The U.S. Economic System
Why aren't monopolies permitted in the United States?
Monopolies shut out competition.
Which of the following investments carriers the most risk?
buying stock in a new company, such as an Internet start up.
When the U.S. government ___, it is an indication that the government has a budget surplus.
registers revenues that exceed its expenditures.
Since the Fed's monetary policy options have such specific effects, why does the Fed sometimes fail to head off recession or stimulate recovery?
Our complex economy takes time to respond
What is a worker's total compensation?
wages and benefits
According to the passage, ___ is one characteristic of a recession.
rising unemployment
Which of the following legislative actions would lead to a direct increase in consumer spending?
cutting the federal income tax
Reread the second paragraph on page 490. Which of the following statements is a conclusion rather than a supporting detail related to the paragraph?
Workers must learn skills throughout their lives to be prepared for changes in their industries.
What is the basis for this incentive?
Property owners have a stake in the future value of the property.
Which of the following is an example of infrastructure that supports economic activity?
the air traffic control system
A __ is acting as a consumer.
woman buying a computer
Which of the following conclusions is supported by the paragraph and the graph?
Despite ups and downs, the gross domestic product generally increases over time.
What is the main similarity between fiscal and monetary policy?
Both affect the amount of money circulating in the economy.
Which of the following proverbs or slogans expresses the principle that underlies labor unions?
All for one and one for all.
What do savings and investing in stocks have in common?
They provide capital for businesses to grow.
Which of the following indicates a step the government might take to stimulate the economy?
buy back government securities
When was civilian unemployment at its lowest during the decade shown on the graph?
2000