Why is it important to maintain economic growth?

it allows us to enjoy a higher standard of living

Adam Smith said that the invisible hand

motivates/directs people to act in their own self interest

left, liberal, supported by working class people

Which one of these was not a cause of the stock market crash?

the lack of investment in the economy

to the right, conservative and are supported by business

Scarcity exists because

there is not enough goods/services to satisfy needs/wants

Robert Lucas said we need to

balance the budget (rational expectations)

Keynesian Economics supported...

spending to create demand in the economy

We need people to be employed because

without jobs there would be no production or consumption

The need to make choices arises because

everything that exists is limited

Making poor choices now may lead to...

consequences that lie in the future

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The American Economy Since WWI

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Questions 38

Answers

1
Which economist said gov't intervention necessary during the Great Depression?
Adam Smith
Milton Friedman
Robert Lucas
John Maynard Keynes
2
Who were the 3 economic presidents?
Bush Sr., Carter, Hoover
Bush Jr., Carter, Hoover
Bush, Clinton, Hoover
Nixon, Eisenhower, Hoover
3
Why is it important to maintain economic growth?
it allows us to enjoy a higher standard of living
it fulfills our microeconomic goals
makes goods and services cheaper
allows different countries to participate in free trade
4
People gain when they trade things...
voluntarily
when others tell them to do so
only with other countries
by force
5
Adam Smith said that the invisible hand
motivates/directs people to act in their own self interest
pushes people to want to share with others
it wasn't Adam Smith, it was Keynes
makes people lazy and not want to work
6
This president had an affair with his intern, Monica Lewinsky
Bill Clinton
Jimmy Carter
Richard Nixon
Donald Trump
7
Who developed the Classical Theory in Economics?
Adam Smith
John Maynard Keynes
Robert Lucas
Milton Friedman
8
The Democrats are...
in the middle, moderate, love all classes
left, liberal, supported by big business
left, liberal, supported by working class people
right, conservative, supported by working class people
9
Which one of these was not a cause of the stock market crash?
the lack of investment in the economy
buying stocks on the margin (borrowing $$)
no government regulation
high interest rates
10
People's choices involve costs.
True
Never
I think not
False
11
Republicans are...
moderate, in the middle, are supported by workers
to the right, liberal and support business
to the right, conservative and are supported by business
to the left, conservative and support workers
12
Scarcity exists because
natural disasters destroy goods and property
stores can't keep up with consumer demand
there is not enough goods/services to satisfy needs/wants
factories just can't produce enough
13
In a capitalist system, most property is
private property
owned by the banks
collectively owned by the people
owed by the government
14
No or minimal government interference in the economy is known as
laissez-faire
lopsided economics
Adam Smith economics
money supply economics
15
The second best alternative is called...
secondary cost
opportunity cost
not my first choice
alternative cost
16
Normal inflation is
3-4%
5-6%
4-5%
2-3%
17
Economics is a social science that deals with unlimited wants/limited resources/making choices
False
True
18
Robert Lucas said we need to
spend more than we take in (revenue)
let the economy run itself
balance the budget (rational expectations)
take in more than we spend
19
Adam Smith is called the "Father of Classical Economics."
True
maybe
nope, it's modern economics
False
20
Normal economic growth is
5-6%
3-4%
2-3%
1-2%
21
What rate of unemployment is acceptable?
7% or less
3-4%
5% or less
6% or less
22
Keynesian Economics supported...
supply will create its own demand
spending to create demand in the economy
keeping a surplus solves the problems of the economy
saving is the key to creating supply in the economy
23
An __________ is a reward and people respond to them in predictable ways.
incentive
natural resource
award
opportunity
24
Monetarists believe that you control the economy by controlling the money supply.
True
False
Not really
Sometimes
25
Who was the president in the 70's and was advised by Friedman?
Herbert Hoover
Jimmy Carter
Lyndon Johnson
George H.W. Bush
26
We need people to be employed because
they are lazy and wasting time
nobody wants to pay their taxes
without jobs there would be no production or consumption
people make choices/weigh costs and benefits of working
27
Herbert Hoover was president during the
World War II
Great Depression
Roaring 20s
World War I
28
The need to make choices arises because
there are unlimited supplies of everything
we must pay 50% in taxes to support non workers
everything that exists is limited
we have more than enough for everyone
29
What is the basic problem of economics?
some countries have surplus others shortage
the lack of choice in the market
scarcity
we all have too many resources
30
FDR created what plan?
The New Era
The New Structure
The New Economy
The New Deal
31
The Great Depression finally ended with our entry into
World War II
The Cold War
The American Revolution
World War I
32
If I weren't here, I'd be at the beach. The beach is my...
opportunity cost
incentive
marginal cost
consequence
33
Supply Side Economics means you are on whose side?
the government
consumers
foreign countries
producers
34
Making poor choices now may lead to...
E2020 with me 8th period
consequences that lie in the future
incentives or rewards being received
benefits that lie in the future
35
Increasing prices is called
inflation
changing prices
stable prices
deflation
36
What are the 3 R's?
relief, recovery, reform
recycle, reform, reduce
reexamine, reiterate, replicate
reduce, reuse, reform
37
The Watergate Scandal caused ________'s resignation from office.
Richard Nixon
Bill Clinton
Dwight Eisenhower
JFK
38
Under FDR the SEC (Security Exchange Commission) was created.
False
Absolutely not
True
It's possible

The American Economy Since WWI Flashcards | StudBud