Intro to Business Chapter 2

B) Recovery

In a business cycle, the _____ is the transition period between contraction and expansion. A) recession B) Recovery C) Disinflation D) Deflation

C) Reserve Requirement

In the context of monetary policy, the ________ is a rule set by the Fed, which specifies the minimum amount of funds a bank must hold, expressed as a percentage of the bank's deposits. A) Debt Ceiling B) Statuary Framework C) Reserve Requirement D) Fiscal Drag

B) Hyperinflation

Irkholm, a South American 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 50% per month. In the given scenario, Irkholm is experiencing _____. A) Disinflation B) Hyperinflation C) Asset Price Inflation D) Deflation

B) Fiscal Policy

The country of Ukanturk has been facing an economic downturn for two consecutive years. To revive the financial condition of the country, its government tries to influence the economy through taxation and spending decisions that are designed to encourage growth and increase employment. In this scenario, the government of Ukanturk is implementing its A) Monetary Policy B) Fiscal Policy C) Investment Policy D) Supply-Side Policy

B) Gross Domestic Product

Troboli is a North American country. The total value of all final goods and services produced in Troboli in the last fiscal year was 3.3% more than the year before that. This growth placed Troboli in a better position than most of its allies. In this scenario, the total value of all final goods and services through which the economic condition of Troboli was assessed is known as _____. A) Net Present Value B) Gross Domestic Product C) Profit Margin D) Windfall Profit

A) Public Utilities

Which of the following is an example of a natural monopoly? A) Public Utilities B) Agriculture C) Network Television D) The automobile Industry