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Question
Efforts by the Federal Reserve Bank (the Fed) to control the money supply and interest rates are known as:
A. fiscal policy.
B. incomes policy.
C. monetary policy.
D. securities policy.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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The CPI is based on the prices of a carefully selected market basket of goods, all of which consumers can purchase at a supermarket.
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Deflation means prices are declining.
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The total value of a country's output of final goods and services in a given year is known as the gross domestic product (GDP).
Q:
Deanne is a vocal critic of socialism. She likes to point out that in recent years the governments in many socialistic nations have cut back on government services and have reduced taxes. Deanne believes that this trend will ultimately result in all nations adopting pure capitalistic ideals. Recent evidence suggests that Deanne's views are essentially correct.
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Most countries throughout the world can be classified as either purely capitalist or purely socialist.
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Governments that were predominantly capitalist are moving toward socialism, while governments that were predominantly socialist are moving toward capitalism.
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In command economies, the government plays a major role in deciding which goods are produced and who will get them.
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Workers in nations who are strong proponents of communism work much harder and longer hours.
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Countries that wish to avoid shortages and surpluses of goods should adopt a communist system.
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Incentive to own and operate businesses is high in nations whose governments are proponents of socialistic practices.
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As you scan the national news online, you read about the BXY Utility Company's latest problems. The story describes an expansive retaining wall that collapsed during a flood last week, spewing toxic coal ash, burying homes, and causing a few fatalities. An editorial claims that the company will not be held accountable to the same standards as the asbestos companies of a few years back that paid severe fines and even went out of business due to their lack of attention to environmental clean-up. You agree with the writer because you recently studied about the various competitive markets, and utility companies clearly fall under monopolistic competition.
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When describing the state of the U.S. economy, reporters often refer to the nation's GDP, its unemployment rate, and the CPI. Explain what each of these terms means and why each measure is significant.
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In a free-market economic system, the lack of government control and regulation means that businesses find it easy to take advantage of customers by offering poor quality products at high prices.
Q:
Fatima resides in a country where the economic system is primarily based on free-market capitalism. Fatima is likely to have the freedom to buy and sell property.
Q:
In perfect competition, each firm produces a product that is clearly differentiated from the products of other firms in the same market.
Q:
In one of his weekly broadcasts, the Federal Reserve Chairman remarked that inflation had begun to tick upward. However, unemployment in the U.S. was still quite high and economic growth had slowed. With short-term interest rates close to 0 (zero), the Chair did not visualize that ____________ policy would be able to do anything for the high unemployment problem. He felt that _______ policy would be more useful for bolstering employment, but that would require local and state governments and the federal government to provide tax breaks for corporations.
A. federal; state
B. fiscal; monetary
C. monetary; fiscal
D. fiscal; federal
Q:
If the quantity supplied in a market exceeds the quantity demanded, a shortage will exist.
Q:
Free-market capitalism has made it more difficult for individuals to gain wealth.
Q:
As indicated by the Making Ethical Decisions box, activities that lead to corruption can destroy free economic opportunities because they interfere with the right to freely compete.
Q:
Gabby and Gus Malloy recently got pre-approved on a loan for their first house purchase. They are speculating on how much they should bid on their number one choice, a small, three-bedroom bungalow near a major college town. Which of the following indicators may be an important factor in whether they are able to successfully put in a low bid?
A. The federal tax rate in that area
B. The unemployment rate in that area
C. The producer's price index in that area
D. The CMI, or consumer's marginal index
Q:
The terrorist attack against the World Trade Center in 2001 is an example of pure risk.
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"Insurable interest" means that the policyholder is the one at risk to suffer a loss.
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All risks are insurable.
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When a firm that is self-insuring against risk decides to cover losses straight out of its budget, it is said to be "going bare."
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Self-insurance makes more sense for firms that operate one large facility than it does for firms with facilities scattered all over the country.
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Outsourcing helps some companies avoid risk.
Q:
If a pure risk occurs a company loses money; but if the events do not occur, the company gains nothing.
Q:
Sasha has a small jewelry business with only four employees. He started his business the month before last and so far he makes just enough to pay his bills each week. Yesterday, just before the end of his first quarter in business, he received a notice from the government indicating that he needed to provide evidence of workers' compensation insurance. Sasha:
A. realized he was required to provide this insurance so he immediately got a policy.
B. is not required to carry workers' compensation because he has less than ten employees.
C. doesn't need workers' compensation because his business is in Louisiana.
D. doesn't need workers' compensation because he is not in the construction business.
Q:
__________ insurance provides benefits to the survivors of workers who die as a result of work-related injuries.
A. Health
B. Professional liability
C. Workers' compensation
D. Malpractice
Q:
A ___________ is a form of business that is owned, and usually managed, by one person.
A. closed corporation
sole proprietorship
D. limited partnership