What is a market economy?

A economy where individuals make all decisions

What are the three economic goals that represent a command economy?

Equity, Security, and Stability

Economic Freedom is...

the ability to acquire any job you want

What happened in the Brown v. Board of Education Case?

Brown won and segregation officially ended

Economic Growth is...

producing more g/s increasing the economy

What does Judicial Review allow the Supreme Court to do?

Interpret the Constitution and decide what it means, Stop the other branches from going against the Constitution

The $ of cruises is expected to rise in the future. What happens to the supply of cruises NOW?

Expectation of Future Price Changes, Decrease

When the supply curve shifts right, what happens to price and quantity?

Price goes down, quantity goes up

what is the goal of a price ceiling?

limit how much consumers have to pay for a good or service

The Law of Supply states...

When price goes up, supply goes up, When price goes down, supply goes down

E in TIRES and TIGERS stands for?

Expectation of Future Price Changes

what is the goal of a price floor?

maintain a minimum profit for sellers

World War 3 breaks out, what happens to supply of g/s in general?

International Event/Natural Disasters, Decrease

I in TIGERS stands for...

International Events/Natural Disasters

G in TIGERS stands for...

Government Intervention: Taxes and Subsidies

How did the originators of the Constitution feel about the use of political parties?

They would be harmful for our country

The price of cell phones goes up in the cell phone market. What happens to supply?

No determinant, quantity supplied increases

Gov. gives Ford $500,000 to produce electric cars, what happens to the supply of electric cars?

Government Interventions: Subsidies, Increase

The price of paper clips went up. How does this affect the demand for paper?

Related Goods (Compliments), Decrease

Purple hair is no longer in style. How does this affect the demand for purple hair dye?

Tastes and Preferences, Decrease

What is a traditional economy?

An economy where customs and traditions make all decisions

What would happen to the price of clothes if there was a quota and tariff on imported clothes?

It would increase because clothes are more scarce

When the demand curve shifts left, what happens to price and quantity?

Both price and quantity decrease

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Duplicate of Economics - Final Exam Review

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Final Exam Review for #Economics

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Questions 100

Answers

1
What is a market economy?
A economy where the government makes all decisions
A economy where individuals make all decisions
A combination of two economic systems
A economy where customs and traditions make all decisions
2
If there is a surplus, what must businesses do to reach equilibrium?
Raise Prices
Keep Prices the Same
Lower Prices
3
Henry Ford invents the moving assembly line. How did this affect the supply of cars?
Tastes and Preferences, Increase
# of sellers in the market, increases
Technology, Increase
Technology, Decreases
4
Which tool could the government try if America was trying to get the economy to expand?
cut taxes
cut prices of consumer goods
cut production of consumer goods
cut government spending
5
10 new grocery stores open up in Newark, DE. What happens to the supply of food items?
Size of population, increase
# of Sellers, Increase
# of Sellers, Decrease
Size of population, decrease
6
Which of the following is most likely to be affected negatively by high inflation?
An individual that just got a raise
A doctor with a suburban practice
Individuals that saw an increase in minimum wage
Individuals on a fixed income
7
What are the three economic goals that represent a command economy?
Growth, Freedom, and Efficiency
Security, Growth, and Stability
Efficiency, Freedom, and Security
Equity, Security, and Stability
8
The supply line is always...
downwards sloping to the right
upwards sloping to the left
downwards sloping to the left
upwards sloping to the right
9
what is the potential drawback of a price ceiling?
Shortages
Surpluses
few people will be able to afford goods
no one will be able to make any profits
10
Economic Freedom is...
ensuring everyone gets the same things
producing more g/s increasing the economy
making as many g/s with as little resources as possible
the ability to acquire any job you want
11
What happened in the Brown v. Board of Education Case?
Brown won and segregation officially ended
Brown lost and his daughter attended the same school
Brown lost which led to the beginning of segretation
Brown won and sat on the white car on the train
12
Which term is the best indicator of how much value the nation has produced in a given year?
Inflation
GDP
Housing Starts
Employment
13
If your job was replaced by a new form of technology you are...
seasonally unemployed
Frictionally unemployed
cyclically unemployed
structurally unemployed
14
Economic Growth is...
the ability to acquire any job you want
producing more g/s increasing the economy
making as many g/s with as little resources as possible
ensuring everyone gets the same things
15
What does Judicial Review allow the Supreme Court to do?
Gives Supreme Court ultimate power
Interpret the Constitution and decide what it means
Allows the judges to change laws whenever they want
Stop the other branches from going against the Constitution
16
What rate of unemployment is seen as natural in the USA?
50%
0%
3-5%
10%
17
The price of tomatoes goes up. What happens to the supply of pizza?
Resource Costs, Increase
Expectations of Future Price Changes, Decrease
Related Goods: Compliments, Decrease
Resource Costs, Decrease
18
The $ of cruises is expected to rise in the future. What happens to the supply of cruises NOW?
Expectation of Future Price Changes, Decrease
# of sellers in the market, decrease
# of sellers in the market, increase
Expectations of Future Price Changes, Increase
19
When the supply curve shifts right, what happens to price and quantity?
Both price and quantity decrease
Price goes down, quantity goes up
Price goes up, quantity goes down
Both price and quantity increase
20
T in TIGERS stands for?
Technical
Taste and Preferences
Technology
Taste and Fads
21
what is the goal of a price ceiling?
reach market equilibrium more efficiently
encourage competition in the market
maintain a minimum profit for sellers
limit how much consumers have to pay for a good or service
22
If there is a shortage, what must businesses do to reach equilibrium?
Lower Prices
Keep Prices the Same
Raise Prices
23
The Law of Supply states...
When price goes up, supply goes up
When price goes up, supply goes down
When price goes down, supply goes down
When price goes down, supply goes up
24
Which of the following is not a tool the Federal Reserve uses?
Taxes
Open Market Operations (bonds)
Interest Rates
25
E in TIRES and TIGERS stands for?
Expectation of Current Price Changes
Expectation of Tastes and Preferences
Expectation of Past Price Changes
Expectation of Future Price Changes
26
what is the goal of a price floor?
reach market equilibrium more efficiently
encourage competition in the market
limit how much consumers have to pay for good or service
maintain a minimum profit for sellers
27
what is the potential drawback of a price floor?
Shortages
no one will be able to make profits
Surpluses
few people will be able to afford goods
28
I in TIRES stand for...
Income of Consumers
International Events/Natural Disasters
Interest
Income of Businesses
29
World War 3 breaks out, what happens to supply of g/s in general?
# of sellers in the market, increase
International Event/Natural Disasters, Increase
International Event/Natural Disasters, Decrease
Tastes and Preferences, decrease
30
I in TIGERS stands for...
Income of Consumers
Income of Businesses
International Scenarios/Natural Disasters
International Events/Natural Disasters
31
The flu has killed a number of elderly people. How does this affect demand for g/s?
Size of population, decrease
Size of population, increase
International Event/Natural Disaster, Increase
International Event/Natural Disaster, Decrease
32
G in TIGERS stands for...
Government Intervention: Taxes and Subsidies
Government Intervention
Government Intervention: Taxes
Government Intervention: Subsidies
33
How did the originators of the Constitution feel about the use of political parties?
They would be harmful for our country
They would be great for our country
34
S in TIGERS stands for?
# of Sellers in the Market
# of Businesses in the Market
Size of Population
# of Consumers in the Market
35
Does free trade help or hurt domestic businesses?
It hurts domestic businesses
It helps domestic businesses
36
What is the Federal Reserve Bank trying to do when they use expansionary monetary policy?
increase the money supply
decrease spending
Increase taxes
decrease the money supply
37
The price of cell phones goes up in the cell phone market. What happens to supply?
No determinant, quantity supplied increases
Technology, decreases
No determinant, quantity supplied decreases
Technology, increases
38
If interest rates are lowered, the Fed is trying to encourage what phase of the business cycle?
Contraction
Expansion
Trough
Peak
39
Gov. gives Ford $500,000 to produce electric cars, what happens to the supply of electric cars?
Government Interventions: Subsidies, Decrease
Government Interventions: Taxes, Decrease
Government Interventions: Taxes, Increase
Government Interventions: Subsidies, Increase
40
In most cases, more market economies transition to a command economy then the other way around
False
True
41
Do trade restrictions help or hurt domestic businesses?
It helps domestic businesses
It hurts domestic businesses
42
Which political party believes in a smaller central gov and stronger state govs
Republican
Democratic
43
The price of paper clips went up. How does this affect the demand for paper?
Related Goods (Compliments), Increase
Related Goods (Compliments), Decrease
Related Goods (Substitutes), Decrease
Related Goods (Compliments), Increase
44
Purple hair is no longer in style. How does this affect the demand for purple hair dye?
Related Goods: Compliments, Decrease
Tastes and Preferences, Increase
Size of Population, Increase
Tastes and Preferences, Decrease
45
What is a traditional economy?
An economy where the government makes all decisions
An economy where individuals make all decisions
A combination of two economic systems
An economy where customs and traditions make all decisions
46
What would happen to the price of clothes if there was a quota and tariff on imported clothes?
It would stay the same
It would decrease because there is a surplus of clothes
It would increase because clothes are more scarce
47
When the demand curve shifts left, what happens to price and quantity?
Price goes up, quantity goes down
Both price and quantity decrease
Both price and quantity increase
Price goes down, quantity goes up
48
To control an inflationary economy, the Fed lowers the money supply by:
Decreasing spending
Decreasing Interest Rates
Increasing Interest Rates
Increasing Taxes
49
When g/s cannot be bought legally, what is created?
Surplus of g/s
Negative externalities
Shortage of g/s
Black Market/Illicit Trade
50
If you work on a golf course in Maine or Vermont you many experience what type of unemployment?
Seasonal
Frictional
Cyclical
Structural
51
The United States is an example of which economic system?
Command
Market
Mixed
Traditional
52
When should the Federal Reserve sell bonds (OMOs) and raise interest rates?
In a recession
When aggregate supply is too high
In a depression
When the inflation rate is too high
53
Equilibrium is...
the amount of a g/s that pple are willing & able to purchase
When the supply line intersects with the demand line
the amount of a g/s that sellers are willing & able to sell.
When QS = QD
54
Transitioning from one economy to another is very easy
True
False
55
R in TIRES stands for...
Resource Costs
Related Goods: Taxes and Subsidies
Related Goods: Substitutes and Complements
56
When the demand curve shifts right, what happens to price and quantity?
Price goes down, quantity goes up
Price goes up, quantity goes down
Price and quantity both go up
Price and quantity both go down
57
What are the three economic goals that represent a market economy?
Growth, Equity, and Freedom
Growth, Stability, and Freedom
Growth, Efficiency, and Freedom
Security, Stability, and Equity
58
The price of Hershey’s Chocolate Bars went up! How does this affect the demand for Milky Ways?
Related Goods: Substitutes, Decrease
Related Goods: Compliments, Increase
Related Goods: Compliments, Decrease
Related Goods: Substitutes, Increase
59
What is a mixed economy?
An economy where individuals makes all decisions
An economy where customs and traditions make all decisions
An economy where the government makes all decisions.
A combination of two economic systems
60
S in TIRES stands for?
Size of Population
Size of Consumers
# of Sellers in the Market
Size of Households
61
Which political party believes in a larger central gov and weaker state govs
Republican
Democratic
62
Economic Security is...
relatively low prices that do not fluctuate
making as many g/s with as little resources as possible
the promise to always have a job and paycheck
ensuring everyone gets the same things
63
To ease the transition from command to market, the government should do what?
Give citizens more responsibility & reduce foreign aid
Know that the transition will be hard and take it slow
Let inefficient businesses fail & support competition
Make clear property rights, lower taxes, & increase tech
64
What is a dynamic government?
A government that stays static over time
A government with a federal structure
A government that changes over time
A government with a unitary structure
65
Why should a country specialize in making g/s?
Because the country is lazy
Because it reduce the use of a countries resources
Because a nation would have more choice in g/s to buy
Because it's cheaper
66
UD increases pay for all of its full-time employees. How might this affect demand?
Income of Consumers, Increase
Tastes and Preferences, Increase
Income of Consumers, Decrease
No Determinant, Increase
67
The price of water bottles rose in the water bottle market. How does this affect demand?
Tastes and Preferences, Decreases
Income of Consumers, Decreases
No Determinant, Quantity Demanded Decreases
Size of Population, Decreases
68
Government passes a law reducing taxes on businesses. What happens to the supply of g/s?
Government Interventions: Subsidies, Increase
Government Interventions: Taxes, Increase
Government Interventions: Taxes, Decrease
69
If sellers set prices below equilibrium, there will be a what?
Surplus
Shortage
70
You work for Gerber. A recession hits and you lost your job. You just experienced...
Structural unemployment
frictional unemployment
seasonal unemployment
cyclical unemployment
71
Which sentence describes market conditions at equilibrium/market clearing price?
supply is greater than demand
supply and demand are equal
there is no supply or demand
demand is greater than supply
72
Which of the following is an example of expansionary monetary policy?
lower interest rates
raise taxes
decrease government spending
raise interest rates
73
R in TIGERS stands for?
Related Goods: Complements
Related Goods: Substitutes
Related Goods: Substitutes and Complements
Resource Costs
74
If sellers set prices above equilibrium, there will be a what?
Shortage
Surplus
75
In Macroeconomics, what do we call the lowest point of the Business Cycle?
an inflation
a depression
a trough
the peak
76
When the supply curve shifts left, what happens to price and quantity?
Price goes down, quantity goes up
Both price and quantity goes down
Price goes up, quantity goes down
Both price and quantity goes up
77
T in TIRES stands for...
Technology
Tastes and Preferences
Tastes and Fads
78
What is a command economy?
A combination of two economic systems
A economy where customs and traditions make all decisions
A economy where individuals make all decisions
A economy where the government makes all decisions
79
The Law of Demand states...
When price goes up, demand goes up
When price goes up, demand goes down
When price goes down, demand goes down
When price goes down, demand goes up
80
Which scenario best illustrates the problem of cyclical unemployment?
A college graduate who turns down one job and takes another
A factory worker whose skills are no longer marketable
A sales rep who was laid off during an economic downturn
A landscaper who can’t find a job in the winter
81
which of the following is an example of contractionary fiscal policy?
raising the reserve rate
decreasing government spending
cutting taxes
raising interest rates
82
which of the following is considered a negative side effect of the minimum wage?
full employment
increased unemployment
increased interest rate
failure to meet production
83
To ensure fair prices and reasonable supplies, governments will implement ____.
subsidies
indirect taxes
none of the options
price floors/ceilings
84
What is the purpose of trade agreements like WTO and NAFTA?
To increase trade barriers
To reduce trade barriers
To free trade with countries
To create trade wars
85
what grows when the federal reserve decreases interest rates?
unemployment
taxes
inflation
federal budget deficit
86
As the price of heating oil rises, apartment rental rates rise. This is an example of...
Demand Pull Inflation
Cost Push Inflation
Classical Economics
Hyperinflation
87
Where is power in a federal structure of government?
Member states
No government
Central government
Shared between federal government and member states
88
Sellers/Suppliers/Producers determine ________
Demand
Equilibrium
Circular Flow
Supply
89
The Soviet Union, Cuba, and China are examples of which economic system?
Traditional
Mixed
Command
Market
90
What is comparative advantage?
When a country can make everything by themselves
When a country creates trade restrictions on other countries
When a country specializes in making a few g/s and trades
When a country can make g/s at the lowest opportunity cost
91
Which of the following will be least likely to occur in a contraction?
GDP Decrease
Inflation Increase
Unemployment Increase
92
In the future, the $ of iPhone 7's will go down. How does this affect demand for iPhone 7 now?
Tastes and Prefrences, Decrease
Expectation of Future Price Changes, Decrease
Expectation of Future Price Changes, Increase
Income of Consumers, Decrease
93
Economic Equity is...
making as many g/s with as little resources as possible
ensuring everyone gets the same things
The promise to always have a job and paycheck
Relatively low prices that do not fluctuate
94
Which branch of government ensures laws are Constitutional?
Executive
Legislative
Judicial
95
Economic Stability is...
the promise to always have a job and paycheck
making as many g/s with as little resources as possible
relatively low prices that do not fluctuate
ensuring everyone gets the same thing
96
Economists look at a country's GDP to measure a country's...
Inflation Rate
Imports and Exports
Unemployment Rate
Economic Health
97
Economic Efficiency is...
the ability to acquire any job you want
producing more g/s increasing the economy
making as many g/s with as little resources as possible
ensuring everyone gets the same things
98
When a nation allows trade, what happens to standard of living for that country?
It decreases
It increases
99
Buyers/Consumers determine _________.
Circular Flow
Equilibrium
Demand
Supply
100
The demand line is always...
upwards sloping to the right
downwards sloping to the left
upwards sloping to the left
downwards sloping to the right

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