Exam 2: Economics: The Framework of Business

When Congress agreed to raise the debt ceiling during the economic meltdown in the United States in 2011, it temporarily averted a shutdown crisis, but the deal they reached to do so created the _____.

The United States goes through a period of recession because of the continuous decrease in the nation's gross domestic product. The Fed intervenes and improves the situation by reducing the discount rate. This move by the Fed will result in:

In the context of economic systems, the two key phases of a business cycle are:

Which of the following is a difference between inflation and deflation?

_____ is a market structure with just a single producer completely dominating the industry.

In the context of the right to private property, identify a true statement about capitalist economy.

Which of the following is a recent advancement in the Western European countries that developed powerful socialist economies in the decades after World War II?

In the context of federal debt, if spending is lower than revenue, the government incurs a budget deficit.

Microeconomics focuses on:

Ronnie works on a part-time basis for a company that provides home repair and maintenance services. Ronnie is specialized in handling the central heating systems in homes and is therefore needed to be at work only during the winter. He is mostly unemployed for the rest of the year. In this scenario, the form of unemployment faced by Ronnie is _____.

The cosmetics industry in the district of Dunkenburg has many competing companies that sell personal care products. However, each company manufactures products that correspond to different income groups, and these products have different uses. The market structure of the cosmetics industry in Dunkenburg exemplifies _____.

Socialist economies tend to have very low taxes.

Ancusia, an East Asian country, was plagued by war and corruption for several years. This led to poor economic conditions, and the government was compelled to borrow funds from other nations. Because of the slow economic growth in the country, the government could repay only 15% of its debts. In this scenario, the amount that the government is yet to repay is known as _____.

Which of the following statements is true of the Troubled Assets Relief Program (TARP)?

Which of the following statements is true about the Fed?

In the context of open market operations, when inflation is a concern, the Fed sells securities to buyers who write checks to the Fed to pay for securities they bought, and the Fed withdraws these funds from banks. With fewer funds, _____.

_____ refers to the relationship between the goods and services that an economy generates and the resources needed to generate them.

Disinflation is defined as a period of slowing average price increases across an economy.

In its role as a banker for banks, the Fed:

In the context of evaluating economic performance, describe productivity.