Exam 2: Understanding Economics and How It Affects Business

_________ is the name of a free-market economic system in which most of the factors of production and distribution - such as land,factories,railroads,and stores - are owned by individuals.

Which of the following statements about productivity in the service sector of the U.S.economy is most accurate?

To jump-start the economy,the FED is likely to lower interest rates,in order to encourage individuals and businesses to spend money.

Under capitalism:

Communist values are disappearing because:

We use indicators such as 1)the gross domestic product GDP),2)the interest rate,and 3)the price indexes to measure the health of our economy.

The four basic types of unemployment are frictional,structural,seasonal,and:

A professor of economics at a prominent university recently urged government policy makers to cut taxes and increase government spending in order to pull the economy out of its current downturn.The policy measures called for by the professor are examples of fiscal policy.

The nation of Florentina is in the midst of a serious economic downturn.The nation's GDP has declined steadily for over five years and is now at its lowest level in over fifty years.Florentina's unemployment rate is at an all time high and the nation's CPI is falling.Florentina's economic condition is referred to as a:

When the government attempts to stabilize the economy by changing taxes or government expenditures,it is using fiscal policy.

The quantity of a good or service that producers are willing to sell at different prices during a specific time period is known as the:

In recent years,countries with communist economic and political systems have:

Recently,Hugo Chavez,the Prime Minister of Venezuela announced that he is standing behind the concept of state owned utilities and public schools in his nation.Although not all industry is owned and managed by the government,his ideas would lead one to believe that he has a preference for socialism.

In command economies,the government plays a major role in deciding which goods are produced and who will get them.

Fetna resides in a country where the economic system is primarily based on free market capitalism.Fetna is likely to have the freedom to buy and sell property.

The Federal Reserve Bank operates:

Thomas Malthus believed that overpopulation was a major cause of poverty.

Which of the following statements most accurately identifies a limitation of the free-market economic system?

An oligopoly is a market that is characterized by:

The study of how society chooses to employ resources to produce goods and services and to distribute them for consumption among various competing groups and individuals is known as sociology.