rasmussen Principles of Economics- Spring Quarter 2017 assessment 2-6

Module 3

1. What are the four different types of market structures?
2. In two or more sentences provide at least 3 or more characteristics that separate a perfectly competitive market structure from a monopolistic market structure?
3. Which type of market structure has differentiated goods and services?
4. Identify at least one market structure that is predominant in the United States?
5. At what point do all four market structures maximize profits?
6. In one to two sentences explain, how a monopolistic market structure determines its optimal price and quantity?
7. Which type of market structure faces a perfectly elastic demand curve?
8. In two or more sentences, explain the difference between consumer surplus and producer surplus?
9. Given the graph below explain which triangle color represents consumer surplus and which triangle color represents producer surplus.

10. Given the graph below, in one to two sentences, state whether consumer surplus will increase or decrease and state whether producer surplus will increase or decrease, if the price was increased from $24.00 to $28.00.

1. What are the four phases of the business cycle?
2. Which phase of the business cycle would be the best time to purchase a large ticket item?
3. How do you calculate the labor force participation rate?
4. Who is accounted for in our country’s labor force?
5. How is our country’s unemployment rate calculated?
6. In one to two sentences, please define the term, “full employment?”
7. In one to two sentences, what is a discouraged worker?
8. What are the four types of unemployment?
9. Which type of unemployment is the direct cause of our country (economy) contracting?

10. In one to two sentences, please define, inflation?

1. What does Gross Domestic Product (GDP) measure?
2. What is the equation used to calculate Gross Domestic Product (GDP)?
3. In two or more sentences describe the difference between Real Gross Domestic Product (GDP) and Nominal Gross Domestic Product?
4. Identify at least three (3) factors that are omitted from our country Gross Domestic Product (GDP)?
5. In one to two sentences, please define, the Human Development Index (HDI)?
6. In one to two sentences, describe why Gross Domestic Product (GDP) is used as a key economic indicator?
7. In two or more sentences describe what assumptions can be made about country’s that have a high Gross Domestic Product (GDP)?
8. How is Gross Domestic Product (GDP) per capita calculated?
9. If Real Gross Domestic Product (GDP) fall for two or more consecutive quarters, which phase of the business cycle would best describe our economy?
10. In one to two sentences describe whether Real Gross Domestic Product (GDP) or Gross Domestic Product (GDP) is a better measure of our country’s well-being?

1. In two or more sentences, describe the goals and objectives of the Federal Reserve?

2. Does the Federal Reserve or the federal government set interest rates for our country?

1. What are the three (3) monetary policy tools used by the Federal Reserve?
2. What are the two (2) fiscal policy tools used by the federal government?
3. In one to two sentences, define the term, “Quantitative Easing?”

6. .Does the Federal Reserve or the federal government print our country’s paper money?

1. In one to two sentences, describe expansionary monetary policy?
2. In one to two sentences, describe expansionary fiscal policy?
3. Explain how the Federal Reserve would be able to contract our country’s money supply using all three monetary policy tools?
4. Explain how the Federal Reserve would be able to expand our country’s money supply using all three monetary policy tools?