1) looks at the behavior of individual people or companies in specific markets.

Macroeconomics

Finite Economics

Microeconomics

2)

Contrary to popular opinion, the capitalist system relies heavily on _________.

protectionist policies with respect to world markets

minimizing government intervention in corrupt business practices

making sure that currencies are never undervalued.

honesty, integrity, and high ethical business standards.

Nanoeconomics

3)

Efficiency means ____________.

producing the desired result

producing goods and services using the least amount of resources

the amount of output generated for the amount of input

the buying and selling of goods using the most amount of resources

4) refers to the amount of output generated with a given amount of input such as the number of pizzas produced per worker per hour.

Productivity

Telecommuting

Technology

Efficiency

5) Adam Smith believed that countries would prosper if people were free tp start and run their own businesses. Business owners would make a profit by providing goods and services that other people wanted and they woud then hire more people to help increase those profits leading to social and economic benefits for many. He referred to this idea as the _____________.

kindred demand theory

spending multiplier

invisible hand of the market

demand accelerator

6)Fourteen years ago Sergio noticed that a lot of people that bought personal computers did not know that much about how to use them and frequently suffered system crashes and other aggravations, He decided he could earn a nice profit by starting a consulting business to help others with their computer problems. Although the business struggled at first, it has become very successful. Sergio has many satisfied customers and several employees. Sergio's experience is an example of ______________.

Socialism at work

the priciple of comparative advantage

the invisible hand of the market

the multiplier principle.

7) ______________ is the market condition where there are many sellers and no seller is big enough to dictate the price of a product.

Oligopoly

Monopolistic competition

Pure or perfect competition

8) When the supply curve and the demand curve for a particular good are shown together on a graph, the point at which they intersect is known as _______________.

Producers total profit point

Total labor employed in a market point

the amount of time to bring sellers and buyers together point

the equilibrium price of the goods point

Microeconomic competition

9)When prices are free to adjust over time, in the long run, the market price of a good tends to ________________.

consistently rise above the equilibrium price

equal the equilibrium price

consistently fall below the equilibrium price

have to specific relationship to the equilibrium price

10)

_____________ exists when the entire supply of a good is controlled by a single seller.

Perfect competition

Oligopoly

Pure capitalism

Monopoly

11) Large cities have a number of bakeries. These bakeries produce similar, but not identical, products. Some claim to have the best cheesecakes in town, while others brag about their cakes, cookies, or specialty breads. The bakery market in a large city is an example of ______________.

monopolistic competition

perfect or pure competition

an oligopoly

a monopoly

12) A major benefit of socialism is the _____________.

ability to stimulate rapid economic growth

ability to keep taxes low

emphasis on social equality and welfare

13)The four basic types of unemployment are frictional, structural, seasonal, and ________________.

industrial

cyclical

procedural

14) A favorable balance of trade occurs when the value of _____________.

imports equals the value of exports

the cash inflows equal the value of cash outflows

imports is less than the value of exports

15) ___________ is the practice of selling a product in a foreign country for a lower price than the good is sold for in the producing country.

Deflating

Coutertrading

Inflating

16) Japanese car makers sold more of their Japanese production overseas than they sold in Japan. Their business strategy emphasizes _______________.

importing

exporting

dumping

17) If a company licenses its technology to another company, the fee it receives for the licensed technology is called __________________.

a liquidation

a venture joint

a royalty

18) A _________________ is a partnership where two or more companies (often from different countries) join together and share the risk and costs for one particular project.

multinational cooperative

joint venture

franchisee transfer

recruit affiliation

a qualified injection

licensing

Dumping

of the dollar is greater than the value of the Euro.

traditional

emphasis on private enterprise instead of public ownership

19) Nike _________________ its shoes and othr products in foreign countries where labor is cheap and production factories are owned by local companies. This strategy allows Nike to experiment in new markets without incurring large start-up costs involved in building and staffing their own factories.

contract manufactures

pays governments to market

globally licenses

contract franchises

20) A large U.S. agricultural producer sells wheat to a small country in Africa. The country pays the U.S. firm in coffee and cacao beans. This is an example of ________________.

foreign licensing

countertrade

direct exporting

international production

21) _____________ is the use of government regulations to limit the import of goods and services.

Trade protectionism

Fiscal policy

Countertrade policy

Monetary policy

22) A ____________ tariff is designed to raise the price of imported goods so that domestic goods are more competitively priced.

formulary

progressive

protective

reverse

23) The purpose of the General Agreement on Tariffs and Trade (GATT) is to ________________.

facilitate and open up global trade

create common market arrangements in specific geographical regions

negotiate an end to civil wars

establish a set of international property rights laws

24)

Although embargos are enacted upon both imports and exports, this form of trade restriction is usually the result of ______________.

physical and environmental limitations on trade

non-tariff barriers

currency fluctuations

political disagreements between nations

25) When managers disregard ethical concerns, the likely result is ___________.

a reduction in employee turnover

an improvement in management morale

an increase in mistrust between workers and management

a reduction in lawsuits against the company