Which of the following is the most appropriate fiscal
policy for recession-Decreases in tax rate
The effect of expansionary monetary policy is a /n-
decrease in interest rate
Economic growth most unambiguously occurs when
there are increase in - potential real GDP
Fiscal policy attempts to achieve all of the following
objectives except - stable money supply
Which is not a function of Central bank-To import the
printing of currency
Point at which supply and demand curve intersect each
other-equilibrium
physical and human effort exerted in production; income is
wage-Labor
soil and natural resources found in nature- Land
Man-made resources used in the production of goods and
services; income is interest - Capital
Manages all resources; income is profit - Entrepreneurship
When scarcity exists, the choices societies make for the
use of that scarce resource is called-Distribution
Since there are not enough flu shots available for
everyone, the government has decided to give the
vaccines in a certain number. This is an example of-
Distribution
Scarcity refers to a basic - Economic problem
Zhu Zhu Pets are a popular gift for the holiday season.
Adults will scramble to buy these for children. But,
there will not be enough available for everyone. This is
an example of - Scarcity
The manufacturer of Zhu Zhu Pets sends these toys to
selected toy stores. This is an example of- Distribution
When you don't receive the Zhu Zhu Pets you wanted
but instead receive a Webkinz, this method of dealing
with scarcity is called - Substitution
Since there are not enough flu shots available for
everyone, the government has decided to give the
vaccines in a certain order. This is an example of the: -
Rationing
Time human beings spend producing goods and services-
Scarcity of Labor
Something produced that is long-lasting, and used to make
other things that we value such as Human capital and Capital
stock-Scarcity of Capital
Physical space on which production occurs, and the natural
resources that come with it-Scarcity of land
Ability and willingness to combine the other resources into a
productive enterprise-Scarcity of entrepreneurship
Land, Labor, Capital, & Entrepreneurship...factors of
production
The study of how people/societies deal with scarcity-
economics
The big problem that all economic systems face is-
scarcity
Household management-Economics is a social science
because it deals with:
Plants and Animals-A study of economics can describe
all aspects of a:
Country's economy-Economics is derived from the
Greek word "oikonomia" meaning-Household
management
Scarcity of resources means-Shortage of resources
Unlimited wants mean: - Infinite
It is also termed as human resource-Labor
It refers to the allocation of products among the factors
of production-Distribution
When a consumer is willing and able to buy a good or
service, he/she creates which of the following –
demand
A business owned by two or more people-partnership
Which is an example of service-visiting the door
Which is an example of want-iPad
An example of a natural resource is... -water
What is an example of a good-toy
The total amount of a good or service that is available
to buy is called-supply
When there is not enough of a certain good this is
known as. scarcity
What is a factory building an example of- capital
a benefit, profit, or value of something that must be
given up to acquire or achieve something else-
Opportunity cost
It is the study of observing how theories work in
practice-applied economics
It refers to the process of producing or creating goods
needed by the households to satisfy their needs-
production
What is the financial gain made in transactions - Profit
What is it called when you have limited quantities of
resources used to meet unlimited wants-Scarcity
What is the desire to own something and the ability to
pay for it called-Demand
What is the point at which the quantity demanded and
the quantity supplied are equal called-Equilibrium price
What is the study of economic behavior and decision
making of small units, such as individuals, families, and
businesses called-Microeconomics
What is a market structure in which many companies
sell products that are similar but not identical-
Monopolistic Competition
A field that applies of economic theories and principles
to real-world situations with the desired aim of
predicting potential outcomes-Applied Economics
are the producing units in the economy-Firm
If an increase in the price of good X results in a decrease
in the demand for good Y (and vice versa), the goods
are -Complements
Determined by the willingness and ability of producers
to sell a product (a good or a service) at different prices-
Supply
an increase in the overall level of prices in the economy-
Inflation
Macroeconomics approaches the study of economics
from the viewpoints of-the entire economy
The economy must operate at maximum capacity refers
to-full employment
means total of real production of final goods and
services available in the country-Aggregate supply
is the branch of economies that studies the individual
decision making such as households, firms and
government-Microeconomics
The study of how society manages its scarce resources-
Economics
This is the authoritative system wherein decision-
making is centralized in the government or a planning
committee. This kind of economy holds true in
dictatorial, socialist, and communist nations-Command
Economy
Defined as the market value of final products produced
within the country-Gross Domestic Product
The state of not being employed or no work-
Unemployed
Decisions are based on traditions and practices upheld
over the years and passed on from generation to
generation-Traditional Economy
The study of society and how people behave and
influence the world around them-Social Studies
is a microeconomic law that states, all other factors
being equal, as the price of a good or service increases,
consumer demand for the good or service will decrease,
and vice versa-Law of Demand
Macroeconomics is a study of-the entire economy
Point at which supply and demand come together-
equilibrium
When quantity demanded is more than quantity-
shortage
When quantity supplied and quantity demanded are not
equal-disequilibrium

Legal maximum that can be charged for a good-price
ceiling
What is the government controlled price ceiling on
apartment prices called-rent control
When quantity supplied exceeds quantity demanded at
a certain price-surplus
When quantity demanded exceeds quantity supplied at
a certain cost-shortage
A situation in which resources are distributed according
to price-free market
This part of the market determines DEMAND-buyers
This part of the market determines SUPPLY-sellers
For the law of demand, as price rises, what happens to
quantity demanded-it goes down
What does this curve represent-demand
Goods that are bought and used together are-
complementary goods
The diagram represents a-increase in demand
The diagram represents a(n)-increase in supply
If the price of hamburgers rise, but the price of hot dogs
remains the same, which are suppliers more likely to
supply- Hamburgers
When buying your first car, which of the following
would not normally be regarded as an internal factor
affecting your behaviour as a consumer-Feedback from
your family
What is the financial gain made in transactions-Profit
What is it called when you have limited quantities of
resources used to meet unlimited wants-Scarcity
What is a legal entity owned by individual stockholders-
Corporation
What is the desire to own something and the ability to
pay for it called-Demand
What is the point at which the quantity demanded and
the quantity supplied are equal called-Equilibrium price
What is the study of economic behavior and decision
making of small units, such as individuals, families, and
businesses called-Microeconomics
What is a market structure in which many companies
sell products that are similar but not identical-
Monopolistic Competition
Corporations are in business for what-Stockholders
A field that applies of economic theories and principles
to real-world situations with the desired aim of
predicting potential outcomes-Applied Economics
The study of how society manages its scarce resources-
Economics
This is the authoritative system wherein decision-
making is centralized in the government or a planning
committee. This kind of economy holds true in
dictatorial, socialist, and communist nations-Command
Economy
Defined as the market value of final products produced
within the country-Gross Domestic Product
The state of not being employed or no work-
Unemployed
Decisions are based on traditions and practices upheld
over the years and passed on from generation to
generation-Traditional Economy
The study of society and how people behave and
influence the world around them-Social Studies
is a microeconomic law that states, all other factors
being equal, as the price of a good or service increases,
consumer demand for the good or service will decrease,
and vice versa-Law of Demand
are the producing units in the economy-Firm
If an increase in the price of good X results in a decrease
in the demand for good Y (and vice versa), the goods
are-Complements
Determined by the willingness and ability of producers
to sell a product (a good or a service) at different prices-
Supply
an increase in the overall level of prices in the economy-
Inflation

Macroeconomics approaches the study of economics

from the viewpoints of -the entire economy

The economy must operate at maximum capacity refers

to-full employment

The three major macroeconomic goals do not include-

high levels of environmental quality

means total of real production of final goods and

services available in the country.-Aggregate supply

Which is the instrument of monetary policy?

Taxes-Legal cash reserve requirement

is the branch of economies that studies the individual

decision making such as households, firms and
government- Microeconomics

Macroeconomics is a study of-the entire economy

A two-sector economy in the circular flow diagram is

represented by - households and firms

A four-sector economy is called - open economy

109. The ____ slopes upwards because higher price

levels will raise domestic output.-aggregate supply
curve

The following are macroeconomics objectives, EXCEPT -

unjust distribution of income

Government policies regarding taxes and expenditures

are called - fiscal policies

The branch of economies that examines the functioning

of individual industries and the behavior of individual
decision making units is - microeconomics

All the following are the objectives of monetary policy

except -To maintain domestic price instability

All the following are monetary policy instruments,

except-Government expenditure