What would happen to the price of clothes if there was a quota and tariff on imported clothes?

It would increase because clothes are more scarce

Economic Security is...

the promise to always have a job and paycheck

Economic Growth is...

producing more g/s increasing the economy

What is a traditional economy?

An economy where customs and traditions make all decisions

What is comparative advantage?

When a country can make g/s at the lowest opportunity cost, When a country specializes in making a few g/s and trades

When the supply curve shifts left, what happens to price and quantity?

Price goes up, quantity goes down

The Law of Demand states...

When price goes down, demand goes up, When price goes up, demand goes down

What is a dynamic government?

A government that changes over time

When the demand curve shifts left, what happens to price and quantity?

Both price and quantity decrease

What happened in the Brown v. Board of Education Case?

Brown won and segregation officially ended

The price of water bottles rose in the water bottle market. How does this affect demand?

No Determinant, Quantity Demanded Decreases

Economic Equity is...

ensuring everyone gets the same things

To ease the transition from command to market, the government should do what?

Make clear property rights, lower taxes, & increase tech, Know that the transition will be hard and take it slow, Let inefficient businesses fail & support competition, Give citizens more responsibility & reduce foreign aid

what is the goal of a price floor?

maintain a minimum profit for sellers

When should the Federal Reserve sell bonds (OMOs) and raise interest rates?

When the inflation rate is too high

When the supply curve shifts right, what happens to price and quantity?

Price goes down, quantity goes up

Why should a country specialize in making g/s?

Because it's cheaper, Because it reduce the use of a countries resources, Because a nation would have more choice in g/s to buy

The $ of cruises is expected to rise in the future. What happens to the supply of cruises NOW?

Expectation of Future Price Changes, Decrease

The price of cell phones goes up in the cell phone market. What happens to supply?

No determinant, quantity supplied increases

What is a mixed economy?

A combination of two economic systems

Government passes a law reducing taxes on businesses. What happens to the supply of g/s?

Government Interventions: Taxes, Increase

What are the three economic goals that represent a market economy?

Growth, Efficiency, and Freedom

Economic Stability is...

relatively low prices that do not fluctuate

When QS = QD, When the supply line intersects with the demand line

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Economics - Final Exam Review

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Final Exam Review for #Economics

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Questions 100

Answers

1
Which sentence describes market conditions at equilibrium/market clearing price?
demand is greater than supply
there is no supply or demand
supply is greater than demand
supply and demand are equal
2
What would happen to the price of clothes if there was a quota and tariff on imported clothes?
It would decrease because there is a surplus of clothes
It would stay the same
It would increase because clothes are more scarce
3
To ensure fair prices and reasonable supplies, governments will implement ____.
none of the options
indirect taxes
price floors/ceilings
subsidies
4
T in TIRES stands for...
Tastes and Fads
Tastes and Preferences
Technology
5
You work for Gerber. A recession hits and you lost your job. You just experienced...
cyclical unemployment
seasonal unemployment
frictional unemployment
Structural unemployment
6
S in TIRES stands for?
# of Sellers in the Market
Size of Population
Size of Households
Size of Consumers
7
I in TIRES stand for...
Income of Consumers
Income of Businesses
Interest
International Events/Natural Disasters
8
Economic Security is...
making as many g/s with as little resources as possible
ensuring everyone gets the same things
the promise to always have a job and paycheck
relatively low prices that do not fluctuate
9
Economic Growth is...
ensuring everyone gets the same things
producing more g/s increasing the economy
making as many g/s with as little resources as possible
the ability to acquire any job you want
10
Which of the following will be least likely to occur in a contraction?
GDP Decrease
Unemployment Increase
Inflation Increase
11
What is a traditional economy?
An economy where the government makes all decisions
An economy where customs and traditions make all decisions
A combination of two economic systems
An economy where individuals make all decisions
12
T in TIGERS stands for?
Technology
Taste and Preferences
Technical
Taste and Fads
13
What is comparative advantage?
When a country creates trade restrictions on other countries
When a country can make g/s at the lowest opportunity cost
When a country specializes in making a few g/s and trades
When a country can make everything by themselves
14
What is the Federal Reserve Bank trying to do when they use expansionary monetary policy?
increase the money supply
decrease spending
decrease the money supply
Increase taxes
15
Buyers/Consumers determine _________.
Equilibrium
Demand
Supply
Circular Flow
16
When the supply curve shifts left, what happens to price and quantity?
Both price and quantity goes up
Price goes up, quantity goes down
Price goes down, quantity goes up
Both price and quantity goes down
17
If sellers set prices below equilibrium, there will be a what?
Surplus
Shortage
18
If there is a shortage, what must businesses do to reach equilibrium?
Keep Prices the Same
Lower Prices
Raise Prices
19
which of the following is an example of contractionary fiscal policy?
cutting taxes
raising interest rates
raising the reserve rate
decreasing government spending
20
The Law of Demand states...
When price goes down, demand goes down
When price goes up, demand goes up
When price goes down, demand goes up
When price goes up, demand goes down
21
Economists look at a country's GDP to measure a country's...
Imports and Exports
Inflation Rate
Economic Health
Unemployment Rate
22
what is the potential drawback of a price floor?
few people will be able to afford goods
no one will be able to make profits
Shortages
Surpluses
23
What is a dynamic government?
A government that changes over time
A government with a unitary structure
A government with a federal structure
A government that stays static over time
24
The price of tomatoes goes up. What happens to the supply of pizza?
Related Goods: Compliments, Decrease
Resource Costs, Increase
Resource Costs, Decrease
Expectations of Future Price Changes, Decrease
25
When the demand curve shifts left, what happens to price and quantity?
Both price and quantity decrease
Both price and quantity increase
Price goes down, quantity goes up
Price goes up, quantity goes down
26
The Soviet Union, Cuba, and China are examples of which economic system?
Command
Mixed
Traditional
Market
27
Which term is the best indicator of how much value the nation has produced in a given year?
Housing Starts
Employment
GDP
Inflation
28
In Macroeconomics, what do we call the lowest point of the Business Cycle?
an inflation
a trough
a depression
the peak
29
What happened in the Brown v. Board of Education Case?
Brown lost which led to the beginning of segretation
Brown won and sat on the white car on the train
Brown won and segregation officially ended
Brown lost and his daughter attended the same school
30
Which of the following is most likely to be affected negatively by high inflation?
An individual that just got a raise
Individuals on a fixed income
A doctor with a suburban practice
Individuals that saw an increase in minimum wage
31
In most cases, more market economies transition to a command economy then the other way around
False
True
32
The price of water bottles rose in the water bottle market. How does this affect demand?
Income of Consumers, Decreases
Tastes and Preferences, Decreases
No Determinant, Quantity Demanded Decreases
Size of Population, Decreases
33
Economic Equity is...
The promise to always have a job and paycheck
Relatively low prices that do not fluctuate
making as many g/s with as little resources as possible
ensuring everyone gets the same things
34
To ease the transition from command to market, the government should do what?
Make clear property rights, lower taxes, & increase tech
Know that the transition will be hard and take it slow
Let inefficient businesses fail & support competition
Give citizens more responsibility & reduce foreign aid
35
Sellers/Suppliers/Producers determine ________
Equilibrium
Supply
Circular Flow
Demand
36
what is the goal of a price floor?
encourage competition in the market
limit how much consumers have to pay for good or service
reach market equilibrium more efficiently
maintain a minimum profit for sellers
37
As the price of heating oil rises, apartment rental rates rise. This is an example of...
Demand Pull Inflation
Classical Economics
Hyperinflation
Cost Push Inflation
38
When should the Federal Reserve sell bonds (OMOs) and raise interest rates?
In a depression
In a recession
When aggregate supply is too high
When the inflation rate is too high
39
what grows when the federal reserve decreases interest rates?
inflation
taxes
federal budget deficit
unemployment
40
Transitioning from one economy to another is very easy
True
False
41
When the supply curve shifts right, what happens to price and quantity?
Both price and quantity decrease
Price goes up, quantity goes down
Price goes down, quantity goes up
Both price and quantity increase
42
Why should a country specialize in making g/s?
Because it's cheaper
Because it reduce the use of a countries resources
Because a nation would have more choice in g/s to buy
Because the country is lazy
43
The $ of cruises is expected to rise in the future. What happens to the supply of cruises NOW?
# of sellers in the market, increase
Expectation of Future Price Changes, Decrease
Expectations of Future Price Changes, Increase
# of sellers in the market, decrease
44
S in TIGERS stands for?
Size of Population
# of Consumers in the Market
# of Businesses in the Market
# of Sellers in the Market
45
When g/s cannot be bought legally, what is created?
Surplus of g/s
Black Market/Illicit Trade
Negative externalities
Shortage of g/s
46
The price of cell phones goes up in the cell phone market. What happens to supply?
No determinant, quantity supplied increases
No determinant, quantity supplied decreases
Technology, increases
Technology, decreases
47
What is a mixed economy?
An economy where the government makes all decisions.
An economy where individuals makes all decisions
An economy where customs and traditions make all decisions
A combination of two economic systems
48
Government passes a law reducing taxes on businesses. What happens to the supply of g/s?
Government Interventions: Subsidies, Increase
Government Interventions: Taxes, Decrease
Government Interventions: Taxes, Increase
49
What are the three economic goals that represent a market economy?
Security, Stability, and Equity
Growth, Efficiency, and Freedom
Growth, Stability, and Freedom
Growth, Equity, and Freedom
50
Economic Stability is...
making as many g/s with as little resources as possible
the promise to always have a job and paycheck
ensuring everyone gets the same thing
relatively low prices that do not fluctuate
51
Equilibrium is...
the amount of a g/s that sellers are willing & able to sell.
the amount of a g/s that pple are willing & able to purchase
When QS = QD
When the supply line intersects with the demand line
52
Do trade restrictions help or hurt domestic businesses?
It helps domestic businesses
It hurts domestic businesses
53
What is a command economy?
A economy where customs and traditions make all decisions
A economy where the government makes all decisions
A combination of two economic systems
A economy where individuals make all decisions
54
When the demand curve shifts right, what happens to price and quantity?
Price and quantity both go down
Price goes up, quantity goes down
Price and quantity both go up
Price goes down, quantity goes up
55
The United States is an example of which economic system?
Traditional
Market
Mixed
Command
56
If there is a surplus, what must businesses do to reach equilibrium?
Keep Prices the Same
Lower Prices
Raise Prices
57
Which tool could the government try if America was trying to get the economy to expand?
cut government spending
cut production of consumer goods
cut taxes
cut prices of consumer goods
58
The supply line is always...
downwards sloping to the right
upwards sloping to the left
downwards sloping to the left
upwards sloping to the right
59
G in TIGERS stands for...
Government Intervention
Government Intervention: Taxes and Subsidies
Government Intervention: Taxes
Government Intervention: Subsidies
60
What are the three economic goals that represent a command economy?
Growth, Freedom, and Efficiency
Security, Growth, and Stability
Efficiency, Freedom, and Security
Equity, Security, and Stability
61
If interest rates are lowered, the Fed is trying to encourage what phase of the business cycle?
Trough
Expansion
Contraction
Peak
62
If you work on a golf course in Maine or Vermont you many experience what type of unemployment?
Frictional
Cyclical
Seasonal
Structural
63
Where is power in a federal structure of government?
Member states
Shared between federal government and member states
Central government
No government
64
Economic Freedom is...
the ability to acquire any job you want
ensuring everyone gets the same things
making as many g/s with as little resources as possible
producing more g/s increasing the economy
65
Henry Ford invents the moving assembly line. How did this affect the supply of cars?
Tastes and Preferences, Increase
Technology, Decreases
# of sellers in the market, increases
Technology, Increase
66
Which scenario best illustrates the problem of cyclical unemployment?
A college graduate who turns down one job and takes another
A landscaper who can’t find a job in the winter
A factory worker whose skills are no longer marketable
A sales rep who was laid off during an economic downturn
67
The price of Hershey’s Chocolate Bars went up! How does this affect the demand for Milky Ways?
Related Goods: Substitutes, Increase
Related Goods: Compliments, Decrease
Related Goods: Substitutes, Decrease
Related Goods: Compliments, Increase
68
What rate of unemployment is seen as natural in the USA?
50%
0%
10%
3-5%
69
Purple hair is no longer in style. How does this affect the demand for purple hair dye?
Tastes and Preferences, Decrease
Tastes and Preferences, Increase
Size of Population, Increase
Related Goods: Compliments, Decrease
70
I in TIGERS stands for...
International Events/Natural Disasters
Income of Businesses
Income of Consumers
International Scenarios/Natural Disasters
71
10 new grocery stores open up in Newark, DE. What happens to the supply of food items?
# of Sellers, Increase
Size of population, increase
Size of population, decrease
# of Sellers, Decrease
72
What is a market economy?
A economy where the government makes all decisions
A economy where customs and traditions make all decisions
A economy where individuals make all decisions
A combination of two economic systems
73
E in TIRES and TIGERS stands for?
Expectation of Past Price Changes
Expectation of Future Price Changes
Expectation of Tastes and Preferences
Expectation of Current Price Changes
74
What does Judicial Review allow the Supreme Court to do?
Allows the judges to change laws whenever they want
Interpret the Constitution and decide what it means
Stop the other branches from going against the Constitution
Gives Supreme Court ultimate power
75
In the future, the $ of iPhone 7's will go down. How does this affect demand for iPhone 7 now?
Expectation of Future Price Changes, Increase
Tastes and Prefrences, Decrease
Income of Consumers, Decrease
Expectation of Future Price Changes, Decrease
76
Which branch of government ensures laws are Constitutional?
Executive
Judicial
Legislative
77
Gov. gives Ford $500,000 to produce electric cars, what happens to the supply of electric cars?
Government Interventions: Taxes, Increase
Government Interventions: Taxes, Decrease
Government Interventions: Subsidies, Decrease
Government Interventions: Subsidies, Increase
78
World War 3 breaks out, what happens to supply of g/s in general?
International Event/Natural Disasters, Increase
# of sellers in the market, increase
Tastes and Preferences, decrease
International Event/Natural Disasters, Decrease
79
Does free trade help or hurt domestic businesses?
It helps domestic businesses
It hurts domestic businesses
80
What is the purpose of trade agreements like WTO and NAFTA?
To reduce trade barriers
To increase trade barriers
To create trade wars
To free trade with countries
81
Which of the following is not a tool the Federal Reserve uses?
Open Market Operations (bonds)
Interest Rates
Taxes
82
what is the goal of a price ceiling?
limit how much consumers have to pay for a good or service
maintain a minimum profit for sellers
encourage competition in the market
reach market equilibrium more efficiently
83
which of the following is considered a negative side effect of the minimum wage?
failure to meet production
full employment
increased interest rate
increased unemployment
84
The demand line is always...
downwards sloping to the right
downwards sloping to the left
upwards sloping to the right
upwards sloping to the left
85
Which political party believes in a larger central gov and weaker state govs
Republican
Democratic
86
To control an inflationary economy, the Fed lowers the money supply by:
Decreasing spending
Increasing Interest Rates
Decreasing Interest Rates
Increasing Taxes
87
If your job was replaced by a new form of technology you are...
Frictionally unemployed
structurally unemployed
seasonally unemployed
cyclically unemployed
88
R in TIRES stands for...
Related Goods: Taxes and Subsidies
Resource Costs
Related Goods: Substitutes and Complements
89
When a nation allows trade, what happens to standard of living for that country?
It increases
It decreases
90
what is the potential drawback of a price ceiling?
Surpluses
Shortages
no one will be able to make any profits
few people will be able to afford goods
91
The Law of Supply states...
When price goes up, supply goes down
When price goes down, supply goes up
When price goes up, supply goes up
When price goes down, supply goes down
92
Which of the following is an example of expansionary monetary policy?
raise interest rates
decrease government spending
raise taxes
lower interest rates
93
How did the originators of the Constitution feel about the use of political parties?
They would be harmful for our country
They would be great for our country
94
Which political party believes in a smaller central gov and stronger state govs
Republican
Democratic
95
The price of paper clips went up. How does this affect the demand for paper?
Related Goods (Compliments), Increase
Related Goods (Compliments), Decrease
Related Goods (Substitutes), Decrease
Related Goods (Compliments), Increase
96
R in TIGERS stands for?
Related Goods: Substitutes and Complements
Related Goods: Substitutes
Resource Costs
Related Goods: Complements
97
Economic Efficiency is...
producing more g/s increasing the economy
making as many g/s with as little resources as possible
the ability to acquire any job you want
ensuring everyone gets the same things
98
The flu has killed a number of elderly people. How does this affect demand for g/s?
International Event/Natural Disaster, Decrease
Size of population, decrease
International Event/Natural Disaster, Increase
Size of population, increase
99
If sellers set prices above equilibrium, there will be a what?
Shortage
Surplus
100
UD increases pay for all of its full-time employees. How might this affect demand?
Income of Consumers, Decrease
Income of Consumers, Increase
No Determinant, Increase
Tastes and Preferences, Increase

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