Chapter 2 quiz review BUS 101

In the contest of planned economies, the countries that adopted communism in 1900s developed -

Crippling shortage and surpluses

What is a structure for allocating limited resources -

Economic system

The blank was 825 billion economic stimulus package, passed by Congree, designed to turn the economy by cutting taxes, building infrastructure, and investing in green energy.

American Recovery and Reinvestment Act

The economic system of the South American nation Raewyn calls for public ownership of all businesses. The government has complete control over the market, individuals do not have individual rights of the freedom to make choices. What economic system is followed by Raewyn in this scenario?

Communism

Oceana is a hard worker, but she has always had differences with her boss, Monica. Monica has recently become more demanding and is difficult to communicate with when her team asks for help. After many long working days with little job satisfaction, Oceana submits her resignation. She knows that her resume is strong and feels confident that she will find another job. In this scenario, Oceana is facing -

Frictional unemployment

Race's, a high end apparel company in Brentwood, a European Country, cuts back on production as consumers start turning to basic products such as hygiene products because of an economic downturn in the country. The company also lays off many of its employees to further cut down expenses. In the context of the business cycle, races is most likely going through a period of _____

Individual business

What does microeconomics focus on?

Individual business

In the context of fundamental rights of capitalism, which of the following statements is true about capitalism?

It doesn't guarantee that anyone will actually earn profits

Following a decrease in the economy, the government of Amadike, a South American country, decided to increase the money supply in the country. The government wants to first tally the M1 form of money supply. In this context, the government will most likely use _____ to tally the M1 form of money supply.

Metal coins and paper bills

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 an _____

Oligopoly

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

The M1 money supply includes all currency plus checking accounts and travelers checks.

A drawback of communism, which was adopted by some countries in the 1900s, was the inability of people to make basic choices such as work or what to buy. True or False?

True

In the context of capitalist economy, the right to free choice directly feeds competition. True or False?

True

The consumer market basket of goods and services, in which the consumer price index (CPI) measures the change in weighted-average price over time, is created by the U.S Bureau of Labor statistics. True or False?

True

The economy of the country of Uba is under severe financial distress. However, over the last several months, the economy has gradually picked up, and employment levels are slowly going back to normal levels. Consumers are also participating in buying activities again. In this scenario, the economy of Uba is currently in the _____ phase of its business cycle.

recovery