Macro Economics

 Each answer must have a minimum of 4 sentences.

1. Describe the general effect that government has when it imposes price controls.
2. Give an example and describe what would be a truly capitalist country.  List in detail why the United States is arguably no longer a capitalist economy.
3. Describe the basic functions of a market-based economy.  How does it differ from a command economy?
4. How does the mercantilist economy differ from a state capitalist economy?  Give an example of each.
5. List and describe 3 negative effects of excessive regulations.  Also, explain how regulations have contributed to hindering how the US economy can adjust to the challenges of the pandemic.
6. Explain why inflation is viewed to be negative to most economists.  Briefly describe the two main types of inflation and provide an example of each.
7. Describe the following goods: substitute, complementary, inferior, normal, durable, nondurable, related, and unrelated – give an example of each.
8. How does competitiveness affect markets?  Why would the U.S. government want to make or keep certain markets competitive?
9. GDP is the standard measurement for economic growth, list criticisms of as to why GDP may not be the best way to analyze economic growth.