Exam 2: Understanding Economics and How It Affects Business

One of the most significant problems faced by communist nations is

A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to

When the market price of a good is above its equilibrium value, and all other determinants are unchanged

There is general agreement in the United States on the degree to which the government should be involved in the economy.

On its website, Papa John's Pizza compares itself to the competition with the following message: "better ingredients, better pizza." The company is looking to achieve

If the government wants to jump-start the economy resulting in more consumer spending, it will raise taxes.

Frictional unemployment occurs because the economy is experiencing a recession.

Free-market capitalism has made it more difficult for individuals to gain wealth.

Three important economic indicators of the United States are the unemployment rate, the price indices, and the

A key to economic growth and development is to

In the small nation of Evensplitalia, the government owns several of the key businesses and provides a wide range of social services. The government strongly emphasizes income equality and eliminating the great income disparities among its citizens. These features of Evensplitalia's economy are consistent with a socialist economic system.

Peace and prosperity will flourish if we can find the one best way to divide existing resources among nations.

A depression is a severe recession that is often accompanied by deflation.

________ unemployment refers to persons who purposefully quit their jobs and have not yet found a new job.

In an effort to promote rapid growth, the government of Cashland has kept taxes low, offered little regulation of business activities, and implemented only modest social programs. The government is now facing political pressure to do more to clean up the environment and to reduce the inequalities of income and wealth. Cashland's government is currently taking a

In the U.S., the ________ has the role of managing the money supply and interest rates.

Explain the significance of "price" in a free-market economic system.

Javier left his home country to become a gardener for a family in a suburb of San Francisco, California. One of the benefits of his new job is he can attend the community college near the family's home. However, when he arrived, he experienced the differences from a predominately socialist nation and a capitalist nation. Javier was dismayed to learn that public transportation in California was limited and expensive, making it difficult to get to school. For a negligible fee, the government in his home country provided public transportation for everyone. Javier's home country's economic system was more characteristic of ________.

Michael and Casey are having an argument. Casey believes that over the past year, the economy is experiencing rapid inflation, while Michael says that the economy actually experienced disinflation during this period. The easiest way for Michael and Casey to settle their argument is to look at GDP figures for the past year.

The total value of a country's output of final goods and services in a given year is known as the gross domestic product (GDP).