How have airplanes changed the way the world does business?

by making long trips less expensive, by opening up new trade markets worldwide, by shortening travel time, by increasing options for travel destinations

What is one downside for consumers to competition in a free-enterprise system?

Consumers must be knowledgeable.

Which aspect of monopolistic competition gives consumers more choice?

Few barriers to market entry exist.

Why are utilities, such as electricity and water, examples of natural monopolies?

The cost of production restricts competition in the market.

Which best describes how advertising influences consumer choice in an oligopoly?

Advertising informs brand knowledge.

Which statement best describes how globalization connects the world?

helps create new forms of transportation, communication, and technology.

Which describes the difference between a trade surplus and a trade deficit?

surplus: exports > imports, deficit: imports > exports

The goal of a command economy is to

create equality within a society

Businesses can use globalization to their advantage by

finding customers in other countries.

Which is an example of regulation in the automobile industry?

the creation of fuel-efficiency standards for cars

Competition happens when two or more businesses

fight for the same benefit or gain.

A command economy tends to exist under a

communist government that provides a lot of regulation.

A frozen foods company changes an ingredient to meet a new government standard. This is an example of

following a federal regulation.

A monopoly is a market that has

a single supplier of a good or service.

What is regulation in an economic system?

placing of limits or restrictions on business activity by the government.

Technologies that allow for instant worldwide communication include

mobile phones and Internet access.

Natural monopolies occur when one producer

can meet the market’s entire demand.

Which is the best example of outsourcing?

US shoe co opens a factory in China & hires Chinese workers to make shoes.

What restriction would the government impose in a closed economy?

The government would prohibit trade with other nations.

How has globalization made countries more interdependent?

Countries now rely on one another for an employment base., Countries now rely on one another for chances to import and export., Countries now rely on each other for new industries., Countries now rely on one another for vital resources.

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Unit 9 Test Review

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Questions 38

Answers

1
Globalization leads to more trade between
factories
countries
consumers
businesses
2
What kind of economy uses a free-enterprise system?
a traditional economy
a command economy
a closed economy
a market economy
3
How have airplanes changed the way the world does business?
by making long trips less expensive
by opening up new trade markets worldwide
by shortening travel time
by increasing options for travel destinations
4
Wellness Pharmaceuticals has released a new antidepressant, Lexabuzac. Which type of monopoly does the company have?
technological monopoly
de facto monopoly
natural monopoly
government monopoly
5
What is one downside for consumers to competition in a free-enterprise system?
Consumers have limited choices.
Consumers must be knowledgeable.
The price of goods often decreases.
The quality of goods often suffers.
6
Which aspect of monopolistic competition gives consumers more choice?
Producers rely on consumer decisions to succeed.
Few barriers to market entry exist.
Producers are more concerned about selection than profits.
Price is not an important factor.
7
Why are utilities, such as electricity and water, examples of natural monopolies?
Consumers only trust known companies to provide these essentials.
The cost of production restricts competition in the market.
There is no need for alternative options.
There are limited natural resources to meet demand.
8
Which best describes how advertising influences consumer choice in an oligopoly?
Advertising alerts consumers to price reductions.
Advertising coaxes people to buy new products.
Advertising informs brand knowledge.
Advertising undermines competition.
9
Which statement best describes how globalization connects the world?
helps share old forms of transportation, communication, and technology.
helps expand old forms of transportation, communication, and technology.
helps mandate new forms of transportation, communication, and technology.
helps create new forms of transportation, communication, and technology.
10
The citizens of the United States live and work in a
closed economy.
command economy.
mixed market economy.
pure market economy.
11
Which form of transportation has led to more efficient business in a global market?
high-speed trains
helicopters
tractor trailers
cargo ships
12
Which describes the difference between a trade surplus and a trade deficit?
surplus: imports > exports, deficit: exports > imports
surplus: produce > consume, deficit: consume > produce
surplus: exports > imports, deficit: imports > exports
surplus: loses money on products it makes, deficit: production --> profits
13
Which best describes the availability of substitutes in a monopoly?
Price points vary.
Products have different features.
There are no substitutes.
There are different brands.
14
When an oligopoly exists, how many producers dominate the market?
many
one
a few
none
15
In a free-enterprise system, producers decide
which goods interest them.
how much to charge.
where to shop for goods.
which services to buy.
16
Global trade provides consumers with
fewer options and higher prices.
more options and lower prices.
more options and higher prices.
fewer options and lower prices.
17
In a free-enterprise system, consumers decide
which goods to export.
which services to buy.
how to use materials.
how to set prices.
18
The goal of a command economy is to
promote free economic choices
preserve traditional customs
sustain self-sufficiency
create equality within a society
19
The goal of a market economy is to
sustain self-sufficiency
promote free economic choices
preserve traditional customs
create equality within a society
20
Which is an example of a government monopoly in the United States?
the National Park Service
the US Postal Service
the Internal Revenue Service (IRS)
the US Environmental Protection Agency (EPA)
21
Businesses can use globalization to their advantage by
insourcing jobs in other countries.
finding customers in other countries.
creating trade barriers to other countries.
reducing exports to other countries.
22
Which is an example of regulation in the automobile industry?
the creation of fuel-efficiency standards for cars
the usage of multiple-year warranties to cover repairs
the production of hybrid models that conserve gasoline
the installation of satellite radio systems in some cars
23
Gross domestic product tracks economic growth by measuring all goods and services
exported by an economy.
imported by an economy.
produced by an economy.
purchased by an economy.
24
A pure market economy is sometimes called pure
communism
command economy
socialism
capitalism
25
Competition happens when two or more businesses
fight for the same benefit or gain.
work together to achieve success.
complement one another.
follow regulations from an agency.
26
A command economy tends to exist under a
democratic government that provides little regulation.
representative government that provides no regulation.
socialist government that provides some regulation.
communist government that provides a lot of regulation.
27
The business practice of hiring workers in another country is known as
subcontracting
outsourcing
globalization
insourcing
28
The most common economic system in the world is a
mixed market economy.
traditional economy.
command economy.
closed economy.
29
A frozen foods company changes an ingredient to meet a new government standard. This is an example of
lowering prices for customers.
reducing the risk for consumers.
following a federal regulation.
creating a new product.
30
In the United States, which type of industry is often considered part of an oligopoly?
denim companies
cell phone carriers
electric companies
mail delivery services
31
A monopoly is a market that has
many sellers of the same item.
a single supplier of a good or service.
few competing businesses.
many sellers of a variety of products.
32
Purchasing power parity is used to compare the gross domestic product between
countries
consumers
businesses
stock markets
33
What is regulation in an economic system?
placing of limits or restrictions on business activity by the government.
placing of limits or restrictions on business activity by producers.
removal of limits or restrictions on business activity by the government.
removal of limits or restrictions on business activity by producers.
34
Technologies that allow for instant worldwide communication include
mobile phones and Internet access.
outsourcing and new trade markets.
high-speed trains and naval ships.
airplanes and container shipping.
35
Natural monopolies occur when one producer
creates unique products.
can meet the market’s entire demand.
is the only one authorized to produce a given product.
controls the method of production.
36
Which is the best example of outsourcing?
US shoe co opens a factory in China & hires Chinese workers to make shoes.
US shoe co opens a factory in the US & hires Chinese workers to make shoes.
CH shoe co opens a factory in China & hires Chinese workers to make shoes.
US shoe company opens a factory in the US & hires US workers to make shoes.
37
What restriction would the government impose in a closed economy?
The government would prevent private ownership of property.
The government would prohibit trade with other nations.
The government would preserve traditional customs only.
The government would set the prices for imported goods.
38
How has globalization made countries more interdependent?
Countries now rely on one another for an employment base.
Countries now rely on one another for chances to import and export.
Countries now rely on each other for new industries.
Countries now rely on one another for vital resources.

Unit 9 Test Review Flashcards | StudBud