Page 9

Chapter 2: Economics: The Framework for Business

38.

Everlene’s Bakery competes against many other bakeries in the same city. However, each bakery uses different recipes and each claims to offer better products than their rivals. For example, Everlene’s advertises that it produces the “World’s Best” chocolate chip cookies. This suggests that Everlene’s Bakery is an example of pure competition. ANS: F DIF: Challenging NAT: BUSPROG: Reflective Thinking KEY: Bloom’s Evaluation

39.

REF: TOP:

Page 28 OBJ: 2-3 Four Degrees of Competition

2-3

Federal law has made all types of monopolies illegal in the United States. REF: TOP:

Page 29 OBJ: 2-3 Four Degrees of Competition

Consumers will see prices fall when the quantity demanded exceeds quantity supplied. ANS: NAT: TOP: KEY:

44.

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

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

ANS: F DIF: Moderate NAT: BUSPROG: Ethics KEY: Bloom’s Analysis 43.

REF: TOP:

A typical supply curve shows that an increase in the price of a good will cause producers to decrease the quantity they supply. ANS: NAT: TOP: KEY:

42.

Page 27 OBJ: 2-3 Four Degrees of Competition

An entrepreneur with limited funds who wants to start a new business would probably be most successful in an oligopolistic market, because the amount of competition in such markets is very limited. ANS: F DIF: Moderate NAT: BUSPROG: Analytic KEY: Bloom’s Analysis

41.

REF: TOP:

Government policies promoting free trade are consistent with the right to free choice, which is fundamental to capitalism. ANS: T DIF: Moderate NAT: BUSPROG: Communication KEY: Bloom’s Comprehension

40.

51

F DIF: Moderate REF: Page 29 OBJ: BUSPROG: Analytic Supply and Demand: Fundamental Principles of a Free Market System Bloom’s Analysis

2-3

The price paid for goods and services will rise when the quantity demanded exceeds quantity supplied. ANS: NAT: TOP: KEY:

T DIF: Moderate REF: Page 29 OBJ: BUSPROG: Analytic Supply and Demand: Fundamental Principles of a Free Market System Bloom’s Analysis

2-3

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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...