Economics Principles - Ch. 2 Dynamic Study Module

Which of the following best describes socialism? a) It is an economic system characterized by public ownership and operation of key industries combined with private ownership and operation of less-vital industries. b) It is a government's takeover of selected companies or industries. c) It is turning over services once performed by the government for private businesses. d) It is the state ownership of all major productive resources.

a) It is an economic system characterized by public ownership and operation of key industries combined with private ownership and operation of less-vital industries.

An economy in which individuals and businesses have the most freedom to make decisions based on what a consumer needs and wants is a ________________________. a) capitalist economy b) planned economy c) communist economy d) socialist economy

a) capitalist economy

_____________________ is used as a label for a wide range of innovations that have the potential to improve financial services - and in some instances, radically disrupt them. a) fintech b) crowdfunding c) innovation d) peer-to-peer funding

a) fintech

Housing starts and durable-goods orders are examples of _________________________. a) leading indicators in the economy b) interest rates c) price indexes in the economy d) lagging indicators in the economy

a) leading indicators in the economy

_______________________________ is a government's takeover of selected companies or industries. a) nationalization b) socialism c) communism d) privatization

a) nationalization

In which of the following topics would someone studying microeconomics be most likely interested? a) The fluctuation in gold prices in the international market. b) A review of a certain corporation's budget. c) A national government's decision to bail out debt-ridden industries. d) The rise in inflation in a country's economy over the past four years.

b) A review of a certain corporation's budget.

What is socialism? a) The state ownership of all major productive resources. b) An economic system characterized by public ownership and operation of key industries combined with private ownership and operation of less vital industries. c) The government's turning over services once performed by the government to private businesses. d) A government's takeover of selected companies or industries.

b) An economic system characterized by public ownership and operation of key industries combined with private ownership and operation of less vital industries.

The unemployment rate refers to which of the following? a) The percentage of people in the U.S. economy who are ages 16 years and older and who don't work. b) The percentage of people in the U.S. economy who are 16 years and older and who are looking for jobs. c) Older workers are looking for jobs. d) The percentage of people in the U.S. economy who are ages 16 years and older and who have stopped looking for jobs.

b) The percentage of people in the U.S. economy who are 16 years and older and who are looking for jobs.

Which of the following are complementary goods and /or services? a) cars and train transportation b) cars and car tires c) cars and bus transportation d) cars and motorcycles

b) cars and car tires

Today, a new wave of alternative money is happening in the form of ______________________. a) fiat money b) cryptocurrencies c) legal tender d) currency

b) cryptocurrencies

____________________________ is the study of how a society uses its scarce resources to produce and distribute goods and services. a) macroeconomics b) economics c) microeconomics d) operations management

b) economics

____________________________ is a situation in which many sellers differentiate their products from those of competitors in at least some small way and are therefore able to charge different prices for them. a) an oligopoly b) monopolistic competition c) pure competition d) a monopoly

b) monopolistic competition

____________________________ is a situation in which so many buyers and sellers exist that no single buyer or seller can individually influence market prices. a) an oligopoly b) pure competition c) monopolistic competition d) a monopoly

b) pure competition

In which of the following topics would someone studying macroeconomics most likely be interested? a) A review of a certain corporation's budget allocation. b) A family's decision to decrease its household budget. c) The effect of a government regulation on the economy. d) A firm's decision to lay off employees in one of its divisions.

c) The effect of a government regulation on the economy.

Corporate mergers over the course of the past few decades have led to consolidation in the textbook market. Today, there are only a few major suppliers of textbooks in the United States. The market for textbooks is an example of ______________________________. a) monopolistic competition b) a monopoly c) an oligopoly d) a co-op

c) an oligopoly

Increasing taxes is an example of the government using _________________________ to affect the economy. a) money policy b) subsidies c) fiscal policy d) bailouts

c) fiscal policy

Which of the following products is counted as part of the U.S. gross domestic product (GDP)? a) The value of an imported automobile with tariffs added. b) An automobile produced by a U.S. automaker in a factory abroad. c) The value of the steel used to make an automobile in the United States. d) The value of a new automobile produced in the United States.

d) The value of a new automobile produced in the United States.

Which of the following is not one of the four key roles the U.S. government plays in the economy? a) fostering competition b) protecting stakeholders c) stabilizing and stimulating the economy d) affecting exchange rates

d) affecting exchange rates

There are several bakeries and confectionaries in the Marksenian market economy, and each bakery sells bread, cakes, and sweets at different prices, which are not controlled by the government or any other organizational body. Customers who wish to buy these confectionaries are free to buy from any outlet they like. The country of Marksenia has a _________________________________. a) socialist economy b) communist economy c) planned economy d) free-market economy

d) free-market economy

What is the rate that member banks charge each other to borrow money? a) secondary market b) discount rate c) prime rate d) the federal funds rate

d) the federal funds rate