Exam 2: Economics: The Framework for Business

In most nations, the unemployment rate includes only individuals over the age of 21 who were involuntarily laid off or terminated from their previous jobs.

When tax revenue is higher than government expenditures, the government incurs a _____.

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

When the Fed reduces the discount rate, banks can obtain funds at a lower cost and use these funds to make more loans to their own customers.

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

Microeconomics focuses on:

_________ is a market structure with just a single producer completely dominating the industry.

Which of the following is a function of the Fed?

Identify a true statement about oligopoly.

_________ refers to a period of falling average prices across the economy.

_________ refers to Federal Reserve decisions that shape the economy by influencing interest rates and the supply of money.

Define the two categories of planned economies and illustrate the differences and similarities between them.

Describe the four degrees of competition with examples.

The economic system of the United States is called _____.

Macroeconomics focuses on:

Identify a true statement about the Fed

_____ refers to the quantity of products that producers are willing to offer for sale at different market prices.

Which of the following statements is true of microeconomics?

The amount of input divided by the amount of output equals productivity.

Which of the following is a true feature of capitalist economies?