1. Economics Overview Name___________________________
Directions: The following assignment is DUE BEFORE YOU LEAVE CLASS TODAY!!!!!!!! Your answers
must be in complete sentences. If your answer is not complete, you will not receive any partial credit.
Chapter 3 Questions:
1. What role does the government play in a free enterprise economy?
2. What is meant by the term gross domestic product (GDP)?
3. Why are free enterprise economies subject to business cycles (page 57)?
Chapter 7 Questions:
1. Describe the following types of businesses atmospheres in a market economy:
Perfect Competition
Monopoly
Monopolistic Competition
Oligopoly
2. Describe the terms regulation and deregulation. Was the Sherman-Antitrust Act an example of
regulation or deregulation?
Chapter 8 Questions:
1. Define the following types of businesses:
Sole Proprietorship
Partnership
Corporations
2. What is a stock, and how is a stock different than a bond?
Chapter 10 Questions:
1. Describe the 3 uses of money.

2. 2. What does it mean for an asset to be liquid?
Chapter 13 Questions:
1. There are 4 types of unemployment described in chapter 13, what are they, and what do they
represent?
Chapter 14:
1. What is fiscal policy, and who controls fiscal policy in our government?
Chapter 15:
1. What is the Federal Reserve, and how do they influence the American economy?
2. Describe the FED’s two most powerful monetary policy tools: The reserve requirement and open
market operations.
2. What is monetary policy?
Chapter 16:
1. What is the difference between a comparative and an absolute advantage?
2. What is the North American Free Trade Agreement? Read the information on page 454-455 about
the agreement, then decide whether you think that NAFTA is a good or bad thing for the U.S.
3. What is the purpose of the World Trade Organization (WTO)?