D Chapter 10: Production and Cost
1. The primary goal of a business firm is to _________________.
promote fairness.
make a quality product.
promote workforce job satisfaction.
maximize profit.
Chapter 11: A Firm’s Profit-Maximizing Choices
5. A perfectly competitive firm _____________.
sells a product that has perfect substitutes.
has a perfectly inelastic demand.
has a perfectly elastic supply.
There is no perfect competition.
Chapter 12: Monopoly
9. Which of the following is a characteristic of monopoly?
The firm faces competition from many other firms.
The firm produces a product that has many close substitutes.
There are barriers to enter the market.
The firm's demand is perfectly elastic.
Chapter 13: Monopolistic Competition and Oligopoly
13. An industry with a large number of firms, differentiated products, and free entry and exit is called ____________.
perfect competition.
monopolistic competition.
oligopoly.
monopoly.
Chapter 14: GDP: A Measure of Total Production and Income
17. The total production within an economy is measured as __________________.
Gross Home Product.
Total Domestic Output.
Annual Production Value.
Gross Domestic Product.
Chapter 15: Jobs and Unemployment
20. The Bureau of Labor Statistics (BLS) compiles information about employment by ______________.
performing a census of every household in the nation.
performing a quarterly survey 6,000,000 households.
performing a monthly survey of 60,000 households.
determining the average estimate of labor market specialists around the nation.
Chapter 16: The CPI and the Cost of Living
24. The Consumer Price Index is calculated by the ________________.
Bureau of Labor Statistics.
Department of Labor.
Department of Commerce.
Federal Reserve Bank of New York.
Chapter 17: Potential GDP and Economic Growth
27. The Classical macroeconomic model proposes that ___________.
government intervention is required to help the economy reach its potential.
real GDP equals potential GDP as long as inflation equals zero.
changes in the quantity of money are critical in driving economic growth.
markets work efficiently to produce the best macroeconomic outcomes.
Chapter 18: Money and Monetary System
31. For a commodity or token to be money it must _____________________.
be accepted in exchange for all other goods and services.
have a double coincidence of wants.
be backed by government precious metals, like gold.
be paper.
Chapter 20: Fiscal Policy and Monetary Policy
37. Which of the following is an example of fiscal policy?
Controlling the money supply.
Tax increase
Changing the reserve requirement of banks.
Manipulating interest rates.