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Weesner Econ Review for Final Flashcards | StudBud
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Weesner Econ Review for Final
Weesner Econ Review for Final
40 terms
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Econ Review for Econ
Flashcards
40 cards
F
Practice quiz
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Host live
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Questions
40
Answers
1
You buy either a CD or to go to a movie. What is the choice that you “give up” called?
D. Marginal cost
A Positive cost
C Opportunity cost
B Negative cost
2
How many businesses make up an oligopoly?
None
Most
Few
One
3
In a market economy, what is the government’s role?
B Owns and operates major industries
D Sets prices on goods and services
A Decides what goods are manufactured
C Encourage competition among businesses
4
Which of the following is the best example of the law of supply?
company builds a new factory to process flour to export.
company buys a new dishwasher to make employee work easier.
shop increases the supply when the price increases.
supplier provides more to local stores as prices fall.
5
In every economic system, what must people choose to do?
D Save money to reduce the national debt
C Create an equal distribution of income
A Satisfy all the wants of their society
B Make the best use of scarce resources
6
Which decision will guarantee that a person will make money in the stock market?
A Buying the stock of a big company like Microsoft
D Purchasing stocks after the market has dropped for a week
C Buying the stock of a small company like Starbucks Coffee
B Nothing will guarantee making money in the market
7
In the model GDP = C + I + G + (X - M), “G” stands for _______
Government Spending
Give A Ways
Grants
Government Revenue
8
What would be a positive externality to electric scooters in cities
more sidewalk accidents
Less pollution
Layoff of more taxi drivers
crowded sidewalks
9
In a market economy, what determines the price and quantity of most goods produced?
A Substitute goods
B Supply and demand
D Quality of goods
C Economic policies
10
In economic terms, what are land, labor, capital and entrepreneurship
B Factors of production
A Production possibility
D Opportunity costs
C Production trade-offs
11
a type of unemployment about people who are out of work because of a downturn in the economy
Structural
Cyclical
Frictional
Seasonal
12
Macro Economics studies
Government spending
Net exports
Individual markets
The economy as a whole
13
Which of the following statements will help to maximize your stock investment?
B Buy high, sell low
D Buy high, sell high
A Buy low, sell low
C Buy low, sell high
14
Which of these actions would most likely result in a decrease in consumer spending?
D Decreasing the reserve requirement
A Increasing income taxes
B Decreasing the interest rate
C Increasing government spending
15
Which of the following government actions is likely to stimulate the economy?
D Increase government spending and decrease income taxes
C Decrease government spending and increase incomes taxes
A Increase income taxes and increase government spending
B Decrease income taxes and decrease government spending
16
Which factor will decrease the demand for a product?
C A decrease in the price of a complementary good
D An increase in the price of a substitute good
A Increased popularity of a product
B A decrease in the number of buyers
17
Which of the following situations would result in a government budget deficit?
B The government spends more than it collects in taxes.
C The Federal Reserve lends more than it borrows.
A The Federal Reserve borrows more than it lends.
D The government spends the same as it collects in taxes.
18
What is the benefit of competition in a free market system?
D Follow the traditional methods of production
A Make sure everyone gets an equal share of resources
C Cause producers to try to put each other out of business
B Create a variety of new and cheaper products
19
A company decides to install more machines and lay off workers. What is answered?
D Where to produce
What to produce
How to produce
C For whom to produce
20
Point at which quantity demanded equals quantity supplied on Supply and Demand Graph
C Shortage
D Equidistant
B Equilibrium
A Surplus
21
In which of the following economic systems is the “factors of production” privately owned?
A Capitalism
B Socialism
D Confucianism
C Communism
22
What is likely to happen when consumers want to buy more scooters than the store has
B Price of the scooter will increase.
D Stores will make a different model.
C Manufacturers will stop making it.
A Profit on scooter sales will be smaller.
23
What is the result of a price ceiling which is a price set below the equilibrium price?
D Equidistant
B Surplus
C Equilibrium
A Shortage
24
describes a market in which one firm controls the supply and pricing of a good or service?
B Oligopoly
D Monopoly
A Monopolist competition
C Perfectly competitive
25
competitive market that has only a few firms controlling the production of a product?
A Fierce competition
C Pure competition
B Oligopoly
D Monopoly
26
What is the most basic economic issue for all societies?
Scarcity
Inflation
Recession
Taxation
27
when consumers and producers act in their own self-interest, what will be the overall result?
C The producers earn a profit making products people want.
excessively high prices for goods and services.
less variety and fewer products will be made.
businesses will lose money no matter what they sell.
28
“There is no free lunch.” In economic terms, what does this mean?
C Choices are never based on self-interest.
D People only think of others when making choices.
A Someone must pay for everything.
B All production is designed to reduce scarcity.
29
Unlimited Wants + Limited Resources = ?
C Savings
D Equilibrium
B Competition
A Scarcity
30
Which of the following factors contributes the most to economic growth?
A Large amounts of natural resources
D High rates of inflation
B Greater economic freedom
C Low investment in human capital
31
happens when a country’s money supply increases faster than the goods and services it produces?
B Unemployment
A Inflation
C Equilibrium
D Stability
32
In general, what type of economy does the United States have?
C Command
B Market
A Transitional
D Traditional
33
What is the main idea behind the study of economics?
B Efficiency of production
C Allocation of scarce resources
D Business decisions
A. Monetary policy
34
What would most likely happen to the orange market if a hurricane destroyed half of crop?
D Supply of oranges will increase
C The price of oranges will increase
B The price of oranges will fall
A Demand for oranges will rise
35
Which of the following is an economic goal of United States government policy?
B To limit international competition
A To own the factors of production
D To promote full employment
C To create a classless society
36
Which of the following is a result of the specialization of labor?
D Less interdependence
B Identical income
C Increased output
A Increased inflation
37
What is the primary incentive that motivates a manufacturer to sell a product?
B Putting others out of business
C Pleasing the government
D Reputation of the product
A Making profits on sales
38
If a government sets a maximum price for a good or service, what does it create?
A Price ceiling
D Illegal price
B Price floor
C Inflated price
39
How does the process of specialization change an economy?
C Improves efficiency of production
B Decreases competition
A Eliminates unemployment
D Increases government to control
40
In economic terms, what is a “stock”?
D A place where individuals raise money
C Ownership of an entire company
A A share, or part ownership, of a company
B Pieces of paper that represent money
