1-The willingness and ability of buyers to purchase goods and services at different prices is called

demand.

supply.

an economic system.

owner's rights.

2- __________ reduces the money supply to curb rising prices, over-expansion, and concerns about overly rapid economic growth.

Restrictive monetary policy

Monetary policy

Fiscal policy

Expansionary monetary policy

3-Which of the following does NOT explain why governments may privatize state-owned enterprises?

Market saturation

Raise funds

Improve economy

Cut costs, run operation more efficiently

4-Economics is the study of

the choices people and governments make when allocating scarce resources.

supply and demand.

profit and loss at companies.

tax and interest policies.

5-An economic situation marked by soaring prices is called

hyperinflation.

disinflation.

economic growth.

superinflation.

6-If labour hours increase, the use of natural resources remains the same and output remains the same, productivity will

cannot be determined.

increase.

decrease.

remain the same.

7-What effect does a government's expansionary monetary policy have on the cost of borrowing?

It increases the money supply to try to decrease the cost of borrowing.

It decreases tax rates to try to increase the cost of borrowing.

It decreases the money supply to try to increase the cost of borrowing.

It increases tax rates to try to decrease the cost of borrowing.

8-___________ economy is an economic system where business ownership, profits, and resource allocation follow established government mandated plans, rather than goals set by individual companies.

Public

Planned

Dictatorial

Invisible hand

9-Which of the following is considered the MOST basic freedom under the private enterprise system?

Right to choose

Competition

Private property

Right to own

10-Outsourcing ________.

reduces the diversity of the workforce

can make a firm more competitive

increases staffing requirements

increases costs