Exam 2: Economics: the Framework of Business

Privatization is the conversion of government­owned enterprises to private ownership.

Microeconomics focuses on:

The debt ceiling is the maximum amount Congress lets the government lend to the public.

Subprime loans were attractive to lenders because:

Market equilibrium identifies the price at which quantity supplied is equal to quantity demanded.

​A pure planned economy is non­existent today because _____.

Gross Domestic Product (GDP) includes the value of output produced within a nation even if that output is produced by a foreign­owned company.

When the economy contracts, the Fed typically decreases the money supply.

Gross Domestic Product (GDP) measures the total value of all final goods and services produced within a nation's physical boundaries over a given period of time.

Credit is tight. Even borrowers with good credit have to shop around for loans, and it seems like banks are reluctant to loan their money. Of the following choices, what could be the reason?

_____ is a period of robust economic growth and high employment.

The few nations that still rely on a communist economic system have actually seen major improvements in their economic performance over the past decade.

Anne is a manager at a store that sells casual clothing and accessories for both men and women. She notices that the jeans priced at $120 aren't selling very well. She wants to increase sales of these jeans before the next season. The approach Anne should take to achieve this is to _____.

Fair competition among businesses:

A federal agency called the _____ was established to protect customer deposits in banks and thrift institutions for up to $100,000 per customer, per bank.

For which of the following reasons is a low level of inflation desirable and deflation undesirable?

The economic restructuring necessary to move toward greater reliance on markets has proven to be relatively easy for most previously planned economies to achieve.

Ashley has decided to purchase a dress for the banquet using her credit card. Ashley will be using a form of the money supply most often referred to as M2.

Following the global economic crisis, which of the following institutions did NOT intervene in the economy?

Which of the following nations developed a powerful socialist economy in the decades after World War II?