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PBMF Ch 2 Economic Activity

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

Central bank regulation of money supply and interest rates.

a)

monetary policy

b)

fiscal policy

c)

commerce

d)

price fixing

2.

Activities involved in buying and selling goods on a large scale.

a)

commerce

b)

fiscal policy

c)

GDP

d)

recession

3.

All the people in a country who capable of working and want to work.

a)

labor force

b)

unemployment

c)

monopoly

d)

business cycle

4.

Occurs when two or more businesses in an industry agree to sell the same good or service at the same price.

a)

fiscal policy

b)

price fixing

c)

monopoly

d)

recession

5.

Alternating periods of expansion and contraction in an economy.

a)

business cycle

b)

recession

c)

commerce

d)

GDP

6.

Rate of change in prices calculated on a monthly or yearly basis.

a)

inflation

b)

business cycle

c)

recession

d)

expansion

7.

Tax and spending decisions made by the President and Congress.

a)

fiscal policy

b)

monetary policy

c)

business cycle

d)

commerce

8.

The market value of all final products produced in a country during a specific period of time.

a)

gross domestic product

b)

price fixing

c)

commerce

d)

business cycle

9.

A period of significant decline in the total output, income, employment, and trade in an economy.

a)

expansion

b)

deflation

c)

inflation

d)

recession

10.

Market structure with one business that has complete control of a market's entire supply of goods and services.

a)

monopoly

b)

commerce

c)

fiscal policy

d)

expansion

11.

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

a)

input

b)

growth

c)

output

d)

policy

12.

What type of spending is NOT a component of gross domestic product?

a)

consumer

b)

business

c)

government

d)

stock market

13.

A general rise in prices throughout an economy is called _________.

a)

inflation

b)

deflation

c)

per capita GDP

d)

fiscal policy

14.

The amount a borrower pays for a loan is _________.

a)

lending

b)

interest

c)

inflation

d)

commerce

15.

A rising unemployment rate indicates a _____________.

a)

stronger economy

b)

rising standard of living

c)

weaker economy

d)

period of hyperinflation

16.

Which is NOT a stage of the business cycle?

a)

specialization

b)

expansion

c)

peak

d)

recession

17.

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

a)

monopoly

b)

oligopoly

c)

monopolistic competition

d)

perfect competition

18.

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

a)

promote competition

b)

provide a legal framework

c)

promotes monopolies

d)

manage the economy

19.

Fiscal policy involves _________________ decisions made by the government.

a)

tax and spending

b)

antitrust laws

c)

money supply and interest rates

d)

consumer protection

20.

The peak of a business cycle marks the ______________.

a)

end of a contraction

b)

beginning of high unemployment

c)

end of an expansion

d)

beginning of government regulation

21.

The strength of an economy can be measured using certain economic ___________________.

a)

influence

b)

indicators

c)

inflation

d)

imperfections

22.

Ownership of a corporation is divided in ___________.

a)

shares

b)

slices

c)

inflation

d)

interest

23.

The central bank of the United States is the _____________.

a)

Federal Reserve

b)

Federalist Papers

c)

Federal Government

d)

Federal Policy

24.

Laws that promote fair trade and competition among businesses are known as _____________ laws.

a)

trusting

b)

antitrust

c)

anti-taxes

d)

antibodies

25.

The measure of worker's production in a specific amount of time, such as an hour, a day, or a week.

a)

Promise

b)

Productivity

c)

GDP

d)

Protection

26.

A certificate of debt issued by an organization or government is called _____________.

a)

bonus

b)

bond

c)

stock

d)

share

27.

The lowest stage of a business cycle and marks the end of a recession.

a)

trouble

b)

antitrust

c)

trough

d)

peak

28.

How a market is organized based on the number of businesses competing for sales in an industry.

a)

marketing

b)

monetary policy

c)

market structure

d)

monopoly

29.

The total money circulating at any one time in a country.

a)

billionaires

b)

shares

c)

money supply

d)

monopoly

30.

When two or more businesses work together to remove their competition, set prices, and control distribution.

a)

control

b)

central market

c)

collusion

d)

cooperation