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__________ exists when the entire supply of a good is controlled by a single seller. |
A monopoly |
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Economics is the study of how a society _________________. |
employs resources to produce goods and services and distribute them among competing groups and individuals |
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__________ is a condition in which the price increases are slowing. |
Disinflation |
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When prices are free to adjust over time, in the long run, the market price of a good tends to: |
Equal the equilibrium price. |
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One of the most significant problems faced by communist nations is: |
Persistent shortages of basic goods such as food and clothing. |
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A typical demand curve shows that: |
People tend to buy more of a good when its price decreases. |
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The Federal Reserve Bank operates: |
as a semi-private organization not under the direct control of the government |
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Under capitalism: |
Most of the means of production and distribution are privately owned and operated for profit. |
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A major premise of a socialist system is: |
To reduce the inequality in the distribution of wealth. |
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There are some restrictions on freedom of assembly and freedom of speech under a ____________ system. |
mixed economy |
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The _________ is a statistic used to compute the pace of inflation or deflation. |
consumer price index |
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If a shortage exists for a good in a free-market economy, the: |
Price of the good will rise. |
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Which of the following statements most accurately identifies a limitation of the free-market economic system? |
Free-market economies tend to result in unequal distribution of wealth. |
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The social and economic goals of __________ include private ownership of land and business. |
capitalism |
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__________ unemployment refers to loss of jobs due to a recession or a similar downturn in the economy. |
Cyclical |
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Efforts by the Federal Reserve Bank (the Fed) to control the money supply and interest rates are known as: |
monetary policy |
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The measure used to report price changes at the wholesale level is the: |
producer price index (PPI). |
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Three important economic indicators of the United States are the unemployment rate, the price indices, and the: |
gross domestic product (GDP). |
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Thomas Malthus was pessimistic about the ability of a society to achieve high standards of living for most of its citizens because he believed that: |
Significant population growth would result in shortages of food and resources. |
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Today, the economic systems of most nations could most accurately be classified as: |
Mixed economies. |
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When the government runs a continual budget deficit, it increases the: |
National debt. |
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__________ is the study of how a society employs its limited resources to produce goods and services and how it distributes them among competing groups and individuals. |
Economics |
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Keynesian economic theory suggests: |
Short-term increases in government spending to stimulate the economy. |
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Under the __________ system the number of choices in the market is directly related to government involvement in markets. |
socialist |
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A simple supply curve shows a relationship between the: |
Price of a good and the quantity of that good sellers are willing to offer for sale at a specific point in time. |
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The presence of competition in free markets: |
Usually results in better quality and lower prices |
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A command economic system is characterized by: |
Reliance on the government to determine what is produced and who gets the output. |
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__________ is a condition in which the average level of prices is actually falling. |
Deflation |
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In recent years, U.S. manufacturing sector has experienced ___________ productivity. |
rising |
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If businesses are producing at capacity, and the nation is experiencing almost full employment (a very low rate of unemployment – less than 2%), the Fed may decide to: |
Increase interest rates. |
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