What does the law of demand say?

Consumers will buy more of something when prices decrease

Increase in average prices over time

Which of these are long-term impacts of having a good credit history?

It's easier to pay for major purchases like cars, houses, and education

During a recession, governments may:

Stimulate growth through spending

When you start a new job, you fill out a W-4 form to ____________.

Determine how much federal tax your employer should withhold from your pay

Loans to companies or governments

Why do nations trade with one another?

Due to uneven distribution of resources

Demand is based on consumer purchases, whereas supply is based on

Producers offering products for sale

FDIC insurance protects:

Up to $250,000 in bank accounts

What is GDP (Gross Domestic Product)?

The value of goods/services produced in a country over a period of time

What is the definition of a cosigner

Someone who will promise to pay a loan if the borrower doesn't

What action could help improve your credit history?

Always pay your credit card bill on time.

What does diversification mean?

Spreading investments to reduce risk

An example of supply chain disruption is:

A factory shutdown due to a pandemic

Built-in inflation happens when:

Wages increase and businesses raise prices

What is a market failure?

When resources are not efficiently allocated

In a market economy, prices are established by

The interaction of supply and demand

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Economics Final Exam

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Questions 40

Answers

1
What does the law of demand say?
None of these
Consumers will buy less of something when prices decrease
Consumers will buy more of something when prices go up
Consumers will buy more of something when prices decrease
2
What is inflation?
Increase in average prices over time
Government subsidies
Decrease in prices
Increase in wages only
3
What determines the price of a good or service?
Supply & Demand
None of these
Supply Only
Demand Only
4
Which of these are long-term impacts of having a good credit history?
It's easier to pay for major purchases like cars, houses, and education
It lets you buy the things you want like clothes or cell phones
Credit history does not determine your credit limit
It gives you freedom to shop around for the best deals on tech
5
During a recession, governments may:
Increase interest rates
Stimulate growth through spending
Raise taxes and cut spending
Decrease production
6
When you start a new job, you fill out a W-4 form to ____________.
Avoid paying income taxes on your paychecks.
File your tax return
Determine how much federal tax your employer should withhold from your pay
Determine how much your gross pay should be
7
What are bonds?
Government tax refunds
Shares in a startup
High-risk assets
Loans to companies or governments
8
Why do nations trade with one another?
Because all nations produce the same goods
To increase immigration
Due to uneven distribution of resources
To eliminate tariffs
9
One negative effect of a trade war is:
Reduced global trade
Free access to all markets
Lower prices for consumers
Increased exports
10
Demand is based on consumer purchases, whereas supply is based on
Producers offering products for sale
The ability to purchase
Offering a wide range of prices
The willingness to purchase
11
The price paid to use another;s money is called
Principal
Dividends
Stocks
Interest
12
What does inflation typically affect?
Election cycles
GDP only
Fixed Prices
Purchasing Power
13
When the quantity demanded equals the quantity supplied:
Government must intervene
Equilibrium
A surplus
A shortage
14
FDIC insurance protects:
All your personal belongings
Investments only
Up to $250,000 in bank accounts
Your mortgage payments
15
What is GDP (Gross Domestic Product)?
The % of people in a country who currently don't have jobs but are looking
the average change in prices of goods sold by a country's producers
The value of goods/services produced in a country over a period of time
An increase in prices of goods across markets in the economy
16
Who owns a corporation?
Its general partners
Its board of directors
Its stockholders
A single entity
17
What is the definition of a cosigner
Someone who will promise to pay a loan if the borrower doesn't
Someone who will pay the electric bills for a borrower
Someone who signs the loan documents
Someone who will pay a loan for a borrower
18
A fixed rate loan means:
Interest rate stays the same
Rates change often
No interest is charged
It’s only available to businesses
19
What action could help improve your credit history?
Always pay your credit card bill on time.
Leave credit card bills outstanding
Make major purchases that you can't afford
Only get a debit card and avoid credit cards
20
What is the median savings account balance for Americans under 35?
$1,000
$5,000
$6,500
$2,000
21
A risk-taker in search of profits is called a(n)
Entrepreneur
Conspicuous consumer
Capitalist
Economist
22
What is an example of a public good?
Video games
National defense
Cell phones
Fast food
23
What does diversification mean?
Investing in one stock
Avoiding all risk
Buying real estate only
Spreading investments to reduce risk
24
Which condition is in effect when the quantity supplied of the good is greater than the quantity demanded
Shortage
Equilibrium
Surplus
Deficit
25
What kind of tax does one pay when one makes a purchase?
Sales tax
Luxury tax
Capital gains tax
Property tax
26
An example of supply chain disruption is:
A lower interest rate
A new product release
A factory shutdown due to a pandemic
A tax increase
27
What is the term for the type of Income Tax scale the United States uses?
Proportional
Regressive
Flat Rate
Progressive
28
Which of the following is a tax on imported goods
Tariff
Gift Tax
Excise Tax
Estate Tax
29
When demand increases but supply is limited:
Prices fall
Prices rise
Prices stay the same
The product disappears
30
What is fiscal policy?
Printing more money
Government taxing and spending
Adjusting interest rates
Creating monopolies
31
Built-in inflation happens when:
Technology becomes cheaper
Taxes are lowered
Wages increase and businesses raise prices
Oil prices drop
32
What does compound interest do?
Earns interest on interest
Decreases your savings
Only applies to loans
Is simple and flat
33
Federal Insurance Contributions Act, or FICA, withholdings go to which two programs
Exercise & Occupational Health
Property Fixing & Social Medicine
Healing & Food Supplements
Social Security & Medicare
34
What is the fundamental problem of economics
Labor
The factors of production
Scarcity
Capital
35
The government adjusts taxes and spending to:
Influence fiscal policy
Help monopolies
Avoid paying debt
Eliminate consumers
36
What is a market failure?
When a business goes bankrupt
When resources are not efficiently allocated
When inflation is high
When unemployment is zero
37
What are real wages?
wages that always increase
Wages adjusted for inflation
Wages that ignore inflation
Wages that are only used in government jobs
38
In a market economy, prices are established by
Decree or rule of the government
Consumers and labor unions
Businesses who produce and sell the products
The interaction of supply and demand
39
A ___________________ is when an employer takes tax payments out of an employee's pay, before (s)he receives it?
Exemption
Theft
Withholding
Assistance
40
The study of the careful use of relatively scarce resources is a definition of
Economics
Factor markets
Production
Consumerism

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