Ch. 10 and 11

Question 1

And established system, a political administration by which a nation state society organization is ruled.

Answer 1

Government

Question 2

An economic system based upon collective ownership and control of national resources

Answer 2

Socialism

Question 3

Large complex organizations made up of appointed officials, and their numerous agencies and Departments

Answer 3

Bureaucracies

Question 4

The belief that a societies economic problems can be better solved by expert planners, then by the natural automatic corrections, made by free market

Answer 4

Keynesianism

Question 5

The recurrent fluctuations in the level of economic activity

Answer 5

Business cycle

Question 6

Gross domestic product; the value of all finished goods and services produced within a country during a years time

Answer 6

GDP

Question 7

Gross national product; the value of all finished goods and services produced by a nation’s citizens during a years time

Answer 7

GNP

Question 8

A recession that is unusually severe and long lasting

Answer 8

Depression

Question 9

Component of the economy that normally changes before the rest of the economy

Answer 9

Leading indicator

Question 10

Consumer price index; a tool used to measure growth of inflation based on the average price consumers pay for specific goods and services

Answer 10

CPI

Question 11

Period the serves as a reference point to which prices are compared

Answer 11

Base period

Question 12

The economic condition in which high inflation is combined with high unemployment resulting in stagnation of productivity

Answer 12

Stagflation