Question

1. Describe the four different types of competition in the private enterprise system. In which type of competition would each of the following businesses be likely to engage?

a. large drug store chain

b. small yoga studio

c. steel mill

d. large farm whose major crop is corn

e. Microsoft

2. Distinguish between the two types of planned economies. What factors do you think keep them from flourishing in today's economic environment?

3. Describe the four stages of the business cycle.

4. What are the effects of inflation on an economy? What are the effects of deflation? How does the Consumer Price Index work?

5. What does a nation's unemployment rate indicate? Describe what type of unemployment you think each of the following illustrates:

a. discharged armed forces veteran

b. bus driver who has been laid off due to cuts in his or her city's transit budget

c. worker who was injured on the job and must start a new career

d. lifeguard

e. dental hygienist who has quit one job and is looking for another

6. What is the difference between the budget deficit and the national debt? What are the benefits of paying down the national debt? What might be the negative effects?