Unit Review – Flashcards
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What role does the Federal Reserve play? Check all that apply.
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1,2,5
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The most common measure of inflation is a statistic called the
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Consumer Price Index
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As a result of decreased production, David lost his job designing cars. Which terms can be used to describe David? Check all that apply.
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1,6
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What decisions does the business cycle help businesses make? Check all that apply.
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2,4,5,6
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The exchange of factors of production for income occurs in the
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factor market
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Which best describes the economic impact of defaulting on bank loans?
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the economy suffers because banks have less money to loan to others.
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When individuals are looking for jobs but are unable to find work, they are said to be
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unemployed
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What advantages does money have over bartered goods? Check all that apply.
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2,3,5
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Which is the most liquid form of money?
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cash and currency in circulation
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One fact about all currency is that it
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has a changing value
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Which of the following best describes the circular flow model?
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The models represent the movement of money throughout the economy.
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What term is used in macroeconomics to describe the total supply and the total demand?
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aggregate
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Which is an example of how a denomination is divisible?
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An American dollar is equal is equal to 4 quarters.
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Which best describes why investing can be such a challenge?
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There are no guaranteed investments.
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According to the business cycle, what characteristic indicates that a depression has been reached?
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A trough has occurred.
