Test Bank for Better Business 5th Edition by Michael Solomon Mary Poatsy Kendall Martin All Chapters Complete Guide A+

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BettergBusiness,g5eg(Solomon/Poatsy/Martin)gChapt
erg2g EconomicsgandgBanking

1) Thegmaingfunctiongofgeconomicsgisgtogstudyg .
A) thegexchangegofggoodsgandgservicesgbetweengindividuals,gbusinesses,gandgnations
B) thegexchangegofgculturalginformationgingagdiversegsociety
C) thegstockgexchange
D) thegexchangegofgdiplomaticgrelationsgbetweengnations
E) thegexchangegofgideasgaboutgmotivationgandgbehaviorgingthegworkplac
egAnswer:g A
Explanation:g Economicsgisgthegstudygofghowgindividualsgandgbusinessesgmakegdecisionsgtogbes
tgsatisfygwants,gneeds,gandgdesiresgwithglimitedgresources.gItgisgaboutgbusinessesgmakingggoods
gorgsupplyinggservicesgthatgwegwantgorgneedgtogbuy.
Diff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems
.gClassification:g Concept

2) Celestegisginterestedgingstudyinggthegeffectsgthatgnaturalgdisastersghavegongthegvaluegofggoo
dsgandgservicesgingthegaffectedgareas.gHergareagofgstudygshouldgbeg .
A) marketing
B) microeconomics
C) macroeconomics
D) sociology
E) sustainability
gAnswer:g B
Explanation:g Microeconomicsgisgthegstudygofghowgindividuals,gbusinesses,ghouseholds,gandgco
nsumersgallocategtheirgresourcesgingexchangegforggoodsgandgservices.gMarketinggisgthegprocessg
orgtechniquegofgsellingggoodsgtogconsumers.gMacroeconomicsgisgthegstudygofgthegbehaviorgofgth
egeconomygasgagwhole.gSociologygisgthegstudygofgsocialgrelationsgandgchange.gSustainabilitygisgt
hegusegofgresourcesgwithoutgpermanentlygdepletinggorgdamaginggthegresource.
Diff:g2
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassificati
on:g Application




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3) Josephgtookgagclassgingmacroeconomics,gwhichgmeansgthatghegwasgstudyinggthegbehaviorgof
.
A) individualgbusinesses
B) peoplegwithglimitedgresources
C) thegoverallgeconomy
D) corporategexecutives
E) Fortuneg500gcompanies
gAnswer:g C
Explanation:g Macroeconomicsgisgthegstudygofgthegbehaviorgofgthegeconomygasgagwhole.gThegst
udygofgbehaviorgofgindividualgbusinesses,gpeoplegwithglimitedgresources,gcorporategexecutives,g
andgFortuneg500gcompaniesgwouldgfallgundergthegareagofgmicroeconomics.
Diff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassificati
on:g Concept

4) Agfreegmarketgeconomygisgonegingwhichg .
A) theggovernmentgorgothergcentralizedggroupgdeterminesgwhatgtogproduce
B) individualsgdeterminegwhatgtogproducegwithgsomeglevelgofggovernmentginvolvement
C) theggovernmentgcontrolsghealthcaregwhilegprivatelygownedgbusinessesgoperategingothergmarke
tgsectors
D) individualsgandgprivategfirmsgmakegdecisionsgbasedgongconsumergneedsgandgwants
E) privatelygowned,gprofit-seekinggenterprisesgaregconvertedgtoggovernment-
ownedgproductiongandgservices
Answer:g D
Explanation:g Agmarketgeconomygisgrungentirelygbygindividualsgandgbusinessesgwithgn
oggovernmentginvolvement.gThegothergresponsesgrefergtogplannedgandgmixedgeconomi
es.gDiff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems
.gClassification:g Concept
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems




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5) Agmixedgeconomygisgonegingwhichg .
A) bothgresourcesgandgmeansgofgproductiongaregextremelyglimitedgandggenerallygconfinedgt
ogagriculturalgproduce
B) theggovernmentgorgothergcentralizedggroupgdeterminesgandgcontrolsgallgresourcesgandgmeansgo
fgproduction
C) bothgindividualsgandggovernmentgcontrolgresourcesgandgdeterminegproductiongmethods
D) eithergindividualsgorgprivategfirms,gbutgnotgboth,gcontrolgresourcesgandgdeterminegproductio
ngmethods
E) theregisgnoggovernmentginterventiongwhatsoevergingindustr
ygAnswer:g C
Explanation:g Agmixedgeconomygisgonegingwhichgindividuals,gbusinesses,gandggovernmentgshare
gresponsibilitygforgdetermininggallocationgofgresourcesgandgmethodsgofgproduction.gThegothergre
sponsesgrefergtogplannedgeconomiesgorgmarketgeconomies.
Diff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassificati
on:g Concept
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems

6) Agplannedgeconomygisgonegingwhichg .
A) theggovernmentgorgothergcentralizedggroupgdeterminesgwages,gsetsgprices,gandgdistribute
sgresourcesgandgproductsgtogthegcommonggroup
B) individualsgandgbusinessesgdeterminegthegproductiongmethods,gwithgagfocusgongefficiencygan
dgproductivity
C) individualgincomegultimatelygcontrolsgpurchasinggdecisions
D) theggovernmentgdistributesgsomeggoodsgandgservicesgthroughgselectedgsocialgprograms,gan
dgindividualgincomegdeterminesgpurchasinggdecisionsgforgotherggoodsgandgservices
E) thegproductiongandgpricinggofggoodsgandgservicesgisgdeterminedgthroughgthegoperationgofg
agmarket
Answer:g A
Explanation:g Agplannedgeconomygisgonegingwhichgtheggovernmentgcontrolsgthegdistributiongofgg
oodsgandgresources.gThegothergresponsesgrefergtogmarketgeconomiesgandgmixedgeconomies.
Diff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassificati
on:g Concept
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems




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7) Johngisgangemployeegatgagcargmanufacturer.gTodaygheghasgcomegintogworkgtogfindgthatgproduc
tionghasgstoppedgbecausegtheggovernmentghasgdeterminedgthatgthegsteelgusedgingthegcarsg willgbeg
bettergusedgingthegmanufacturegofgagnewgrailwaygline.gJohngdoesn'tgmind,gbecausegalthoughghisgw
agesgareglow,gheggetsgpaidgwhethergtheregisganygworkgforghimgtogdogorgnot.gJohngMOSTglikelygli
vesgingag economy.
A) blended
B) planned
C) market
D) mixed
E) capitalist
gAnswer:g B
Explanation:g Ingagplannedgeconomy,gtheggovernmentgdeterminesgwhatgtogproduce,gcontrolsgtheg
resourcesgandgmeansgofgproduction,gandgdeterminesgwages.gResourcesgandgproductsgaregdistrib
utedgtogthegcommonggroup.
Diff:g2
AACSB:g AnalyticalgThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassificati
on:g Application
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems

8) Socialismgisgsimilargtogcommunismgingthatg .
A) theggovernmentgprovidesgallgofgthegsocialgservices
B) theggovernmentgfailsgundergeconomicgstress
C) theggovernmentgdistributesggoodsgandgservices
D) theggovernmentgdoesgnotgchargegtaxes
E) theggovernmentgdoesgnotgintervenegingindustr
ygAnswer:g C
Explanation:g Ingbothgsocialistgandgcommunistgstates,gtheggovernmentgisgresponsiblegforgdistribut
inggbothggoodsgandgservices.gHowever,gingagcommunistgstate,gthegentiregresponsibilitygforgthegdist
ributiongisgingtheghandsgofgtheggovernment,gwhereasgingagsocialistgstate,gtheggovernmentgtradition
allygrunsgsomegofgthegsocialgservicesgandgutilitiesgbutgalsogallowsgforgsomegprivategenterprise.
Diff:g1
AACSB:g AnalyticalgThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassificati
on:g Application
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems




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