Economic Activity Review

The business cycle measures all the new businesses that open and those that fail within an industry.

• true
• false

Commerce is the activities involved in buying and selling goods on a large scale.

• true
• false

The market value of all final products produced in a country during a specific time period is _________.

• consumer price index
• gross domestic product
• perfect competition
• money supply

The US government manages the economy using _________ policies.

• tax
• market and commerce
• business cycle
• fiscal and monetary

What is inflation?

• The average change in prices paid for typical consumer goods and services over time.
• A general decline in prices throughout an economy.
• The general rise in prices throughout an economy.
• A stage in the business cycle.

The central bank of the United States that is responsible for the country's monetary system.

• Federal Reserve System
• monopoly
• oligopoly
• market structure

Market structure with a small number of businesses selling the same or similar products.

• Federal Reserve System
• monopoly
• oligopoly
• market structure

Market structure with one business that has complete control of a market's entire supply of goods or services.

• Federal Reserve System
• monopoly
• oligopoly
• market structure

How a market is organized based on the number of businesses competing for sales in an industry.

• Federal Reserve System
• monopoly
• oligopoly
• market structure

Policy that regulates the supply of money and interest rates by a central bank in an economy.

• monetary policy
• fiscal policy
• money supply
• collusion