Page 27

Chapter 2: Economics: The Framework for Business

142.

The _____ shows the quantity of products that producers will offer at various market prices. a) supply matrix b) demand curve c) supply curve d) demand analysis ANS: NAT: TOP: KEY:

143.

C DIF: Easy REF: Page 29 OBJ: 2-3 BUSPROG: Communication Supply and Demand: Fundamental Principles of a Free Market System Bloom’s Comprehension

Companies that attempt to monopolize a particular market are likely to violate the a) Fair Competition Standards Act of 1911. b) Taft-Sharpley Free Enterprise Act of 1957. c) Sherman Antitrust Act of 1890. d) Market Competition Enhancement Act of 1978. ANS: C DIF: Moderate NAT: BUSPROG: Communication KEY: Bloom’s Comprehension

144.

Page 29 OBJ: 2-3 Four Degrees of Competition

D DIF: Challenging REF: Page 29 OBJ: 2-1 BUSPROG: Reflective Thinking Supply and Demand: Fundamental Principles of a Free Market System Bloom’s Synthesis

Demand is defined as a) the number of consumers in a market. b) the quantity of products that consumers are willing to buy at different prices. c) the amount of products produced. d) the annual quantity of products sold by retailers. ANS: NAT: TOP: KEY:

146.

REF: TOP:

If low-cost solar power were to become a viable energy source in households across the U.S., what would be the economic impact on energy prices? a) Energy costs across the country would increase with adoption of the new energy source. b) Housing prices would decrease as new homes are built with this new energy source. c) Prices would increase as this is a new energy source. d) Prices would decrease as competition increases in energy production. ANS: NAT: TOP: KEY:

145.

69

B DIF: Easy REF: Page 29 OBJ: 2-3 BUSPROG: Communication Supply and Demand: Fundamental Principles of a Free Market System Bloom’s Knowledge

A supply curve shows that as prices rise the a) quantity of products produced declines. b) equilibrium point shifts upward. c) number of products demanded stays the same. d) quantity of products produced rises. ANS: NAT: TOP: KEY:

D DIF: Moderate REF: Page 29 OBJ: 2-3 BUSPROG: Communication Supply and Demand: Fundamental Principles of a Free Market System Bloom’s Comprehension

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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...

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...