BUS 508 Chapter 3 Quiz
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BUS 508 Chapter 3 Quiz

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BUS 508 Chapter 3 Quiz 1. When the government spends more than the amount of money it raises through taxes, it creates a budget deficit. 2. A ________ is a market situation in which a single seller dominates trade in a good or service for which buyers can find no close substitutes. 3. When decreased productivity keeps prices steady, it can have a major positive impact on an economy. 4. The ________ feature explores whether developing alternative sources of energy will create new jobs to stimulate the economy. 5. ________ refers to the willingness and ability of buyers to purchase goods and services. 6. A ________ is a cyclical economic contraction that lasts for six months or longer. 7. A ________ means total revenues raised by taxes equal the total proposed spending for the year. 8. An ideal economy incorporates steady change directed toward continually expanding the amount of goods and services produced from the nation’s resources. 9. ________ Is the prevailing market price at which you can buy an item. 10. ________ analyzes the choices people and governments make in allocating scare resources. 11. ________ is characterized by government ownership and operation of major industries such as communications. 12. A ________ occurs when a firm possesses unique characteristics so important to competition in its industry that they serve as barriers to prevent entry by would-be competitors. 13. An increase in labor productivity means that the same amount of work produces more goods and services than before. 14. A common method of influencing economic activity is ________. 15. The ________ is a self-supporting corporation wholly owned by the federal government. 16. No country is an economic island in today’s global economy. 17. Economists refer to a nation’s unemployment rate as an indicator of its economic health. 18. The ________ measures the monthly average change in prices of goods and services. 19. Each nation’s policies and choices help determine its . 20. A change in overall demand, on the other hand, does not result in an entirely new demand curve.

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