Where does the Government get revenue?

From taxes paid by citizens and businesses

# of people aged 16 and older who are available to work.

The Benefit Principle of Taxation states

that those who receive government services should pay in proportion

The fundamental thesis of Keynesian economics is that

the gov should spend extensively during deflation/recession

What is a glass ceiling?

what prohibits women from reaching executive office

what is the law of supply?

when the price rises the quantity increases.

What is the law of demand?

When demand is high, prices drop

How does increased competition in the business environment benefit consumers?

Greater choice of goods/services offered at better prices

What is Marginal Utility?

The benefit gained from consuming one additional unit

Which is a feature of open market operations?

Fed sells government securities

What is market failure?

When the allocation of goods and resources is inefficient.

The Federal Reserve System was created to

control the nation's money supply

Fiscal Policy involves...

Changes in Tax and government spending

What is deregulation?

Elimination of government restrictions to allow free-market competition

According to signaling theory, why is a college degree important?

Employers believe that it shows superiorknowledge or ability.

Why are ups and downs in the business cycle normal?

Events that affect business cycle are unexpected and natural

What is a Labor Union?

A group that fights for better working conditions.

How do opportunity costs affect consumers?

Consumers have to make choices based on finite resources.

What is equilibrium price?

The determined place where the supply & demand curves cross

A market economy allows buyers and sellers to do what?

Make their own decisions regarding what to buy or what to sell

How does a free market economy help to promote innovation?

Intense competition leads to better products.

The study of economics involves

explaining how people deal with scarcity.

Which of these results from the implementation of a tight money policy?

an increase in the price of credit

A Production Possibilities Curve is a graph of what?

Maximum output opportunities for two goods

The extent of which a change in price causes a change in the quantity demanded

Demand Elasticity, Price Elasticity of Demand

Why is it important to compute real GDP?

Compute change in actual # of GNP from one year to the next

The (CPI) Consumer Price Index is:

the average change in prices paid by consumers for a market basket

studbud

Economics Final Exam (S2-Kenny)

56 termsStudBud Administration55 plays

Imported from external platform

Flashcards56 cardsFPractice quizPHost liveL

Questions 56

Answers

1
The three synonymous terms to describe the U.S. economic system are free enterprise, capitalism, and _______
competition
economic freedom
limited role of government
Free market
2
Where does the Government get revenue?
From taxes paid by citizens and businesses
gifts from other countries
From what the government creates and sells
The government doesn't need revenue
3
What is labor force?
Unemployment rate.
# of people aged 16 and older who are available to work.
None of these is the right answer.
People aged 16 and older.
4
The Benefit Principle of Taxation states
taxes need to be “invisible” so we do not realize we are receiving benefit.
the idea that higher incomes suffer less paying taxes than lower incomes.
that those who receive government services should pay in proportion
that the tax rate applies to the next dollar of taxable income.
5
What is an example of two substitute goods?
Green apples and caramel
Peanut Butter and Nutella
Ice cream and hot fudge
Popcorn and butter
6
What is a Mortgage?
A loan used for anything
A loan used to buy a home
A type of home you can buy
A type of money
7
The fundamental thesis of Keynesian economics is that
the gov should keep "hands off" all economic activity
successful businessmen and women should run the government
a nation's wealth is measured by the amount of gold it holds
the gov should spend extensively during deflation/recession
8
A written promise to repay the amount borrowed at a later date.
Line of credit
Bond
Cashiers Check
Dividend
9
Analysis of the cost and benefits of a project; the focus being on the costs & benefits is called
Opportunity cost analysis
Cost-deficit analysis
Cost-benefit analysis
Price analysis
10
What is a glass ceiling?
top of the ladder female
what prohibits women from reaching executive office
A term used to describe the transparency of a company
difference between men and women
11
what is the law of supply?
none of the above
when price and quantity both increase.
the price decreases when the quantity increases.
when the price rises the quantity increases.
12
What is the law of demand?
Demand is the equilibrium
When demand is low, prices are low
Supply is always higher than demand
When demand is high, prices drop
13
Which of these would an item's producer be most likely to do if total revenue on that item began to drop?
produce more of that item
raise the price of that item
produce less of that item
lower the price of that item
14
How does increased competition in the business environment benefit consumers?
By developing improved features in goods/services provided
Improving the quality of life and living standards
Greater choice of goods/services offered at better prices
Providing increased employment opportunities
15
What is NOT an example of a public service/good?
Highways
Walmart
Public School Bus
Fire/Rescue
16
What is Marginal Utility?
The benefit gained from consuming every single option
The benefit of producing one additional unit
The benefit of producing a good
The benefit gained from consuming one additional unit
17
Which is a feature of open market operations?
Fed lowers prime interest rate
fed purchases member bank reserves
Fed sells government securities
Fed raises the reserve requirement
18
What is market failure?
When everyone has perfect knowledge about the market.
When the allocation of goods and resources is inefficient.
When there is a 3-firm concentration ration of 95%.
When there are not economies of scale.
19
The Federal Reserve System was created to
control the nation's money supply
fund public works projects
regulate the stock market
stimulate trade with other nations
20
Fiscal Policy involves...
Changes in Legislation
Changes in NMW Rates
Changes in Exchange Rates
Changes in Tax and government spending
21
Changes in quantity demanded and changes in price have a(n) _____ relationship.
inverse
positive
neutral
indirect
22
Which is the primary source of revenue for the federal government?
fees
taxes
borrowing
gofundme
23
An example of mandatory spending
Mr. Pryor's salary
Military
Social Security
Interest on the debt
24
What is deregulation?
Elimination of government restrictions to allow free-market competition
Elimination of government restrictions as a whole
Elimination of corporate officials in large businesses
All of the above
25
According to signaling theory, why is a college degree important?
There is higher demand for people with collegedegrees.
Employers believe that it shows superiorknowledge or ability.
It gives the holder a better position entering anegotiation situation.
It places the holder in the professional classof labor.
26
Why are ups and downs in the business cycle normal?
Events that affect business cycle are scheduled by employers
Events that affect business cycle are don't occur naturally
Events that affect business cycle are unexpected and natural
Events that affect business cycle are planned by the gov't
27
what are the goals of demand side policies?
all of them
price stability
economic growth
full employment
28
Which of the following is true for all nonprofit organizations?
They benefit the public
They are national in scope
They don't have capital
They make money
29
What are the criteria for effective taxes?
fairness, productivity, effectiveness
equity, simplicity, efficiency
equity, productivity, effectiveness
simplicity, affordability, equity
30
Which of the following helps determine something’s value
scarcity
size
beauty
utility
31
What is a Labor Union?
business owners who control a large group of laborers
A group that fights for better working conditions.
A group of retired people.
A group of better demanding worse working conditions.
32
How do opportunity costs affect consumers?
Consumers can have everything they want.
Consumers can produce only a certain number of goods.
Consumers have rights in the marketplace.
Consumers have to make choices based on finite resources.
33
Which of the following could be considered a synonym for FICA?
sin tax
payroll tax
corporate income tax
intergovernmental revenues
34
How long is a fiscal year?
6 months
any 12 month period
1 month
Jan 1 - Dec 31
35
All of the following are examples of negative externality EXCEPT
earthquake
crime near a casino
dead fish due to chemicals in a lake near a factory
dirty air due to traffic
36
What do price ceilings and price floors prevent?
benefits to consumers
surpluses
shortages
prices reaching equilibrium
37
What is equilibrium price?
The determined place where the supply & demand curves cross
The determined place where the demand stops
The determined place where the supply curve stops
The demand curve alone
38
What part of a tight money policy encourages people to borrow and spend less?
Lower interest rates
An expanded money supply
Higher interest rates
Greater access to credit
39
A market economy allows buyers and sellers to do what?
Commonly own all resources in the economy
Make their own decisions regarding what to buy or what to sell
Interact with government officials to demand production
Follow consumer traditions
40
How does a free market economy help to promote innovation?
A free market economy provides equal support for products
Intense competition leads to better products.
The government controls prices.
reduction in number of different products keeps prices low
41
What makes up a firm’s total production costs?
fixed and variable costs
raw materials and salaries
marginal costs and labor
variable costs and rent
42
The study of economics involves
explaining how people deal with scarcity.
All of the above.
explaining how incomes are earned and how jobs are created.
studying how things are made, bought, sold, and used.
43
Which of these results from the implementation of a tight money policy?
an increase in wage-price controls
an increase in the price of credit
a decrease in interest rates
a decrease in the price of credit
44
What are the causes of price changes most of the time?
changes in supply and demand
government policy
changes in supply only
change in demand only
45
In a command economy, economic decisions are made by the
market
prducers
government
consumers
46
A Production Possibilities Curve is a graph of what?
Supply and Demand
Marginal Utility per unit consumed
scarcity
Maximum output opportunities for two goods
47
What type of economy is most common worldwide?
command
traditional
communist
mixed
48
The efficient use of scarce resources leads to an increase in...
Investment
Productivity
Capital
Scarcity
49
The extent of which a change in price causes a change in the quantity demanded
Demand Elasticity
Price Elasticity of Demand
Demand Schedule
Demand Curve
50
Why is it important to compute real GDP?
To know more about the composition of total output
Compute change in actual # of GNP from one year to the next
To keep track of the base-year statistic
To see if there is an improvement in product quality
51
The (CPI) Consumer Price Index is:
an exact measure of inflation
a cost of living index
none of the above
the average change in prices paid by consumers for a market basket
52
What is a Sole Proprietorship?
A business owned by multiple people
A business owned by one person
A business owned by two people
A business owned by anyone
53
Which of these describes an effect of increased government regulation on producers?
prompts them to increase output at all possible prices
shifts their market supply curve to the right
encourages production by requiring the use of new tech
shifts their market supply curve to the left
54
Which of these is a prominent feature of monetary policy?
adjusting tax rates to stimulate the economy
adjusting interest rates to stimulate the economy
adjusting government expenditure to stimulate the economy
adjusting discretionary spending to stimulate the economy
55
Which of the following is NOT a basic economic question?
For whom to produce
How to produce
When to produce
What to produce
56
Economic Equity makes discrimination on this issue illegal
income
social status
political affiliation
disability

Economics Final Exam (S2-Kenny) Flashcards | StudBud