Exam 19: Principles of Economic Behavior Microeconomics and Macroeconomics

The Federal Reserve Bank regulates the money supply by:

Inflation results when:

An economic growth rate of 4 percent is considered desirable.

The "invisible hand" that makes the economy work is what Karl Marx called human greed.

Demand and supply are:

Aggregate demand is defined as:

When the government must pay for fighter planes based on commitments made five years previously, the spending is called:

Supply-side theories claim that:

In a market economy, production decisions are made by consumers through a price system.

The public sector:

Both fiscal and monetary policies focus on:

In economic terms, incomes are distributed according to:

Need and demand:

Centrally-planned economies seem like a good idea. Why don't they work? What elements in human nature work against planning? 3.1. 19.3.1 Do we really need the government to stick its nose in the economy? A number of conservative politicians do not think so. And yet, would we voluntarily do those things that need to be done in order to maintain a desirable quality of life?

The mechanism of the market system provides for:

The price system is based on:

Maintaining full employment, stabilizing the economy, and pursuing economic growth are issues analyzed in the context of:

The central authorities, as participants in the economy, are defined as the unit that decides how to use labor, land, and capital.

The government can curb excessive aggregate demand (inflation) by:

The government's purchasing power depends on people's donations to the political party of their choice.