Chapter 13 Questions

The U.S. is mostly a ______.

• Focused economy

• Free market

• Demand

• GDP

Economic interdependence ______.

• Describes how all the countries of the world handle their money

• Describes how many countries and companies around the world depend upon each other

• Means that we're all dependent upon the economy for our personal happiness

• Means that countries do not depend on each other for their economic well-being

The buying and selling of various goods and services is called __________.

• Marketplace

• Trade

• Scarcity

• Economic interdependence

__________ is the science of the whole economy, while __________ is the study of people, individual businesses, or markets.

• Global economics; microeconomics

• Macroeconomics; global economics

• Macroeconomics; microeconomics

• Microeconomics; macroeconomics

Wind, water, and solar energy are examples of __________.

• Renewable resources

• Economic interdependence

• Nonrenewable resources

• Human capital

____ never really works for an economy because there's little innovation and no reward for starting a business, as well as an unmotivated labor force because workers are often assigned jobs.

• Capitalism

• Socialism

• Market economy

• Monopoly

____ is an official ban on trade with a country.

• An embargo

• A quota

• Rationing

• Tariffs

A free enterprise market economy where businesses are free to determine what goods to produce and who to sell them to is called ____.

• Capitalism

• Socialism

• Mixed economy

• Specialization

During the ____ phase of the business cycle, GDP growth falls, unemployment levels rise, income is in decline, and the stock market declines.

• Peak

• Trough

• Contraction (or recession)

• Expansion

What is scarcity?

• It's a restriction placed on goods and services.

• It's something that occurs when there's greater demand for something than what's available.

• It's when the government controls the amount of goods or services being used.

• It happens when the government takes action to restrict international trade.