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Although changes in the CPI provide interesting insights into the overall performance of the economy,these changes have little practical impact on the lives of ordinary people. Level of Learning 2: Understanding of concepts and principles

A) True
B) False

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The freedom of people to decide where they want to work and live,and what they want to buy or sell are basic capitalist rights under:


A) Eminent domain.
B) Freedom of expression.
C) Freedom of choice.
D) Freedom of competition.

E) None of the above
F) B) and C)

Correct Answer

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Efforts by the Federal Reserve Bank (the Fed) to control the money supply and interest rates are known as:


A) fiscal policy.
B) incomes policy.
C) monetary policy.
D) securities policy.

E) A) and C)
F) A) and B)

Correct Answer

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