Principles of B, M,& F CH2

Gross domestic product (GDP) is also known as economic _____

• input

• growth

• output

• policy

Which type of spending is not a component of gross domestic product (GDP)?

• Consumer

• Business

• Government

• Stock market

A general rise in prices throughout an economy is called _____

• inflation

• deflation

• per capita GDP

• fiscal policy

The amount a borrower pays for a loan is _____

• lending

• interest

• inflation

• commerce

A rising unemployment rate indicates a _____

• stronger economy

• rising standard of living

• weaker economy

• period of hyperinflation

Which is not a stage of the business cycle?

• A. Specialization

• B. Expansion

• C. Peak

• D. Recession

A(n) _____ is a market structure with a small number of businesses selling the same or similar products.

• monopoly

• oligopoly

• monopolistic competition

• perfect competition

Which of the following is not a role of government in an economy?

• A. Promote competition

• B. Provide a legal framework

• C. Promote monopolies

• D. Manage the economy

Fiscal policy involves ____ decisions made by the government.

• A. tax and spending

• B. antitrust laws

• C. money supply and interest rates

• D. consumer protection

The peak of a business cycle marks the ____.

• end of a contraction

• beginning of high unemployment

• end of an expansion

• beginning of government regulation