What does "guns and butter" mean?

Govts must make military or consumer goods

Which of these best describes a supply curve?

It always rises from left to right

Milk is considered a commodity because it is which of the following?

the same no matter who sells it

What does elasticity of demand measure?

how buyers react to a change in price

What causes a shift in the demand curve?

a change in an area other than price

What does a supply schedule show?

supply for a good at many prices

What is the difference between a shortage and scarcity?

a shortage can be temporary, scarcity always exists

What is a means-tested program?

one that depends on age-related criteria for benefits

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CP Economics Final Review

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Review for economics final

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Questions 25

Answers

1
A Production Possibilities curve shows the relationship between the production of
two types of farm goods
farm goods and factory goods
two types of factory goods
any two categories of goods
2
The coins and paper bills used as money in society
medium of exchange
currency
unit of account
store of value
3
What does "guns and butter" mean?
People choose between guns and food
Govts can buy unlimited goods
Companies must make guns or butter
Govts must make military or consumer goods
4
What is the largest sector of today's labor force?
agricultural
construction
manufacturing
service
5
Which of these best describes a supply curve?
It falls if supply increases
It always rises from left to right
It is always horizontal
It always falls from left to right
6
Anything used to determine value
medium of exchange
currency
unit of acount
commodity money
7
How does an increase in population affect the demand curve?
nothing happens
a point on the curve moves down
the entire curve shifts left
the entire curve shifts right
8
Milk is considered a commodity because it is which of the following?
an inexpensive product
an agricultural product
bought in many different ways
the same no matter who sells it
9
Example of perfect competition?
farmers' market
oil and gas cartel
computer monopoly
public school system
10
Why is demand for milk inelastic?
it is considered a necessity
it is considered a luxury
buying milk is expensive
there are many substitutes
11
What does elasticity of demand measure?
the amount of time consumers need to make a decision
a decrease in price
how buyers react to a change in price
an increase in the quantity available
12
Which of the following goods has inelastic demand?
medicine
soda
candy bars
steak
13
Which of the following are factors of production?
economics and accounting
labor and shortage
land and capital
technology and productivity
14
What causes a shift in the demand curve?
an increase in price
a change in an area other than price
a decrease in price
a change in quantity
15
What gives the U.S. government the right to collect taxes?
custom
U.S. Constitution
an Act passed by Congress
state laws in all states
16
What does a supply schedule show?
change in costs of labor
quantity supplied at one price
factors that could influence supply
supply for a good at many prices
17
A tax in which the percentage paid decreases as income increases
proportional
regressive
flat tax
progressive
18
A good that is producing the maximum amount of goods and services is considered
underutilized
trading off
efficient
growing
19
Business that makes a sells a product or service
mixed economy
firm
laissez-faire
household
20
Which of the following are two characteristics of a good tax?
efficiency and complexity
simplicity and equity
certainty and inelasticity
equity and elasticity
21
What is the difference between a shortage and scarcity?
a shortage is the result of high prices
a shortage can be temporary, scarcity always exists
there is no real difference
shortage concerns many items, scarcity one
22
What is a means-tested program?
one with no federal entitlements
one for which the recipient must have contributed
one that depends on age-related criteria for benefits
23
How is profit determined?
total revenue minus total cost
marginal revenue minus marginal cost
marginal revenue plus marginal cost
Total revenue plus total cost
24
Which biz has the advantage of economies of scale?
locally owned restaurant
independent drug store
automobile assembly plant
local auto repair shop
25
income, property, good, or service that is subject to tax
proportional tax
tax base
incidence of a tax
tax revenue

CP Economics Final Review Flashcards | StudBud