stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Econ Final Exam Flashcards | StudBud
Explore
/
Econ Final Exam
Econ Final Exam
75 terms
·
StudBud Administration
·
1,006 plays
Units 1-8, 1-80
Flashcards
75 cards
F
Practice quiz
P
Host live
L
Questions
75
Answers
1
Economic development is important in countries because it
reduces poverty, increases social and political stability.
usually means a country produces more than it consumes.
reduces the GNP and population growth.
usually a zero population growth policy is established.
2
Which is a likely complement to a tablet computer?
movie tickets
pencils
apps
DVDs
3
What do Fed member banks do with customer deposits?
have a reserve requirement and loan a portion with interest.
use them to conduct monetary policy.
use a portion for interest rates and legal reserves.
use them to enforce wage-price controls.
4
The struggle among sellers with the best products and the lowest prices is known as
profit motive.
voluntary exchange.
competition.
property rights.
5
The Federal Reserve is the nation’s _____ bank.
first
central
oldest
only
6
The economic system of the United States is considered a
free market capitalist economy
traditional economy
socialist economy
command economy
7
Which of the following factors contribute to market failure?
opportunities
inadequate competition
better resources
adequate competition
8
Which of these is an example of a nonmarket transaction?
having a newspaper route
paying a consultant for ideas on how to imporve a product
owning a lawncare business
baby sitting as a favor to a friend
9
Keynesian economic policies are designed to lower unemployment by _____.
creating government jobs
reducing aggregate demand
stimulating aggregate supply
stimulating aggregate demand
10
law of demand
supply rises, demand rises
prices fall, demand increases-prices rise, demand falls
prices rise, prices fall
supply falls, demand rises
11
What are the characteristics of demand?
the ability and willingness to buy a product
the willingness and desire to buy a product
the desire and ability to buy a product
the desire, ability, and willingness to buy a product
12
macroeconomics
government regulation, goods, services
the study of how societies deal with scarcity.
individual, household, business/industry level.
refers to the whole economy.
13
Which of the following is a form of instability that reverses economic growth?
an increase in demand
deflation
recession
creeping inflation
14
As a young person, your credit score tends to be
impossible to improve
low
is the same as your parents' score
high
15
Two obstacles to a nation’s economic development are:
high literacy and external debt.
population growth and corruption.
disease and zero population growth.
war and foreign investment.
16
____________ protect consumers against harm from products on the market.
private property rigths
franchises
government regulations
profit motive
17
Which of the following terms describes a strong stock market?
bear market
spot market
bull market
futures market
18
Who issues tax exempt municipal bonds?
federal and state governments
local commerical banks
state and local governments
local credit unions
19
The equilibrium price is determined by ____.
supply
supply and demand
demand
producers
20
revenue
profit
total amount earned from sale of products
cost added by producing one additional unit
includes fixed and variable costs
21
Which of these statements most clearly indicates a way out of poverty?
increased technology in service jobs require fewer skills.
Taxes on high incomes are reduced more than lower incomes.
a program in which welfare recipients work for benefits.
college graduate earns twice that of a high school dropout.
22
Which of these would most likely negatively impact a country’s overall level of income?
increased tourist activity during the summer months
increased commercial activity during the holiday season
a decrease in demand for used automobiles
a decrease in demand for new automobiles
23
Which of these is always true of an “underground economy” transaction?
it is illegal
it is taxed
it is legal
it is unreported, untaxed
24
Which are associated with globalization?
multinationals only in industrial nations.
specialization and division of labor
multinationals only in free trade zones.
leads to interdependence only among industrial nations.
25
Three ways people can save money with little risk include _____.
insurance policy, stock and contributing to a pension fund
savings account, buying stock and CDs
insurance policy, contributing to a finance company, CDs
savings account, CDs, money market account
26
What is the main cause of a change in quantity demanded?
the income effect
change in revenue
substituion
change in price
27
What are the Fed’s three main tools for conducting monetary policy?
reserve requirement, openmarket operations, wage controls
easy and tight money policy, and the money supply
reserve requirement, monitoring money supply, discount rate
easy money policy, the discount rate, and money supply
28
Which of the following is an advantage of a 401(k) plan?
contributions are invested in high-return funds
You may withdraw funds at any time without penalty.
You never pay taxes on your contributions.
Most employers match your contributions to a certain amount.
29
After intergovernmental revenue, the largest source of revenue for local governments is
state spending
federal grants
property tax
income tax
30
A money market investment is based on _____.
the risk of the investment
high interest rate and amount of money loaned
higher balance and less withdrawals
which market the money is invested in
31
Which factor of production involves risk and combining resources to produce goods/services?
labor
entrepreneurs
land
capital
32
Why are intermediate products excluded from the GDP?
because the GDP market output is on a national level
because their value is included in that of the final product
because the GDP imarket output is on a local level
because those products are goods, not services
33
Which type of economy is most prevalent in the world today?
market
mixed
command
traditional
34
Consumers in a free enterprise economy ultimately determine ________ to produce
what
when
how
where
35
What will your “creditworthiness” be based on?
capital
all of the above
credit history
capacity
36
Which is an example of a public good?
bread
a car
the army
a rock band
37
For which of these would a consumer be the least likely to find a substitute?
DVD players
electricity
fruit drinks
postal delivery
38
What two investments are at opposite ends of the risk spectrum?
stocks and mutual funds
CDs and mutual funds
stocks and US Treasury Bills/Bonds
money market accounts and CDs
39
diversification
a group of financial assets
another term for stocks.
investment which loans money
combining a variety of assets to reduce risk
40
Which activity is illegal in a state with a right-to-work law?
joining a union
denying any qualified worker a job
requiring union membership as a condition of employment
requiring a higher hourly rate for overtime hours
41
Which of these is a part of discretionary fiscal policy?
Medicaid
deregulation
Social Security
tax cuts
42
collusion
monopoly
secret agreement of competing producers to fix prices
group of suppliers with high prices; no competition
illegal group of eliminating competition
43
Which is a feature of a socialist economy that distinguishes it from a command economy?
All economic decisions are made by the free market.
Some degree of private ownership and activity is allowed.
All economic decisions are based on custom and habit.
All production is managed by the government.
44
Which of the following is an advantage of a corporation?
Risk is limited to the amount invested.
Unlimited life.
All of the above statements are true
Limited liability to shareholders.
45
Societies are faced with which three basic questions about production of goods?
when, where, and for whom
what, how, and for whom
what, where, and when
what, how, and why
46
mixed market economy
no private ownership, no profit, no competition
some government regulation, and owns some property
relies on customs or history
pure competition
47
Which of the following is included in the unemployment rate?
underemployment
the jobless who made an effort to look for a job
people who hold only a part-time job
all of the above
48
Which of the following would a supporter of free trade most likely favor?
NAFTA
a revenue tariff
an embargo
the infant industries argument
49
A business’s net income is defined as
total expenses before sales.
total income after expenses.
total sales before expenses.
total dividends paid to investors.
50
Elementary schools, police departments, and electrical service are typically paid for by
local and state governments
the federal government
local governments
state governments
51
When a union negotiates pay and other job-related matters, this is called
going to strike
collective bargaining
accessing resources
cooperative bargaining
52
Which of the following statements best explains why workers began to form unions?
well-organized workers was more likely to maximize profits.
immigrant labor was more likely to raise standards.
unions were more likely to have training with newer ideas.
united workers were more likely to make changes
53
Evaluating costs and benefits of each choice to decide which meets your criteria is called
opportunities.
trade-offs.
resource frontiers.
priorities.
54
Which of these economic systems have the least in common?
command economy and capitalism
free-enterprise economy and market economy
command economy and socialism
market economy and capitalism
55
In American free enterprise capitalism, the profit motive can be best thought of as what?
a market
an incentive
an efficiency
a regulation
56
oligopoly
few sellers in nonprice competition
many selling similar products
opposite of pure competition
pure competition
57
Which of the following would not be considered part of a nation’s GDP?
a steering wheel in a new car
all of these
a new set of tires for an old car
a new house
58
Which of these statements describes a disadvantage of a traditional economy?
Difficult economic decisions are made by the state.
New ways of doing things are discouraged.
New ways of doing things are encouraged.
Everyone knows his or her role.
59
What is the main advantage of a mutual fund for an investor?
its price doesn't change much
it has a maturity date
it offers diversity in investments
it can be sold at a profit
60
Which of these best describes the influence of high prices on the behavior of producers?
They have no significant overall effect on producer.
They encourage producers to modify their supply schedules.
They are an incentive for producers to buy less.
They are an incentive for producers to produce more.
61
When two companies that produce the same kind of product merge, this is called a
conglomeration.
vertical merger.
multinational merger.
horizontal merger.
62
The Sherman Act, Clayton Act, and the Federal Trade Commission Act were all designed to
promote trusts
ensure competition
extend mortgages
create public goods
63
Which of the following descriptions best explains the meaning of opportunity cost?
the initial cost of starting a new business
the cost of business failure
the cost of choosing one alternative over another
the risk associated with producing a new item
64
Which of the following is the single largest mandatory federal expenditure
Medicare
national defense
social security
interest
65
Which of the following is true about inflation?
it is a decrease in the prices of goods and services.
Economists have agreed on the cause of inflation.
increase in the level of prices for goods/services
it has a tendency to make people change spending habits.
66
How does inflation affect the minimum wage?
It decreases the buying power of the wage.
It increases the buying power of the wage.
creates conversion of wages of current to constant dollars.
creates conversion of wages of constant to current dollars.
67
Economics is best defined as the study of how societies deal with
the paradox of wealth
the factors of production
the division of labor
the problem of scarcity
68
Exchange rates among the currencies of the world change _____.
rarely
constantly
annually
slowly
69
Which of the following can cost you money in large interest payments?
a credit card
a savings account
a checking account
a debit card
70
Which of these is the most likely to create a shortage of an item?
a price floor
a fixed price
a market price
a price ceiling
71
Which product most likely has a demand that is inelastic?
a vacation
a vital medicine
a meal at a restaurant
green beans
72
The Federal Deposit Insurance Corporation (FDIC) was created to ____.
prevent working people from being exploited by employers
help people provide for their own retirement
regulate companies that were soliciting funds from investors
provide bank insurance for depositors
73
Which of these do economists use to illustrate combinations of output?
a division of labor
a production possibilities curve
a factor of production
a cost-benefit analysis
74
Which term is associated with the cost of shipping for a producer?
marginal cost
fixed cost
total cost
variable cost
75
Equilibrium is reached when what occurs?
quantity supplied equals quantity demanded
there is no change in the quantity supplied
price increases
prices are inelastic
