Lambert Economics Final Exam Review

On the assembly line, Bob puts tires on new cars. This is an example of

According to the "Law of Demand" an increase in prices will cause consumers to

Which of the following by the Federal Reserve would increase the money supply?

Increase in GDP, decrease in unemployment, increase in sales, and increase in inflation 

Rent control is a type of

When the Federal Reserve lowers the discount rate what happens to Aggregate Demand?

Why would the Federal Reserve adopt a tight monetary policy (restricting the money supply)?

Traditions and customs answer the three basic economic questions in this system

A person who forms a business in order to make a profit

Which business organization is the most difficult to organize?

A corporation MOST often seeks to increase its profit and expand the size of its operations by

What happens to price levels and Real GDP when the Aggregate Supply curves shifts to the right?

A tax in which everyone pays the same percentage in taxes regardless of income

What is the basic problem of Economics that all nations face?

Little to no economic growth and high inflation

A limit on the amount of imports 

The best example of a regressive tax in the United States are

The United States, Canada, and Mexico are members of what trade barrier?

Regressive taxes hurt which of the following groups?

A tax on imported goods

A recent college graduate that is looking for their first job is what type of unemployment?

A increase in the international value of foreign currencies will create

Supply and Demand; Private businesses answer the three basic economic questions in this system

General decrease in price levels

In which market structure are products identical?

Government payment to domestic producers 

Negative GDP growth for two consecutive quarters

A low standard of living and little to no technology are characteristics of this system

When quantity demanded equals quantity supplied 

Which of the following is the study of Macro-Economics?

Many law firms operate as what type of business organization?

An assembly line can increase a factory's productivity because it allows workers to

When a person's job skills do not match the economy's needs is what type of unemployment?

What is a disadvantage of a Sole Proprietorship?

In which market structure does a firm have greatest control over its product's price?

C+I+G+ F (X-M) is the formula for?

The Federal Reserve controlling the money supply

This policy refers to taxes and spending by the government to influence the economy

What is an advantage of a sole-proprietorship?

The three basic economics questions are answered by the government in this economic system

High Unemployment, Deflation, Decrease in GDP, and Decrease in Sales

Which of the following is NOT one of the basic economic questions?

Type of tax- the more income a person earns the higher percentage they pay in taxes. 

The progressive tax is based on the ability to pay and hurts high income earners

Definition of when a country imports more than it exports

Movement along the Production Possibilities Curve/Frontier illustrates

New mechanical devices and patents are an example of a 

The Federal Reserve System

Sales taxes which are taxes on food, clothing, gasoline is an example of which type of tax?

The value of the best alternative that could have been chosen but was not

The Federal Income Tax is an example of which type of tax?

Which of the following situations would shift the demand curve to the right?

Individuals and Businesses answer the three basic economics questions in this economic system

Tool used to measure inflation

Entrepreneurs are motivated in starting their own business by which of the following?

Part of the Business cycle-  A country is experiencing GDP growth and low unemployment

Competition, private property, consumer sovereignty are characteristics of which system

New Technology will

What is the unit of study in Micro-Economics?

The Taco Bell cashier accepts my payment of twenty dollars for my food. Function of money?

Which of the following are examples of a negative externality?

The best example of cyclical unemployment is

What happens to the nation's money supply when the Federal Reserve sells government bonds 

Specialization and the division of labor leads to an increase in productivity

An example of a price floor is