BA 100 Survey of Business - Ch 1, 2 & 3 - EXAM #1

Capital, one of the factors of production, includes machines, tools, buildings, information, and technology.

• True

• False

Which of the following is a feature of capitalism?

• The system works toward improving the lot of the working class at the expense of the super-rich.

• Private-sector businesses are not free to hire and fire at their discretion.

• The government owns and operates key enterprises that directly affect public welfare

• Private-sector businesses are free to make their own choices regarding what they will produce

_____ is a form of unemployment that involves layoffs during recessions.

• Cyclical

• Isochronal

• Periodical

• Seasonal

In a business cycle, the _____ is the transition period between contraction and expansion.

• recession

• recovery

• disinflation

• deflation

The term _____ refers to a market structure with many competitors selling differentiated products; the barriers to enter such a market structure are low.

• monopolistic competition

• monopoly

• oligopoly

• pure competition

_____ refers to the relationship between the goods and services that an economy generates and the resources needed to generate them.

• Productivity

• Reserve requirement

• Equilibrium quantity

• Supply curve

The repayment of the debt by the U.S. federal government is likely to result in an increase in:

• the number of student loans

• housing subsidies.

• taxes.

• the number of government jobs

Fiscal strategies are closely tied to political philosophy.

• True

• False

Identify a true statement about the Federal Reserve.

• It is headed by a 15-member Board of Governors.

• It manages the monetary policy of the United States

• It is restricted from performing banking services for commercial banks

• It operates under immense political pressure

Which of the following is one of the core purposes of the Fed?

• Regulating taxes

• Providing short term jobs

• Investing in critical public assets

• Influencing the size of the money supply