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SS12: Econ CSA Review Flashcards | StudBud
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SS12: Econ CSA Review
SS12: Econ CSA Review
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1
The government collects taxes so it can provide _______ goods.
private
used
free rider
public
2
Which of the following would be included in the calculation of GDP?
the selling price of a new iPhone
$ earned from babysitting
the selling price of a used car
the price of materials used to build a house
3
How would the Fed adjust the discount rate to encourage banks to make more loans?
DECREASE the discount rate
leave the discount rate untouched
INCREASE the discount rate
4
Demand is ___________ when price changes have a significant impact on buyers.
Elastic
Inelastic
5
What is the term for the most desirable alternative given up for the decision?
opportunity cost
trade-off
economic system
scarcity
6
One way the gov't incentivizes firms to invest in research and development is by granting ____.
patents
awards
taxes
public goods
7
When supply decreases, what happens to equilibrium price and quantity in the market?
Price Increases, Quantity Increases
Price Decreases, Quantity Decreases
Price Decreases, Quantity Increases
Price Increases, Quantity Decreases
8
What economic law states the following? "When a good's price is lower, people buy more of it."
Law of Comparative Advantage
Law of Supply
Law of Demand
Law of Diminishing Marginal Returns
9
When demand decreases, what happens to equilibrium price and quantity in the market?
Price Decreases, Quantity Decreases
Price Decreases, Quantity Increases
Price Increases, Quantity Decreases
Price Increases, Quantity Increases
10
The gov't decides to subsidize dairy farming. Which graph represents the market for milk?
Graph A
Graph C
Graph B
Graph D
11
What is one argument in favor of free trade?
decreases competition
increases wages in the U.S.
decreases prices of consumer goods
increases the number of U.S. jobs
12
What economic system did Adam Smith favor?
Command Economy
Traditional Economy
Mixed Economy
Market Economy
13
Adam Levine begins endorsing beanie babies. Which graph represents the beanie baby market?
Graph A
Graph C
Graph D
Graph B
14
INCREASING tax rates and DECREASING government spending are ________ fiscal policy tools.
expansionary
contractionary
15
What is the opportunity cost of increasing production of X from 2 (Pt C) to 3 (Pt D)?
4 units of Y
11 units of Y
1 unit of X
3 units of X
16
What is it called when the union negotiators meet with company reps to agree on a new contract?
a strike
court proceedings
collective bargaining
picketing
17
Which of the following would NOT cause a decrease in demand (curve SHIFTING left)?
an increase in the price of a complement
a decrease in the price of this good
a decrease in consumer income
a decrease in the price of a substitute
18
A price floor of $700 would result in a surplus of _______ units.
4,000
3,000
5,000
7,000
19
How many cakes will be demanded at the price of $2?
5
1
10
8
20
The price of cream, an input for oreos, increases. Which graph represents the Oreo market?
Graph C
Graph D
Graph A
Graph B
21
A price ceiling of $300 would result in a _________ of 4,000 units.
surplus
shortage
22
Which tax structure takes a larger percentage of income as income increases?
Progressive
Regressive
Proportional (Flat tax)
23
What econ law states the following? When a good's price is higher, businesses will sell more."
Law of Gravity
Law of Absolute Advantage
Law of Supply
Law of Demand
24
What 3 basic production ?'s must be addressed by all economic systems because of scarcity?
What, How, For Whom?
What, For Whom, Why?
Why, Where, When?
When, How, Where?
25
Police and fire protection are nonexcludable and nonrival in consumption, making them ____ ___.
private goods
substitute goods
complementary goods
public goods
26
One way the gov't prevents the formation of monopolies is by enforcing ______ laws.
antitrust
constitutional
civil
criminal
27
The ability of one country to produce a product at a lower opportunity cost than another is
The Theory of Absolute Advantage
The Theory of Comparative Advantage
28
One negative impact of globalization is...
loss of U.S. jobs
increased environmental awareness
adaptation of new technologies
increased access to global markets
29
During economic contractions, what type of unemployment is increasing?
Structural
Frictional
Cyclical
Seasonal
30
The price of Coke, a sub for Pepsi, decreases. Which graph represents the market for Pepsi?
Graph C
Graph D
Graph A
Graph B
31
What is the group that defends workers by fighting to improve work conditions & benefits?
citizen council
labor union
board of directors
parent teacher organization
32
Your credit score would be ___________ affected if you made a late payment.
negatively
positively
33
During economic contractions, what is generally happening to the unemployment rate?
It is decreasing.
It is increasing.
It is not changing.
34
What are the factors of production?
goods and services
technology products and entrepreneurship
land, labor, capital, and entrepreneurship
all of the products in an economy
35
Demand for prescription medication would be __________.
Inelastic
Elastic
36
If a country experienced an increased standard of living, its GDP would most likely ______.
increase
stay the same
decrease
37
Inflation causes purchasing power to _________.
stay the same
decrease
increase
38
What are two broad social goals of the market economic system?
profit, traditions, and government control
choice, central planning, and security
freedom and efficiency
socialism that evolves into pure communism
39
Which market structure is represented in each row?
A)Perfect Comp B)Monopolistic Comp C)Oligopoly D)Monopoly
A)Perfect Comp B)Monopoly C)Monopolistic Comp D)Oligopoly
A)Monopolistic Comp B)Monopoly C)Perfect Comp D)Oligopoly
40
Compound interest ________ the rate at which your investment grows.
doesn't change
decreases
increases
41
Which of the following would NOT cause an increase in supply?
Prices of resources decrease
The number of sellers of the product decreases
There are advances in production technology
42
The reason for government deficit spending (overspending) is to increase ______ in the economy.
supply
happiness
scarcity
demand
43
Why is scarcity the basic problem of economics? Limited ____ vs. Unlimited ____!
wants; resources
goods & services; government policies
resources; wants
jobs; skills
44
Which role of government is represented by redistribution of income?
protecting property rights
protecting savers and investors
promoting economic well-being
maintaining competition
45
The Fed would ______ the growth of the money supply if it wanted to decrease economic activity.
accelerate
slow
maintain constant
46
An individual would _______ his/her human capital by becoming educated, certified, or licensed.
not change
increase
decrease
47
When investors "diversify" their investments, what happens to their risk level?
It stays the same.
It increases.
It decreases.
