Business Acumen – WGU C201 In general, as price of a good or service increases, the quantity demanded:
remains the same irrespective of the product type.
first increases and then decreases irrespective of the product type.
increases.
declines. Correct Ans - declines.
A graph showing the amount of a product that buyers will purchase at different prices is the _____ curve.
demand
utility
production possibility
supply Correct Ans - demand
Incentives to motivate employees to perform at their highest level are strongest in _____ systems.
capitalist
communist
socialist
collectivist Correct Ans - capitalist
Flora Cult Inc., an exporter of flowers across the globe, operates in an industry
where there are many sellers and buyers. This makes it difficult for any one single seller or buyer to influence the market price of the flowers. Also, it is difficult for sellers or exporters to differentiate their products from each other. What type of market structure does this illustrate?
Monopolistic competition
Pure competition
Monopoly
Oligopoly Correct Ans - Pure competition Consumers can choose from hundreds of different kinds and producers of cheese, each with a slightly different flavor and texture. This type of market structure is known as _____.
pure competition
a monopoly
an oligopoly
monopolistic competition Correct Ans - monopolistic competition
Before the patent on its allergy medicine expired, Renova Pharma Inc. was able to set its own market price for the drug. From which type of market structure did the company benefit?
Monopolistic competition
Monopoly
Oligopoly
Pure competition Correct Ans - Monopoly
United Narva is a nation in which industries like steel, communications, electricity, railways, education, and health care are owned by the government.
The leaders of the nation believe that it is detrimental to the public's interest to allow such core industries to be owned by private firms. However, private ownership is encouraged in industries like restaurants, entertainment, and retail shops, which have a lower impact on social welfare. Which of the following economic systems has United Narva adopted?
Communism
Individualism
Capitalism
Socialism Correct Ans - Socialism
A country has a strong private sector, along with publicly-owned enterprises. Entrepreneurs and private-sector investors are entitled to profits after paying taxes, and even state-owned enterprises are expected to generate returns. What type of economic system does this country have?
Communism
Mixed economy
Socialism Self-managed economy Correct Ans - Mixed economy
Assume that the number of people wanting to buy houses in your locality increases sharply. This will cause the price of houses to increase, which is an example of _____.
credit deflation
demand-pull inflation
cost-push inflation
supply-side deflation Correct Ans - demand-pull inflation
Farm laborers are out of work for some months after they have harvested and sold their produce. This is an example of _____.
frictional unemployment
structural unemployment
seasonal unemployment
cyclical unemployment Correct Ans - seasonal unemployment
Tom has been unemployed for a long time because he has not been able to find a job in which he can apply his specialized knowledge about the Robostic Data System (RDS), a computer system that is now obsolete. What type of unemployment is Tom facing?
Seasonal unemployment
Frictional unemployment
Cyclical unemployment
Structural unemployment Correct Ans - Structural unemployment
Which of the following is true of monetary policy?
It uses taxation and spending to control economic activities.
It uses variations in interest rate and money supply to influence a nation's economy.
It is dictated by international organizations like the United Nations.
It is a mechanism to control the flow of foreign currency into a nation by reducing its exports. Correct Ans - It uses variations in interest rate and money supply to influence a nation's economy.
remains the same irrespective of the product type.
first increases and then decreases irrespective of the product type.
increases.
declines. Correct Ans - declines.
A graph showing the amount of a product that buyers will purchase at different prices is the _____ curve.
demand
utility
production possibility
supply Correct Ans - demand
Incentives to motivate employees to perform at their highest level are strongest in _____ systems.
capitalist
communist
socialist
collectivist Correct Ans - capitalist
Flora Cult Inc., an exporter of flowers across the globe, operates in an industry
where there are many sellers and buyers. This makes it difficult for any one single seller or buyer to influence the market price of the flowers. Also, it is difficult for sellers or exporters to differentiate their products from each other. What type of market structure does this illustrate?
Monopolistic competition
Pure competition
Monopoly
Oligopoly Correct Ans - Pure competition Consumers can choose from hundreds of different kinds and producers of cheese, each with a slightly different flavor and texture. This type of market structure is known as _____.
pure competition
a monopoly
an oligopoly
monopolistic competition Correct Ans - monopolistic competition
Before the patent on its allergy medicine expired, Renova Pharma Inc. was able to set its own market price for the drug. From which type of market structure did the company benefit?
Monopolistic competition
Monopoly
Oligopoly
Pure competition Correct Ans - Monopoly
United Narva is a nation in which industries like steel, communications, electricity, railways, education, and health care are owned by the government.
The leaders of the nation believe that it is detrimental to the public's interest to allow such core industries to be owned by private firms. However, private ownership is encouraged in industries like restaurants, entertainment, and retail shops, which have a lower impact on social welfare. Which of the following economic systems has United Narva adopted?
Communism
Individualism
Capitalism
Socialism Correct Ans - Socialism
A country has a strong private sector, along with publicly-owned enterprises. Entrepreneurs and private-sector investors are entitled to profits after paying taxes, and even state-owned enterprises are expected to generate returns. What type of economic system does this country have?
Communism
Mixed economy
Socialism Self-managed economy Correct Ans - Mixed economy
Assume that the number of people wanting to buy houses in your locality increases sharply. This will cause the price of houses to increase, which is an example of _____.
credit deflation
demand-pull inflation
cost-push inflation
supply-side deflation Correct Ans - demand-pull inflation
Farm laborers are out of work for some months after they have harvested and sold their produce. This is an example of _____.
frictional unemployment
structural unemployment
seasonal unemployment
cyclical unemployment Correct Ans - seasonal unemployment
Tom has been unemployed for a long time because he has not been able to find a job in which he can apply his specialized knowledge about the Robostic Data System (RDS), a computer system that is now obsolete. What type of unemployment is Tom facing?
Seasonal unemployment
Frictional unemployment
Cyclical unemployment
Structural unemployment Correct Ans - Structural unemployment
Which of the following is true of monetary policy?
It uses taxation and spending to control economic activities.
It uses variations in interest rate and money supply to influence a nation's economy.
It is dictated by international organizations like the United Nations.
It is a mechanism to control the flow of foreign currency into a nation by reducing its exports. Correct Ans - It uses variations in interest rate and money supply to influence a nation's economy.
