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Economics Final Flashcards | StudBud
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Economics Final
Economics Final
57 terms
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Do you remember anything we taught you in January or February? Hope so!
Flashcards
57 cards
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Practice quiz
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Questions
57
Answers
1
Scarcity and shortages are pretty much the same thing
True
False
2
How long do the chairman and governors of the Fed serve?
For 14 years
For 6 years
For life
Until the President replaces them.
3
Why would the insurance industry be considered an oligopoly?
There are no barriers to entry
All companies must charge exactly the same prices
There's absolutely no competition
Just a few big companies dominate the market
4
What does it mean when the Fed engages in "open market operations"?
They buy or sell bonds, to change the money supply
They increase spending, to stimulate demand
They raise taxes, to balance the budget
They hire people to work on infrastructure projects
5
Suppose the country of Trashcanistan has a PPC that looks like this. What's happening at Point D?
They are underutilizing their resources
They cannot reach that level of production with the resources they have.
They are efficiently making both capital and consumer goods
6
Who explained the workings of the free market in "The Wealth of Nations" in 1776?
Thomas Hobbes
Alexander Pope
Adam Smith
John Locke
7
What type of legislation, common in Southern states, says that an employee can't be required to join a labor union?
Right to Work Laws
"Blue" Laws
Jim Crow Laws
Sovereignity Laws
8
Copyrights and Patents are granted to protect:
Marginal revenue
Physical capital
"Infant industries"
Intellectual property
9
Who owns the McDonald's Corporation?
The chairman of the board
All the people who bought McDonald's stock
The widow of founder Ray Kroc
Ronald McDonald
10
When the supply of milk goes down, what will probably happen?
The demand for milk will go up
The price of milk will go down
The price of milk will go up
11
When you buy a bond from a corporation...
You become a co-owner of the corporation
You are lending them money for 30 years, and getting interest
12
The janitor at a restaurant represents which of the factors of production?
Land
Physical Capital
Human Capital
Labor
13
A plumber would be an example of:
An unskilled worker
A contingent worker
A blue collar worker
A discouraged worker
14
Which economist was a monetarist who thought the government's only role is to keep a stable money supply?
Booth Tarkington
Milton Friedman
Arthur Miller
John Stuart Mill
15
Peanut butter and jelly are complements. So, if the price of jelly rises...
People will buy more peanut butter
People will buy less peanut butter
16
What does the Bible say were the names of the 3 Wise Men?
The Bible never names them, or even says there were 3 of them.
Alvin, Simon and Theodore
Athos, Porthos and Aramis
Abraham, Isaac and Jacob
17
According to the Law of Supply, what happens to the supply of oil if the price of oil falls?
Supply ought to go down
Supply should stay about the same
Supply should go up
It depends on many other factors
18
In free markets, what happens to a potato farmer who can't afford to sell for the equilibrium price?
He hires more workers
He raises his prices
He produces more potatoes
He goes out of business
19
What usually happens when a government uses expansionary fiscal and monetary policy?
Inflation will get better, but unemployment will get worse
Both inflation and unemployment will get better
Unemployment will get better, but inflation will get worse
Both unemployment and inflation will get worse
20
Which is an example of "commodity money"?
A credit card
A coin that is made out of gold
Paper money that a government promises has value
A paper bill that can be exchanged for silver
21
Henry Ford didn't know his cars were going to cause acid rain or global warming, but they did. This is an example of:
A "black swan"
A negative externality
Indirect causation
The domino effect
22
What was the name of the Grinch's dog?
Snowy
Daisy
Max
Otto
23
The Purpose of the SEC (Securities Exchange Commission) is to:
Collect taxes
Build and maintain infrastructure
Regulate the stock market
Increase or decrease the money supply
24
The US Army and the Austin Police Department are part of the public sector.
False
True
25
If the state government forces you to sell your house so they can build a highway, we call that:
A property warrant
Eminent domain
Habeas corpus
Planned obsolescence
26
Which of these goods or services would be considered "Commodities"?
Tattoos and haircuts
Coal and carrots
Pizza and cheeseburgers
Shampoos and toothpastes
27
Some people pay more for a good at a convenient location or a store with great service. Location and service are:
Non price determinants
Externalities
Economies of scale
"Free riders"
28
What names are usually given to the Three Wise Men?
Alvin, Simon and Theodore
Caspar, Melchior and Balthazar
Groucho, Harpo and Chico
Moe, Larry and Curly
29
Which of these is an example of underemployment?
Pedro is an undocumented worker getting less than the legal minimum wage
Sophia has a college degree, but is works part-time as a cashier at Lowe's
The toy factory laid off Fred because business has been bad
30
What would happen if scientists developed a new strain of peaches that were more resistant to insects and disease?
The demand curve would shift up
The supply curve would shift left
The supply curve would shift right
The demand curve would shift down
31
The ice cream business is "monopolistic competition," which means:
Only a few companies dominate the industry
Many firms sell a product that's is a little different from the others'.
One company controls the industry
Every firm sells identical products
32
One benefit of investing in municipal bonds is:
The interest they pay you is tax-free
They pay very high interest
33
If demand for candy is very elastic, what should happen if the price goes up?
Demand goes way, way down
Demand stays the same
Demand goes up
34
What is the definition of a junk bond?
A bond that gives interest you don't have to pay taxes on
A bond with a AAA rating
A risky bond that offers very high interest
A safe bond that pays very low interest
35
Which makes up M1 in the United States?
All money invested in the stock market
All the money the government spends
All money that banks have loaned out
All cash in circulation plus all money in checking accounts
36
A "liquid" asset is an investment that:
Pays very high interest
Is extremely risky
Can easily be converted into cash
Loses money
37
To an investor, what is a "portfolio"?
A publication giving him information on companies he may buy stock in
The taxes he must pay on capital gains
All the profit he has made from his investments
All the stocks he owns
38
When the economy has both high unemployment and high inflation, we call that:
Stagflation
Disequilibrium
An economic paradox
39
Which is an example of predatory pricing?
A landlord charges high rents that poor people can't afford
Marriott drops its prices so low that smaller hotels go out of business
40
Which of these shows the Law of Substitution at work?
Kids eat at P. Terry's when Chick Fil-A prices get too high
People buy more houses when mortgage rates are low
People buy SUVs when price of gasoline falls
Coffee gets expensive, so people buy less cream & sugar
41
If a demand curve is very steep, then demand must be:
Proportionate
Inelastic
Conditional
Derived
42
What kind of loan do people take out to buy real estate?
A mortgage loan
A consolidation loan
A secured loan
A foreclosed loan
43
What is a dividend?
Interest paid on municipal bonds
A fee that you pay to join a cooperative
A special tax that businesses pay
A share of profits that businesses give to stock holders
44
What was the name of young Ebenezer Scrooge's boss?
Micawber
Pip
Old Fezziwig
Uriah Heep
45
Is government spending and taxation a matter of microeconomics or macroeconomics?
Micro, because it concerns individual households
Macro, because it affects the overall national economy
46
What liquor and spice are usually added to egg nog?
Irish Whiskey and ginger
Rum and nutmeg
Tequila and cinnamnon
Cognac and tarragon
47
How would a free market system handle a shortage of eggs?
Egg prices rise; only people willing to pay will get them.
The government keeps egg prices low, so everyone can afford them
Government puts a tax on eggs
The government would ration eggs, so everyone gets some
48
The rent that a restaurant pays every month is a:
Fixed cost
Variable cost
Marginal cost
Competitive cost
49
Which of these is NOT part of the business cycle?
Contraction
Inflation
Peak
Trough
50
Obstacles that keep women from reaching high executive positions:
A glass ceiling
An invisible wall
The gender gap
An iron curtain
51
The Panic of 1907 led to the creation of
The Gold Standard
Greenbacks
The Federal Reserve Bank (The Fed)
The Internal Revenue Service
52
If all the major banks secretly agree to charge the same high rates on car loans, that would be:
Price discrimination
Diminishing marginal returns
Collusion
Keynesian economics
53
What is "the discount rate"?
A special low interest rate banks pay when they borrow from the Fed
The highest income tax rate that rich people must pay in the USA
The natural rate of unemployment, about 5%
The interest rate homeowners pay on their mortgages
54
Farmer Bob's tractor and harvester represent which of the factors of production?
Land
Human Capital
labor
Physical Capital
55
A monopoly can charge much higher prices than a business facing competition.
False
True
56
What is the definition of opportunity cost?
The price you pay for goods you purchase
The money you save when you don't make a purchase
The best option you give up, when you make a choice
The price a business pays for raw materials
57
If you searched for a job for a year, but couldn't find one, and have given up looking, are you considered unemployed?
No. In fact, you're not even part of the labor force
No, you're considered underemployed
Yes, of course
