ECONOMIC SYSTEMS QUESTIONS AND GRADED ANSWERS,
100% GUARANTEE
Monetary Policy - An attempt to achieve broad economic goals by the regulation of the
supply of money.
Fiscal Policy - a government policy for dealing with the budget (especially with taxation
and borrowing)
Factors of Production - Factors of production fall into three main groups - land, labor, and
capital - and sometimes include entrepreneurship.
Law of Demand - buyers purchase more at lower prices than higher prices
Wage - Pay by the hour
Salary - Pay by the week or month
Limited Liability - A fundamental feature of corporations, whereby investors are liable
only up to the amount of their investment.
GDP: Gross Domestic Product - The monetary value of all of a nation's goods and
services produced within a nation's borders and within a particular period of time, such as a year.
It became the official measure of the U.S. economy in 1991. It replaced "gross national product,"
which covered all goods and services produced by U.S. residents regardless of where they were
working.
Antitrust Law - Laws that seek to make sure businesses compete fairly, and prevent unfair
partnerships
100% GUARANTEE
Monetary Policy - An attempt to achieve broad economic goals by the regulation of the
supply of money.
Fiscal Policy - a government policy for dealing with the budget (especially with taxation
and borrowing)
Factors of Production - Factors of production fall into three main groups - land, labor, and
capital - and sometimes include entrepreneurship.
Law of Demand - buyers purchase more at lower prices than higher prices
Wage - Pay by the hour
Salary - Pay by the week or month
Limited Liability - A fundamental feature of corporations, whereby investors are liable
only up to the amount of their investment.
GDP: Gross Domestic Product - The monetary value of all of a nation's goods and
services produced within a nation's borders and within a particular period of time, such as a year.
It became the official measure of the U.S. economy in 1991. It replaced "gross national product,"
which covered all goods and services produced by U.S. residents regardless of where they were
working.
Antitrust Law - Laws that seek to make sure businesses compete fairly, and prevent unfair
partnerships
