Economics

Question 1

What is a monopoly?

Answer 1

The sole producer of the Specific good

Question 2

What is a oligopoly?

Answer 2

A single producer of a good, can exert influence over the pricing of goods That can overwhelm the regular logic of competitive markets

Question 3

This phrase describes a theoretical market in which only logic of supply and demand can influence prices.

Answer 3

Perfect competition.

Question 4

the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services.

Answer 4

Microeconomics

Question 5

What is microeconomics?

Answer 5

Studies the behaviors of individual buyers, sellers, and business firms.

Question 6

The four processes of the business cycle.

Answer 6

Recovery prosperity recession depression

Question 7

This period of expansion is characterized by an increase in the gross domestic product (GDP) rate of growth.

Answer 7

Recovery

Question 8

Which period of the business cycle, follows a period of economic contraction?

Answer 8

Recovery

Question 9

What is in extended period of economic expansion?

Answer 9

Prosperity

Question 10

This can be characterized by sustained growth in the GDP and an unusually low unemployment rate.

Answer 10

Prosperity within the business cycle

Question 11

What is the period within the business cycle where there is economic contraction and a negative GDP growth and a slightly elevated unemployment rate

Answer 11

Recession

Question 12

What is the extended period of economic contraction?

Answer 12

Depression

Question 13

This is characterizes by sustained negative GDP growth and a decrease in capacity utilization.

Answer 13

Depression

Question 14

What is the distinction between a recession and a depression?

Answer 14

The unemployment rate is even worse in a depression and a depression persist for long period

Question 15

A simplified model of the relationship of production and consumption.

Answer 15

Circular flow of income

Question 16

The intention was to create an organization that could regulate the money supply in an elastic way to meet periodic changes in money demand and act as last resort lender to commercial banks that were in desperate need of a loan.

Answer 16

Federal reserve

Question 17

What is open market operations.

Answer 17

Methods for expanding or constricting the money supply through the sale or loan of government bonds or similar items.

Question 18

The use of government powers to affect the performance of the national economical system.

Answer 18

Fiscal policy

Question 19

The effort to affect the economy through the regulation of interest rates and the expansion or contraction of the monetary supply.

Answer 19

Monetary policy

Question 20

An increase in the average prices of consumer goods in the given economic system.

Answer 20

Inflation

Question 21

Caused of inflation

Answer 21

Increase in the money supply, literally the amount of money available within an economic system. Changes in the supply of goods.

Question 22

Where can inflation be countered?

Answer 22

In economic systems with a central bank, like the federal reserve bank.

Question 23

What can central banks do?

Answer 23

Slow inflation by raising interest rates and slowing the growth of the money supply.

Question 24

Opposite of inflation is?

Answer 24

Deflation

Question 25

This organization was established to create a global currency system to the monitoring of exchange rates and balance of payments.

Answer 25

International Monetary Fund

Question 26

The term for the integration that trade, migration and the spread of technology have brought

Answer 26

Globalization

Question 27

What is the balance on goods and services?

Answer 27

The trade balance the balance of services and goods equals the value of exports minus the value of imports.

Question 28

Any restriction on international trade that is not a tariff. environmental regulations that barred the important of certain vehicles would be an example

Answer 28

Non tariff barriers

Question 29

Taxes on imported goods. increase the price of foreign goods and make domestically produced goods Marchak to consumers. used by nations to protect domestic producers from foreign competition

Answer 29

Tariffs

Question 30

Went to governments agree to limit the Volume of a particular exported good

Answer 30

Voluntary export restraints

Question 31

A Government may restrict access to foreign markets or restrict competition by foreign producers by placing a quantity limited on imported and exported goods

Answer 31

Import and export quotas

Question 32

When currency rises in value in relation to other currencies

Answer 32

Currency appreciation

Question 33

When currency loses value relative to other currencies

Answer 33

Currency depreciation

Question 34

Some countries have material or legal advantages on the production of specific good this lowers their opportunity cost not only the cost of producing a good but also the money lost by not focusing on the production of other goods. It benefits countries to produce items of low opportunity cost and trade for items with hot opportunity costs

Answer 34

Comparative advantage

Question 35

the field of economics that studies the behavior of the economy as a whole and not just on specific companies, but entire industries and economies

Answer 35

Macroeconomics

Question 36

Prices of goods and services are determined by?

Answer 36

Supply and demand

Question 37

Supply and demand is defined as

Answer 37

the amount of a good that is available. Vs the amount o the good that buyers wish to purchase. The more product the lower the prices.

Question 38

A older system of economy that relies on custom an tradition

Answer 38

Traditional economy

Question 39

An economy with a mixture of market and planned economy.

Answer 39

Mixed economy

Question 40

In this economic system Economic freedom varies Some privately owned industries Some government regulations

Answer 40

Mixed economy

Question 41

An economy directed by the state. It dictates the prices of goods or services as well as their production and distribution.

Answer 41

Planned economy or command economy in countries ruled by socialism. Cuba Iran North Korea

Question 42

Lassiez-faire

Answer 42

A French phrase used to describe an economy that is completely free from state interventions including potential govt monopolies. Also applies I capitalistic market economies

Question 43

An economic system where all means of production are privately owned.

Answer 43

Capitalism

Question 44

In capitalism decisions regarding supply/demand/price are determined by

Answer 44

The free market. | Profit goes to the owners and investors in the business

Question 45

What kind of economic system does the US have? Where the cost of goods and devices depend on a free price system. Dictated by supple and demand

Answer 45

A market economy

Question 46

A type of governmental system that controls how goods are produced, distributed and used within a society.

Answer 46

Economic system

Question 47

A product that is tangible/physical presence.

Answer 47

Good

Question 48

If something is not tangible the product is different it is a

Answer 48

Service

Question 49

This describes an organization that becomes sole provider of a product.

Answer 49

Monopoly

Question 50

Lack competition can drive up prices without fear of a consumer backlash

Answer 50

Monopoly

Question 51

A key economic concept related to scarcity. Refer to not only financial cost but also time pleasure or additional benefit

Answer 51

Opportunity cost

Question 52

A theory that describes the behavior of individual consumer an business.

Answer 52

Microeconomics

Question 53

This type of economics concerns its self with the behaviors of the entire economic system.

Answer 53

Macroeconomics.