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Chapter 2 TEST Economics: The Framework for Business

Total questions: 20

Worksheet time: 18mins

Name
Class
Date
1.

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

a)

Microeconomics

b)

Macroeconomics

c)

Economics

d)

Fiscal Policy

2.

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

a)

Federal Debt

b)

Money Supply

c)

Discount Rate

d)

Open Market Operations

3.

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

a)

Socialism

b)

Capitalism

c)

Oligopoly

d)

Pure Competition

4.

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

a)

Monopolistic Competition

b)

Oligopoly

c)

Pure Competition

d)

Federal Debt

5.

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

a)

Federal Reserve

b)

Federal Deposit Insurance Corporation (FDIC)

c)

Securities and Exchange Commission (SEC)

d)

Internal Revenue Service (IRS)

6.

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?

a)

Monopoly

b)

Socialism

c)

Mixed Economies

d)

Inflation

7.

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

a)

Communism

b)

Natural Monopoly

c)

Deflation

d)

Hyperinflation

8.

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?

a)

Inflation

b)

Deflation

c)

Natural Monopoly

d)

Socialism

9.

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

a)

Mixed Economies

b)

Hyperinflation

c)

Monopoly

d)

Communism

10.

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

a)

Monopolistic Competition

b)

Oligopoly

c)

Monopoly

d)

Perfect Competition

11.
List the four market structures in order from least competitive to most competitive.
a)
Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition
b)
Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition
c)
Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition
d)
Monopoly, Monopolistic Competition, Perfect Competition, Oligopoly
12.

In which economic system is the GOVERNMENT in control of land, resources, and factories?

a)

Socialism

b)

Capitalism

c)

Communism

13.

What the definition of deflation?

a)

decrease in the average price of goods and services

b)

occurs when the price of goods and services rise

c)

the amount one dollar can buy is reduced

14.

If the federal government gives tax breaks to electric vehicle manufacturers and increases taxes on fossil fuel vehicles, to promote clean energy, this will affect taxing and spending. What kind of economic policy deals with taxing and spending?

a)

monetary policy

b)

social policy

c)

fiscal policy

15.

An average monthly inflation rate of more than 50% (a)  

16.

Public Utilities like TCEPA or our water association are an example of

(a)  

17.

Open market operations gives the Federal Reserve the function of ______

4 lines
18.

The rate of interest that the Federal Reserve charges when it loans funds to banks

a)

Discount Rate

b)

Inflation

c)

Deflation

d)

Money Supply

19.

This money supply includes checking accounts AND savings accounts, money market accounts, and certificates of deposit.

(a)  

20.

Why do you think so many countries in our map assignment are using Mixed Economies now?

Give me a thorough answer with 3-5 sentences. Describe Capitalism and Socialism and what makes Mixed Economy better than one or the other.

4 lines