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Final Review
Final Review
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Economics Final Exam Review #ssfhs #economics #boyd
Flashcards
60 cards
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Questions
60
Answers
1
Any establishment formed to carry on commercial enterprise is a
corporation
partnership
business organization
sole proprietorship
2
Inflation is
a general increase in prices
the process by which rising wages causes higher prices
the ability to purchase goods and services
the price increase of a typical group of goods
3
The government's price floor on low wages is called the
base wage rate
market equilibrium
employment guarantee
minimum wage
4
If the price of a good rises and income stays the same, what is the effect on demand?
fewer goods are bought
demand stays the same
the prices of other goods drop
more goods are bought
5
A share of stocks represents
a collection of financial assets
system that allows transfer of funds b/w savers&borrowers
a portion of ownership in a corporation.
debt government or corporation must repay to an investor
6
Which of the following is not a goal of unions?
take control of company ownership
increase job secrurity
increase worker benefits
higher wages for employees
7
An oligopoly is
a way to attract customers without lowering price
agreement among firms to charge on price for the same good
organization of producers agree to coordinate price&output
market structure which a few large firms dominate a market.
8
What is a white-collar worker?
person who links buyers and sellers of stocks
someone who works undustrial jobs and receives wages
person who wants a job but has given up
someone in a professional job who earns a salary
9
How have the earnings of U.S. workers changed over the last 20 years?
Average wages of college graduates have gone up
Average wages of non-college graduates only have gone up
Average wages of all workers have gone up
Average wages of all workers have gone down
10
The learning effect states that
rising wages causes higher prices
completion of college indicates job applicant is inelligent
education increases productivity and results in more $
loss of fund for private investment is b/c of gov borrowing
11
Which of the following is an example of the public sector of the economy?
government funding for a new national park
laborers working for a private construction company
individual donations to charity
consumers purchasing goods from a private company
12
What prompts effcient resource allocation in a well-functioning market system?
governament regulation
the need for fair allocation of resources
busnesses working to earn a profit
the need to buy goods regardless of price
13
A recession is
an especially long or severe economic contraction
a period of steady economic growth
a prolonged economic ecpansion
a prolonged contraction
14
A right-to-work law is
laws that encourage competition in the marketplace
program requiring work in exchange for temporary assistance
measure that bans mandatory union membership
law that designates seperate areas for residency & business
15
The money an investor receives above and beyond the money initially invested is called
prospectus
return
investment
savings
16
A bear market is
a market in which are goods are sold illegally
a steady drop in the stock market over a period of time
market in which money is lent for periods longer than a year
as steady rise in the stock market over a period of time
17
Two units of the same type of money must be same in terms of what they will buy, they must be
acceptable
portable
uniform
divisible
18
Ceterus Paribus means
any form of defferred payment
failure to pay back a loan
claims of ownership in a corporation
all other things held constant
19
All of the following are advantages of incorporation EXCEPT
corporations have more potential for growth
the responsibility for the business is shared
capital is easier to raise than in other business forms
corporations face double taxations
20
The unemployment rate
is the number of people who are unemployed
is the percentage of the labor force that is unemployed
is the percentage of the labor force that is underemployed
includes only discouraged workers
21
The purpose of deregulation and antitrust laws is to
promote competition
prevent monopolies
promote inefficient
promote governement control
22
How is a general partnership organized?
Only 1 partner is responsible for debts of the partnership
people who form a general partnership hire others to run it
No partner is responsible for debt beyond his/her investment
Each partner shares equally in both responsibility&liability
23
Income level below which income is insuficient to support a family or household is known as the
income gap
poverty threshold
poverty rate
income inequality
24
What is a glass ceiling?
minimum price for a good or service
barrier that prevents women&minorities from advancing
average of all prices in the economy
maximum price that can be legally charged for good/service
25
Why are funds in checking accounts called demand deposits?
they are held without interest by the bank
they are not liquid
they are usually in great demand
available whenever depositor demands them by writing a check
26
What does elasticity of demand measure?
buyers cut back/increase demand when prices rise/fall
an increase in the quantity available
a decrease in the quantity available
amount of time consumers need to change demand for a good
27
What are equities?
claims of owbership in a corporation
portion of coperate profits paid out to stockholders
formal contract to repay borrowed money with interest
price paid for the use of borrowed money
28
What are royalties?
shares of earning given as a payment
portion of corporate profits paide to stockholders
income received by a gov from taxes and nontax sources
total amount of money a firm receives
29
Capital deepening is the process of
selling obsolete equipment
decreasing the amount of capital per worker
increasing consumer spending
increasing the amount of capital per worker
30
Which of the following is an example of using physical capital to save time and money?
building extra space in a factory to simplify production
lowering workers’ wages to increase profits
hiring more workers to do a job
switching from oil to coal to make production cheaper
31
What is propectus?
buy/sell at specific date in future at todays price
expectation that encourages people to behave a certain way
financial gain made in a transaction
investment report to potential investors
32
How do price changes affect equilibrium?
Price changes assist the centrally planned economy.
serve as a tool for distributing goods and services
limit all markets to people who have the most money
prevent inflation or deflation
33
A business franchise
is not required to pay income taxes
operates without the aim of profit
attempts to improve the image & working conditions of people
semi-independent business tied to a parent company
34
Education programs make the economy more productive by
reducing taxes
providing more jobs in manufacturing
reducing injuries on the job.
adding to human capital and labor productivity
35
The money supply of the United States is made up of which of the following?
M1
some money available in the economy
all the money available in the economy
M1 and part of M2
36
Why do people need to buy and sell goods or services?
People need to provide the market with goods and services.
People buy and sell to maintain a competitive society.
People need to buy and sell goods to make a profit.
No one is self-sufficient.
37
What happens when any market is in disequilibrium and prices are flexible?
unsold perishable goods are thrown out
excess demand is created
market forces push toward equilibrium
sellers waste their resources
38
Too much money in the economy is the cause of inflation according to
the quantity theory
the cost-push theory
the demand-pull theory
the quantum theory
39
Which of the following does not cause a shift of an entire demand curve?
a change in income
a change in price
a change in the size of the population
a change in consumer expectations
40
The amount that investor pays to purchase a bond & will be repaid to investor at maturity is
yield
par value
bond
prospectus
41
What has been the pattern of union membership in recent years?
decline of public sector union membership only
steady increase of overall membership
decline of overall union membership
growth of private sector union membership only
42
Which of the following is an advantage of a centrally planned economy?
innovation is well rewarded
the system can work quickly to accomplish specific goals
the system’s bureaucracies are small and flexible
consumers’ needs are well met
43
Investment is
institution that help channel funds from savers to borrowers
providing money for your family
a collection of financial intermediaries
redirecting resources from being consumed to create benefits
44
The law of demand states that
consumers will buy less when a price decreases
price will not influence demand
consumers will buy more when a price decreases
consumers will buy more when a price increases
45
A monopoly is
industry where the government provides all the output
license that gives inventor right to sell it
markey dominated by a single seller
industry rhat runs best when one firm produces all output
46
Economy that uses resources to produce the maximum number of goods & services is described as
efficient
underutilized
trading off
growing
47
The United States economy is a mixed economy
traditional economy but allows some gov intervention
free market but allows some gov intervention
centrally planned with limited gov intervention
free market but allows no gov intervention
48
What is the difference between a shortage and scarcity?
There is no real di!erence between a shortage and a scarcity
shortage - rising prices; a scarcity - falling prices
shortage-lack of all goods&services;scarcity-a single item.
shortage - temporary or long-term scarcity always exists
49
After Civil War, National Banking Acts gave federal gov power to do all of the following EXCEPT
charter banks
issue a single national currency
require banks to hold adequate gold and silver reserves
insure banks against failure
50
Opportunity cost is
any alternative we sacrifice when we make a decision
all of the alternatives we sacrifice when we make a decision
least desirable alternative given up as result of a decision
most desirable alternative given up as result of a decision
51
Which of the following falls in the category of skilled worker?
doctor
waiter/waitress
auto mechanic
teacher
52
Americans generally favor
government control of manufacturing only
strong government control of the economy.
no government intervention in the economy.
limited government intervention in the economy
53
What is a financial asset?
claim on the property or income of a borrower
instutution that help channel funds from savers to borrowers
variable amounts you can deduct from gross income
legally bound obligation to pay debts
54
How does a perfect market influence output?
diff firms strive to make more goods
each firm adjusts its output to cover all of its costs
diff firms make diff amount of good but some make a profit
makes output as large as possible with some goods not sold
55
Policymakers encourage all of the following EXCEPT
high employment
stable productivity
steady growth
stable prices
56
The annual rate of return on a bond if the bond were held to maturity is
inflation rate
interest
prime rate
yield
57
Real GDP takes which of the following into account?
changes in aggregate demand
changes in supply
changes in prices
changes in demand
58
Each society determines who will consume what is produced based on
the amount of factor payments
economic equity
its unique combination of social values and goals
its needs and wants
59
Which of the following is an example of a durable good?
a refrigerator
a pair of jeans
a hair cut
a pizza
60
A bond is a
collection of financial assets
portion of ownership in a corporation.
loan that represents debt gov or corp must repay to investor
system that allows transfer of funds b/w savers&borrowers
