Economics Unit 2

Question 1

_________ is a term used in investing that means ownership.

Accepted Answer

equity

Question 2

Most business occurs _______ a country.

Accepted Answer

Within

Question 3

One of the major tools to measure inflation is the ________.

Accepted Answer

Consumer Price Index

Question 4

When inflation occurs, it takes _______ money to buy the same amount of goods and services.

Accepted Answer

more

Question 5

What causes inflation?

Accepted Answer

higher demand than supply

Question 6

___________ represent the cost of money.

Accepted Answer

interest rates

Question 7

A ______ represents debt for an organization

Accepted Answer

bond

Question 8

the difference between a country’s imports and exports is called _________.

Accepted Answer

Balance of Trade

Question 9

A _______ is when a government spends more than it takes in.

Accepted Answer

budget deficit

Question 10

Who is affected the most by inflation?

Accepted Answer

Both a & c

Question 11

The _______ is the best stock index for tech companies.

Accepted Answer

NASDAQ

Question 12

Those with ________ credit scores have to pay lower interest rates.

Accepted Answer

good

Question 13

Regarding business debt, poor use of lending can lead to ___________.

Accepted Answer

bankruptcy

Question 14

The _________ stock index attempts to mirror market diversity.

Accepted Answer

S&P 500

Question 15

Making, buying, selling of good or services within a country is called _________.

Accepted Answer

Domestic trade

Question 16

During inflation, why do companies tend to hire less employees?

Accepted Answer

both a & c

Question 17

_________ represents ownership in a company.

Accepted Answer

stock

Question 18

A savings account is used by the bank for:

Accepted Answer

lending

Question 19

How does borrowing money affect the economy?

Accepted Answer

all of the above

Question 20

It's called __ when a country specializes in the production of a good or service at which it's relatively more efficient

Accepted Answer

comparative advantage

Question 21

The ________ is the oldest and most popular stock index.

Accepted Answer

Dow Jones

Question 22

Careful use of credit cards can be a good way to ___________.

Accepted Answer

build credit

Question 23

Regarding business debt, efficient use of borrowing money can lead to ________.

Accepted Answer

more profits and sales

Question 24

When a country can produce a good or service at a lower cost than other countries, it's considered ________.

Accepted Answer

Absolute advantage

Question 25

Recovery is when the economy ________.

Accepted Answer

picks up

Question 26

________ occurs when there is a decrease in the general level of prices.

Accepted Answer

Deflation

Question 27

credit cards, auto loans, and home mortgages are all common examples of what?

Accepted Answer

consumer lending

Question 28

An example of comparative advantage is:

Accepted Answer

The USA with Auto Manufacturing

Question 29

The cause of deflation is a ___________.

Accepted Answer

Higher supply than demand.

Question 30

An ______measures a stock market, or a subset of the stock market, that helps investors evaluate the market’s performanc

Accepted Answer

index

Question 31

During inflation, what happens to the prices of goods and services?

Accepted Answer

increase

Question 32

Money spent by a company for an item that will be used over a long period of time

Accepted Answer

Capital spending

Question 33

The total amount owed by the government is called ________________.

Accepted Answer

national debt

Question 34

The business ________ is the flow of the economy from one condition to another.

Accepted Answer

cycle

Question 35

A number that compares current prices from last year's prices.

Accepted Answer

Index

Question 36

Who is affected most by high interest rates?

Accepted Answer

businesses

Question 37

Making, buying, selling of good or services outside a country is called _______.

Accepted Answer

International trade

Question 38

The largest stock exchange in the world is the _________.

Accepted Answer

New York Stock Exchange

Question 39

Borrowing money to fund a service such as healthcare is an example of _________.

Accepted Answer

Government debt

Question 40

A depression is a ___________.

Accepted Answer

sustained period of recession

Question 41

A _______ is when a government may spend less than it takes in.

Accepted Answer

budget surplus

Question 42

The money for capital spending and projects come from:

Accepted Answer

all of the above

Question 43

What is an example of absolute advantage?

Accepted Answer

Saudi Arabia and Oil

Question 44

During inflation, the value of the currency ________.

Accepted Answer

decreases

Question 45

overuse of credit cards can lead to ________.

Accepted Answer

financial hardship

Question 46

goods or services sold to other countries are called _________.

Accepted Answer

Imports

Question 47

Spending by businesses for items such as land, buildings, equipment, and new products

Accepted Answer

Capital projects

Question 48

A recession is when the economy _________.

Accepted Answer

slows down

Question 49

items purchased and delivered from another country are called _______.

Accepted Answer

Exports

Question 50

A boom or prosperity is a ___________.

Accepted Answer

a sustained period of recovery

Economics Unit 2

Questions 50

Economics Unit 2

Questions 50