Economics - The Business Cycle

25 Questions | By Mrbayne1 | Updated: Mar 21, 2022 | Attempts: 864

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1.

People or groups who combine resources to make goods or services are called:
- A.
  
  Producers
- B.
  
  Consumers
- C.
  
  Capital
2.

This is what is given up when an economic decision is made.
- A.
  
  Opportunity Cost
- B.
  
  Scarcity
- C.
  
  Good
- D.
  
  Supply
3.

The condition that results from unlimited economic wants and limited resources is called:
- A.
  
  Scarcity
- B.
  
  Opportunity Cost
- C.
  
  Demand
- D.
  
  Supply
4.

People who use resources, goods, or services to satisfy their economic wants are:
- A.
  
  Consumers
- B.
  
  Producers
- C.
  
  Entrepreneurs
5.

The quantities of resources, goods, or services that will be PURCHASED at a various prices is the:
- A.
  
  Demand
- B.
  
  Supply
- C.
  
  Scarcity
6.

The quantities of resources, goods, or services that are OFFERED for sale is the:
- A.
  
  Supply
- B.
  
  Demand
- C.
  
  Scarcity
7.

"Inflation not expected to be a problem this year." The headline above affects which economic indicator the most?
- A.
  
  Consumer Price Index
- B.
  
  Gross Domestic Product
- C.
  
  Unemployment Statistics
8.

"Enron Corporation Fires 5,000 Employees"The headline above affects which economic indicator the most?
- A.
  
  Unemployment statistics
- B.
  
  Consumer Price Index
- C.
  
  Gross Domestic Product
9.

'Ford to produce fewer sports utility vehicles (SUVs) this year' The headline above affects which economic indicator the most?
- A.
  
  Gross Domestic Product
- B.
  
  Unemployment Statistics
- C.
  
  Consumer Price Index
- D.
  
  Option 4
10.

'Prices for consumer goods down 5% this year!' The headline above affects which economic indicator the most?
- A.
  
  Consumer price index
- B.
  
  Gross Domestic Product
- C.
  
  Unemployment statistics
11.

'Business investment in capital goods (machinery for production) rises.' The headline above affects which economic indicator the most?
- A.
  
  Gross Domestic Product
- B.
  
  Consumer Price Index
- C.
  
  Unemployment Statistics
12.

'More opportunities for recent graduates to find jobs!' The headline above affects which economic indicator the most?
- A.
  
  Unemployment statistics
- B.
  
  Gross Domestic Product
- C.
  
  Consumer Price Index
13.

Fiscal policy is controlled by the President and Congress
- A.
  
  True
- B.
  
  False
14.

Open-Market Operations involves the Federal Reserve buying and selling bonds.
- A.
  
  True
- B.
  
  False
15.

This economic problem refers to the overall increase in price level.
- A.
  
  Inflation
- B.
  
  Unemployment
- C.
  
  Hyperflation
- D.
  
  Deflation
16.

Who is included in the unemployment rate?
- A.
  
  Those who are actively seeking work but cannot find a job
- B.
  
  Part time workers who wish to work full time
- C.
  
  Those who have given up in looking for a job
- D.
  
  The retired
17.

The picture above is mainly concerned with:
- A.
  
  How the economy has grown throughout the years
- B.
  
  The tax revenues of the country
- C.
  
  The price of consumer goods
- D.
  
  The tariffs placed on imports
18.

"Unemployment at an all time high!"Which of these would be an example of proper fiscal policy in this situation?
- A.
  
  Lowering taxes and increasing government spending
- B.
  
  Raising taxes and decreasing government spending
- C.
  
  Raising the discount rate offered to banks
19.

"United States sets a high tax on imported oil!"Which of these would be a reason why the U.S. create this policy?
- A.
  
  To protect the U.S. oil industry
- B.
  
  To decrease the cost of oil
- C.
  
  To allow for free trade of oil
20.

The role of government is limited/non-existent in a market economy
- A.
  
  True
- B.
  
  False
21.

In a command economy, what to produce is decided by consumer choice.
- A.
  
  True
- B.
  
  False
22.

In the United States, a combination of command, traditional, and market forces guide economic decisions.
- A.
  
  True
- B.
  
  False
23.

Private ownership of business is a key characteristic of a market economy.
- A.
  
  True
- B.
  
  False
24.

In a market economy, decisions about what to produce are made by consumers and producers.
- A.
  
  True
- B.
  
  False