Exam 2: Economics: the Framework of Business

In the broadest sense, economics studies the choices that:

The Fed's decision to buy and sell government securities is decided by the Federal Open Market Committee.

The sum of all the money borrowed by the government over the years and not yet repaid is the _____.

GDP tends to overstate the amount of output produced by a nation's economy.

Unfortunately, depressions are a common problem in most economies.

In the U.S. economy, various branches of government own major enterprises such as the postal service, schools, parks, libraries, universities, and the military.

To stimulate competition and protect both consumers and workers, the federal government:

The study of economics falls into two broad categories called meta­economics and econometrics.

In capitalist economies, central government planning is paramount.

Fiscal policy refers to:

Inflation occurs as the average prices of goods and services rise.

It is important that any government examine multiple measures of its own economic health, rather than relying on simply one or two dimensions.

The ideas of political philosopher Karl Marx are most closely linked to the economic system known as _____.

Macroeconomics issues directly affect one's day­to­day life, influencing key variables such as what jobs will be available, how much cash one will actually take home after taxes, or how much can one buy with that cash in any given month.

In moving towards the market side of the spectrum, socialist governments have:

_____ refers to actions that shape the economy by influencing interest rates and the supply of cash.

Firms in oligopolistic markets tend to:

When tax revenue is higher than government expenditures, the government incurs a:

Capitalism places paramount importance on the need for the government to intervene in the economy to ensure a fair and equitable distribution of income.

The $700 billion economic bailout package passed by Congress in 2008 was an example of monetary policy.