Midterm Econ

The business cycle is made up of how many phases?

• 5

• 4

• 3

• 2

Economic recovery begins-

• above the trend line

• at the end of a recession (trough)

• at the "boom" period

• below the trend line

Which option presents the business cycle in the correct order

• trough, contraction, peak, recovery

• trough, expansion, peak, contraction

• peak, expansion, trough, recovery

• peak, contraction, recovery, trough

If a news headline says, "Finally!!! 2 straight months of increased jobs."

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

If a news headline says, "6 straight years of growth! How much longer can the economy keep up?"

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

If a news headline says, "3 months of consecutive job losses is impacting consumer confidence."

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

What does GDP measure?

• GDP measures the health of a nations economy

• GDP measures the growth of supply within a country

• GDP measures the growth of demand outside of a country

• GDP measures an economy's input

An example of a Command Economy would be...

• the government has assumed varying degrees of control over the economy in socialist countries

• the government controls the economy. The state decides how to use and distribute resources. The government regulates prices and wages

• economic decisions are made by individuals

• Many economic decisions are made in the market by individuals. But the government also plays a role in the allocation and distribution of resources

An example of a Mixed Economy is...

• combines elements of the market and command economy. Many economic decisions are made in the market by individuals. But the government also plays a role in the allocation and distribution of resources.

• economic decisions are made by individuals.

• a type of command economic system. The government has assumed varying degrees of control over the economy. In some, only major industries have been subjected to government management

• the government controls the economy. The state decides how to use and distribute resources.

Why do labor unions exist?

• to protect the worker

• to protect the consumer

• to protect the government

• to protect the business