Spartans Master Economics-Final Exam Review

Question 1

What type of tax is the sales tax (8.75% in Erie County)?

Accepted Answer

Regressive Tax

Question 2

When a corporation first sells ownership, or STOCK in the company to raise financial capital

Accepted Answer

Initial Public Offering (IPO)

Question 3

What controls the monetary system AND serves as the banks' bank?

Accepted Answer

Federal Reserve

Question 4

What can the Federal Reserve do to protect against inflation?

Accepted Answer

raise interest rates

Question 5

Workers concentrate on a specific task to increase efficiency

Accepted Answer

specialization

Question 6

A professional who is licensed to purchase stocks and offer financial advice

Accepted Answer

Broker

Question 7

All of the following influence DEMAND EXCEPT

Accepted Answer

Government Regulations

Question 8

Which of the following taxes is based on Adam Smith's ABILITY-TO-PAY principle?

Accepted Answer

Progressive Tax

Question 9

Most common market structure that relies on non-price competition like advertising

Accepted Answer

Monopolistic Competition

Question 10

Economist who promoted government spending to stimulate the economy or "prime the pump"

Accepted Answer

J.M. Keynes

Question 11

Money that is based on a good like gold

Accepted Answer

Commodity Money

Question 12

What happens to the equilibrium price when there is a SURPLUS?

Accepted Answer

decreases

Question 13

Money that is issued by government decree

Accepted Answer

Fiat Money

Question 14

Adam Smith's idea that individuals pursuing self-interest benefits the overall society

Accepted Answer

invisible hand

Question 15

Stock market in which prices are generally RISING

Accepted Answer

Bull Market

Question 16

Term for LAND, LABOR, CAPITAL, ENTREPRENEURSHIP required to make a product

Accepted Answer

Factors of Production

Question 17

The price of iPhones skyrockets. What happens to the demand for Samsung?

Accepted Answer

Increases

Question 18

The fundamental economic problem

Accepted Answer

Scarcity

Question 19

Economic model illustrating opportunity costs and tradeoffs

Accepted Answer

Production Possibilities Frontier (PPF)

Question 20

What business organization provides limited liability for debt?

Accepted Answer

Corporation

Question 21

This is the financial cost of borrowing money

Accepted Answer

Interest

Question 22

Type of unemployment that results from DECREASED DEMAND for goods & services

Accepted Answer

Cyclical

Question 23

Predictable pattern showing as PRICE INCREASES customers purchase a LESSER quantity

Accepted Answer

Law of Demand

Question 24

This is the largest source of revenue for the federal government

Accepted Answer

Individual Income Tax

Question 25

Most common form of business organization

Accepted Answer

Sole Proprietorship

Question 26

An issue in market economies is...

Accepted Answer

Poverty

Question 27

What measures inflation?

Accepted Answer

Consumer Price Index

Question 28

Dollar value of all the goods and services produced within the United States

Accepted Answer

Gross Domestic Product

Question 29

What determines the market structure for a product/service?

Accepted Answer

Competition

Question 30

OPEC members are interdependently control production. What type of market structure is this?

Accepted Answer

Oligopoly

Question 31

What type of goods are peanut butter & jelly; steak & potatoes?

Accepted Answer

complementary

Question 32

Which of the following would influence SUPPLY?

Accepted Answer

natural disasters

Question 33

Who exerts the most influence through ownership in a corporation?

Accepted Answer

Shareholders

Question 34

Utilities like water and natural gas often become what type of market structure?

Accepted Answer

Monopoly

Question 35

According to the LAW OF SUPPLY, suppliers will produce more IF...

Accepted Answer

The price of the product increases

Question 36

All economic systems must answer the following question(s)

Accepted Answer

All of the above

Question 37

The study of how we use our limited resources to satisfy unlimited wants and needs

Accepted Answer

Economics

Question 38

What type of tax funds Medicare and Social Security?

Accepted Answer

FICA

Question 39

Economic system in which GOVERNMENT makes all the economic decisions

Accepted Answer

Command

Question 40

What type of tax is the federal income tax?

Accepted Answer

Progressive Tax

Spartans Master Economics-Final Exam Review

Questions 40

Spartans Master Economics-Final Exam Review

Questions 40