BUS MGT Ch 2 Economic Activity

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

• Standard of living

• Annual sales

• Product value

• Gross domestic product

The four components of GDP are consumer spending, business investment, government spending, and ___________

• economic growth

• net exports

• net imports

• inflation

The _________ rate is the rate of change in prices calculated on a monthly or yearly basis.

• inflation

• deflation

• interest

• fixed income

The __________ represents the cost of a loan and is expressed as a percent of the amount borrowed.

• CPI

• interest rate

• principle

• supply

___________ competition is a competitive advantage based on factors other than price.

• Price

• Perfect

• Nonprice

• Monopolistic

Fiscal policy is the tax and spending decisions made by the president and ___________.

• the Federal Reserve

• the IRS

• the Supreme Court

• Congress

All of the people in a nation who are capable of working and want to work.

• trough

• business cycle

• labor force

• specialization

US laws that promote fair trade and competition among businesses.

• antitrust laws

• money supply

• Federal Reserve System

• productivity

Period of significant decline in total output, income, employment and trade in an economy.

• business cycle

• stock market

• recession

• depression

Alternating periods of expansion and conctraction in the economy.

• consumer price index

• oligopoly

• inflation rate

• business cycle