Econ M4: 4.07 Module 4 Exam

The inflation rate is decreasing and unemployment is rising. The economy is likely in

Which of the following circumstances usually accompanies a period of economic expansion?

In the diagram above, what will happen if the government sets the price for potatoes at point A?

In the diagram above, what will happen if the government sets the price for Internet access at Point B?

The government sets the price of wheat for the coming year above the equilibrium price. What effect would this have on supply and demand?

Look at the graph. Does zone A represent the result of a price ceiling or price floor, and which scenario is an example of these conditions?

Which is an example of a natural monopoly?

Why is it important for natural monopolies to exist?

Which of these is the result of a government-regulated natural monopoly?

Banks that are members of the Federal Reserve have the benefit of

Credit unions and other depository institutions differ from member banks of the Federal Reserve mainly in that they

How do member banks of the Federal Reserve differ from other depository institutions?

Buying securities in open market operations may promote economic growth because

Use this image to answer the following question. When the economy is operating at point B, the U.S. Congress is most likely to follow

When a government collects more revenue in one year than it spends, there is a budget

How does the U.S. government promote economic growth?

Which are more popular with citizens, contractionary or expansionary government actions, and why?

The government increases taxes. What might be a reason for this change in fiscal policy?

Which of these could result from decreased federal spending?