Social Studies

Osvaldo Valencia

2 January, 21:58

1. Economists use GDP to measure

the balance of trade with other countries.

any economic growth or shrinkage.

the causes of unemployment.

the distances between cities.

2. The Fed's aim in responding to a recession is to decrease

consumer borrowing.

interest rates.

government spending.

available credit.

3. A certificate of deposit pays a higher interest rate than a savings account because the money is

guaranteed by the government.

kept by banks for a longer time period.

loaned to banks by consumers.

immediately available to consumers.

4. What is the best definition of profit?

Profit is the possible income from producing an additional item.

Profit is the price of producing one additional unit of a good.

Profit is the additional income gained from selling an additional good.

Profit is the financial gain from business activity minus expenses.