Questions Chapter 2

Questions Chapter 2 - Chapter 2 How Economics Affects...

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Chapter 02: How Economics Affects Business: The Creation and Distribution of Wealth 2-1 Chapter 2 How Economics Affects Business: The Creation and Distribution of Wealth CPS questions
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Chapter 02: How Economics Affects Business: The Creation and Distribution of Wealth 2-2 1. Which is the study of how to employ resources to produce goods and services and distribute them among competing groups and individuals? a. Economics b. Capitalism c. Marketing d. Socialism
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Chapter 02: How Economics Affects Business: The Creation and Distribution of Wealth 2-3 2. ________ might be a topic emphasized in a microeconomics class. a. How a nation’s GDP is computed b. The reason's why the unemployment rate for the economy is rising or falling c. How market conditions determine the price of a specific product d. How the government can use fiscal and monetary policies to stabilize the economy
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Chapter 02: How Economics Affects Business: The Creation and Distribution of Wealth 2-4 3. Melanie Adams considers herself to be a follower of Thomas Malthus. Which of the following statements would Melanie be most likely to make? a. The key to economic growth is to keep taxes and government regulations to a minimum. b. Command economies are more likely to encourage economic growth than market economies. c. Allowing people to follow their self-interest is the best way to generate economic growth and prosperity. d. Society will not be able to sustain economic progress unless it accepts the need to limit population growth.
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Chapter 02: How Economics Affects Business: The Creation and Distribution of Wealth 2-5 4. In capitalism, _______ make most decisions about what goods and services to produce. a. a variety of government agencies b. businesspeople c. a central planning board that consists of consumers, business executives, and employees d. majority rule, with everyone receiving an equal vote
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Chapter 02: How Economics Affects Business: The Creation and Distribution of Wealth 2-6 5. One of the greatest concerns associated with capitalism is that: a. It is not very successful at creating wealth b. Some businesspeople may let greed guide their behavior c. The amount of economic freedom enjoyed by consumers is very limited d. Producers are unlikely to supply the goods and services that consumers value the most
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Distribution of Wealth 2-7 6. The market price of apples is currently rising. In a free-market economy, which is the most likely explanation of this price change is that? a. The government has decided to set a higher price so that the firms in the market make an adequate profit. b. There is a shortage in the market for apples. c.
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Questions Chapter 2 - Chapter 2 How Economics Affects...

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