Economic Instructional Area

Question 1

The government can attempt to fight inflation by…

Answer 1

Restricting the amount of money in circulation.

Question 2

When all of the company’s rescissions are made to satisfy a customers wants and needs, it’s using the (blank) concept

Answer 2

Marketing Concept

Question 3

If a business doesn’t want to pay to set up operations overseas, it might choose to expand through…

Answer 3

Exporting to foreign counties (NOT joining a strategic alliance).

Question 4

Trevor decides to use $4,000 extra from his business to purchase new computer software. Trevor applied (blank) in an effective way.

Answer 4

Slack Resources

Question 5

What type of government policy involves manipulating the business cycle by raising or lowering taxes.

Answer 5

Fiscal. A fiscal policy sets levels of government spending and taxation. To control inflation, the government might implement a contractionary fiscal policy which decreasing government spending and increases taxes. An expansionary policy is the opposite of contractionary and is used for unemployment, for example.

Question 6

Law of Diminishing MARGINAL RETURNS

Answer 6

Adding additional factors of production results in smaller increases of input.

Question 7

Stage One of Production

Answer 7

Most growth. Each additional variable will produce more products.

Question 8

Stage Two of Production

Answer 8

Marginal returns start to increase at a slower rate.

Question 9

Stage 3:

Answer 9

Marginal returns become negative.