WorksheetsQuiz 2
Total questions: 13
Worksheet time: 7mins
supply is defined as:
a. The quantity of products that a producer will make for a specific price
b. The number of consumers in the market with a low debt-income ratio
c. The quantity of products that consumers will buy at different prices
d. The number of products produced in a fiscal year
Ann is a manager at a store that sells casual clothing and accessories for both men and women. She notices that the jeans priced at $120 aren’t selling very well. She wants to increase sales of these jeans before next season. the approach Ann should take to achieve this is to:
a. keep the prices the same, but move the jeans to another section of the store.
b. lower the price of the jeans so that demand will increase.
c. put even higher priced jeans next to the $120 jeans.
d. put even higher priced jeans next to the $120 jeans.
demand is defined as:
a. The number of consumers in a market who have low debt to income ratios
b. The quantity of products consumers are willing to pay at different prices.
c. The amount of products produced in high growth industries.
d. The annual quantity of product sold by retailers as a % of GDP.
fair competition among businesses:
a. is constant with the goals of socialism
b. is a primary feature of a communist economic system.
c. ensures that everyone is a winner.
d. drives higher quality and lower prices in capitalism.
a basic characteristic of __________ is that both producers and consumers are free to make their own economic decisions on many basic issues
a. socialism
b. capitalism
c. communism
d. mercantilism
_________ is a economic system based on the principle that the government should own and operate key enterprises that directly affect public welfare.
a. Laissez-faire
b. capitalism
c. socialism
d. anarchism
which of the following is the difference between a socialist economic system, and a pure communist economic system?
a. socialism has lower taxes
b. socialism mandates that the government run and own more enterprises.
c. communism is more efficient than Socialism.
d. socialism controls social welfare, pure communism controls everything.
To encourage fair competition and protect both consumers and workers, the federal government:
a. place heavy taxes on firms in monopolistic competition.
b. places limits on intentional trade in order to stimulate domestic production
c. creates regulations to intervene in the free market.
d. creates business systems to meet the needs of all consumers.
Government regulations are likely to become stronger in the wake of _______________.
a. an economic crisis like The Great Recession.
b. budget deficits.
c. Presidential elections.
d. fiscal cliff.
Fiscal policy refers to:
a. government efforts to influence the economy through taxation and spending.
b. private efforts to encourage economic growth and entrepreneurship.
c. methods that boost the economy by influencing interest rates.
d. actions that shape the economy by increasing the supply of money.
___________________ refers to actions that shape the economy by influencing interest rates and the supply of cash.
a. Fiscal policy
b. Monetary policy
c. Revenue policy
d. Deficit policy
The primary way that "central banks", like the U.S. Federal Reserve Bank, controls the supply of money is by:
a. establishing the amount of currency the US Treasury is allowed to print.
b. changing the reserve requirement as per prevailing economic conditions.
c. buying and selling government securities (i.e., treasure bond, notes and bills) in open market operations.
d. allowing banks to borrow more money from the US Treasury
The amount of goods and services produced by an economy divided by the amount of resources used to make those goods and services equals:
a. the consumer price index.
b. the budget deficit.
c. inflation
d. productivity
