BackIntroduction to Economics quiz #14
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1/40BackSkip to main contentBackA firm's decision to identify and develop new markets for existing products is a ________ strategy.
Market development. Introducing a new product into the market is called
Product launch. Mercantilism is an economic theory stating that colonies should
Benefit the mother country. A(n) market is a specific group of consumers that have similar wants and needs.
Target market. What are core goods defined as?
Physical products like cars and computers. Services high in ________ qualities have characteristics that the buyer can evaluate after purchase.
Experience. A market includes
Buyers and sellers. Globalization creates greater ______________.
Interconnectedness. Dividing a market into segments based on the various ways to use a product is known as ________.
Usage segmentation. ______ changes as the output of the firm changes.
Variable cost. Why are economic transactions easier with money than with barter?
Money is widely accepted and divisible. When a firm is considering going global, the __________ step is deciding which market(s) to enter.
First. New-economy companies generally have higher __________ than old-economy companies.
Growth rates. An economic system in which money is not used as a medium of exchange is a
Barter economy. A market is defined as blank______. (Fill in the blank)
A place for exchange. Banks increase transaction costs when they act as financial intermediaries.
False; banks usually reduce transaction costs. Which of these generally represents the last channel member in a distribution channel?
Retailer. ________ markets consist of individuals and households that buy goods and services for personal use.
Consumer. A risk that affects only individuals or small groups and not the entire economy is called a
Unsystematic risk. What are implicit costs? Part 2: An implicit cost is
The opportunity cost of using owned resources. What is one reason to study economics?
To understand resource allocation. One of the main questions of economics involves deciding upon the method for
Producing goods and services. In a mixed-market economy, the government regulates business.
True. The Fed’s use of open market operations affects banks’
Reserves and lending ability. Goods that are considered to be needs tend to be
Inelastic in demand. A resource has value, and people are willing to pay for it most likely because the resource is
Scarce. In a mixed market economy, property owned by an individual
Is protected by law. A purpose of government regulation in a mixed-market economy is to protect
Consumers and the environment. A ______ enforces government regulations in a specific area of the economy.
Regulatory agency. In addition to raising money, the government imposes excise taxes to
Discourage consumption of certain goods. In 1776, an economics book titled ______ was published to promote the concept of free enterprise.
'The Wealth of Nations.' The three questions of economics best help in making decisions about ______.
Resource allocation. A business owner would most likely create a cooperative instead of buying a franchise because
They want shared ownership and control. In a mixed-market economy, the government regulates business
To protect public interests. When a country chooses to limit the kinds of goods or services it produces, it is practicing
Specialization. Economics is a study of consumer ______.
Choices. When compared to a mixed-market economy, a command economy typically has
Less consumer choice. Reserved powers examples
State regulation of education and local governments. The deeds and actions of a producer indicate what kind of authority?
Market authority. The most common economic system in the world is a
Mixed economy.
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