ACC 576 Week 7 Quiz

ACC 576 Week 7 Quiz
Which of the following segments of the economy will be least affected by the business cycle?
 
Commercial construction industry.
 
Machinery and equipment industry.
 
Residential construction industry.
 
Health care industry.
 
 
If a group of consumers decide to boycott a particular product, the expected result would be
 
An increase in the product price to make up lost revenue.
 
A decrease in the demand for the product.
 
An increase in product supply because of increased availability.
 
That demand for the product would become completely inelastic.
 
 
In the long run, a firm may experience increasing returns due to
 
Law of diminishing returns.
 
Opportunity costs.
 
Comparative advantage.
 
Economies of scale.
 
 
Some economic indicators lead the economy into a recovery or recession, and some lag it. An example of a lag variable would be
 
Average duration of unemployment.
 
Orders for consumer and producer goods.
 
Housing starts.
 
Consumer expectations.
 
 
 
What does the consumer price index measure?
 
Cost of capital.
 
Average household income.
 
Rate of inflation.
 
Prime rate of interest.
Disposable income is calculated as
 
Gross national product minus capital cost allowance.
 
Net national product minus indirect business taxes.
 
Personal income minus transfer payments.
 
Personal income minus personal taxes.
 
 
What is the effect when a foreign competitor- currency becomes weaker compared to the U.S. dollar?
 
The foreign company will have an advantage in the U.S. market.
 
The foreign company will be disadvantaged in the U.S. market.
 
The fluctuation in the foreign currency- exchange rate has no effect on the U.S. company- sales or cost of goods sold.
 
It is better for the U.S. company when the value of the U.S. dollar strengthens.
 
 
 
The rate of unemployment caused by changes in the composition of employment opportunities over time is referred to as the
 
Frictional unemployment rate.
 
Cyclical unemployment rate.
 
Structural unemployment rate.
 
Full employment unemployment rate
 
 
 
If the U.S. dollar declines in value relative to the currencies of many of its trading partners, the likely result is that
 
Foreign currencies will depreciate against the dollar.
 
The U.S. trade deficit will worsen.
 
U.S. exports will tend to increase.
 
U.S. imports will tend to increase
 
 
 
Which of the following individuals would be most hurt by an unanticipated increase in inflation?
 
A retiree living on a fixed income.
 
A borrower whose debt has a fixed interest rate.
 
A union worker whose contract includes a provision for regular cost-of-living adjustments.
 
A saver whose savings was placed in a variable-rate savings accoun
 
 
If a government were to use only fiscal policy to stimulate the economy from a recession, it would
 
Raise consumer taxes and increase government spending.
 
Lower business taxes and government spending.
 
Increase the money supply and increase government spending.
 
Lower consumer taxes and increase government spending.
 
 
Which of the following management techniques would likely be most important to a firm in a purely competitive market?
 
Competitor analysis.
 
Target market analysis.
 
Supply chain management.
 
Price-elasticity analysis.
 
 
Economic markets that are characterized by monopolistic competition have all of the following characteristics except
 
One seller of the product.
 
Economies or diseconomies of scale.
 
Advertising.
 
Heterogeneous products.
 
 
Which of the following changes would create pressure for the Japanese yen to appreciate relative to the U.S. dollar?
 
An increase in incomes in Japan.
 
A change in U.S. tastes in favor of Japanese goods.
 
A decrease in U.S. incomes.
 
A change in Japanese tastes in favor of U.S. goods.
 
 
Which competition form describes an industry that has a relatively large number of firms operating noncollusively and producing differentiated products?
 
Pure competition.
 
Pure monopoly.
 
Monopolistic competition.
 
Oligopoly.
 
 
The movement along the demand curve from one price-quantity combination to another is called a(n)
 
Change in demand.
 
Shift in the demand curve.
 
Change in the quantity demanded.
 
Increase in demand.
 
 
Which of the following is a direct effect of imposing a protective tariff on an imported product?
 
Lower domestic prices on the imported item.
 
Lower domestic consumption of the item.
 
Reduced domestic production of the item.
 
Higher sales revenues for foreign producers of the item.
 
 
Which of the following is not accurate about product differentiation?
 
Differentiation can only be perceived by the consumer based on brand name.
 
Differentiation can be based on service.
 
Differentiation can be achieved by market segmentation.
 
Differentiation is always related to the cost of producing the product.
 
 
 
The discount rate of the Federal Reserve System is
 
The specified percentage of a commercial bank- deposit liabilities that must be deposited in the central bank.
 
The rate that the central bank charges for loans granted to commercial banks.
 
The rate that commercial banks charge for loans granted to the public.
 
The ratio of excess reserves to legal reserves that are deposited in the central bank.
 
 
 
To address the problem of a recession, the Federal Reserve Bank most likely would take which of the following actions?
 
Lower the discount rate it charges to banks for loans.
 
Sell U.S. government bonds in open-market transactions.
 
Increase the federal funds rate charged by banks when they borrow from one another.
 
Increase the level of funds a bank is legally required to hold in reserve.


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