Essay on Test Bank For Business In Action 7th Edition Bovee Thill

16565 Words Aug 17th, 2015 67 Pages
Business in Action, 7e (Bovee/Thill)
Chapter 2 Understanding Basic Economics

1) Economics is the study of how a society uses its scarce resources to produce and distribute goods and services to its citizens.
Answer: TRUE
Explanation: Economics is the study of how a society uses its scarce resources to produce and distribute goods and services to its citizens.
Diff: 1
AACSB: Application of knowledge
Chapter LO: 1
Course LO: Compare and contrast different economic systems
Classification: Concept

2) Macroeconomics studies economic behavior among consumers, businesses, and industries that collectively determine the quantity of goods and services demanded and supplied at different prices.
Answer: FALSE
Explanation: The study of a
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Private enterprise and the pursuit of private gain are not encouraged in such a system.
Diff: 2
AACSB: Diverse and multicultural work environments
Chapter LO: 2
Course LO: Compare and contrast different economic systems
Classification: Concept

10) Global economists use the terms capitalism and private enterprise to describe centrally planned economic systems.
Answer: FALSE
Explanation: The terms capitalism and private enterprise are often used to describe free-market systems.
Diff: 2
AACSB: Application of knowledge
Chapter LO: 2
Course LO: Explain the benefits and challenges of engaging in international business
Classification: Application

11) Demand refers to the quantities of a good or service that producers will provide on a particular date at various prices.
Answer: FALSE
Explanation: Demand refers to buyers' willingness and ability to purchase products at various price points.
Diff: 1
AACSB: Application of knowledge
Chapter LO: 3
Course LO: Explain how economic performance is monitored
Classification: Concept

12) The demand curve will shift to the left if the price of substitute products increases.
Answer: FALSE
Explanation: The demand curve will shift to the right if the price of substitute products increases.
Diff: 2
AACSB: Analytical thinking
Chapter LO: 3
Course LO: Explain how economic performance is monitored
Classification: Application

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