Scarcity forces people to make decisions about how to most efficiently use resources because...

we have unlimited wants and needs, but limited resources

What is the primary role of money in the U.S. Economy?

medium of exchange for goods and services

Which is the correct relationship between risk and return?

higher the risk; higher the potential return

What is an argument for Protectionist trade policies?

need to guard domestic industries from foreign competition

What would cause a demand curve to shift from D to D1?

lower prices on peanut butter increase jelly sales.

Coopetonia is GROWING. What can we expect due to increasing population?

increase in the demand for homes

What does Aggregate Demand measure?

demand for goods at all price levels in the economy

Which of the following scenarios will NOT shift the Production Possibility Curve outward (to the right)?

Hurricanes disrupt oil production

Which statement best describes Fiscal policy?

Government's power to influence economy through taxing and spending

What is the difference between Quantity Demanded and Demand

QD is at one specific price; D is all possible prices

studbud

Economics Final Review F20

87 termsStudBud Administration1,213 plays

Imported from external platform

Flashcards87 cardsFPractice quizPHost liveL

Questions 87

Answers

1
Which of the following is NOT a role of money?
Store of Value
Medium of Exchange
Unit of Account
Value Supply
2
Comparative advantage is determined by whoever has the lowest
opportunity cost to produce
number of employees
production cost
wages
3
What incentive motivates businesses to produce and sell products?
they believe in their product
they want to make money
they think it is fun
they are bored
4
Scarcity forces people to make decisions about how to most efficiently use resources because...
we have unlimited wants and needs, but limited resources
School is hard, but life is even harder
Desire is great, but money is scarce
We only have so much time, so need to work efficiently
5
Which of the following would NOT cause a shift in demand?
consumer expectations
price of related goods
Change in technology
Consumer income
6
When government reduces its control over the market
redistribution
a miracle
regulation
deregulation
7
From Year 1 to Year 3 the Yen in comparison to the Euro
Appreciated
Depreciated
8
Which is not a factor of production?
foreign goods
land
entrepreneur
capital
9
If the country spends more than the tax revenue it brings in, that is a
trade surplus
trade deficit
budget deficit
budget surplus
10
The regulation of the money supply is known as
monetary policy
fiscal policy
11
What is the primary role of money in the U.S. Economy?
used to facilitate foreign trade
identifies prices at various markets
medium of exchange for goods and services
establish interest rates at various markets
12
When the price of a product falls...
Supply will increase
Demand will increase
Supply remains constant
Demand will decrease
13
What is true about the advantages based on the image below?
China absolute in both
US absolute in both
US=absolute wheat, China = absolute rice
US = absolute rice, China absolute wheat
14
The FED uses _____ to control the supply, availability, and cost of money.
Interest Rates
Discount Rate
Monetary Policy
Fiscal Policy
15
Which is the correct relationship between risk and return?
higher the risk; lower the potential return
lower the risk; higher the potential return
All answers are correct
higher the risk; higher the potential return
16
What moves through the Resource Market from Businesses to Households (#1)?
Goods and Services
Wages and Rents
Land, Labor, Capital
Subsidies and Welfare
17
Which of the following would NOT cause a direct shift in supply?
technology changes
population
government subsidies
number of suppliers
18
Price floors such as legal minimum wages cause
surplus
shortage
19
Federal income tax is ____, meaning higher earners are taxed more
regressive
fair/flat
proportional
progressive
20
According to this graph, what happens when the government sets a maximum price below equilibrium?
QD = QS: ineffective price floor
QD= QS; ineffective price ceiling
QD > QS; leads to Shortage
QD < QS; leads to Surplus
21
GDP stops rising at what point of the business cycle?
trough
expansion
contraction
peak
22
Which factor affects the amount of money borrowers must repay to lenders?
inflation rate
employment rate
currency exchange rate
annual percentage rate
23
Which phase of the business cycles. Decline unemployment, increasing prices, increased Aggregate Demand.
Peak
Trough
Contrationary
Expansionary
24
Which number demonstrates receiving resources to make good/services?
8
6
7
5
25
Requirements in order to be able to sell in another country are known as
trade embargos
trade standards
trade quotas
tariffs
26
Increasing or decreasing interest rates would be what type of policy?
fiscal
monetary
27
Which term refers to a person making regular payments to have a "relationship" with an insurance company?
claim
premium
policy
deductible
28
What is an argument for Protectionist trade policies?
restrictions harm consumers
looking to encourage fewer import restrictions
support decreasing tariffs
need to guard domestic industries from foreign competition
29
What would cause a demand curve to shift from D to D1?
Consumers’ income decreases.
lower prices on peanut butter increase jelly sales.
mom jeans are no longer trendy
Winter weather decreases demand for swimwear
30
Which is NOT one of the economic questions?
Where to produce
For Whom to produce
What to produce
How to produce
31
Which point shows an underutilization of resources?
B
X
A
C
32
Which of the following business organizations have limited liability?
partnership
sole properietorship
corporation
33
The lowest point of the business cycle is known as the
peak
contraction
expansion
trough
34
If locusts destroy the corn in Nebraska, what can we assume will happen to corn prices?
People will switch to a different vegetable
Prices will rise
Prices will stay the same
Prices will fall
35
What happens to Pe (price equilibrium) and Qe (quantity equilibrium) when the Demand Curve shifts from D to D1?
Pe stays the same; Qe increases
Pe decreases; Qe decreases
Pe increases; Qe increases
Pe increases; Qe decreases
36
Which of the following is NOT a skill to be successful in the workplace?
complete dependency
punctuality
self motivation
communication skills
37
Which would most likely happen to an economy during a recession?
business production increases
employment rate increases
consumer spending decreases
government regulations decrease
38
If the Government wants businesses and consumers to spend more money, it would MOST likely...
increase reserve requirement
decrease government spending
decrease tax rate
increase tax rate
39
Renting of a business building occurs in the
product market
factor market
40
Coopetonia is GROWING. What can we expect due to increasing population?
interest in producing exports
decrease in the demand for cars
decrease in the demand for movies
increase in the demand for homes
41
What does Aggregate Demand measure?
inflation rate for goods in the economy
the GDP
demand for goods at all price levels in the economy
demand for certain items in the economy
42
Which of the following demonstrates the PURCHASE of a haircut?
1, 3
5, 7
4, 2
8, 6
43
A tax that discourages people from doing something is called
proportional tax
excise tax
regressional tax
progressive tax
44
What moves through the Product Market from Businesses to Households (#3)?
Land, Labor, and Capital
Wages and rents
welfare and subsidies
Goods and Services
45
Which of the following scenarios will NOT shift the Production Possibility Curve outward (to the right)?
A factory invests in new technology
Hurricanes disrupt oil production
The workforce becomes more educated
A new source of gold is found in Georgia
46
Allowing people to concentrate on a single activity or area of expertise is known as
specialization
competition
concentration
regulation
47
Following the end of the Christmas holidays, many temporary employees are let go.
Structural
Frictional
Cyclical
Seasonal
48
Joe leaves his job and is searching for a new one.
discouraged worker
structurally unemployed
cyclically unemployed
frictional unemployment
49
Which statement best describes Fiscal policy?
Government's power to lower the discount rate
Government's power to influence economy through taxing and spending
Government's ability to manipulate interest rates to influence money supply
Government's ability to change money supply
50
What is the difference between Quantity Demanded and Demand
There is no difference between the two
QS is at one specific price; S is all possible prices
D is at one specific price; QD is all possible prices
QD is at one specific price; D is all possible prices
51
What monetary policy should be used in order to encourage economic growth?
increase taxes
decrease taxes
sell bonds
buy bonds
52
A college student looking for a job is included in which type of unemployment
seasonal
cyclical
frictional
structural
53
Which economic system allows the most freedom for producers?
mixed
traditional
market
command
54
Government giving payments to businesses to help offset the cost of production.
standard
tariff
embargo
subsidy
55
Which demonstrates an employee getting his/her paycheck?
8, 6
4, 2
1, 3
5, 7
56
Which of the following INCREASES productivity?
increase cost of oil
broken machine
motivated workforce
increase in taxes
57
The value of the best alternative that could have been chosen but was not is called
the wrong choice
scarcity
trade off
opportunity cost
58
Sum of goods & services produced within a country at a giventime at a particular price level.
Aggregate Demand
Demand
Supply
Aggregate Supply
59
If a price is higher than the equilibrium, this would cause
surplus
shortage
60
Which would NOT be measured in GDP?
selling goods abroad
getting a haircut
building of a new factory
a purchase from the salvation army
61
I want your apple. You want my cookies. We exchange goods. What are we participating in?
voluntary exchange
rational decision making
beneficial trading
profit motive
62
Trade surplus occurs when
exports are greater than imports
exports are less than imports
exports and imports are equal
one currency is stronger than another currency
63
If a country sends more goods than they receive from a foreign country that is a
trade deficit
budget surplus
trade surplus
budget deficit
64
The value of one nation's currency in terms of another
Tariff
Comparative Advantage
Standard
Exchange Rate
65
Which is the best example of a positive incentive for an employee?
being demoted
getting fired
relocating across the country
receiving a cash bonus
66
Which best explains Cost-Push Inflation?
Demand for goods/services exceed supply
Producers raise prices to meet increasing costs
Economy is operating as if it was at war
Too much money is in the economy
67
Which economic system is most influenced by the environment?
traditional
market
mixed
command
68
An employee not having the skills needed for the jobs available is what type of unemployment
structural
cyclical
seasonal
frictional
69
"The more you make, the more they take" tax
excise tax
proportional tax
progressive tax
regressional tax
70
Which statement best describes monetary policy?
FED's ability to increase spending
FED's authority to change tax rates
Reflects the FED's authority to change money supply
FED's influence in the economy through borrowing and deficit spending
71
An employee gets laid off as the country's GDP decreases, is part of what type of unemployment
seasonal
frictional
cyclical
structural
72
The prohibition of trade with a particular country is known as
trade quota
trade embargo
trade standards
tariff
73
2-3 firms making very similar products in 1 industry & controlling the majority of the input
monopolistic competition
monopology
oligopoly
perfect competition
74
Government spending increases is an example of
expansionary fiscal policy
contractionary monetary policy
contractionary fiscal policy
expansionary monetary policy
75
Making sure a country uses safe environmental practices in order to sell to your country is a
trade embargo
trade quota
tariff
trade standard
76
A country has an absolute advantage in the production of a product when...
They have the lowest opportunity cost of making it
They can make more of that product than another country
They submit a treaty to be the sole producer of the product
They have the best resources to produce the product
77
An oil embargo placed on the U.S. by major oil producing nations would likely result in
Increase in Price Level, Decrease in Real GDP
Increase in Price Level, Increase in Real GDP
Decrease in Price Level, Decrease in Real GDP
Decrease in Price Level, Increase in Real GDP
78
Which best describes the relationship between formal education and salary?
more education means more risk of unemployment
Going to school after high school is stupid
there is usually no relationship between income and education
a higher level of education usually results in a higher salary
79
From Year 1 to Year 2 the Yen in comparison to the Euro
Depreciated
Appreciated
80
An insurance deductible refers to
protecting the assets of individuals
amount paid to the insurance company for coverage
liability of protection
amount consumer has to pay before insurance pays their part
81
Which fiscal policy action should be done in order to combat inflation?
buy bonds
sell bonds
decrease taxes
increase taxes
82
When corporations sell stock to the public, those that purchase stock are considered....
part owners but are not responsible for debts
employees of the corporation
part owners in the company and make major decisions
part owners and responsible for all debts of the corporation
83
This market structure has many producers. The products are similar. Producers use differentiation and advertising.
Monopolistic Competition
Oligopoly
Perfect/Pure Competition
Monopoly
84
Paying employees to go back to school is an investment in which of the following?
physical capital
human capital
financial capital
85
Which of the following is an example of an entrepreneur?
UGA professor teaching a brand new course
Lumberjack driving a new company truck
Risk taker opening a new business
Fastest Cashier in the Store
86
Which situation would cause the shift of the supply from S1 to S2?
The government reduces subsidies to wheat farmers.
Firms exit the wheat industry.
New fertilizers increase wheat crop yields.
Drought reduces industry output by 25%.
87
GDP Headline: tax cuts to businesses give them incentives to invest in technology
business investment
government spending
net exports
consumer spending

Economics Final Review F20 Flashcards | StudBud