Exam 2: Economics: the Framework of Business

The origin of the global economic crisis is found in the American _____.

_____ is a period of slowing average price increases across the economy.

Pure competition is a market structure:

Explain the concepts of supply and demand in a free market.

Define unemployment rate. Identify and describe the four types of unemployment in an economy.

The primary economic goal of the government in a socialist economy is to:

The debt ceiling is the maximum amount Congress lets the government borrow

Which of the following is a difference between the M1 money supply and the M2 money supply?

The North Korean and Cuban governments still own most of their nations' enterprises and actively control the performance of their nations' economies.

_____ unemployment involves layoffs during recessions.

The government often allows only one company to supply electricity in a given geographic area because allowing several companies to do so would result in an inefficient duplication of infrastructure. This suggests that electric utilities are _____.

Communism is an economic and political system in which a strong central government owns and controls almost all productive enterprises.

The Federal Reserve does not regulate banks. Only state regulatory agencies perform this function.

Countries that have taken strides toward the market end of the spectrum have seen their _____.

Cyclical unemployment results from layoffs during recessionary periods.

Competition encourages companies to operate efficiently and responsively. The government does its part to stimulate fair competition by creating regulations to protect consumers and workers.

The federal government incurs a budget deficit when its:

A basic characteristic of _____ is that both producers and consumers are free to make their own economic decisions on many basic issues.

_____ is the process of converting government­owned businesses to independent ownership.

Which of the following is most likely to be studied in a macroeconomics course?