Chapter 3 Quiz

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A private enterprise system rewards businesses for meeting the needs and demands of consumers. Answer Selected Answer: True Correct Answer: True • Question 2 0.5 out of 0.5 points ________ analyzes the choices people and governments make in allocating scare resources. Answer Selected Answer: Economics Correct Answer: Economics • Question 3 0.5 out of 0.5 points A ________ is a cyclical economic contraction that lasts for six months or longer. Answer Selected Answer: Recession Correct Answer: Recession • Question 4 0.5 out of 0.5 points 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. Answer Selected Answer: Pure monopoly Correct Answer: Pure monopoly • Question 5 0 out of 0.5 points The ________ is the sum of all goods and services produced within its boundaries. Answer Selected Answer: Productivity Correct Answer: Gross domestic product • Question 6 0 out of 0.5 points A ________ means total revenues raised by taxes equal the total proposed spending for the year. Answer Selected Answer: Budget deficit Correct Answer: Balanced budget • Question 7 0 out of 0.5 points ________ is characterized by government ownership and operation of major industries such as communications. Answer Selected Answer: Planned economy Correct Answer: Socialism • Question 8 0 out of 0.5 points The Security Exchange Commission is responsible for formulating and implementing the nation’s monetary policy. Answer Selected Answer: True Correct Answer: False • Question 9 0.5 out of 0.5 points Each nation’s policies and choices help determine its

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