2023-2024 Abeka, Economics, test 5 (multiple choice) In a free market society, who makes the majority of the economic choices? - correct answer private sector
Welfare capitalism and managed capitalism are different terms for what economic system? - correct answer socialism
What is the value of all finished goods and services produced by a nation's citizens during a year's time? - correct answer GNP
What is the value of all finished goods and services produced within a country during a year's time? - correct answer GDP
What is a tool to measure a nation's inflation? - correct answer CPI
Who believed that government should pump money into an economy during recessions? - correct answer John Maynard Keynes
Who attempted to lift the American economy out of its slump by implementing policies based upon supply-side economics? - correct answer Ronald Reagan
Who increased governmental control of the economy during the Great Depression through the New Deal? - correct answer Franklin Roosevelt
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(matching I; definition w/term) a complex organization made up of appointed officials and their departments - correct answer bureaucracy
components of the economy that normally change before the rest of the economy - correct answer leading indicators
an established system of political administration by which a nations is ruled - correct answer government
demand becomes greater than the supply, creating shortages - correct answer demand-pull inflation
high inflation combined with high unemployment - correct answer stagflation
(short answer) What are two primary aims of government? - correct answer 1. punish evil
- reward good
What are four of the five ways discussed in the text by which governments
can damage their economies? - correct answer choose four of the five:
- excessive taxation
- inflation and debasement of money
- excessive public expenditure
- excessive regulation
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