Exam 2: Understanding Basic Economics

Macroeconomics studies economic behavior among consumers,businesses,and industries that collectively determine the quantity of goods and services demanded and supplied at different prices.

________ laws limit what businesses can and cannot do to ensure that all competitors have an equal chance of succeeding.

In a country,the state owns all major productive resources from electricity to transportation.The country has very few opportunities for entrepreneurship and the economic classes are absent.The economy of this country is characterized by which of the following economic systems?

Is there such a thing as a "free" economy? Explain and support your views.

Compare and contrast between free-market systems and planned systems.

Demand curves typically slope downward.This implies that a(n)________.

Global economists use the terms capitalism and private enterprise to describe centrally planned economic systems.

________ unemployment is the natural movement of workers into and out of jobs,such as when a person quits one job without first lining up a new job.

Which of the following refers to people and their individual talents and capacities?

________ policy involves changes in the government's revenues and expenditures to stimulate a slow economy or dampen a growing economy that is in danger of overheating and causing inflation.

The equilibrium point is the point at which quantity of a good or service equals the quantity demanded.

Scarcity creates competition for resources,and forces trade-offs on the part of every participant in the economy.

Business and political leaders use ________ such as rates of interest or unemployment to measure and monitor economic performance.

Sales taxes are the government's largest single source of revenue.

When demand for goods and services drops,businesses reduce production,thereby requiring fewer workers.The unemployment resulting because of this phenomenon is known as ________ unemployment.

Monetary policy involves changes in the government's revenues and expenditures to stimulate a slow economy or dampen a growing economy that is in danger of overheating and causing inflation.

Which of the following actions of the government indicates the privatization of an industry?

The economic system that allows individuals the least degree of economic freedom is ________.

Leading economic indicators suggest changes that may happen in the economy in the future.

Movement along the supply curve typically slopes upward.