Exam 2: Understanding Basic Economics

Monetary policy involves changes in the government's revenues and expenditures to stimulate a slow economy or dampen a growing economy that is in danger of overheating and causing inflation.

Capital is the collective intelligence of an organization.

Deflation is an economic condition in which prices fall steadily throughout the economy.

In recent years,why have the governments of various countries both nationalized and privatized some of their services?

The ________ depicts the relationship between prices and quantities that sellers will offer for sale,regardless of demand.

Due to government mandate,only one company has the exclusive right to provide electricity in all the cities of Borgia.This is an example of a ________.

Economic development zones,established by governments,offer a variety of financial incentives to businesses that meet specific job creation and local investment criteria.

________ is the spirit of innovation,the initiative,and the willingness to take the risks involved in creating and operating businesses.

Explain the meaning of a leading indicator with the help of an example.

Explain,with the help of an example,why socialism and capitalism are not mutually exclusive.

When a downward swing or recession is over,the economy enters into a period of ________.

The point at which the demand and supply curves intersect - the point at which the quantity demanded and supplied are equal - is called the ________.

________ refers to the amount of a good or service that customers will buy at a given time.

A deep and prolonged recession is known as a(n)________.

Compare and contrast between monetary and fiscal policies.

In practice,no economy is truly a free-market economy.

Movement along the supply curve typically slopes upward because ________.

Workers in a country are unable to find jobs that match their qualifications and the employers are unable to find employees with the skills required to perform the job.This has led to ________ unemployment in this country.

How does capitalism promote monopolistic competition in the market?

Microeconomics is the study of ________.