Intro Chapter 2 Review Quiz

_____ is a condition where inflation is increasing, at a decreasing rate

Monetary of Fiscal: Pres. candidate promises to cut spending to reduce national debt

Adam Smith's theory of the 'invisible hand' means

Markets that are dominated by just a few sellers (such as airlines & car cos) are examples of:

Which of the following is a basic right under Capitalism?

Total value of goods and services produced in a country in a given year is known as

Free mkt countries r trending towards socialism & command econs r trending towards capitalism

_____ unemployment refers to those who tell their boss to 'take this job & shove it'

Inflation refers to the general rise in the price of goods and services over time

The national deficit is the difference between our nation's exports and its imports.

Capitalism is the foundation of the U.S. economic system

_____ is where most of factors of production & distribution are owned by individuals

Socialism & Communism are variations of a command economy

The national debt of the United States is $25 trillion

_______ unemployment refers to loss of jobs due to a recession or a similar downturn in economy

The _____ has the role of managing the money supply and interest rates

A free market is one where decisions about what to produce and in what quantities are made by:

Brain drain is the loss of the best and brightest people to other countries

Monetary of Fiscal:  Congress debates a major income tax revision

Monetary or Fiscal: To ease unemployment, the Fed increases money supply

The top tax rate in a socialist country is lower than the top tax rate in a capitalist country

______ studies the operation of a nation's economy as a whole

_______ looks at the behavior of individual people and organizations in specific markets.

_______ unemployment refers to loss of job due to recession or downturn in economy

Keynesian economic theory says....

One of the benefits of a free market is that:

__ is study of how to increase resources & create conditions that will make better use of them

Demand refers to the quantity of a good that consumers are willing to buy at a specific price

Socialists believe the governments primary economic function is promoting rapid economic growth

A(n) show the amount people r willing to buy at the prices at which sellers are willing to sell

One drawback of socialism is it may reduce the individual's motivation to work hard

The foundation of the U.S. economic system is based on

Which type of unemployment is the most serious in terms of a country's economic health?

One of problems with ______ is that it can lead to greed

Monetary or Fiscal: The Fed raises rates to combat inflation

Most communist countries today are suffering from severe economic problems

Today the economic systems of most nations are classified as:

Fiscal policy is fed gov's efforts 2 stabilize economy by raising/lowering taxes & gov spending

Usually, quantity of products producers are willing to supply will ___ as prices ____

The measure used to report price changes at the wholesale level is the:

Workers in socialist countries get longer vacation & more social benefits than free mkt econs

______ unemployment is caused by firms reorganizing or mismatch of worker skills and avail jobs

The United States has a mixed economy

The 3 important economic indicators economists monitor are GDP, the Price Indices & 

Socialist governments supply all of the following to their citizens except:

____ is the study of how a society distributes resources amongst competing groups & individuals

Studying how consumers respond to price increases by auto makers is studying macroeconomics

At the ______ the quantity consumers demand = the quantity sellers want to sell

One of the benefits of communism is the freedom to make your own economic decisions

In a free market economy, the _____ signals buyers what to produce and how much to produce

When a government takes in less in tax $ than it pays out in government programs, a ___ results

Over past decade, socialist economies have created more wealth & jobs than capitalist economies