Chapter 2 TEST Economics: The Framework for Business

What is the study of the choices that people, companies, and governments make in allocating soceity's resources?

• Microeconomics

• Macroeconomics

• Economics

• Fiscal Policy

Which term refers to the total amount of money available in an economy at a particular point in time?

• Federal Debt

• Money Supply

• Discount Rate

• Open Market Operations

What is the economic system where trade and industry are controlled by private owners for profit, rather than by the state?

• Socialism

• Capitalism

• Oligopoly

• Pure Competition

Which term describes a market structure characterized by a small number of competitors selling products that can be similar or different?

• Monopolistic Competition

• Oligopoly

• Pure Competition

• Federal Debt

What is the name of the U.S. government corporation that provides deposit insurance to depositors in American commercial banks and savings institutions?

• Federal Reserve

• Federal Deposit Insurance Corporation (FDIC)

• Securities and Exchange Commission (SEC)

• Internal Revenue Service (IRS)

What is a market structure where a single company or group owns all or nearly all of the market for a given type of product or service?

• Monopoly

• Socialism

• Mixed Economies

• Inflation

Which term describes an economic system where the government owns and controls the means of production?

• Communism

• Natural Monopoly

• Deflation

• Hyperinflation

What is the term for a sustained increase in the general price level of goods and services in an economy over a period of time?

• Inflation

• Deflation

• Natural Monopoly

• Socialism

Which term refers to an economic system that combines elements of both capitalism and socialism?

• Mixed Economies

• Hyperinflation

• Monopoly

• Communism

What is the term for a market structure where many firms sell products that are similar but not identical?

• Monopolistic Competition

• Oligopoly

• Monopoly

• Perfect Competition