chapter 2 reading

fiscal

increased government spending is a main_____ spending tool

resource development

jason is trying to revise a plan for getting oil from shale and tar sands in order to make better use of them. jason is most likely working in ___ _____.

improved technology makes the production process faster

one of the main explanations for the relatively sharp increases in the u.s manufacturing sector productivity is:

understanding the supply of automobiles in the u.s market

one possible microeconomic topic is:

those who come up with new ideas usually do not receive as much reward as they do in capitalists countries

over the past decade or so, most socialist countries have not kept up with the united states in new inventions, why?

producer

producers are likely to be interested in a measurement of prices at the wholesale level so they will refer to the _____ price index

supply

quantities of products manufacturers are willing to sell at different prices is known as:

capitalism, socialism, communism

rank the three economic systems where the system with the least government involvement is on the top and the system with the most government involvement is on the bottom.

deflation

rising unemployment levels tend to stifle demand for goods and services, which can have the effect of forcing prices downward, a condition known as _____

taxes need ti be higher in socialist countries

socialism offers such benefits as free education and health care. however, the government has to pay for those services . therefore:

microeconomics

studying the economic behavior of individual people and organizations in markets for particular products or services is _____.

unemployment

the _____ rate refers to the percentage of civilians at least 16 years old who do not have a job but tried to find a job within the prior 4 weeks.

reduction of inequality through taxation to support poorer people, nationally supported health care, and childcare

the benefits of socialism include:

more consitant with economic growth therapy, indicator of business cycle, consumer spending is the effec, not the cause of, prosperity

the commerce department has concluded that gross output is a better indicator than gdp because:

perfect competition

the degree of competition where there are many sellers of identical products in a market is called:

socialism

the economic system based on the premise that some, if not most basic industries should be owned by the government so that profits can be more evenly distributed among the people is called:

economy

the economic system in which the government largely determines what products get produced, who gets them, and how the economy grows is:

keynesian

the federal government's efforts to keep the economy stable through spending and taxation is an example of _____ economic theory.

the higher it is, the lower the cost of producing goods and services

the level of productivity is important to businesses because:

supply, demand

the market price is determined where the ____ curve intersects the ____ curve.

consumer

the monthly statistic that measures the pace of inflation or deflation is called the ____ price of index.

cycles

the periodic rises and falls that occur in economies overtime are called business ____

demand

the quantity of products that are willing to buy at different prices at a specific time is called:

improving infractions such as highways, increased spending on education, spending on infrastructure to create jobs

the second fiscal policy tool is to put out money from taxes into the economy by:

deflation

the situation in which prices are declining is:

economics

the study of how resources are distributed for productions of goods and services within a social system is called _____

national debt

the sum of government deficits overtime is called:

mixed

the united states free-market economy of the past now represents that of a _____ market economy since the government offers and controls programs such as medicare, medicaid and social security.

reduce incentives to start small businesses, drive money away from private sector into government

theoretically high taxes slow the economy because:

GDP, price indexes, unemployment rates

three major u.s economic indicators are:

recession

two or more consecutive quarters of decline in the GDP define a(n) ______

macroeconomic

an examination of the overall economic conditions within a country requires a ______ persepective

taxes or government spending

fiscal policy is the federal government's effort to keep the economy stable by increasing or decreasing:

increasing decreasing taxes and government spending

fiscal policy is the government's efforts to keep the economy stable by:

inflation

a persistant increase in the level of consumer prices or a persistant decline in purchasing power is the official definition of:

socialism

a positive goal of _____ is social equality, while a negative outcome is taking income from citizens at rates as high as 60%

quality, output

a problem with measuring productivity in the service sector is that new technology improves the ____ of the service, but not the _____.

depression

a severe recession usually accompanied by deflation is called a(n) _____

mixed

a(n) ____ economy is made up of more than one economic system, with some industries owned by the government and some privately owned.

total, country

GDP is the ____ value of final goods and services produced in a ______ in a given year.

free-market

an economic system in which the market largely determines what products get produced, who gets them, and how the economy grows is called a ____ economy

the invisible hand

according to adam smith, as long as farmers, laborers, and business-people received economic reward for their efforts, they would work hard. As a result, of this self-directed desire to gain, the economy would prosper and everyone would become wealthier. Smith called this process:

macroeconomics

_____ is the study of the operation of a nation's economy as a whole

inflation

a general rise in the prices of goods and services overtime is called:

one seller controls the supply of a product

a monopoly occurs when:

requires higher taxes to support social programs, takes away some business-people's incentives

a negative effect of socialism on society is that it:

price index

____ help gauge the health of the economy by measuring the levels of inflation, deflation, disinflation, adn stagflation

just a few sellers dominate market

an oligopoly is a degree of competition which:

gross output

another measure used by the u.s bureau of economic analysis of total sales volume at all stages of production is ________

shortages of material due to higher predicted demand for a product, problems predicting quantities to produce, oversupply of some products because demand has been estimated incorrectly

businesses in communist economies often have:

too few dollars are chasing too many products, countries produce so many products that people cannot afford to buy them all

deflation may occur if:

brain drain

due to much higher taxes in socialist countries, the best and the brightest tend to leave such countries causing a ___

monetary policy

during the latest recession, the fed lowered interest rates sharply. this is an example of:

makes money more expensive to borrow, slow down economy as businesses spend less money to expand

higher interest rates:

low taxes increase the profits a small business can earn, used to stabilize economy, high taxes draw the money away from private sector

how are taxes used to influence the economy?

capitalist

hugo lives in a country where individuals own all or most of the factor of production. clearly hugo lives in an ___ country.

deflation

if too many products are produced and there are few too few buyers able to buy them, then ____ will occur.

are negotiated by buyers and sellers

in a free market, the prices of products exchanged in the market:

mixed

in the last century, the united states and other capitalist countries added more social services. lately communist countries such as china have offered greater liberties such as the freedom to own private property. clearly there seems to be a trend toward ______ economies.

market price

in the long run, equilibrium price trends toward the:

perfect competition, monopolistic competition, oligopoly, monopoly

list the four degrees of competition generally agreed on by economists, starting with the most competitive one first

supply

manufacturers tend to increase the ____ of goods and services as the price consumers are willing to pay increases.

interest rates, money supply

monetary policy consists of the federal reserve's management of the:

equilibrium point

on a graph showing both supply and demand curves, the intersection point between the two curves shows the:

products perceived as different by the buyers, large number of sellers in market

under monopolistic competition:

economy stabilizes and starts to grow

what are the characteristics of the recovery stage of a business cycle:

communism

what is the political and economical system in which the government makes almost all economic decisions and owns almost all the major factors of production, as well as choosing religion, where to live, and jobs for its citizens.

stagflation

when the economy is slowing down , but prices are still going up it is called:

an increase in consumer spending

when the government spends money on such projects as roads and bridges , it is expected that the money will trickle down to the consumers eventually leading to:

an economic system in which economic decisions are made by the market, another name for capitalism

which of the following are correct with regards to a free-market economy?