Which of the following people will Most-Likely find a high-paying job?

someone with a college degree and additional training.

Under which of the following circumstances might a country devalue its currency?

the country is running high trade deficits.

A volcano erupts in Hawaii, killing thousands of pineapples. How will this impact pineapples?

price will rise, but quantity supplied will drop.

GDP, CPI, and the unemployment rate are all:

used to determine the health of the economy.

In a market economy, the government would MOST LIKELY:

make laws protecting property rights of individuals.

France imports more products from China than China imports from France. France has:

an unfavorable balance of trade with China

All of the following are characteristics of perfectly competitive firms Except:

supplies usually charge high prices due to product differentiation.

Which of the following would cause the demand curve to shift to the right?

consumers expect the price of a good to rise.

The President and Congress feud over fiscal policy. We can assume that:

President and Congress cannot agree on a tax plan/budget.

The creator of this cartoon probably:

believes that monopolies/trusts are bad for the economy.

A rational decision is one in which:

marginal benefits are greater or equal to the marginal cost

Which of the following would cause the supply curve to shift to the left?

the cost of resources needed to produce a good increases.

Jamie wants to buy a truck. He concludes that the marginal costs outweigh the benefits.

Jamie should not buy the truck.

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Economics: EOC Review

69 termsStudBud Administration476 plays

This is a review for Mr. Oster's economics students.

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Questions 69

Answers

1
Which point on the graph represents an impossibility?
B
X
A
Y
2
Which of the following people will Most-Likely find a high-paying job?
someone with mediocre communication skills.
someone with a history of bouncing from job to job.
someone with a high school diploma.
someone with a college degree and additional training.
3
The overall supply of goods in an economy is:
aggregate supply
aggregate produce
open market supply
overall goods
4
The greater the profit motive in an economy, the greater the likelihood of:
security
government controlling the factors of production.
equity
innovation
5
People use money to buy things. This function of money is called:
unit of account
store of value
medium of exchange
standard of value
6
Nations that are targets of embargoes are forced to deal with which of the following?
increased scarcity
lower tariffs
falling prices
more foreign competition
7
A pair of shoes that costs $80 last month costs $100 this month. This describes:
the problem of scarcity.
the problem of competition.
the problem of stagflation.
the problem of inflation.
8
Bart decides to go on vacation. In order to do so he has to sell his $600 computer. This is an example of:
growth
opportunity cost
effeciency
production possibilities
9
Sales tax is an example of:
a regressive tax.
an excise tax.
a progressive tax.
an income tax.
10
IRAs Roth IRAs, and 401ks are all types of:
certificates of deposit
checking accounts
retirement accounts
savings accounts
11
Toyland imports more than it exports annually. We can say that Toyland has a:
trade deficit
budget surplus
trade surplus
budget deficit
12
Which of the following is NOT one of the goals of the government's fiscal policy?
high inflation
full employment
price stability
economic growth
13
At which point on the curve would the producer fail to produce both products efficiently?
B
X
Y
A
14
If a factory owner uses some of her profits to purchase new machinery, she is investing in:
physical capital
output returns
the producer price index
human capital
15
Price and quantity demanded are ___________ related.
directly
inversely
16
Higher taxes tend to:
increase unemployment
increase consumption
lessen government spending
cause inflation
17
Juan has a savings account that pays 2.2% interest. If Juan borrows money, the interest rate:
equal to 2.2%
will be lower than 2.2%
higher than 2.2%
unknown until he actually applies
18
Under which of the following circumstances might a country devalue its currency?
the country is running high trade deficits.
the country is running high budget deficits.
the country is running high trade surpluses.
The country is running high current account surpluses.
19
Mr. Oster buys a new car from the Jeep dealership. This takes place in the:
product market
resource market
factor and resource market
factor market
20
A volcano erupts in Hawaii, killing thousands of pineapples. How will this impact pineapples?
price will drop, but quantity supplied will rise.
price and quantity supplied will both drop.
price and quantity supplied will both rise.
price will rise, but quantity supplied will drop.
21
GDP, CPI, and the unemployment rate are all:
signs that the economy is peaking.
the result of an expansion.
used to determine the health of the economy.
signs that the economy is contracting.
22
Why would the government enact a TIGHT fiscal policy?
to lower inflation.
to help businesses expand and hire more workers.
to increase more money in an economy.
to increase employment.
23
Which of the following is a strength of a market economy?
guaranteed equity
lots of government regulation
opportunity for profit
guaranteed employment
24
Corporations usually have an unlimited lifespan.
True
False
25
Owners of homes, land, and other real estate must pay what kind of tax to local governments?
property taxes
income taxes
quarterly taxes
sales taxes
26
In a market economy, the government would MOST LIKELY:
make laws protecting property rights of individuals.
laws requiring all property to be given to the government.
make laws instructing firms on how many workers to employ.
set the price of fruits and vegetables.
27
France imports more products from China than China imports from France. France has:
a comparative advantage
an unfavorable balance of trade with China
a favorable balance of trade with China
an advantage in next exports
28
All of the following are characteristics of perfectly competitive firms Except:
there are few barriers to entering the market.
supplies usually charge high prices due to product differentiation.
the product is identical.
there is a large number of sellers.
29
In one year, the U.S. government raises 6.2 trillion in revenue and spends 5.2 trillion.
This creates a trade surplus
This creates a trade deficit
This creates a budget deficit
This creates a budget surplus
30
Which is an example of complimentary goods?
printers & ink cartridges
margarine & butter
laptops & shampoo
Coke & Pepsi
31
Joe is a CEO of a company that depends on profits from exports overseas. Joe would favor:
more foreign tariffs
an appreciating dollar
a depreciating dollar.
more U.S. tariffs
32
Corporations typically have unlimited capital.
False
True
33
Letter Y on the graph represents an:
None of the above
Impossibility
Underutilization
Inefficient use of resources
34
Which of the following would cause the demand curve to shift to the right?
consumers' preferences shift to a different product.
the price of a complimentary good increases.
consumers expect the price of a good to rise.
consumers' income decreases.
35
This market has few barriers to entry, identical products, and no control over the price.
monopoly
oligopoly
monopolistic competition
perfect or pure competition
36
The President and Congress feud over fiscal policy. We can assume that:
The President believes in a higher RRR.
Congress and the President cannot agree on interest rates.
President and Congress cannot agree on a tax plan/budget.
Congress and the President do not agree on the discount rate.
37
NAFTA BEST represents the controversy that exists over:
debt
trade barriers
embargoes
scarcity
38
With respect to the circular flow model, businesses provide households with:
labor and incentives
taxes and interest
public goods and transfer payments
goods & services
39
Johnny receives for first paycheck from Game Stop. This takes place in the:
sales market
factor market
factor or resource market.
product market
40
Paul wants a sports car. There are only a few cars available. Paul is experiencing:
an embargo on cars
opportunity cost
scarcity
severe inflation
41
When the Federal Reserve lowers the discount rate:
people save more money
banks loan less money
interest rates fall
interest rates rise
42
According to the law of demand, the higher the price, the greater the quantity demanded.
False
True
43
Taxes imposed on imports are called:
standards
subsidies
embargoes
tariffs
44
The creator of this cartoon probably:
believes that monopolies/trusts create competition.
believes that monopolies/trusts are good for the economy.
believes that monopolies/trusts are bad for the economy.
none of the above.
45
A rational decision is one in which:
marginal costs are greater than marginal benefits.
marginal benefits are greater or equal to the marginal cost
marginal benefits are greater than marginal costs.
None of the above
46
Which of the following would cause the supply curve to shift to the left?
the number of sellers of a good increases.
the government lowers taxes on the import of a good.
the technology used to produce a good improves.
the cost of resources needed to produce a good increases.
47
Price floors result in:
shortages
surpluses
48
When consumption increases, employment usually:
enters stagflation
decreases
remain the same
increases
49
Jamie wants to buy a truck. He concludes that the marginal costs outweigh the benefits.
Jamie should buy the truck.
Jamie should not buy the truck.
50
Which of the following describes how goods pass from producers to consumers in a free market?
voluntary exchange
capital investment
taxes and subsidies
consumer sovereignty
51
A school cafeteria employs cooks, dishwashers, & servers. This is a good example of:
mass production
arbitration
full employment
division of labor
52
The total value of all final goods and services produced in a country is called:
consumer price index
business cucle
gross domestic product
next export
53
Which of the following is a monetary policy that might be used to reduce inflation?
selling government bonds/securities.
increasing government spending
decreasing the discount rate
decreasing taxation
54
Monetary Policy is most influenced by:
The Federal Reserve
Congress
Congress & The President
The President
55
A command economy is an economic system in which:
profit motive is the main motivation for producers.
consumer demand determines what will be produced.
individual property rights are very important.
the government own all of the property.
56
The consumer price index (CPI) is an indicator of :
the velocity of money.
the size of the economy.
the presence of a budget deficit or surplus.
the level of inflation or deflation.
57
Sri Lanks spends 13 million more than it collects in revenue. We can say that:
Sri Lanka is experiencing a trade deficit.
Sri Lanka is experiencing a budget deficit.
Sri Lanka's revenue will grow.
Sri Lanka is experiencing a budget surplus.
58
Which of the following BEST defines consumer credit?
to pay for goods in the present for delivery in the future.
to receive goods in the present on agreement to repay later.
to buy goods without collateral.
to pay for goods with something other than cash.
59
Japan has a law that prevents skis from being imported unless they meet certain requirements.
Japan has a standard-based trade barrier.
Japan has a tariff law.
Japan has a quota law.
Japan has a non trade related restriction.
60
England's government owns the hospitals and TV stations, but other industries are private.
England has a traditional economy.
England has a command economy.
England has a mixed economy.
England has a market economy
61
An appreciating currency in Canada benefits:
foreign consumers of Canadian goods.
Canadian producers.
consumers of Canadian products from other countries.
Canadian consumers of foreign goods.
62
Fiscal policy is MOST influenced by:
The Federal Reserve
the federal board of governors
Congress
businesses
63
This refers to the relationship between inputs to outputs.
human capital
capital investment
producer price output
productivity
64
The price at which total supply equals total demand is known as:
the consumer price
consumer demand
the equilibrium price
the middle price
65
Price ceilings result in:
surpluses
shortages
66
Which of the following presents the BEST argument for the dollar's value increasing?
boosting the value of the dollar will decrease the discount rate.
boosting the value of the dollar will cause a trade war
boosting the value of the dollar will increase US exports.
boosting the value of the dollar will increase US imports.
67
Mary wants to start her own business where she is the only owner. One concern to this plan is:
Mary will have to deal with unlimited liability.
Mary will have to deal with limited liability
Mary's business will have an unlimited lifespan.
Mary will have to deal with double taxation.
68
Which of the following might be a sign of an economic trough?
low unemployment
recession
stable CPI
high GDP
69
Which economic concept tends to make economies more efficient?
government ownership of property
government regulations aimed at economic equity.
income redistribution
specialization

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