Unit 7 Review

What term describes companies that benefit from high prices due to collective agreement?

• Surplus

• Inflation

• Monopoly

• Trust

What does the term "business cycle" refer to?

• A repeated series of economic "ups" and "downs"

• A single business with the power to control prices

• Government plan for raising and spending money

• The amount by which government income is greater than spending

What is defined as a general rise in the price level of goods and services?

• Deficit

• Inflation

• Federal budget

• Monetary policy

Which term describes the amount by which government spending is greater than income?

• Surplus

• Deficit

• Monetary policy

• Business cycle

What is the role of the Federal Reserve System?

• To set up postal service

• To regulate money supply

• To build highways

• To run businesses for the common good

What is a monopoly?

• A government plan for raising and spending money

• A business with the power to control prices

• A balanced federal budget

• A smooth business cycle

What is the federal budget?

• The amount by which government income is greater than spending

• A single business with the power to control prices

• Government plan for raising and spending money

• Regulation of money supply by the Federal Reserve System

How does the government monitor the nation's economic health?

• Tariffs

• Monetary policy

• Fiscal policy

• Gross domestic product (GDP)

What does federal spending funds include?

• Benefits payments

• Interest on the national debt

• National defense

• All of the above

What part of most people's income do federal taxes take?

• 25 percent or more

• Less than 25 percent

• 50 percent or more

• About 10 percent