EPF unit 2

Question 1

which term is used for a government plan to reduce aggregate demand and slow the economy

Answer 1

contractionary

Question 2

true or false real GDP accounts for inflation and nomial GDP does not account for inflation

Answer 2

true

Question 3

which of the following categories are typically included in the CPI basket

Answer 3

food, housing, transportation, and healthcare

Question 4

when management and labor union employees cannot reach an agreement negotiations between the two parties enter into

Answer 4

arbitration

Question 5

what does the term business cycle refer to?

Answer 5

economy wide

Question 6

when the Federal Reserve lowers the discount rate for commercial banks and credit unions

Answer 6

loans will become cheaper and the money supply will increase

Question 7

Cameron came up with a cool slogan for his business that he wants to protect he would apply for a

Answer 7

trademark

Question 8

how will rasing the interest rates affect the amount of money borrowed by a businesses and consumers

Answer 8

both borrow less

Question 9

one way the gov can break up larger corporations is through

Answer 9

anti trust laws

Question 10

monetray polices are set by

Answer 10

federal reserve

Question 11

what are the three main tools or methods the federal reserve uses in implementing monetary policy

Answer 11

open market, disocunt, reserve requirmnets

Question 12

a budget surplus will cause the national debt to

Answer 12

decrease

Question 13

a contract may be broken by

Answer 13

none

Question 14

what type of tax would be levied on earnings made from the sale of assets like stocks or real esate

Answer 14

captial gains tax

Question 15

true or false nomianl GDP is always larger than real GDP

Answer 15

false

Question 16

what type of tax system does the US utilize

Answer 16

progressive

Question 17

fiscal policies are set by

Answer 17

the presdient

Question 18

when a government or other entity provides financial assistance to a company or country that is about to go bankrupt

Answer 18

bailout

Question 19

federal tax is usually imposed on the sale of things like fuel, airline, tickets

Answer 19

excise tax

Question 20

government actions to encourage economic activity usually during a recession or economic downturn

Answer 20

Tax cuts and increased government fiscal policy

Question 21

the items subject to this are perceived to be either morally suspect, harmful, or costly to society

Answer 21

sin tax

Question 22

a good that can be consumed or used in production and is sold as it was found in nature

Answer 22

intermaide good

Question 23

the act of setting aside money for a specific purpose

Answer 23

Appropriation

Question 24

assest that are passed down after the death of the owner

Answer 24

estate asset

Question 25

the transfer of resources like payments or tax breaks from a government to a business individual or institution without direct contribution in return

Answer 25

A subsidy

Question 26

the total economic value of an investment assets, investments, and interests

Answer 26

asset value

Question 27

a tax levied on the profit made from selling an asset

Answer 27

captial gains tax

Question 28

the S and P 500 repersnets

Answer 28

the largest 500 forune compaines in the US

Question 29

when invoking eminent domain the government is seizing property for public use what category does public use fall under

Answer 29

taking property to build a public school

Question 30

a central bank is

Answer 30

nations main monetary authorty

Question 31

what type of securty repsernts indvual ownership in a compmany

Answer 31

stocks

Question 32

cureney is considerd

Answer 32

coins and paper money

Question 33

a budget defict will cause the nationalk debt to

Answer 33

inc

Question 34

true or false a counreys nominial GDP increases it means the country is producing more goods and services

Answer 34

fasle