Test Bank For An Introduction to Business Ethics 6th
Edition By Joseph DesJardins
Economists agree that there are four different degrees of competition within free
markets. They include? - ANSWER: -Monopolies
-Perfect competition -Oligopolies
Prices in a free market economy are determined by? - ANSWER: Supply and demand
When a government decides what goods and services will be produced, the country
is functioning within a ________________ economy - ANSWER: command
Rank the three economic system where the system with the least amount of
government involvement is on the top and the system with the most government
involvement is on the bottom. - ANSWER: -Capitalism
-Socialism
-Communism
The trend toward a(n) ____________ price occurs naturally as supply and demand of
products is negotiated between buyers and sellers - ANSWER: Market
In a free market system, decisions about what and how much is produced are made
by? - ANSWER: buyers and sellers negotiating prices
Under monopolistic competition? - ANSWER: -There are a large number of sellers in
the market
-Products are perceived as different by the buyers
In perfect competition? - ANSWER: -Products appear to be identical
-There are many sellers
An oligopoly is a degree of competition in which? - ANSWER: Just a few sellers
dominate the market
When the seller controls the total supply of a product or service and sets the price,
that seller is said to have? - ANSWER: Monopoly
The market price is determined where the _____________ curve intersects the
_____________ curve - ANSWER: Demand and supply
What is the political and economic system in which the government makes almost all
economic decisions and owns almost all the major factors of production, as well as
choosing religion, where to live, and jobs for its citizens? - ANSWER: Communism
Adam Smith's theory is based on which of the following ideas? - ANSWER: -When
people work to produce needed goods and services they help the economy grow
, -People work for their own prosperity
-The "invisible hand" forms self-directed gain into social and economic benefits for
everyone
The _____________ ____________ refers to the sum of government deficits over
time - ANSWER: national debt
On a graph showing both supply and demand curves, the intersection point between
the two curves shows the? - ANSWER: Equilibrium point
In a free market economy, as the price of a product increases, so will the amount
supplied. Why? - ANSWER: -High prices lead to high profits, attracting new firms to
the market.
-High prices lead to increased revenues, which allow firms to buy more raw materials
and employ more workers.
_________________ is an economic system based on free markets, in which all or
most of the factors of production and distribution are privately owned and are
operated for profit - ANSWER: capitalism
What are the characteristics of the recovery stage of a business cycle? - ANSWER: -
The economy stabilizes
-The economy starts to grow
According to Adam Smith, as long as farmers, laborers, and businesspeople received
economic reward for their efforts, they would work hard. As a result of this self-
directed desire to gain, the economy would prosper and everyone would become
wealthier. Smith called this process? - ANSWER: The invisible hand
Which of the following are correct in regards to a free-market economy? - ANSWER:
-An economic system in which economic decisions are made by the market
-Another name for capitalism
The operation of a nation's economy as a whole is? - ANSWER: Macroeconomics
The loss of the best and brightest people to other countries is the? - ANSWER: brain
drain
GDP is the _______________ value of final goods and services produced in a
_____________ in a given year - ANSWER: total and nation
When the economy stabilizes and then starts to grow, it is in which stage of the
business cycle? - ANSWER: recovery
Studying the economic behavior of individual people and organizations in markets
for particular products or services is? - ANSWER: microeconomics
Edition By Joseph DesJardins
Economists agree that there are four different degrees of competition within free
markets. They include? - ANSWER: -Monopolies
-Perfect competition -Oligopolies
Prices in a free market economy are determined by? - ANSWER: Supply and demand
When a government decides what goods and services will be produced, the country
is functioning within a ________________ economy - ANSWER: command
Rank the three economic system where the system with the least amount of
government involvement is on the top and the system with the most government
involvement is on the bottom. - ANSWER: -Capitalism
-Socialism
-Communism
The trend toward a(n) ____________ price occurs naturally as supply and demand of
products is negotiated between buyers and sellers - ANSWER: Market
In a free market system, decisions about what and how much is produced are made
by? - ANSWER: buyers and sellers negotiating prices
Under monopolistic competition? - ANSWER: -There are a large number of sellers in
the market
-Products are perceived as different by the buyers
In perfect competition? - ANSWER: -Products appear to be identical
-There are many sellers
An oligopoly is a degree of competition in which? - ANSWER: Just a few sellers
dominate the market
When the seller controls the total supply of a product or service and sets the price,
that seller is said to have? - ANSWER: Monopoly
The market price is determined where the _____________ curve intersects the
_____________ curve - ANSWER: Demand and supply
What is the political and economic system in which the government makes almost all
economic decisions and owns almost all the major factors of production, as well as
choosing religion, where to live, and jobs for its citizens? - ANSWER: Communism
Adam Smith's theory is based on which of the following ideas? - ANSWER: -When
people work to produce needed goods and services they help the economy grow
, -People work for their own prosperity
-The "invisible hand" forms self-directed gain into social and economic benefits for
everyone
The _____________ ____________ refers to the sum of government deficits over
time - ANSWER: national debt
On a graph showing both supply and demand curves, the intersection point between
the two curves shows the? - ANSWER: Equilibrium point
In a free market economy, as the price of a product increases, so will the amount
supplied. Why? - ANSWER: -High prices lead to high profits, attracting new firms to
the market.
-High prices lead to increased revenues, which allow firms to buy more raw materials
and employ more workers.
_________________ is an economic system based on free markets, in which all or
most of the factors of production and distribution are privately owned and are
operated for profit - ANSWER: capitalism
What are the characteristics of the recovery stage of a business cycle? - ANSWER: -
The economy stabilizes
-The economy starts to grow
According to Adam Smith, as long as farmers, laborers, and businesspeople received
economic reward for their efforts, they would work hard. As a result of this self-
directed desire to gain, the economy would prosper and everyone would become
wealthier. Smith called this process? - ANSWER: The invisible hand
Which of the following are correct in regards to a free-market economy? - ANSWER:
-An economic system in which economic decisions are made by the market
-Another name for capitalism
The operation of a nation's economy as a whole is? - ANSWER: Macroeconomics
The loss of the best and brightest people to other countries is the? - ANSWER: brain
drain
GDP is the _______________ value of final goods and services produced in a
_____________ in a given year - ANSWER: total and nation
When the economy stabilizes and then starts to grow, it is in which stage of the
business cycle? - ANSWER: recovery
Studying the economic behavior of individual people and organizations in markets
for particular products or services is? - ANSWER: microeconomics
