Econ Final Review II

Which system involves total government control of a nation's economy?

• mixed economy

• command economy

• market economy

• traditional economy

Which macroeconomic goal is generally measured by Gross Domestic Product?

• variable prices

• economic growth

• unemployment

• a balanced budget

Under which tax system do poor people pay a larger proportion of income than wealthier people?

• progressive tax

• excise tax

• regressive tax

• proportional tax

Which type of policy is being enforced when the supply of money in the economy increases?

• regressive money policy

• proportional money policy

• tight money policy

• loose money policy

Which example is a fiscal policy?

• The central government increases income tax rates.

• The central bank increases the money supply.

• The Federal Reserve decreases the money supply.

• The Federal Reserve controls open market operations.

Which statement best describes the primary role of the Federal Reserve?

• It is a private investment company in government projects.

• It is the central bank of the United States.

• It is a nonprofit cooperatives money-lending institution.

• It is an electronic market of stocks in the United States.

The yearly amount by which federal spending exceeds revenue is the

• gross domestic product.

• Consumer Price Index.

• budget deficit.

• trade surplus.

Which term describes the total value of goods and services produced in a country in a given year?

• consumer price index

• national debt

• standard of living

• gross domestic product

The steady rise in prices measured by an index of the cost of various goods and services is known as

• inflation.

• per capita GDP.

• deflation.

• gross domestic product.

The U.S. Bureau of Labor Statistics annually produces the consumer price index (CPI), which measures average price changes in relation to prices in a chosen base year. What is the CPI most likely measuring?

• employment and unemployment

• inputs and outputs of production

• imports and exports

• inflation and deflation