BA- 125 - Quiz 2

Question 1

1 / 1 pts

The main function of economics is to study ________.

Question 2

1 / 1 pts

Joseph took a class in macroeconomics, which means that he was studying the behavior of ________.

Question 3

1 / 1 pts

John is an employee at a car manufacturer. Today he has come into work to find that production has stopped because the government has determined that the steel used in the cars will be better used in the manufacture of a new railway line. John doesn't mind, because although his wages are low, he gets paid whether there is any work for him to do or not. John MOST likely lives in a ________.

Question 4

1 / 1 pts

________ is one of the countries closest to having a planned economy, and ________ is one of the countries closest to having a market economy.

Question 5

1 / 1 pts

The supply of services is not part of the study of economics because it does not involve the exchange of goods.

Question 6

1 / 1 pts

Although the United States comes close to being a capitalist economy, it is considered a mixed economy because there is some government intervention.

Question 7

1 / 1 pts

Which transaction best describes bartering?

Question 8

1 / 1 pts

A supply curve illustrates ________.

Question 9

1 / 1 pts

Currency is a unit of exchange for the transfer of goods and services, and provides a consistent standard.

Question 10

1 / 1 pts

The law of demand states that as the price for an item or service increases, so will the supply and that if the price is lower, the supply will also be less.

Question 11

1 / 1 pts

The ________ and the Department of Justice must review mergers between large competitors to determine whether the combined firm would be a monopolistic corporation.

Question 12

1 / 1 pts

Which of the following industries is LEAST likely to form an oligopoly?

Question 13

1 / 1 pts

Mae's Restaurant is the only establishment in town that sells cinnamon rolls. Mae therefore has a monopoly on the cinnamon roll business in town.

Question 14

1 / 1 pts

What is an economic indicator?

Question 15

1 / 1 pts

A downward-moving GDP indicates that ________.

Question 16

1 / 1 pts

What does the monthly consumer price index (CPI) measure?

Question 17

1 / 1 pts

Goods tracked by the PPI include ________ and ________.

Question 18

1 / 1 pts

________ unemployment measures permanent unemployment associated with massive industry-wide changes that lead to complete elimination of the positions formerly held.

Question 19

1 / 1 pts

Change in prices is an important economic indicator because it is a measurement of consumers' purchasing power.

Question 20

1 / 1 pts

The government determines the appropriate level of taxes and spending through its ________.

Question 21

1 / 1 pts

When the Federal Reserve Bank buys or sells U.S. securities, it changes the level of reserves in the banking system which has an effect on interest rates.

Question 22

1 / 1 pts

A free market economy is one in which ________.

Question 23

1 / 1 pts

Macroeconomics is the study of how certain occurrences affect the economy as a whole.

Question 24

1 / 1 pts

In a planned economy, an individual's personal income dictates his or her spending choices.

Question 25

1 / 1 pts

When the Federal Reserve Bank buys or sells U.S. securities, it changes the level of reserves in the banking system which has an effect on interest rates.