Econ Part 2 Final Review

What is the goal of Macroeconomics?

• Make government bigger and spend more money

• Full employment, stable prices, economic growth

• Economic growth, high unemployment, low taxes

• Economic equality, growth, inflation

Someone who is laid off due to fluctuations in the business cycle is?

• Cyclical

• structural

• frictional

• seasonal

Someone who is unemployed because they are looking for their first job is:

• Cyclical

• structural

• frictional

• seasonal

What does the Consumer Price Index (CPI) measure?

• Unemployment

• Market Growth

• Supply and Demand

• Inflation

Inflation

• Purchasing Power of the dollar goes up (Value improves)

• Purchasing power of the dollar goes down (Value declines)

• The economy is declining

• Measured by Congress

Which one is not a stage in the business cycle

• expansion

• peak

• contraction

• open market operations

Why do people invest based on future goals?

• For retirement income

• to pump and dump a stock

• avoid paying taxes

• lower the capital gains tax

What business structure only has one owner?

• Corporation

• Limited partnership

• General Partnership

• Sole Proprietorship

What business structure has 2 EQUAL partners?

• Corporation

• Sole Proprietorship

• General Partnership

• Limited Partnership

What business structure is owned by stockholders?

• Coproration

• Sole Proprietorship

• General Partnership

• Limited Partnership