Economics of Enterprise Answers

6. Describe how monetary policy can be used to control the business cycle.

By ___________ interest rates and ____________ the lending of money, a government can make it more expensive to borrow money. It can also ________ the supply of investment capital by restricting the amount of money available for loans. These both tend to _________ growth, since producers often need to borrow money to expand production. This makes it less likely that a _______ will turn into a recession. The opposite approach — __________ interest rates and freeing up investment capital — leads to an expansion of supply, _________ the economy's rate of growth, which can produce a recovery.

car manufacturing should continue to produce additional cars as long as the firm is profitable justify

Discuss whether the quality of products is likely to be higher in a monopoly or in a perfectly competitive market

Basic Human Needs are _________ While Human wants are ____________

What is the importance of knowing government regulations in your business
enterprises

Is awareness to the socio-economical factors helpful in establishing your
business?

What is the significance of considering the socioeconomic impact of a firm
in evaluating its business viability?

Explain why sourcing raw materials from abroad have a limited impact on
the domestic economy?

What are the positive contributions of the firm in paying the correct amount
of taxes due to the government?