busi q2

Which of the following statements is true of productivity? Productivity refersto the quantity of products that consumers are willing to buy at different market prices. A low level of productivity tends to correlate with economic expansion. A high level of productivity typically correlates with healthy gross domestic product (GDP) growth. Increase in productivity usually gives rise to increase in quality.

A high level of productivity typically correlates with healthy gross domestic product (GDP) growth.

Which of the following is a similarity between socialism and communism? Both have low taxation policies. Both allow freedom in work choices for the people. Both have a strong involvement of the government. Both allow free market systems.

Both have a strong involvement of the government.

The Federal Reserve sells treasury bonds during a period of inflation in the United States. Buyers of these bonds write checks to the Fed, and the Fed cashes these checks from banks. What will the banks most likely do given this situation? Cut back on the discount rate Increase the discount rate Increase the loan amount Cut back on the loans they make

Cut back on the loans they make

Economists declare an official recession when gross domestic product (GDP) decreases for six consecutive quarters. False True

False

Nadir, an Asian nation, experiences an economic downturn that leads to an increase in average prices across the country. The situation becomes more serious when average prices increase more than 60% per month. In the given scenario, what is the country of Nadir experiencing? Hyperinflation Deflation Disinflation Asset price inflation

Hyperinflation

Which of the following is a difference between inflation and deflation? A high level of inflation is bad for the economy, whereas a high level of deflation signifies a healthy economy. Inflation increases the unemployment rate, whereas deflation decreases the unemployment rate. Inflation is a period of rising average prices across an economy, whereas deflation is a period of falling average prices across the economy. The Federal Reserve buys government securities when inflation is a concern, whereas the Federal Reserve sells government securities when deflation is a concern.

Inflation is a period of rising average prices across an economy, whereas deflation is a period of falling average prices across the economy.

Which of the following tools is most frequently used by the Fed to expand and contract the money supply in the economy? Open market operations Endowment mortgages Steering taxes Credit default swaps

Open market operations

What is the quantity of products that producers are willing to offer for sale at different market prices? Supply Cache Repository Stockpile

Supply

Which of the following factors acts as a motivator for business owners in a capitalist economy? Guaranteed profits for privately owned enterprises Government welfare programs The right to spendafter-tax income however one sees fit Social and economic equality in society

The right to spendafter-tax income however one sees fit

The controversial $700 billion economic bailout plan passed by Congress in early October 2008 was called the _____. Troubled Assets Relief Program American Recovery and Reinvestment Act NCUA Corporate Stabilization Program Clayton Antitrust Act

Troubled Assets Relief Program

Which of the following statements is true of a capitalist economy? Economic equality in the society is of paramount importance. Individuals are free to choosehow much they are willing to pay for products. The competition in the market is biased in favor of a few businesses. Businesses are not free to decide how much they charge for their products.

Which of the following statements is true of a capitalist economy?

In 1995, the total expenditure of the government of Kyung, an Asian country, exceeded its revenue by a substantial amount. This forced the government of Kyung to borrow funds to meet its legal obligations. In this scenario, the government of Kyung incurred a _____ in 1995. revenue backlog debt brake fiscal drag budget deficit

budget deficit

Brogan, an African country, follows an economic system that facilitates private ownership. The country's economy is based on economic freedom and fair competition. Given this information, the economic system followed by Brogan is _____. communism capitalism totalitarianism socialism

capitalism

A market structure with only a few competitors selling products that can be similar or different and has high barriers to entry is referred to as a(n) _______. monopolistic competition oligopoly monopoly pure competition

oligopoly

A giant electrical company that was previously owned by the government of Lamaria, an Asian country, is sold to an independent industrialist to ensure that the company is handled in a more efficient way. The given scenario is an example of _____. globalization a coalition privatization a joint venture

privatization

In a business cycle, the _____ is the transition period between contraction and expansion. deflation disinflation recession recovery

recovery

Umar works on a part-time basis for a company that provides lawn care services. Umar is specialized in handling the gardening and landscaping; he therefore needs to be at work only during the summer and is mostly unemployed for the rest of the year. In this scenario, the form of unemployment faced by Umar is _____. cyclical unemployment periodical unemployment structural unemployment seasonal unemployment

seasonal unemployment

Vanna is a part-time worker at a salsa-producing company in her village. Her job entails picking and cleaning tomatoes. Because tomatoes grow only in summer, Vanna is unemployed for most of the year. In the given scenario, Vanna's unemployment is an example of _____. classical unemployment seasonal unemployment cyclical unemployment frictional unemployment

seasonal unemployment

The government of Taia, an Asian country, owns key industries that directly affect public welfare, such as healthcare and telecommunications. To fund public welfare schemes, the government levies high taxes on its citizens. In the given scenario, the economic system followed by Taia is _____. capitalism distributism socialism communism

socialism

In the context of monetary policy, if the Fed decreases the reserve requirement, _____. there will be more loans available interest rates will increase banks will need to hold more funds the availability of credit will decrease

there will be more loans available