Exam 2: Economics: the Framework of Business

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At the end of which decade was communism replaced with democracy and the free market in the Soviet Union?

When the economy is weak, the Fed sells government securities on the open market.

Government laws against monopolies are:

Identify and explain the three key tools the Federal Reserve uses to expand and contract the money supply.

Which of the following was an effect of the 2008 global economic crisis?

Government regulations are likely to become stronger in the wake of the _____.

Less expensive labor pools overseas might create layoffs at a U.S.­based engine plant. This is an example of structural unemployment.

The $700 billion economic bailout plan following the subprime mortgage crisis of 2008 was called the:

An economy is experiencing hyperinflation when average prices of goods and services:

_____ means that prices, on average, are rising.

In fiscal strategies, most economists agree that higher taxes can boost the economy by leaving more money with the government to spend or invest during economic crisis.

An economic system is a structure only for measuring gross domestic product.

Manufacturing jobs in the United States have migrated overseas due to increased productivity and low wages of workers in other countries. This contributes to _____ unemployment for American workers in the manufacturing sector.

If revenue is higher than spending, the government incurs a budget deficit and must borrow money to cover the shortfall.

Individuals who quit their jobs experience structural unemployment.

The Federal Reserve Bank is in charge of both fiscal and monetary policy.

The _____ shows the relationship between price and quantity from a producer standpoint.

Which of the following communist nations launched free market reforms in the 1990s that stimulated rapid and sustained growth?

Explain the various changes in the rate of price in an economy.