Bus 100 Chapter 3 And 4

 Question 1
3 out of 3 points

The Federal Reserve is the _____ of the United States.
Answer

Selected Answer: central bank
Correct Answer: central bank

 Question 2
3 out of 3 points

In the broadest sense, economics studies the choices that
Answer

Selected Answer: people, governments, and companies make in allocating resources.
Correct Answer: people, governments, and companies make in allocating resources.

 Question 3
3 out of 3 points

_____ is a period of robust economic growth and high employment indicating that businesses are capitalizing on new market opportunities.
Answer

Selected Answer: Expansion
Correct Answer: Expansion

 Question 4
3 out of 3 points

_____ is the process of converting government-owned businesses to private ownership.
Answer

Selected Answer: Privatization
Correct Answer: Privatization

 Question 5
3 out of 3 points

An economic system is a structure for
Answer

Selected Answer: allocating limited resources.
Correct Answer: allocating limited resources.

 Question 6
3 out of 3 points

In the business cycle, a period in which GDP declines for at least two consecutive quarters is known as a(n)
Answer

Selected Answer: recession.
Correct Answer: recession.

 Question 7
3 out of 3 points

_____ refers to government efforts to influence the economy through taxation and spending decisions designed to encourage growth, boost employment, and curb inflation.
Answer

Selected Answer: Fiscal policy
Correct Answer: Fiscal policy

 Question 8
3 out of 3 points

Changes in the PPI can predict changes in the Consumer Price Index (CPI) because
Answer

Selected Answer: producers often pass along price increases to consumers.
Correct Answer: producers often pass along price increases to consumers.

 Question 9
3 out of 3 points

The economy, as a system, represents the
Answer