Home > C1 VocabularyEconomic Theories and Concepts Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 0% Economic Theories and Concepts 1. ______ is the study of how people manage scarce resources to meet their needs. Economic theory Market study Economics Resource management 2. The ______ of a currency refers to its value compared to other currencies. exchange rate value interest rate 3. Monetary policy is primarily concerned with managing the ______ supply. liquidity credit currency money 4. Fiscal policy involves changes in government ______ and taxation to influence the economy. output decision investment spending 5. Inflation refers to the ______ of prices over time. deduction increase eradication decrease 6. The ______ of supply and demand determines the price of goods in a market economy. balance intersection interaction relationship 7. Supply-side economics focuses on increasing ______ by lowering taxes and reducing regulation. production demand growth liquidity 8. A ______ market is characterized by rising prices and investor optimism. stagnant bear volatile bull 9. The ______ curve represents the relationship between inflation and unemployment. supply GDP inflation Phillips 10. A ______ is a long-term decline in economic activity and productivity. recession downturn decline depression 11. The ______ effect describes the impact of interest rate changes on investment. multiplier interest resourceful gruesome 12. The ______ theory suggests that markets are always clear and efficient. total market liquid market market equilibrium efficient markets 13. The ______ rate is the percentage of the labor force that is unemployed but actively seeking work. jobless labor job unemployment 14. Gross Domestic Product (GDP) measures the ______ value of all final goods and services produced in a country. market essential surplus total 15. A ______ is a situation where aggregate demand is less than aggregate supply. imbalance deficit surplus growth 16. A ______ market occurs when prices are falling and investor confidence is low. bull bear volatile stagnant 17. Keynesian economics advocates for ______ intervention to manage economic cycles. fiscal monetary government supply 18. The ______ of a company is the total value of its outstanding shares of stock. market cap valuation equity stock Your score is The average score is 0% 0% Restart quiz