Page 25

Chapter 2: Economics: The Framework for Business

132.

In capitalism, people strive to raise their standard of living. Businesses contribute to this goal by a) offering value to the consumer. b) using available resources. c) regulating available talent. d) forming oligopolistic markets. ANS: A DIF: Moderate NAT: BUSPROG: Communication KEY: Bloom’s Comprehension

133.

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Page 27 OBJ: 2-3 Four Degrees of Competition

REF: TOP:

Page 27 OBJ: 2-3 The Fundamental Rights of Capitalism

Competition among businesses a) is consistent with the goals of socialism. b) is a primary feature of a communist economic system. c) ensures that everyone is a winner. d) drives higher quality and lower prices in capitalism. ANS: D DIF: Moderate NAT: BUSPROG: Communication KEY: Bloom’s Knowledge

136.

Page 27 OBJ: 2-3 Capitalism: The Free Market System

Which of the following is not a fundamental right of capitalism? a) right to own property b) right to compete c) right to keep profits and not pay taxes d) right to run a business ANS: C DIF: Moderate NAT: BUSPROG: Communication KEY: Bloom’s Comprehension

135.

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A market structure with pure competition has all of the following characteristics EXCEPT a) the firms use product differentiation allowing consumers to easily identify their favorite brands. b) there are many firms competing in the market. c) firms can easily enter and leave the market. d) no individual firm has any control over the price of the product. ANS: A DIF: Challenging NAT: BUSPROG: Analytic KEY: Bloom’s Analysis

134.

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Page 27 OBJ: 2-3 The Fundamental Rights of Capitalism

Which of the following is not a degree of competition? a) oligopolistic competition b) monopolistic competition c) natural competition d) pure competition ANS: C DIF: Moderate NAT: BUSPROG: Communication KEY: Bloom’s Knowledge

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Pages 27-28 OBJ: 2-3 Four Degrees of Competition

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Test Bank for BUSN 5 5th Kelly  

Test Bank BUSN 5 5th Edition Kelly 2013 (Test Bank Download) (9781111826734) (1111826730). Instant access. All chapter are included. All fil...

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