Economics EOC Review 1

Question 1

What is the formula for GDP?

Accepted Answer

C+I+G+Nx

Question 2

What is a good/service provided by the government and consumed by the public as a group?

Accepted Answer

Public Good

Question 3

A market situation in which the costs of production are cheapest when only one firm provides

Accepted Answer

Natural Monopoly

Question 4

Entrepreneurs are risky... what motivates them to do this?

Accepted Answer

Profit

Question 5

The value of a nation's currency in relation to a foreign country

Accepted Answer

Exchange Rate

Question 6

The portion of a corporations profits that are paid out to the company&#x27;s stockholders are...

Accepted Answer

Dividends

Question 7

Which action could Congress use to control inflation (contractionary)?

Accepted Answer

Increase Taxes, Decrease Gov&#x27;t Spending

Question 8

Tax system that taxes the rich at higher percentages than the poor.

Accepted Answer

Ability to Pay Principle, Progressive

Question 9

Many well-informed, independent buyers/sellers with no control of price of standardized good

Accepted Answer

Perfect Competition

Question 10

If the price of a large Dominos Pizza goes up by $3, what happens to the demand for Papa Johns?

Accepted Answer

Demand Curve shifts right

Question 11

The market structure in which only a few sellers produce a similar product

Accepted Answer

Oligopoly

Question 12

When corporations that are from different parts of the production process merge together...

Accepted Answer

vertical merger

Question 13

M1 is defined as...

Accepted Answer

Currency, Travelers' Checks, Checks/Debit Cards

Question 14

A general increase in prices in the economy

Accepted Answer

Inflation

Question 15

Which of the following is NOT a function of money?

Accepted Answer

Measure of Liquidity

Question 16

A graph used to illustrate the impact of scarcity on an economy or opportunity costs

Accepted Answer

Production Possibilities Curve

Question 17

When prices go down, suppliers will supply...

Accepted Answer

Less

Question 18

A market structure with only one seller that sells a product that has no substitute

Accepted Answer

Monopoly

Question 19

The hope of a return if a person behaves a certain way

Accepted Answer

Positive Incentives

Question 20

What is the type of unemployment that occurs due to it taking time to find a job?

Accepted Answer

Frictional

Question 21

When corporations that produce similar goods/services combine operations...

Accepted Answer

horizontal merger

Question 22

Shares of ownership in a corporation are called

Accepted Answer

Stocks

Question 23

Chemotherapy is an example of a(n) ....

Accepted Answer

Inelastic Good

Question 24

An economic system based on private ownership of the factors of production

Accepted Answer

Capitalism

Question 25

What type of unemployment occurs when a person's skills don't align with available jobs?

Accepted Answer

Structural

Question 26

The name of the graph that shows the equal distribution of income

Accepted Answer

Lorenz Curve

Question 27

The difference between the purchase price and selling price of a stock that results in profit

Accepted Answer

Capital Gain

Question 28

Tax system that taxes the rich at a lower rate than the poor.

Accepted Answer

Regressive

Question 29

A combination of traditional, market, and command economies (example- USA).

Accepted Answer

Mixed Economy

Question 30

Which business organization has the disadvantage of unlimited liability for its owner(s)?

Accepted Answer

General Partnerships, Sole Proprietorships

Question 31

Gov&#x27;t Spending that is required by law and cannot be changed.

Accepted Answer

Mandatory Spending

Question 32

Which type of unemployment is most affected by new technology? (think)

Accepted Answer

Structural

Question 33

A fee charged for goods brought into a country from another country

Accepted Answer

Tariff

Question 34

The sum of all the supply in an economy

Accepted Answer

Aggregate Supply

Question 35

A limit on the amount of a product than can be imported

Accepted Answer

Quotas

Question 36

A situation that exists when there are not enough resources to meet human wants...

Accepted Answer

Scarcity

Question 37

Which action could the Fed use to control inflation (tight policy)?

Accepted Answer

Sell Bonds, Increase RRR

Question 38

What is Adam Smith&#x27;s famous piece of work?

Accepted Answer

The Wealth of Nations

Question 39

Which economist believed government action could be used to stabilize & grow the economy?

Accepted Answer

John Maynard Keynes

Question 40

Who does inflation help?

Accepted Answer

Debtors

Question 41

As the price of a good/service decreases, quantity demanded increases. This is the...

Accepted Answer

Law of Demand

Question 42

The market structure that lacks one of the characteristics necessary for perfect competition

Accepted Answer

Imperfect Competition

Question 43

The monetary value of all final goods/services produced w/in a country&#x27;s borders in a given yr

Accepted Answer

Gross Domestic Product

Question 44

Cell phone service providers are an example of....

Accepted Answer

Oligopolies

Question 45

The ability of 1 trading nation to produce something at a lower opportunity cost than another

Accepted Answer

Comparative Advantage

Question 46

Ray Ban has to pay more for their lens. What happens to prices?

Accepted Answer

Equilibrium Price increases

Question 47

Which monetary policy action does the Fed use most often?

Accepted Answer

Open Market Operations

Question 48

What happens when the government mandates a price floor on wages?

Accepted Answer

Surplus of workers

Question 49

The point where market supply and market demand intersect is called ...

Accepted Answer

Market Equilibrium

Question 50

The process where unions and company mgmt meet to negotiate a new labor contract

Accepted Answer

Collective Bargaining

Question 51

M2 is defined as

Accepted Answer

M1 + Savings Accounts, Money Market Accounts, CD&#x27;s

Question 52

A situation in which the quantity demanded changes little as the price changes.

Accepted Answer

Inelastic Demand

Question 53

An economic system in which the gov&#x27;t makes all or most of the economic decisions

Accepted Answer

Command Economy

Question 54

What makes up the largest percentage of the federal budget?

Accepted Answer

Social Security/Medicare/Medicaid

Question 55

Chik-Fil-A buys new ovens/fryers that cook food faster, how does this affect price?

Accepted Answer

Equilibrium Price Decreases

Question 56

Land, Labor, Capital, & Entrepreneurship are

Accepted Answer

Factors of Production

Question 57

A market structure in which many sellers offer similar but not identical products to consumers.

Accepted Answer

Monopolistic Competition

Question 58

Which of following is NOT a mandatory expenditure?

Accepted Answer

National Defense, Education

Question 59

The restaurant market is an example of

Accepted Answer

Monopolistic Competition

Question 60

An economic system based on individual choice & voluntary exchange

Accepted Answer

Market Economy

Question 61

When corporations that produce unrelated goods/services join together...

Accepted Answer

conglomerate

Question 62

The ability of 1 trading nation to make a product more efficiently than another trading nation

Accepted Answer

Absolute Advantage

Question 63

What happens if the government mandates a price ceiling on cable service (i.e. Comcast)?

Accepted Answer

Shortage Occurs

Question 64

Whose job is to keep unemployment and inflation at bay using Monetary Policy?

Accepted Answer

The Federal Reserve

Economics EOC Review 1

Questions 76

Economics EOC Review 1

Questions 76