MAN 1107 CH 2 PRETEST 25 Q

____________ looks at the behavior of individual people and organizations in specific markets. 

• Macroeconomics
• Microeconomics
• Nanoeconomics
• Finite economics

A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to:

• remain constant.
• fluctuate randomly around its equilibrium value.
• decrease.
• increase.

___________ exists when a large number of firms produce goods that are similar but are perceived by buyers as being different. 

• Perfect competition
• Oligopoly
• Monopolistic competition
• A monopoly

Today, the economic systems of most nations could most accurately be classified as: 

• supply and demand economies.
• pure socialism.
• pure capitalism.
• mixed economies.

Which one of the following is not considered a scarce resource?

• Natural Resources
• Capital Resources
• Human Resources
• Intellectual Property Resources

The point at which the Supply and Demand intersect is called:

• Equilibrium
• Differentiation
• Gross Domestic Product
• Perfect Competition

__________  exists when there are many consumers buying a standardized product from numerous businesses.

• Perfect Competition
• Oligopoly
• Monopolistic Competition
• Monopoly

In the traditional Supply and Demand chart, the (Y) axis represents:

• Supply
• Demand
• Quantity
• Price

__________  is occurring when the average of consumer prices are decreasing.

• Consumer Price Indexing
• Price Stability
• Inflation
• Deflation

Which of the following is an important premise of Adam Smith's conclusion about economic prosperity?

• Individual freedom will lead to prosperity.
• Determining what motivates people will lead to prosperity.
• Social justice and equality of outcomes will lead to prosperity.
• Understanding the concept of survival of the fittest will lead to prosperity.