;market g;economies.
Diff: g;1
AACSB: g;Reflective g;Thinking
LO: g;2.1: g;Define g;economics, g;and g;describe g;the g;different g;types g;of g;economic g;systems.
g; Classification: g ; Concept
Learning g;Outcome: g;Compare g;and g;contrast g;different g;economic g;systems
6) A g;planned g;economy g;is g;one g;in g;which .
A) the g;government g;or g;other g;centralized g;group g;determines g;wages, g;sets g;prices, g;and
g; distributes g;resources g;and g;products g;to g;the g;common g;group
B) individuals g;and g;businesses g;determine g;the g;production g;methods, g;with g;a g;focus g;on g;efficiency
and g;productivity
g;
C) individual g;income g;ultimately g;controls g;purchasing g;decisions
D) the g;government g;distributes g;some g;goods g;and g;services g;through g;selected g;social g;programs,
g; and g;individual g;income g;determines g;purchasing g;decisions g;for g;other g;goods g;and g;services
E) the g;production g;and g;pricing g;of g;goods g;and g;services g;is g;determined g;through g;the g;operation
g; ofg;a g;market
Answer: g ; A
Explanation: g;A g;planned g;economy g;is g;one g;in g;which g;the g;government g;controls g;the g;distribution
g; of g;goods g;and g;resources. g;The g;other g;responses g;refer g;to g;market g;economies g;and g;mixed
g; economies. g;Diff: g;1
AACSB: g;Reflective g;Thinking
