| A | B |
|---|
| What government program provides hospital insurance for people who are in poverty? | Medicaid |
| Who is responsible for enacting the nation’s fiscal policies? | Congress and the president |
| What term is defined as “policy that is used to regulate the amount of money in circulation”? | monetary policy |
| Who sets the nation's monetary policy? | Federal Reserve |
| Which tools can the Federal Reserve use to change the nation’s monetary policy? | open market operations, reserve requirements, discount interest rates |
| What type of monetary policy would the Federal Reserve use to increase the amount of money in circulation and stimulate economic growth? | loose (easy) money policy (lower interest rates) |
| What type of monetary policy would the Federal Reserve use to reduce inflation? | tight money policy (higher interest rates) |
| Which area of the U.S. economy has experienced the most job growth in recent years? | service industries |
| What is it called when a company lays off workers to save on labor costs? | downsizing |
| What is it called when a company closes its U.S. plants and begins production overseas in order to reduce costs? | outsourcing |
| Which industries in North Carolina have been affected the most by downsizing and outsourcing? | furniture and textile industries |
| What is it called when a nation can produce a good or service at a lower cost than another country can? | comparative advantage |
| What is it called when a nation exports more goods than it imports? | favorable balance of trade |
| What type of policy is used to protect domestic industry against foreign competition? | protectionism (tariffs) |
| What word means “the value of one nation’s currency compared to another nation’s currency”? | exchange rate |
| Which international economic organization was formed to eliminate trade barriers between European nations? | European Union (EU) |
| Which agreement increased trade between the United States, Canada, and Mexico? | North American Free Trade Agreement (NAFTA) |
| Which international organization was created to keep the peace between nations? | United Nations (UN) |
| What is a result of free trade and globalization? | global interdependence |
| How do wealthy nations like the United States help developing nations to grow economically? | foreign aid |
| Which international economic organizations provide foreign aid to developing nations? | World Bank, International Monetary Fund (IMF) |
| Which international organization was established to support globalization and free trade? | World Trade Organization (WTO) |
| Which fiscal policies result in economic growth? | cutting taxes and increased spending |
| What is it called when a nation imports more than it exports? | unfavorable/negative balance of trade (trade deficit) |
| Which government programs benefit senior citizens? | Social Security and Medicare |
| Which international economic organization was established to stabilize the world economy and global exchange rates? | International Monetary Fund (IMF) |
| What term is defined as "a general increase in price levels"? | inflation |
| What economic indicator is defined as “the dollar value of all final goods and services produced in a country in one year”? | Gross Domestic Product (GDP) |
| What phase of the business cycle is characterized by a growing GDP and low unemployment? | expansion |
| Which phase of the business cycle is characterized by a decline in GDP and rising unemployment? | contraction or recession |
| What economic indicator measures the percentage of jobless individuals over the age of 16 who are looking for work? | unemployment rate |
| Which economic indicator is used to measure inflation? | Consumer Price Index (CPI) |
| What is it called when a nation experiences a long and severe recession? | depression |
| What is it called when a government’s expenditures are greater than the revenue it receives? | budget deficit |
| Increased government spending and higher budget deficits result in which economic problem? | national debt |
