Quiz 2

supply is defined as:

• a. The quantity of products that a producer will make for a specific price

• b. The number of consumers in the market with a low debt-income ratio

• c. The quantity of products that consumers will buy at different prices

• d. The number of products produced in a fiscal year

Ann is a manager at a store that sells casual clothing and accessories for both men and women. She notices that the jeans priced at $120 aren’t selling very well. She wants to increase sales of these jeans before next season. the approach Ann should take to achieve this is to:

• a. keep the prices the same, but move the jeans to another section of the store.

• b. lower the price of the jeans so that demand will increase.

• c. put even higher priced jeans next to the $120 jeans.

• d. put even higher priced jeans next to the $120 jeans.

demand is defined as:

• a. The number of consumers in a market who have low debt to income ratios

• b. The quantity of products consumers are willing to pay at different prices.

• c. The amount of products produced in high growth industries.

• d. The annual quantity of product sold by retailers as a % of GDP.

fair competition among businesses:

• a. is constant with the goals of socialism

• b. is a primary feature of a communist economic system.

• c. ensures that everyone is a winner.

• d. drives higher quality and lower prices in capitalism.

a basic characteristic of __________ is that both producers and consumers are free to make their own economic decisions on many basic issues

• a. socialism

• b. capitalism

• c. communism

• d. mercantilism

_________ is a economic system based on the principle that the government should own and operate key enterprises that directly affect public welfare.

• a. Laissez-faire

• b. capitalism

• c. socialism

• d. anarchism

which of the following is the difference between a socialist economic system, and a pure communist economic system?

• a. socialism has lower taxes

• b. socialism mandates that the government run and own more enterprises.

• c. communism is more efficient than Socialism.

• d. socialism controls social welfare, pure communism controls everything.

 To encourage fair competition and protect both consumers and workers, the federal government:

 

• a. place heavy taxes on firms in monopolistic competition.

• b. places limits on intentional trade in order to stimulate domestic production

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  c. creates regulations to intervene in the free market.

• d. creates business systems to meet the needs of all consumers.

 Government regulations are likely to become stronger in the wake of  _______________.

• a. an economic crisis like The Great Recession.

• b. budget deficits.

• c. Presidential elections.

• d. fiscal cliff.

Fiscal policy refers to:

• a. government efforts to influence the economy through taxation and spending.

• b. private efforts to encourage economic growth and entrepreneurship.

• c. methods that boost the economy by influencing interest rates.

• d. actions that shape the economy by increasing the supply of money.