What is a Price Floor?

Minimum price set by the government

Opportunity cost measures

alternative that has to be given up to produce smthing

Points inside the production possibilities curve...

represent unused or misused resources.

How does supply and demand determine equilibrium price and quantity

price makes quantity demanded equal to quantity supplied

What is comparative advantage?

To make a product most efficiently

The Expansionary Policy of the Fiscal Policy

increases government spending and reduced taxes

What are mutual funds?

An investment that takes money from multiple investors

What is opportunity cost?

The basic relationship between scarcity and choice

A society that is producing on its production possibilities curve...

is fully utilizing all of its productive resources.

What are externalities?

Business effects on its wider environment

What is a price ceiling?

A maximum legal price that can be charged for a product

What is monetary policy?

actions the Fed uses to influence inflation & real GDP

Amount of a product that someone is willing and able to pay

is a way of describing a series of peaks & troughs in GDP

What can high inflation lead to?

higher nominal interest rates for borrowers, Loss in purchase power, lower real interest rates for savers

Contractionary Policy of the Fiscal Policy

decreases government spending and increased taxes

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Economics Final Exam Review

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Questions 26

Answers

1
What is a Price Floor?
Minimum price set by the government
the price in which everyone chooses
the price producers choose
a maximum price set by the government
2
Opportunity cost measures
environmental cost
a person's only option
alternative that has to be given up to produce smthing
giving up multiple items
3
Points inside the production possibilities curve...
are unattainable.
represent unused or misused resources.
result in more rapid growth.
are attainable with full use of resources.
4
What is a determinant of supply?
Government intervention
Taste/Preference
Expectations
Price of related good
5
A shift in the entire demand curve is a...
Elasticity of supply
Change in Demand
Change in quantity demanded
Change in supply
6
According to the law of supply, as prices fall
Quantity demanded by consumers falls
Quantity supplied falls
Quantity supplied does not respond
Quantity supplied rises
7
Any point outside the production possibilities curve...
attainable only if prices fall.
is unattainable.
represents unused resources.
is attainable only if prices rise.
8
How does supply and demand determine equilibrium price and quantity
The price doesn't determine equilibrium
price makes quantity demanded equal to quantity supplied
The price is unrelated to the good in question
The price makes the quantity demanded impossible to reach
9
What is comparative advantage?
To make a product most efficiently
Who uses the most resources has the biggest advantage
To compare two goods and decide which is better
To make the most of a certain prooduct
10
Negative externalities are
Costs imposed on market participants
Benefits imposed on market participants
Costs imposed on third parties
Benefits imposed on third parties
11
What part of the business cycle is this?
Contraction
Trough
Expansion
Peak
12
The Expansionary Policy of the Fiscal Policy
increased government spending and increased taxes
decreased government spending and decreased taxes
decreased government spending and increased taxes
increases government spending and reduced taxes
13
Shortages are a common change caused by demand and supply.
False
True
14
What are mutual funds?
Close-ended fund
An investment that takes money from multiple investors
An agreement on a fund
Opposite from a stock
15
What is opportunity cost?
Total cost
The basic relationship between scarcity and choice
Trade-offs
How much money is needed to start a business
16
What Factor of Production does gold fall under?
enterprise
labor
land
capital
17
A society that is producing on its production possibilities curve...
is not utilizing all of its resources.
is fully utilizing all of its productive resources.
is not being technologically efficient.
is producing too much output.
18
What are externalities?
Impacts within the company
Business effects on its wider environment
The workers outside the company
The materials taken from the environment
19
A price floor causes a ...
surplus
nothing
shortage
headache
20
Comparative advantage...
has more sales
lowers sales
lowers opportunity costs
has more production
21
What is a price ceiling?
A maximum legal price in order to maintain agreement
A maximum legal price that can be charged for a product
A minimum legal price in order to maintain agreement
A minimum legal price that can be charged for a product
22
What is monetary policy?
the amount of money the federal government spends
the amount of money the Federal Reserve prints
the decision to have federal or state banks
actions the Fed uses to influence inflation & real GDP
23
What is Demand?
The amount of resources supplied
Amount of a product that someone is willing and able to pay
An order
A problem of society
24
A business cycle:
is a way of describing a series of peaks & troughs in GDP
is how we investigate commerce
refers to sponsored events
helps solve the economic problem
25
What can high inflation lead to?
higher nominal interest rates for borrowers
Loss in purchase power, lower real interest rates for savers
Increase in tariffs and government destabilzation
increased purchasing power, and lowered domestic competition
26
Contractionary Policy of the Fiscal Policy
decreases government spending and increased taxes
increases government spending and reduces taxes
increases government spending and increased taxes
decreases government spending and decreases taxes

Economics Final Exam Review Flashcards | StudBud