Q1 Business Study Guide

In a capitalist economy, private-sector businesses are free to decide how much they will charge for their products.

• True

• False

What is the financial and social system of how resources flow through society?

• Fiscal Cliff

• Debt Ceiling

• Economy

• TARP

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 market structure with only a handful of competitors selling products that can be similar or different and has high barriers to entry.

• Monopolistic competition

• Monopoly

• Oligopoly

• Pure competition

The controversial $700 billion economic bailout plan passed by Congress in early October 2008 was called the _____.

• American Recovery and Reinvestment Act

• Troubled Assets Relief Program

• Clayton Antitrust Act

• NCUA Corporate Stabilization Program

The CARES Act was passed by Congress on March 25, 2020. The Consolidated Appropriations Act (2021) was passed by Congress on December 21, 2020 and signed into law on December 27, 2020.  The CARES Act implemented a variety of programs to address issues related to the _____.

• increased household size of American workers, families,

• onset and the continuation of the COVID-19 pandemic.

• budget deficit

• economic windfall of small businesses and industries

What does C.A.R.E.S. (Act passed in 2020) stand for?

• The Congress Aim for Respite and Eventual Security Act

• The Congress Aiding Republicans and Everyone Suffers Act

• The Coronavirus Aid, Relief, and Economic Security Act

• The Coronavirus Aim to Recover from Economic Suffrage Act

When Congress agreed to raise the debt ceiling during the economic meltdown in the United States in 2011, it temporarily averted a shutdown crisis, but the deal they reached to do so created the _____.

• risk return relationship

• fiscal cliff

• bottom up budgeting

• niche barrier

In 1982, the total expenditure of the government of Kargenia, a European country, exceeded its revenue by a substantial amount. This forced the government of Kargenia to borrow funds to meet its legal obligations. In this scenario, the government of Kargenia incurred a _____ in 1982.

• fiscal drag

• budget deficit

• debt brake

• revenue backlog

Macroeconomics involves the study of:

• spatial changes in the population of a country.

• the gross domestic product of a country.

• the competitive aspects of identical products.

• family incomes in a given region.