Economics Vocabulary Quiz 2

20 Questions | By Jessicaleague | Last updated: Mar 20, 2022 | Total Attempts: 173

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Choose the best term to match the definition. This is for practice only. Results are not graded. You may take this quiz as often as you wish.

Questions and Answers

1.

The amount of goods and services in the economy.
- A.
  
  Aggregate demand
- B.
  
  Aggregate supply
- C.
  
  Factors of production
- D.
  
  Open market operations
2.

The total amount of goods and services in the economy that are consumed.
- A.
  
  Aggregate demand
- B.
  
  Aggregate supply
- C.
  
  Gross Domestic Product (GDP)
- D.
  
  Businiess cycle
3.

A situation in which the government spends more than it takes in.
- A.
  
  Inflation
- B.
  
  Recession
- C.
  
  Fiscal policy
- D.
  
  Budget deficit
4.

A period of macroeconomic expansion followed by a period of contraction.
- A.
  
  Cycical unemployment
- B.
  
  Business cycle
- C.
  
  Depression
- D.
  
  Frictional recession
5.

A price index determined by measuring the price of a standard group of goods meant to represent the typical "market basket" of a typical urban consumer.
- A.
  
  Gross Domestic Product (GDP)
- B.
  
  Consumer Price Index (CPI)
- C.
  
  Aggregate Demand
- D.
  
  Market System
6.

Unemployment that rises during economic development and falls when the economy improves.
- A.
  
  Recessional unemployment
- B.
  
  Cycical unemployment
- C.
  
  Frictional unemployment
- D.
  
  Structural unemployment
7.

A recession that is especially long and severe.
- A.
  
  Great recession
- B.
  
  Depression
- C.
  
  Communism
- D.
  
  Stagflation
8.

Rate the Federal Reserve charges for loans to commercial banks.
- A.
  
  Discount rate
- B.
  
  Elasticity
- C.
  
  Inflation rate
- D.
  
  Equilibrium rate
9.

The nation's central banking system
- A.
  
  Federal Reserve System
- B.
  
  FDIC
- C.
  
  GDP
- D.
  
  Central Monetary Agency
10.

The use of government spending and revenue collection to influence the economy.
- A.
  
  Regressive tax
- B.
  
  Monetary policy
- C.
  
  Discount rate
- D.
  
  Fiscal policy
11.

Unemployment that occurs when people take time to find a job.
- A.
  
  Aggregate unemployment
- B.
  
  Cyclical unemployment
- C.
  
  Frictional unemployment
- D.
  
  Temporary unemployment
12.

A market dominated by a single seller.
- A.
  
  Monopoly
- B.
  
  Oligopoly
- C.
  
  Partnership
- D.
  
  Corporation
13.

A market structure in which a few large firms dominate a market.
- A.
  
  Monopoly
- B.
  
  Oligopoly
- C.
  
  Monopolistic competition
- D.
  
  Traditional system
14.

A business organization owned by two or more persons who agree on a specific division of responsibilities and profits.
- A.
  
  Entrepreneurship
- B.
  
  Perfect competition
- C.
  
  Partnership
- D.
  
  Mutual fund
15.

A market structure in which a large number of firms all produce the same product.
- A.
  
  Monopolistic competition
- B.
  
  Perfect competition
- C.
  
  Oligopoly
- D.
  
  Professional organization
16.

A maximum price that can be legally charged for a good or service.
- A.
  
  Price ceiling
- B.
  
  Efficiency
- C.
  
  Equilibrium price
- D.
  
  Elasticity
17.

A minimum price for a good or service.
- A.
  
  Equilibrium price
- B.
  
  Price floor
- C.
  
  Monetary policy
- D.
  
  Default price
18.

A business owned and managed by a single individual.
- A.
  
  Entrepreneurship
- B.
  
  Private corporation
- C.
  
  Sole proprietorship
- D.
  
  Producer
19.

Goods used in place of each other.
- A.
  
  Substitute goods
- B.
  
  Complementary goods
- C.
  
  Accessory goods
- D.
  
  Scarce goods
20.

The amount of goods available.
- A.
  
  Stock
- B.
  
  Production possibilities
- C.
  
  Aggregate supply
- D.
  
  Supply