Exam 2: Economics: The Framework of Business

The _____ was an $825 billion economic stimulus package, passed by Congress, designed to turn the economy by cutting taxes, building infrastructure, and investing in green energy.

Which of the following factors acts as a motivator for business owners in a capitalist economy?

The economy of Sutanvia is under severe financial distress. However, over the last few months, the economy has gradually picked up, and employment levels are slowly rising back to normal levels. Consumers are also beginning to engage in regular buying activities. In this scenario, the economy of Sutanvia is currently in the _____ phase of its business cycle.

In the context of monetary policy, which of the following statements is true of money supply?

In the context of monetary policy, when the economy is weak, the Fed:

Which of the following statements is true of a capitalist economy?

In the context of capitalism, describe the four degrees of competition with examples of each.

The Fed directly stimulates spending by:

The Fed:

Giovani, a baker, makes exactly 20 loaves of brown bread each day. These loaves of bread are delivered to the 20 individuals who have placed an order with him. The quantity associated with such a demand and supply pattern is called _____.

In 1982, the total expenditure of the government of Kargenia, a European country, exceeded its revenue by a substantial amount. This forced the government of Kargenia to borrow funds to meet its legal obligations. In this scenario, the government of Kargenia incurred a _____ in 1982.

In the context of capitalist economy, the right to free choice directly feeds competition.

Socialism is an economic system that encourages privatization and believes that all enterprises should be publicly owned.

In the context of supply and demand, which of the following statements is true of the free market system?

_____ is a market structure with only a handful of competitors selling products that can be similar or different and has high barriers to entry.

Anoush used to work for an investment firm. Although she liked her job, she had to resign because it took her a lot of time to commute to work. After resigning, she searched for a job, and within a month, she found a better job that was closer to her home. In the given scenario, the duration of Anoush's unemployment exemplifies _____.

When the Fed sells securities, _____.

In the context of price levels, which of the following is used by the government to evaluate inflation?

Which of the following statements is true of productivity?

Gross Domestic Product (GDP) measures the total value of all the imports and exports of a nation on a quarterly basis.