Market Structure - CPA Business Environment and Concepts (BEC)

Card 0 of 6

Question

Which of the following segments of the economy will be least affected by the business cycle?

Answer

Healthcare services are part of an industry that has an inelastic demand. Regardless of the status of the economy, consumers will always have the same need for healthcare service.

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Question

In the long run, a firm may experience increasing returns due to:

Answer

Economies of scale is the process by which the cost to produce something decreases with increased production and scale.

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Question

Elasticity of demand or supply is:

Answer

Elasticity of demand or supply is a measure of how sensitive the demand for or the supply of a product is to a change in its price.

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Question

Frictional unemployment refers to unemployment resulting from:

Answer

Frictional unemployment arises from workers routinely changing jobs or from workers being temporarily laid off.

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Question

During a period of high inflation, which of the following groups in society would be most likely to gain?

Answer

During a period of high inflation, those with a fixed amount of debt will repay their debt with inflated dollars and are thus likely to gain.

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Question

There are ___ methods of measuring GDP, and _____ is not a method of measuring GDP.

Answer

There are 2 methods of measuring GDP, expenditure, and income approaches. There is no GDP measuring method known as the Output approach.

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