into test

Which of the following is a similarity between socialism and communism?

Both have a strong involvement of the government.

In the context of the business cycle, which of the following statements is true of the period of economic contraction?

Consumers shift their buying patterns to more basic products

In the context of monetary policy, which of the following statements is true of money supply?

The M1 money supply includes all currency plus checking accounts and traveler's checks.

Identify a true statement about pure market economies.

They do not make sufficient provision for the old, the young, and the sick.

The gross domestic product (GDP) of Trelinberg, a South American nation, has been decreasing for the past eight years. The long period of consecutive decreases in the GDP has led to high unemployment rates in Trelinberg. In the given scenario, the economy of Trelinberg is most likely experiencing _____.

a depression

Rochester, an Asian 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 Rochester is _____.

capitalism

A capitalist system depends on fair competition among businesses to:

drive higher quality and lower prices.

Real gross domestic product (GDP) measures the total value of final goods and services produced within a nation's physical boundaries over a given period of time, adjusted for:

inflation

The term _____ refers to a market structure with many competitors selling differentiated products; the barriers to enter such a market structure are low.

monopolistic competition

The economic situation in Lanceberg, an African country, slowly picks up after a severe financial downturn. Over a period of 12 months, businesses expand and employment levels rise. Consumers begin to engage in normal buying behavior. In this scenario, the economy of Lanceberg is currently in the _____.

recovery phase

The repayment of the debt by the U.S. federal government is likely to result in an increase in:

taxes

A(n) _____ is a structure for allocating limited resources.

economic system

Giovani, a baker, makes exactly 20 loaves of brown bread each day. These loaves of bread are delivered to the 20 individuals who have placed an order with him. The quantity associated with such a demand and supply pattern is called _____.

the equilibrium quantity