Using this diagram, what outcome can be predicted if individuals stop purchasing goods?

Businesses would experience all of these economic outcomes.

Which of these is the BEST definition of GDP?

market value of all goods and services produced in a country

When the Fed sell government securities what effect does this have on money and interest rates?

Money Supply-Decreases/ Interest Rates- Increase

How do consumers express self-interest?

seeking the lowest price for a product

A carpenter needs a new saw; sells a bench, he use the $ to get a new, conclude an example?

he uses money as a medium of exchange

Why do firms spend money and time to advertise?

to showcase their product among the competition

If the demand curve shifts to the right, what would result on equilibrium price and quantity?

price will rise and quanitity will also rise

Which of these is the BEST definition of GDP?

market value of all goods and services produced in a country

What conclusion can be made about the U.S. economy by examining this chart?

All aspects of the economy are related.

If the demand curve shifts left what would be the result of equilibrium price and quantity?

price will fall and quantity will fall

A volcano destroys many pineapple orchards in Hawaii, what's the effect of price and quantity?

price will rise and quantity will fall

Of the following groups, who would be the most impacted by inflation?

individuals living on fixed incomes

Monetary policy is BEST described as

actions by the Fed to expand or contract the money supply

Aggregate demand in the U.S. is influenced by both

monetary policy and fiscal policy.

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ECON EOC Micro and Macro Economic Concepts

40 termsStudBud Administration153 plays

(SSEMI1) Flow of Goods (SSEMI2) Law of Demand (SSEMI3) Economic Behavior (SSEMI4) Organization and Role of Business

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Questions 40

Answers

1
___ have inelastic demand since change in price would not change the quantity demanded.
Large supply of complements
Luxuries
Large supply of substitutes
Life necessities or needs
2
Using this diagram, what outcome can be predicted if individuals stop purchasing goods?
Businesses would not be able to pay for resources.
Businesses would produce less goods.
Businesses would lose income.
Businesses would experience all of these economic outcomes.
3
The Consumer Price Index (CPI) is best used to determine
the rate of inflation.
currency exchange rates.
the Dow Jones Index.
the unemployment rate.
4
What economic concept does this graph BEST illustrate?
law of supply
scarcity
productivity
law of demand
5
Which of these is the BEST definition of GDP?
a description of the quality of life in a nation
market value of all goods and services produced in a country
a collection of all government assets that could earn money
average value of production of intermediate goods
6
Which function of money is the above picture an example of ?
store of value
means of currency
unit of account
medium of exchange
7
When the Fed sell government securities what effect does this have on money and interest rates?
Money Supply- Increase/ Interest Rates- Decrease
Money Supply- Increases/ Interest Rates- Increase
Money Supply- Decreases/ Interest Rates- Decrease
Money Supply-Decreases/ Interest Rates- Increase
8
How do consumers express self-interest?
searching for jobs with the highest wages
reducing business losses
collecting economic profits
seeking the lowest price for a product
9
The measure of the economy's overall economic performance is called
GDP
Net National Product
National income
GNP
10
Of the following taxes, what is the name for the taxes that all homeowners must pay?
property tax
income tax
excise tax
sales tax
11
A carpenter needs a new saw; sells a bench, he use the $ to get a new, conclude an example?
he uses money as a medium of exchange
he uses money as a means of deferring payment
he uses the money as a store of value
he uses money as a unit of account
12
A period of real GDP declines for two quarters in a row is MOST LIKELY a
recession.
recovery.
peak.
trough.
13
Why do firms spend money and time to advertise?
regulations say that firms must advertise their product
there is no competition, so the firm must inform the public
it is a tax write-off for charity
to showcase their product among the competition
14
Which result occurs when government expenditures are greater than receipts?
reduced net exports
a federal budget deficit
a federal budget surplus
increased excise taxes
15
If the demand curve shifts to the right, what would result on equilibrium price and quantity?
price will fall and quantity will rise
price will fall and quantity will fall
price will rise and quanitity will also rise
price will rise and quantity will fall
16
The Congress uses government spending and taxing to help control recessions/econ activity
monetary policy.
open market operations.
fiscal policy.
supply-side economics.
17
Inflation is a rise in level of prices, the buying power of the dollar would _____.
decrease.
not be affected by inflation.
remain stable.
increase.
18
Which of these has the MOST effect on elasticity of supply?
large supply of substitutes
changes in complements
time to adjust
availability of substitutes
19
Which of these is the BEST definition of GDP?
average value of production of intermediate goods
market value of all goods and services produced in a country
a description of the quality of life in a nation
a collection of all government assets that could earn money
20
In 2008, U.S. families received a tax rebate check from the IRS, why were checks given?
to decrease consumer spending
to increase the federal income tax
to stimulate the economy
to slow down productivity
21
What is the most obvious factor affecting demand elasticity?
availability of substitutes
income
preferences
market supply
22
What conclusion can be made about the U.S. economy by examining this chart?
All aspects of the economy are related.
People need to buy more things to help the economy.
Consumer spending has little-to-no economic impact.
The government plays the most important economic role.
23
Which is considered a negative side effect of minimum wage?
full employment
unemployment
increased interest rates
failure to meet equilibrium production
24
If the demand curve shifts left what would be the result of equilibrium price and quantity?
price will fall and quantity will fall
price will rise and quantity will fall
price will rise and quantity will also rise
price will all and quantity will rise
25
A volcano destroys many pineapple orchards in Hawaii, what's the effect of price and quantity?
price will rise and quantity will fall
price will fall and quantity will rise
price will fall and quantity will fall
price will rise and quantity will also rise
26
Of the following groups, who would be the most impacted by inflation?
employees who have received raises
members of strong labor unions
individuals living on fixed incomes
people who do not have any debt
27
What product is likely to have the MOST elastic demand?
water
bananas
gasoline
insulin
28
If Congress wants to encourage firms and consumers to spend money would MOST LIKELY
decrease government spending on goods and services.
decrease the tax rate.
increase the tax rate.
increase the reserve requirement.
29
Which statement describes economic activity in a recession?
business production increases
the employment rate increases
consumer spending declines
government regulations decrease
30
What is the name of the point at which supply and demand intersect?
plateau
scarcity
equilibrium
profit margin
31
The Fed wants to increase the money supply, which of the following will they do?
increase the reserve requirement for banks
sell securities on the open market
require banks to hold a reserve for all types of deposits
reduce the discount rate
32
If the federal government spends more than it collects in revenue, then
the unemployment rate may increase.
it is running a surplus.
its is running a deficit.
the inflation rate should decline.
33
Monetary policy is BEST described as
benefits received by employees with wages and salaries
a system that relies on supply and demand to determine value
actions by Congress using spending and taxing in the economy
actions by the Fed to expand or contract the money supply
34
A firm is booming w/ customers that some are turned away, what's the BEST way to get profits?
move to a new location
use better ingredients
hire more employees
cut back on hours
35
Aggregate demand in the U.S. is influenced by both
monetary policy and fiscal policy.
monetary policy and debt.
inflation and debt.
inflation and fiscal policy.
36
Type of business organization, that specialize, but has unlimited liability?
corporation
partnership
oligopoly
S-Corporation
37
What industry is closest to being purely competitive?
blue jeans
electricity
wheat
cars
38
Why is there no competition in a monopoly?
there are too many substitutes
there are no close substitutes
the government forbids competition
prices are set by the government
39
Which has inelastic demand? 45% on housing, 30% on food, and 25% on entertainment
medical
food
housing
entertainment
40
The Fed controls the money supply, availability, & cost of money to keep the economy stable is
fiscal policy.
the discount rate.
the interest rate.
monetary policy.

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