Final Exam Review

The risk-taker in search of profits that starts a business

Which of the following would be MOST LIKELY to increase aggregate demand? 

Eric works as an accountant. Which of the following terms would BEST describe his role?

An example of expansionary fiscal policy would be

Which of the following is a monetary policy that would be useful in stopping deflation? 

The most important type of business organization in the United States today, most volume 

 In which economy does the government make all decisions (What, How & For Whom to produce)?

The federal budget is put together

The economic variables that affect business cycles include all of the following EXCEPT 

If the unemployment rate is slowly beginning to fall and the GDP is slowing beginning to rise

 A country tries to keep the value of its currency constant against one another

When people/businesses freely choose to engage in market transactions

Monetary policy MOST affects    

What could have caused the demand curve to shift to the right?

Under a fractional reserve banking system, banks

When there is a sharp decline in real GDP, usually for a long period of time, it is called a(n)

The lack of adequate resources to obtain all of one’s wants

Illegal goods and services produced are

In the calculation of GDP, which of the following is the largest dollar amount?

An industry that is dominated by a few large firms is

The purpose of expansionary fiscal policy is to 

Buying stocks, purchasing bonds, using profits to buy better machinery are all forms of  

Which of the following is the MOST liquidable asset?  

In a market economy, how are goods and services paid for by the government?

The current account includes

When Alison, leaves her job at a college and starts looking for a job at a university

What is a mortgage used to purchase? 

What can a price ceiling create?

Which of the following would cause a change in the QUANTITY DEMANDED for a product?

A mutual fund is

Who benefits from a currency that appreciates in value?

The resources used to make all goods and services are called 

What kind of system is the United States economy based on?

If there is a shortage in a market, the price is likely to

What is the law of demand?

Which of the following is NOT an example of a public good? 

When the US dollar appreciates, US consumers can

Low interest rates