stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Economics Final Exam Review Flashcards | StudBud
Explore
/
Economics Final Exam Review
Economics Final Exam Review
68 terms
·
StudBud Administration
·
584 plays
Imported from external platform
Flashcards
68 cards
F
Practice quiz
P
Host live
L
Questions
68
Answers
1
What is the consumer price index used for?
track changes in the level of wholesale prices in the economy
monitor changes in the cost of living
track changes in the stock market
monitor changes in the level of real GDP
2
Which graph shows an increase in price for suppliers?
Graph B
Graph C
Graph D
Graph A
3
Unemployment that occurs when there's a mismatch between skills people have learned and skills the job market requires
Cyclical
Structural
Natural
Frictional
4
Economics is BEST defined as the study of how:
Capitalism has survived in today's world
Various societies have dealt with unemployment and inflation
Modern businesses have grown and prospered.
Choices are made due to the scarcity of resources
5
The interest rate that the Fed charges banks to borrow money from them is known as:
Discount rate
Reserve requirement ratio
Equilibrium price
Annual Percentage Rate
6
All of the following are barriers to entry except:
Some states require liquor stores to open up after a certain time
Water companies must lay miles of pipe before serving any customers
In order to become a teacher, one must get a degree & become certified
A person wanting to start a business is responsible for all start-up costs
7
The ideas & motivation a person has to produce something that people want to buy describes which factor of production?
Labor
Capital
Land
Entrepreneurship
8
A type of fiscal policy that includes a reduction in taxes and/or increased government spending:
Contractionary
Expansionary
9
Which of the following motivates entrepreneurs to take risks?
A low unemployment rate
The potential to make a profit
A good credit score
A steady increase in GDP
10
What is the most important factor a bank will consider when deciding to give someone a loan?
Occupation
Credit score
Age
Gender
11
What form would you use to determine if you need to pay additional income taxes to the IRS or if you're getting a refund
I-9 form
1040 form
Gross pay form
W-4 form
12
What is the opportunity cost for this person of moving from point a to point b?
$5 of income per week
$10 of income per week
$10 per hour of studying per week
$20 of income per week
13
Which one of the individuals below would be considered unemployed?
A person who stayed home to raise children but now starts looking for a job
A person who quits work to care for aging parents
A person who works 2 part-time jobs, but wants full-time
A person who is qualified to teach but is driving a bus instead
14
An office building is an example of:
Entrepreneurship
Labor
Land
Capital
15
What is a benefit that
corporations
have that other business structures do not have?
The do not have to share control of the business with other individuals
They have 100% of the liability/risk if the business fails
They obtain loans from banks.
They can sell stock of the company to the general public
16
The point at which both quantity demanded and quantity supplied are equal on a graph is known as:
Supply
Demand
Quantity
Equilibrium
17
Which of the following would be an example of complementary goods?
Hot dogs, hot dog buns
Bar soap, body wash
DVDs, VHS tapes
Flashlights, candles
18
When choosing a credit card, you should consider all of the following EXCEPT:
Annual Percentage Rate
Penalties and fees
Credit limit
If you can put a design on the card
19
If the Federal Reserve wants to INCREASE the money supply, it can do all of the following EXCEPT:
Sell government bonds
Purchase government bonds
Reduce the discount rate
Reduce the reserve requirement
20
When the price of a product is lower, people will demand/buy more of it. This describes:
The Law of Demand
Equilibrium
Gross Domestic Product
The Law of Supply
21
The physical effort of people to produce goods and services describes which factor of production?
Land
Labor
Capital
Entrepreneurship
22
Which of the following is an example of human capital?
the equipment used by a dentist to fix teeth
the machinery used to build cars
the salary paid to a plant supervisor
the knowledge a mechanic has about fixing cars
23
Which of the following is NOT a way in which fiscal policies would reduce inflation?
An increase in taxes
An increase in government spending
A reduction in government spending
A mixture of raising taxes and reducing government spending
24
The fact that people have unlimited wants but limited resources is known as:
Scarcity
Opportunity Cost
Surplus
Incentives
25
According to marginal analysis, rational choices and decision-making involves:
taking action if marginal benefit is GREATER than or EQUAL TO marginal cost
taking action if marginal cost is GREATER than marginal benefit
taking action only if the decision involves needs - not wants
taking action if marginal benefit is slightly LESS than the marginal cost
26
Freedom of choice and competition are commonly found in which type of economic system?
Market
Command
Socialist
Traditional
27
What is the out-of-pocket minimum that you are required to pay before insurance will cover any costs?
Collateral
Liability
Deductible
Premium
28
According to the graph, how many cookies will Grace buy if the price is $1.00 per cookie?
3
5
2
4
29
Which of the following market structures includes
many
businesses that sell the
same
products?
Monopolistic competition
Oligopoly
Monopoly
Perfect competition
30
The graph below shows:
An increase in supply
No change in both supply and demand
An increase in demand
An increase in both supply and demand
31
In this business structure, the owner has full control, keeps 100% of profits, but also has 100% of the liability/risk:
Partnership
Corporation
Sole Proprietorship
Limited Liability Corporation
32
When the government uses taxes and spending to address economic problems, it is practicing:
free enterprise
monetary policy
trickle-down economics
fiscal policy
33
The way in which an economy answers the three economic questions determines its:
Economic System
Market Structure
Fiscal Policy
Production Possibilities
34
Someone buys a car for a large amount of money. They have completed an exchange in this part of the circular flow model:
Firms/Businesses
Factor Market
Product Market
Households/individuals
35
What is the opportunity cost of increasing the production of dolls from 200 to 300?
150 fire trucks
100 fire trucks
350 fire trucks
200 fire trucks
36
What is the purpose of a production possibilities curve?
Encourage worker productivity
Show opportunity costs associated with allocating resources b/w 2 goods
Enable a country to mobilize its resources in times of war
Make it possible to increase an economy's input resources
37
The efficient use of resources is represented by point(s):
Point E
Points A, B, and C
There are no points that represent an efficient use of resources.
Point D
38
A type of unemployment that occurs when there is a downturn in the economy:
Structural
Natural
Frictional
Cyclical
39
When the Federal Reserve makes decisions about the control of the money supply their decisions are referred to as:
Investment policy
Fiscal policy
Market policy
Monetary policy
40
Which of the following is NOT a problem caused by monopolies?
Fewer new products
More competition
Poor customer service
Low quality
41
Which of the following is NOT an indicator rused by economists to measure the overall health of the economy?
Consumer Price Index
The PPF
Gross Domestic Product
Unemployment Rate
42
Which of the following lists the three basic economic questions that must be answered?
When to produce, How to produce, For whom to produce
What to produce, How to produce, For whom to produce
What to produce, How to produce, Why to produce
What to produce, When to produce, For whom to produce
43
The next best use of time, money, and/or resources is called:
equilibrium price
A rational decision
opportunity cost
production possibility
44
If you are only making the minimum payment on a loan or credit card balance each month, which of the following is TRUE?
Your credit line is restored to its original amount
You are blocked from opening new lines of credit
You are charged interest on the remaining balance
45
The opportunity cost of this economy moving from point E to point A is:
4 shin guards
8 shin guards
5 shin guards
3 shin guards
46
Which of the following market structures is made up of
one firm
that dominates the market and supplies all the output?
Oligopoly
Monopoly
Perfect competition
Monopolistic competition
47
In which market structure is the consumer going to get the lowest price?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
48
Which of the following people would be considered an entrepreneur?
Bob got a job working as a cashier at Burger King
Jerome cut the grass and his mother gave him $10
Dora opened a plant nursery that specialized in small trees and bushes
Tommy volunteered at a soup kitchen
49
The decrease in the price of hotdogs results in a decrease in the demand for hamburgers. These two products are:
Substitute goods
Intermediate goods
Complementary goods
Final goods
50
In which market would you receive a paycheck from working at Chic-fil-A?
Product Market
Factor Market
51
Which of the following is NOT a tool that the Federal Reserve can use to change the supply of money?
Discount rate
Taxation rate
Open-market operations
Reserve requirement ratio
52
If your credit score is _________, your interest rate will be __________.
high , low
Credit scores to not impact interest rates
high , high
low , low
53
The economic system in which the government owns and controls the factors of production:
Traditional
Market
Mixed
Command
54
Which of the 4 courses of action would a
rational
consumer choose?
Action B
Action C
Action A
Action D
55
The amount that is being taken out of your paycheck in taxes/deductions is known as:
Net Pay
Withholdings
Gross Pay
Premiums
56
Increased investment in technology within a country would most likely cause:
The PPC to shift outward
The PPC to shift inward
Movement along the curve
No change
57
The graph below shows:
a decrease in both supply and demand
A decrease in supply
no change in both supply and demand
A decrease in demand
58
What is the Federal Reserve?
The nation's economic advisors
The nation's budget committee
The nation's central banking system
The nation's primary producer of coins
59
A type of unemployment that occurs when an individual voluntarily leaves one job to find another job:
Natural
Structural
Frictional
Cyclical
60
Which of the following examples would be included in the calculation for Gross Domestic Product?
Social Security payment to a retired military officer
The purchase of a home built 10 years ago
The purchase of new Nike Jordans as a Christmas gift
Contributions to a charity organization
61
Which of the following insurance coverages is required by law?
Auto Insurance
Homeowner’s/Renter’s Insurance
Health Insurance
Life insurance
62
Trade-offs exist and choices must be made because:
society has only a limited amount of productive resources
buyers and sellers must often negotiate prices
not all production is efficient
human wants and needs are limited at a particular point in time
63
This headline is an example of which economic role of government?
Stabilizing the economy
Correcting for externalities
Protecting property rights
Maintaining competition in the market
64
A PRICE CEILING is a government imposed:
A price ceiling is not government imposed
Minimum amount that can be charged for an item
Regulation on safety standards
Maximum amount that can be legally charged for an item
65
What conclusion can you draw by looking at the graph below?
People with college degrees get fewer job offers
People who work at "high stress" jobs earn more than those with normal jobs
People with college degrees earn more than people with only a HS diploma
There is no discernable connection between education level and income
66
Congress passes a new law taxing car producers due to the pollutants their plants create - which role of govt is this?
Maintaining competition in the market
Protecting property rights
Stabilizing the economy
Correcting for externalities
67
If country XYZ produces 6 million blankets, how many shirts can it efficiently produce?
6
8
2
12
68
A PRICE FLOOR typically leads to:
Surplus
Production Possibilities
Shortage
Equilibrium
