Economics Quiz

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Who stated that the market serves as a self-correcting mechanism under pure capitalism?

Milton Friedman

Karl Marx

Adam Smith (correct)

John Maynard Keynes

What would NOT be a determinant of demand?

Income of the consumers

The prices of substitute goods

The prices of the inputs used to produce the good (correct)

Consumer preferences

What is flour?

A type of processed food

A type of raw material

A type of meat

Both b and c are correct (correct)

What type of stock is most commonly issued by corporations?

Common stock Signup and view all the answers

What type of manager is Jorge, a department head?

First-line manager Signup and view all the answers

What type of organizational structure is best suited for a time of crisis?

Centralized organization structure Signup and view all the answers

What is strategic marketing planning?

A process of examining an organization's current marketing situation, assessing opportunities and setting objectives, then developing a marketing strategy to reach those objectives Signup and view all the answers

What is the concept that serves as the framework for the entire accounting process?

Accounting equation Signup and view all the answers

What does nominal GDP value production at?

Current prices Signup and view all the answers

What type of embargoes revoke a country's normal trade relations status?

Sanctions Signup and view all the answers

What type of corporation did Brandon buy stock in?

Public Signup and view all the answers

What is Dell's strategy of making money through process innovations called?

Efficiency plan Signup and view all the answers

What type of marketing is the Kingston Tourist Board's website an example of?

Place marketing Signup and view all the answers

What type of financial document is Bertold preparing?

Income statement Signup and view all the answers

What type of divisional structure does Time Warner use?

Product Divisional Structure Signup and view all the answers

What is the process of dividing a diverse market into smaller groups with similar needs?

Market segmentation Signup and view all the answers

What type of products did Jessica buy at the grocery store?

Convenience products Signup and view all the answers

Why is financial information important to businesses?

It helps businesses make informed decisions Signup and view all the answers

What is the rate at which the money of one country is traded for the money of another?

Exchange rate Signup and view all the answers

What type of businesses produce tangible goods?

Goods-producing businesses Signup and view all the answers

What type of payments are made to shareholders from a company's profits?

Dividends Signup and view all the answers

What type of economic system exists in a country where the government allows the 'invisible hand' of competition to guide production and resource allocation decisions?

Capitalism Signup and view all the answers

Study Notes

Business and Economics Terms

In a pure capitalism system, the market serves as a self-correcting mechanism according to Adam Smith.
The prices of inputs used to produce a good are not a determinant of demand.
Flour is both a type of food and a type of commodity.

Stock and Corporation

Most stock issued by corporations is common stock.
Real GDP is the production of final goods and services valued at market prices.

Organizational Structure

A centralized organization structure may work best in a time of crisis when an organization must stay focused on immediate goals.
Jorge and Christina, as department head and office manager, are considered first-line managers.
Don, as a top manager, establishes the structure for the organization as a whole and selects people for upper-level positions.

Marketing

Strategic marketing planning is a process of examining an organization's current marketing situation, assessing opportunities, and setting objectives, then developing a marketing strategy to reach those objectives.
Jason, as a member of a reference group, regularly shares information about athletic shoes and other sports gear with his teammates.
Market segmentation is the division of a diverse market into smaller, relatively homogeneous groups with similar needs, wants, and purchase behaviors.
Jessica bought convenience products, including milk, bread, and toothpaste.

Business and Finance

The United States gives its farmers $19 billion every year in subsidies to help them compete in the global marketplace.
The biggest drawback of a sole proprietorship is limited liability.
Time Warner uses a product divisional structure, organizing itself around four distinct units in its publishing division.
Financial information is important to businesses for various reasons, except to help governments levy appropriate taxes on businesses.

International Trade and Economy

The rate at which the money of one country is traded for the money of another is known as the exchange rate.
Goods-producing businesses produce tangible goods by engaging in activities such as manufacturing, construction, mining, and agriculture.
The government of a small country allowing the "invisible hand" of competition to guide production and resource allocation decisions is an example of a capitalist economic system.
Sanctions are politically motivated embargoes that revoke a country's normal trade relations status.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge of economics concepts, including market mechanisms, demand, and types of stock.