Semester Review

In Fiscal policy, the national debt is the

• difference between revenue and

  expenses in a given year.

• difference between exports and

  imports.

• interest paid on government borrowing.

• sum of past deficits and surpluses.

Monetary policy in the United States is directed

by

• Congress

• the President

• various local banks

• the Federal Reserve

Crony capitalism refers to the

• unconstrained free enterprise system.

• profit motive of individuals seeking the

  best deals.

• regulation of the market by a single

  individual.

• buying and selling of monopoly

  privileges.

An entrepreneur acts like a scientist by

• developing theories.

• constructing hypotheses

• conducting experiments.

• all of the above

Inflation refers to a

• temporary increase in the prices of some goods.

• sustained increase in the prices of all goods.

• rate of interest paid on savings

• change in the interest paid on government debt.

A tariff is a tax placed on goods that are

produced

• domestically and sold internationally

• internationally and sold domestically

• domestically and sold domestically

• I don't know

Which of the following is NOT a factor of production

• Land

• Labor

• Capitol

• Capital

Unemployed workers are

• Workers currently employed but looking for a new job.
• People who are retired and not seeking work.
• Individuals actively seeking work but unable to find employment.
• Individuals who have recently started a job.

Which of the following are fiscal policy tools (select 2)?

• adjusting the reserve requirement

• adjusting the discount rate

• changing government spending

• changing income taxes

• buying/selling bonds via open market operations

Fractional reserve banking refers to a process in which a bank

• transfers money from borrowers to lenders.

• transfers money from lenders to borrowers.

• creates money.

• destroys money.