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FINAL: Section 2: Economics, The Framework of Business

Total questions: 11

Worksheet time: 11mins

Name
Class
Date
1.

In a capitalist economy, private-sector businesses are free to decide how much  they will charge for their products. 

a)

True

b)

False

2.

What is the financial and social system of how resources flow through society?

a)

Fiscal cliff 

b)

Debt ceiling

c)

Economy 

d)

TARP

3.

Macroeconomics involves the study of: 

a)

spatial changes in the population of a country.

b)

the gross domestic product of a country. 

c)

the competitive aspects of identical products.

d)

family incomes in a given region.

4.

The controversial $700 billion economic bailout plan passed by Congress in early  October 2008 was called the _____.

a)

American Recovery and Reinvestment Act

b)

Troubled Assets Relief Program

c)

 Clayton Antitrust Act 

d)

NCUA Corporate Stabilization Program

5.

The CARES Act was passed by Congress on March 25, 2020. The Consolidated  Appropriations Act (2021) was passed by Congress on December 21, 2020 and  signed into law on December 27, 2020. The CARES Act implemented a variety of  programs to address issues related to the _____. 

a)

increased household size of American workers, families.

b)

onset and the continuation of the COVID-19 pandemic. 

c)

budget deficit.

d)

economic windfall of small businesses and industries.

6.

What does C.A.R.E.S. (Act passed in 2020) stand for? 

a)

The Congress Aim for Respite and Eventual Security Act 

b)

The Congress Aiding Republicans and Everyone Suffers Act 

c)

The Coronavirus Aid, Relief, and Economic Security Act

d)

The Coronavirus Aim to Recover from Economic Suffrage Act 

7.

When Congress agreed to raise the debt ceiling during the economic meltdown in  the United States in 2011, it temporarily averted a shutdown crisis, but the deal they  reached to do so created the _____. 

a)

risk-return relationship

b)

fiscal cliff 

c)

bottom-up budgeting 

d)

niche barrier

8.

In 1982, the total expenditure of the government of Kargenia, a European country,  exceeded its revenue by a substantial amount. This forced the government of  Kargenia to borrow funds to meet its legal obligations. In this scenario, the  government of Kargenia incurred a _____ in 1982. 

a)

fiscal drag 

b)

budget deficit 

c)

debt brake 

d)

revenue backlog 

9.

Which of the following is one of the core purposes of the Fed? 

a)

regulating taxes

b)

providing short term jobs

c)

investing in critical public assets

d)

influencing the size of the money supply

10.

Which of the following is a feature of capitalism?

a)

The system works toward improving the lot of the working class at the expense of  the super-rich. 

b)

Private-sector businesses are not free to hire and fire at their discretion.

c)

The government owns and operates key enterprises that directly affect public  welfare.

d)

Private-sector businesses are free to make their own choices regarding what they  will produce.

11.

_____ is a market structure with only a handful of competitors selling products that  can be similar or different and has high barriers to entry. 

a)

Monopolistic competition

b)

Monopoly 

c)

Oligopoly

d)

Pure competition