Exam 1
Exam I -REVIEW-CH 1-4Exam I -REVIEW-CH 1-4
Student: ___________________________________________________________________________
1. If Chrysler raises the prices of its new models of pickup trucks by 4 percent and General Motors and Ford follow by raising prices by a similar amount, then this is evidence of
A. a monopoly.
B. an oligopoly.
C. pure competition.
D. monopolistic competition.
E. supply and demand. 2. Because the US government regulates business to ensure competition and protect consumers, the US economic system is described as a:
A. Socialist system
B. Communist system
C. Pure capitalist system
D. Modified capitalist system 3. Competition fosters efficiency because
A. the government regulates prices.
B. producers have to offer the best products at reasonable prices.
C. supply depresses prices.
D. all buyers have perfect knowledge.
E. businesses can set whatever prices they want. 4. When a business fails or does not make a profit, _______ have the most to lose.
A. customers
B. workers
C. managers
D. owners
E. consumers 5. Which of the following questions are addressed by all economic systems?
A. What goods and services should be produced?
B. How much of each good and service should be produced?
C. Who will produce the goods?
D. How should the goods and services be distributed?
E. All of the above. 6. Communist societies
A. appear to be efficient and equitable, at least in theory.
B. have a high standard of living.
C. seldom have consumer shortages.
D. have only one class of people.
E. do not spend much on defense. 7. Writing letters to companies, making public service announcements, lobbying government agencies, and boycotting irresponsible companies are activities involved with which social responsibility issue?
A. Employee relations
B. Environmental issues
C. Community relations
D. Consumer relations
E. Relations with owners 8. The following behavior is an example of ethical
Student: ___________________________________________________________________________
1. If Chrysler raises the prices of its new models of pickup trucks by 4 percent and General Motors and Ford follow by raising prices by a similar amount, then this is evidence of
A. a monopoly.
B. an oligopoly.
C. pure competition.
D. monopolistic competition.
E. supply and demand. 2. Because the US government regulates business to ensure competition and protect consumers, the US economic system is described as a:
A. Socialist system
B. Communist system
C. Pure capitalist system
D. Modified capitalist system 3. Competition fosters efficiency because
A. the government regulates prices.
B. producers have to offer the best products at reasonable prices.
C. supply depresses prices.
D. all buyers have perfect knowledge.
E. businesses can set whatever prices they want. 4. When a business fails or does not make a profit, _______ have the most to lose.
A. customers
B. workers
C. managers
D. owners
E. consumers 5. Which of the following questions are addressed by all economic systems?
A. What goods and services should be produced?
B. How much of each good and service should be produced?
C. Who will produce the goods?
D. How should the goods and services be distributed?
E. All of the above. 6. Communist societies
A. appear to be efficient and equitable, at least in theory.
B. have a high standard of living.
C. seldom have consumer shortages.
D. have only one class of people.
E. do not spend much on defense. 7. Writing letters to companies, making public service announcements, lobbying government agencies, and boycotting irresponsible companies are activities involved with which social responsibility issue?
A. Employee relations
B. Environmental issues
C. Community relations
D. Consumer relations
E. Relations with owners 8. The following behavior is an example of ethical