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Crazy Story's Economics....the Queen or King of the World Flashcards | StudBud
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Crazy Story's Economics....the Queen or King of the World
Crazy Story's Economics....the Queen or King of the World
49 terms
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StudBud Administration
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218 plays
#econwithStory#seniors#endofschoolyear#yikes
Flashcards
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Questions
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Answers
1
What is conspicuous consumption?
consuming goods and services to survive
factor markets
trade-off for something cheaper
buying something to impress others
2
FICA inclues taxes to pay for
workmans comp
Social Security and Medicare
life insurance
unemployment insurance
3
The basic decision for a supplier is
the amount to supply for sale at various prices
how much to produce without regard to supply or demand
the ability of consumers to purchase
the willingness of consumers to purchase
4
What is it called when you buy something now and pay for it later?
rebate
credit
budget
garnishment
5
What is the most promising strategy for success that an investor can follow?
Invest in penny stocks
Invest consistently over long periods of time
Concentrate on options rather than equities
Look for complex investment strategies
6
Money serves which of the following purposes or functions
All of the above
medium of exchange
store of value
standard of measure of value
7
The Dow-Jones average is
is based on the performance of 30 representative stocks
involves only the bond market
advertises good stock investments
is based on the performance of all stocks
8
Economics is best defined as?
A scientific study of supply and demand
What people spend money on.
How to satisfy unlimited wants with scarce resources
limited description of economic activities
9
In a market economy the decision of what to produce is often determined by?
corporate leadership
consumer demands
Labor unions
Regulatory guidelines
10
The price paid to use another's money
interest
stocks
principal
dividends
11
Money serves the following functions in our society.
store of value
All of the above
medium of exchange
standard of measure of value
12
The most common form of business in the U.S. is
cooperative
sole proprietorship
corporation
partnership
13
National defense is the responsibility of the
Federal Government
States
United Nations
National Guard
14
Who determines the products that a free enterprise economy produces
consumers
congress
Property owners
partnerships
15
High rates of taxation on business often will
slow economic growth
increase savings
decrease investment
stall production
16
Which one is considered a fixed cost
insurance
salary
cost of raw materials
rent or mortgage
17
The three major federal taxes are
individual income, VAT and luxury taxes
individual income, FICA, corporate income tax
luxury, user fees, value added taxes
gas, food, property
18
Basic requirement for survival is a
building block
need
opportunity cost
want
19
To make a profit, a bank must
buy up home mortgages in the area
pay depositors more interest than is charged on loans
charge more for the loans it makes than it pays on deposits
have less deposits than loans
20
The concept of laisses-faire means
let the buyer beware
the consumer is ruler
keep government out of the affairs of business
let the government become involved.
21
A price compromise between a buyer and seller is known as a(n)
adjustment price
target price
deficiency payment
equilibrium price
22
The FDIC was established to
federalize the banking system
create a banking monopoly
establish a basis for savings
protect the savings of the American people
23
Price competition is a characteristic of a
command economy
market economy
traditional economy
corporate economy
24
All banks are required to
make all savings available for loans
be holding companies
maintain reserve requirements
report every loan to the Federal Reserve
25
In order to establish a credit history a consumer must?
use credit over a period of time to show payment activity
apply for credit history at a local bank
let your bills go delinquent
attend courses in the history of credit
26
Local governments provide such public goods as
highways and national defense
highways and private schooling
private schools and shopping malls
police and fire protection
27
What is the most desirable alternative given up as a result of a decision?
marginal benefit
thinking on the margin
under utilization
opportunity cost
28
Which form of credit would most likely cost you the highest interest(AR)
Loan from family
Home mortgage
Car loan
Credit card
29
What does lowering interest rates do to the housing market?
raises the cost of borrowing
decreases auto sales
increases consumer borrowing
discourages home building
30
If the increase in the price of skis causes a decrease in demand for ski boots
demand for cameras is inelastic
The two goods are complements
the marginal utility for additional cameras is increasing
the two goods are substitutes
31
Land, Labor, capital and entrepreneurship are
Basics of survival
Factors of productions
results of production
Factors of the economy
32
One advantage enjoyed by a corporation is
limited liability
limited life
limited taxes
ease of obtaining a license
33
A great variety of goods and services is called a
traditional economy
command economy
controlled economy
market economy
34
Store catalogs and television commercials are methods of
income
entertainment
consumer needs
creating demand
35
The supply curve is a mirror image of
the law of supply
elasticities
production estimates
demand curve
36
The prime rate refers to the
median interest rate on mortgages
interest rate that banks charge large corporations
average interest rate charged by all banks
lowest interest rate paid to savings depositors
37
Banks are required to......
report every loan to the government
maintain reserve requirements
make all saving available for loans
be holding companies
38
The Securities and Exchange Commission regulates the
sole proprieterships
sale of corporate stock to the public
Better Business Bureau
Corporation
39
commercial and savings banks are forms of???
corporation
The Federal Reserve System
financial institutions
credit unions
40
At a given price, a surplus occurs when
the quantity supplied is less than the quality demanded
the quantity demanded is more than the quanity supplied
the quantity supplied is greater than the quantity demanded.
the quantity demanded is the same as the quantity supplied
41
Demand is measured not only by consumer desire for a product, but also by..
ability and willingness to buy the product
opportunity costs
demand for similar products
competition for the consumer
42
One of the most important ways local governments raise revenue is through
driver's license fees
property taxes
Social Security contributions
college tuitions
43
The Law of Demand states that
the relative change in price is caused by changes in supply
consumers select alternative ways of spending income
demand for economic product varies inversely with its price
relationship in changing prices is a direct one.
44
The role of the labor union in neotiating contracts with management is known as
collective bargaining
limited motivation
corporate negotiation
benefit functionality
45
Choices in a command economy are made by
private businesses
government controls it all
competition
every Joe on the street
46
During periods of inflation, people living on a fixed income have........
unlimited resources
declining purchasing power
no financial problems
no voice in the government
47
In a market economy, a high price is a signal for
producers to offer less and consumers to buy more
producers to supply more and consumers to buy less
government to step in and protect consumers
producers and consumers to buy more.
48
Which of the following is the basic reason for countries to engage in trade?
benefit to government
Individual benefit from exchange
mutual benefit from exchange
benefit to neither trading partner
49
prices serve as a link between producers and
production estimates
supply elasticities
natural resorces
consumers
