DOWNLOAD THE Test Bank for Better Business 5th Edition Solomon
g g g g g g g g g
BettergBusiness,g5eg(Solomon/Poatsy/Martin)gChapte
rg2g EconomicsgandgBanking
1) Thegmaingfunctiongofgeconomicsgisgtogstudyg .
A) thegexchangegofggoodsgandgservicesgbetweengindividuals,gbusinesses,gandgnations
B) thegexchangegofgculturalginformationgingagdiversegsociety
C) thegstockgexchange
D) thegexchangegofgdiplomaticgrelationsgbetweengnations
E) thegexchangegofgideasgaboutgmotivationgandgbehaviorgingthegworkplaceg
Answer:g A
Explanation:g Economicsgisgthegstudygofghowgindividualsgandgbusinessesgmakegdecisionsgtogbestgs
atisfygwants,gneeds,gandgdesiresgwithglimitedgresources.gItgisgaboutgbusinessesgmakingggoodsgorgsu
pplyinggservicesgthatgwegwantgorgneedgtogbuy.
Diff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.g
Classification:g Concept
2) Celestegisginterestedgingstudyinggthegeffectsgthatgnaturalgdisastersghavegongthegvaluegofggoodsga
ndgservicesgingthegaffectedgareas.gHergareagofgstudygshouldgbeg .
A) marketing
B) microeconomics
C) macroeconomics
D) sociology
E) sustainability
gAnswer:g B
Explanation:g Microeconomicsgisgthegstudygofghowgindividuals,gbusinesses,ghouseholds,gandgcons
umersgallocategtheirgresourcesgingexchangegforggoodsgandgservices.gMarketinggisgthegprocessgorgtec
hniquegofgsellingggoodsgtogconsumers.gMacroeconomicsgisgthegstudygofgthegbehaviorgofgthegecono
mygasgagwhole.gSociologygisgthegstudygofgsocialgrelationsgandgchange.gSustainabilitygisgthegusegofgr
esourcesgwithoutgpermanentlygdepletinggorgdamaginggthegresource.
Diff:g2
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassification:
g Application
1
Copyrightg©g2018gPearsongEducation,gInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Better Business 5th Edition Solomon
g g g g g g g g g
3) Josephgtookgagclassgingmacroeconomics,gwhichgmeansgthatghegwasgstudyinggthegbehaviorgof
.
A) individualgbusinesses
B) peoplegwithglimitedgresources
C) thegoverallgeconomy
D) corporategexecutives
E) Fortuneg500gcompaniesg
Answer:g C
Explanation:g Macroeconomicsgisgthegstudygofgthegbehaviorgofgthegeconomygasgagwhole.gThegstudy
gofgbehaviorgofgindividualgbusinesses,gpeoplegwithglimitedgresources,gcorporategexecutives,gandgFo
rtuneg500gcompaniesgwouldgfallgundergthegareagofgmicroeconomics.
Diff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassification:
g Concept
4) Agfreegmarketgeconomygisgonegingwhichg .
A) theggovernmentgorgothergcentralizedggroupgdeterminesgwhatgtogproduce
B) individualsgdeterminegwhatgtogproducegwithgsomeglevelgofggovernmentginvolvement
C) theggovernmentgcontrolsghealthcaregwhilegprivatelygownedgbusinessesgoperategingothergmarketgs
ectors
D) individualsgandgprivategfirmsgmakegdecisionsgbasedgongconsumergneedsgandgwants
E) privatelygowned,gprofit-seekinggenterprisesgaregconvertedgtoggovernment-
ownedgproductiongandgservices
Answer:g D
Explanation:g Agmarketgeconomygisgrungentirelygbygindividualsgandgbusinessesgwithgnogg
overnmentginvolvement.gThegothergresponsesgrefergtogplannedgandgmixedgeconomies.gD
iff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.g
Classification:g Concept
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems
2
Copyrightg©g2018gPearsongEducation,gInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Better Business 5th Edition Solomon
g g g g g g g g g
5) Agmixedgeconomygisgonegingwhichg .
A) bothgresourcesgandgmeansgofgproductiongaregextremelyglimitedgandggenerallygconfinedgtoga
griculturalgproduce
B) theggovernmentgorgothergcentralizedggroupgdeterminesgandgcontrolsgallgresourcesgandgmeansgofgp
roduction
C) bothgindividualsgandggovernmentgcontrolgresourcesgandgdeterminegproductiongmethods
D) eithergindividualsgorgprivategfirms,gbutgnotgboth,gcontrolgresourcesgandgdeterminegproductiong
methods
E) theregisgnoggovernmentginterventiongwhatsoevergingindustryg
Answer:g C
Explanation:g Agmixedgeconomygisgonegingwhichgindividuals,gbusinesses,gandggovernmentgsharegre
sponsibilitygforgdetermininggallocationgofgresourcesgandgmethodsgofgproduction.gThegothergrespon
sesgrefergtogplannedgeconomiesgorgmarketgeconomies.
Diff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassification:
g Concept
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems
6) Agplannedgeconomygisgonegingwhichg .
A) theggovernmentgorgothergcentralizedggroupgdeterminesgwages,gsetsgprices,gandgdistributesgr
esourcesgandgproductsgtogthegcommonggroup
B) individualsgandgbusinessesgdeterminegthegproductiongmethods,gwithgagfocusgongefficiencygandg
productivity
C) individualgincomegultimatelygcontrolsgpurchasinggdecisions
D) theggovernmentgdistributesgsomeggoodsgandgservicesgthroughgselectedgsocialgprograms,gandgi
ndividualgincomegdeterminesgpurchasinggdecisionsgforgotherggoodsgandgservices
E) thegproductiongandgpricinggofggoodsgandgservicesgisgdeterminedgthroughgthegoperationgofgag
market
Answer:g A
Explanation:g Agplannedgeconomygisgonegingwhichgtheggovernmentgcontrolsgthegdistributiongofggood
sgandgresources.gThegothergresponsesgrefergtogmarketgeconomiesgandgmixedgeconomies.
Diff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassification:
g Concept
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems
3
Copyrightg©g2018gPearsongEducation,gInc.
mynursytest.store
, DOWNLOAD THE Test Bank for Better Business 5th Edition Solomon
g g g g g g g g g
7) Johngisgangemployeegatgagcargmanufacturer.gTodaygheghasgcomegintogworkgtogfindgthatgproduction
ghasgstoppedgbecausegtheggovernmentghasgdeterminedgthatgthegsteelgusedgingthegcarsg willgbegbettergu
sedgingthegmanufacturegofgagnewgrailwaygline.gJohngdoesn'tgmind,gbecausegalthoughghisgwagesgareglo
w,gheggetsgpaidgwhethergtheregisganygworkgforghimgtogdogorgnot.gJohngMOSTglikelyglivesgingag
economy.
A) blended
B) planned
C) market
D) mixed
E) capitalist
gAnswer:g B
Explanation:g Ingagplannedgeconomy,gtheggovernmentgdeterminesgwhatgtogproduce,gcontrolsgthegres
ourcesgandgmeansgofgproduction,gandgdeterminesgwages.gResourcesgandgproductsgaregdistributedgt
ogthegcommonggroup.
Diff:g2
AACSB:g AnalyticalgThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassification:
g Application
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems
8) Socialismgisgsimilargtogcommunismgingthatg .
A) theggovernmentgprovidesgallgofgthegsocialgservices
B) theggovernmentgfailsgundergeconomicgstress
C) theggovernmentgdistributesggoodsgandgservices
D) theggovernmentgdoesgnotgchargegtaxes
E) theggovernmentgdoesgnotgintervenegingindustryg
Answer:g C
Explanation:g Ingbothgsocialistgandgcommunistgstates,gtheggovernmentgisgresponsiblegforgdistributin
ggbothggoodsgandgservices.gHowever,gingagcommunistgstate,gthegentiregresponsibilitygforgthegdistribut
iongisgingtheghandsgofgtheggovernment,gwhereasgingagsocialistgstate,gtheggovernmentgtraditionallygrun
sgsomegofgthegsocialgservicesgandgutilitiesgbutgalsogallowsgforgsomegprivategenterprise.
Diff:g1
AACSB:g AnalyticalgThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassification:
g Application
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems
4
Copyrightg©g2018gPearsongEducation,gInc.
mynursytest.store
g g g g g g g g g
BettergBusiness,g5eg(Solomon/Poatsy/Martin)gChapte
rg2g EconomicsgandgBanking
1) Thegmaingfunctiongofgeconomicsgisgtogstudyg .
A) thegexchangegofggoodsgandgservicesgbetweengindividuals,gbusinesses,gandgnations
B) thegexchangegofgculturalginformationgingagdiversegsociety
C) thegstockgexchange
D) thegexchangegofgdiplomaticgrelationsgbetweengnations
E) thegexchangegofgideasgaboutgmotivationgandgbehaviorgingthegworkplaceg
Answer:g A
Explanation:g Economicsgisgthegstudygofghowgindividualsgandgbusinessesgmakegdecisionsgtogbestgs
atisfygwants,gneeds,gandgdesiresgwithglimitedgresources.gItgisgaboutgbusinessesgmakingggoodsgorgsu
pplyinggservicesgthatgwegwantgorgneedgtogbuy.
Diff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.g
Classification:g Concept
2) Celestegisginterestedgingstudyinggthegeffectsgthatgnaturalgdisastersghavegongthegvaluegofggoodsga
ndgservicesgingthegaffectedgareas.gHergareagofgstudygshouldgbeg .
A) marketing
B) microeconomics
C) macroeconomics
D) sociology
E) sustainability
gAnswer:g B
Explanation:g Microeconomicsgisgthegstudygofghowgindividuals,gbusinesses,ghouseholds,gandgcons
umersgallocategtheirgresourcesgingexchangegforggoodsgandgservices.gMarketinggisgthegprocessgorgtec
hniquegofgsellingggoodsgtogconsumers.gMacroeconomicsgisgthegstudygofgthegbehaviorgofgthegecono
mygasgagwhole.gSociologygisgthegstudygofgsocialgrelationsgandgchange.gSustainabilitygisgthegusegofgr
esourcesgwithoutgpermanentlygdepletinggorgdamaginggthegresource.
Diff:g2
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassification:
g Application
1
Copyrightg©g2018gPearsongEducation,gInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Better Business 5th Edition Solomon
g g g g g g g g g
3) Josephgtookgagclassgingmacroeconomics,gwhichgmeansgthatghegwasgstudyinggthegbehaviorgof
.
A) individualgbusinesses
B) peoplegwithglimitedgresources
C) thegoverallgeconomy
D) corporategexecutives
E) Fortuneg500gcompaniesg
Answer:g C
Explanation:g Macroeconomicsgisgthegstudygofgthegbehaviorgofgthegeconomygasgagwhole.gThegstudy
gofgbehaviorgofgindividualgbusinesses,gpeoplegwithglimitedgresources,gcorporategexecutives,gandgFo
rtuneg500gcompaniesgwouldgfallgundergthegareagofgmicroeconomics.
Diff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassification:
g Concept
4) Agfreegmarketgeconomygisgonegingwhichg .
A) theggovernmentgorgothergcentralizedggroupgdeterminesgwhatgtogproduce
B) individualsgdeterminegwhatgtogproducegwithgsomeglevelgofggovernmentginvolvement
C) theggovernmentgcontrolsghealthcaregwhilegprivatelygownedgbusinessesgoperategingothergmarketgs
ectors
D) individualsgandgprivategfirmsgmakegdecisionsgbasedgongconsumergneedsgandgwants
E) privatelygowned,gprofit-seekinggenterprisesgaregconvertedgtoggovernment-
ownedgproductiongandgservices
Answer:g D
Explanation:g Agmarketgeconomygisgrungentirelygbygindividualsgandgbusinessesgwithgnogg
overnmentginvolvement.gThegothergresponsesgrefergtogplannedgandgmixedgeconomies.gD
iff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.g
Classification:g Concept
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems
2
Copyrightg©g2018gPearsongEducation,gInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Better Business 5th Edition Solomon
g g g g g g g g g
5) Agmixedgeconomygisgonegingwhichg .
A) bothgresourcesgandgmeansgofgproductiongaregextremelyglimitedgandggenerallygconfinedgtoga
griculturalgproduce
B) theggovernmentgorgothergcentralizedggroupgdeterminesgandgcontrolsgallgresourcesgandgmeansgofgp
roduction
C) bothgindividualsgandggovernmentgcontrolgresourcesgandgdeterminegproductiongmethods
D) eithergindividualsgorgprivategfirms,gbutgnotgboth,gcontrolgresourcesgandgdeterminegproductiong
methods
E) theregisgnoggovernmentginterventiongwhatsoevergingindustryg
Answer:g C
Explanation:g Agmixedgeconomygisgonegingwhichgindividuals,gbusinesses,gandggovernmentgsharegre
sponsibilitygforgdetermininggallocationgofgresourcesgandgmethodsgofgproduction.gThegothergrespon
sesgrefergtogplannedgeconomiesgorgmarketgeconomies.
Diff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassification:
g Concept
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems
6) Agplannedgeconomygisgonegingwhichg .
A) theggovernmentgorgothergcentralizedggroupgdeterminesgwages,gsetsgprices,gandgdistributesgr
esourcesgandgproductsgtogthegcommonggroup
B) individualsgandgbusinessesgdeterminegthegproductiongmethods,gwithgagfocusgongefficiencygandg
productivity
C) individualgincomegultimatelygcontrolsgpurchasinggdecisions
D) theggovernmentgdistributesgsomeggoodsgandgservicesgthroughgselectedgsocialgprograms,gandgi
ndividualgincomegdeterminesgpurchasinggdecisionsgforgotherggoodsgandgservices
E) thegproductiongandgpricinggofggoodsgandgservicesgisgdeterminedgthroughgthegoperationgofgag
market
Answer:g A
Explanation:g Agplannedgeconomygisgonegingwhichgtheggovernmentgcontrolsgthegdistributiongofggood
sgandgresources.gThegothergresponsesgrefergtogmarketgeconomiesgandgmixedgeconomies.
Diff:g1
AACSB:g ReflectivegThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassification:
g Concept
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems
3
Copyrightg©g2018gPearsongEducation,gInc.
mynursytest.store
, DOWNLOAD THE Test Bank for Better Business 5th Edition Solomon
g g g g g g g g g
7) Johngisgangemployeegatgagcargmanufacturer.gTodaygheghasgcomegintogworkgtogfindgthatgproduction
ghasgstoppedgbecausegtheggovernmentghasgdeterminedgthatgthegsteelgusedgingthegcarsg willgbegbettergu
sedgingthegmanufacturegofgagnewgrailwaygline.gJohngdoesn'tgmind,gbecausegalthoughghisgwagesgareglo
w,gheggetsgpaidgwhethergtheregisganygworkgforghimgtogdogorgnot.gJohngMOSTglikelyglivesgingag
economy.
A) blended
B) planned
C) market
D) mixed
E) capitalist
gAnswer:g B
Explanation:g Ingagplannedgeconomy,gtheggovernmentgdeterminesgwhatgtogproduce,gcontrolsgthegres
ourcesgandgmeansgofgproduction,gandgdeterminesgwages.gResourcesgandgproductsgaregdistributedgt
ogthegcommonggroup.
Diff:g2
AACSB:g AnalyticalgThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassification:
g Application
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems
8) Socialismgisgsimilargtogcommunismgingthatg .
A) theggovernmentgprovidesgallgofgthegsocialgservices
B) theggovernmentgfailsgundergeconomicgstress
C) theggovernmentgdistributesggoodsgandgservices
D) theggovernmentgdoesgnotgchargegtaxes
E) theggovernmentgdoesgnotgintervenegingindustryg
Answer:g C
Explanation:g Ingbothgsocialistgandgcommunistgstates,gtheggovernmentgisgresponsiblegforgdistributin
ggbothggoodsgandgservices.gHowever,gingagcommunistgstate,gthegentiregresponsibilitygforgthegdistribut
iongisgingtheghandsgofgtheggovernment,gwhereasgingagsocialistgstate,gtheggovernmentgtraditionallygrun
sgsomegofgthegsocialgservicesgandgutilitiesgbutgalsogallowsgforgsomegprivategenterprise.
Diff:g1
AACSB:g AnalyticalgThinking
LO:g 2.1:gDefinegeconomics,gandgdescribegthegdifferentgtypesgofgeconomicgsystems.gClassification:
g Application
LearninggOutcome:g Comparegandgcontrastgdifferentgeconomicgsystems
4
Copyrightg©g2018gPearsongEducation,gInc.
mynursytest.store
