Exam 2: Understanding Economics and How It Affects Business

Serena is a vocal critic of socialism. She often points out that governments in many socialistic countries have cut back on government services and have thusly reduced taxes. Serena believes that this trend will ultimately result in every country adopting pure capitalistic ideals. Recent evidence shows that her views are essentially correct.

As "global" trends become "local," and as we see more opportunities to compete in the global market,

Identify and describe the 4 basic rights that form the foundation of capitalism.

The concept of the invisible hand begins with the assumption that the primary motivation of entrepreneurs is that they will prosper from their own hard work.

The newscast cited forecasts that national output might continue to fall in the future. If total output shows decline for two consecutive quarters, economists would classify this as a ________.

The Federal Reserve Bank is responsible for controlling the money supply.

________ exists when a large number of firms produce goods that are similar but customers believe there is a difference.

Thomas Malthus believed that people in most countries would never be able to achieve high standards of living unless the problems of overpopulation were addressed.

A major trend around the world today is that

Which of the following people would tend to favor a socialist economy?

The most fundamental of all rights in capitalism is the right to private property.

Microeconomics focuses on the decisions and behavior of people and organizations in particular markets.

Brianne graduated from college and is looking for her first job. She received a degree in nursing from a well-regarded local university. Brianne has several leads and has heard the nursing market is still strong, so she is convinced that she will locate a good job in the near future. Brianne's current situation is an example of structural unemployment.

The U.S. national debt equals the sum of government deficits over time,.

Core inflation figures omit healthcare prices, but not energy prices.

Communism is an economic system in which

Adam Smith believed that an economic system couldn't truly prosper unless people were taught to value the welfare of others above their own personal gain.

In a free-market economic system, ________ is the key determinant used to signal to producers what to produce and how much to produce.

Under capitalism, the government prohibits people and businesses from competing with each other.

Compare and contrast fiscal policy and monetary policy. Discuss how each of these approaches can be used to influence the state of the economy.