Economics Fundamentals Quiz

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What does nationalizing refer to?

The government privatizing selected companies or industries

The government providing subsidies to selected companies or industries

The government deregulating selected companies or industries

The government taking over selected companies or industries (correct)

What is the point of intersection between supply and demand on a graph called?

Supply curve

Demand curve

Equilibrium point (correct)

Market equilibrium

What is a recession?

A period of decline in a country's GDP for two consecutive quarters (correct)

A period of high inflation

A period of stable economic conditions

A period of economic growth and expansion

Which of the following best defines microeconomics?

The study of economic behavior among consumers, businesses, and industries that collectively determine the quantity of goods and services demanded and supplied at different prices Signup and view all the answers

Which economic system allows individuals and companies to largely decide what products to produce, how to produce them, who to sell to, and at what price to sell them?

Free-market system Signup and view all the answers

What is the main focus of macroeconomics?

A country’s larger economic issues, such as how firms compete, the effect of government policies and how an economy maintains and allocates its scarce resources Signup and view all the answers

Which economic system is characterized by public ownership and operation of key industries combined with private ownership and operation of less-vital industries?

Socialism Signup and view all the answers

What is the point of intersection between supply and demand on a graph called?

Equilibrium point Signup and view all the answers

What is a recession?

An economic phase characterized by the decline in a country's GDP for two consecutive quarters Signup and view all the answers

What does nationalizing refer to?

The government taking over selected companies or industries Signup and view all the answers

Which economic system allows individuals and companies to largely decide what products to produce, how to produce them, who to sell to, and at what price to sell them?

Capitalism Signup and view all the answers

What is the main focus of macroeconomics?

The study of the overall economy and its aggregates Signup and view all the answers

What is the steady increase in prices of goods and services called?

Inflation Signup and view all the answers

What does privatizing refer to?

The government allowing private businesses to operate selected industries Signup and view all the answers

What is the percentage of workforce currently without employment called?

Unemployment rate Signup and view all the answers

What is the value of all final goods and services produced by businesses within a nation's border called?

Gross domestic product (GDP) Signup and view all the answers

Which of the following best defines microeconomics?

The study of economic behavior among consumers, businesses, and industries that collectively determine the quantity of goods and services demanded and supplied at different prices Signup and view all the answers

Which economic system allows individuals and companies to largely decide what products to produce, how to produce them, who to sell to, and at what price to sell them?

Free-market system Signup and view all the answers

What is the main focus of macroeconomics?

The study of a country’s larger economic issues, such as how firms compete, the effect of government policies and how an economy maintains and allocates its scarce resources Signup and view all the answers

What is a recession?

A period of declining economic activity characterized by falling GDP, rising unemployment, and reduced consumer spending Signup and view all the answers

What is the role of government in a planned economic system?

To control the allocation of resources and limit the freedom of choice Signup and view all the answers

What is the difference between microeconomics and macroeconomics?

Microeconomics focuses on individual economic behavior, while macroeconomics examines larger economic issues of a country Signup and view all the answers

What is the definition of capitalism?

An economic system based on economic freedom and competition Signup and view all the answers

What is the purpose of an economic system?

To allocate resources and determine the production and distribution of goods and services Signup and view all the answers

What is the difference between a free-market system and a planned system?

In a free-market system, individuals and companies have the freedom to make economic decisions, while in a planned system, the government controls the allocation of resources Signup and view all the answers