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Economics
Economics
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1
What is the purpose of the CPI?
A market basket of goods.
Whether costs are increasing for production.
A bundle of products a typical family would need.
Whether costs are increasing for a market basket .
2
Which economist believed that government spending would improve a country's economy.
Friedrich Hayek
Ludwig von Mises
Milton Friedman
John Maynard Keynes
3
What is the
best
description of 'elasticity'?
When a change in price doesn't effect demand
When a change in price has no effect on the supply.
When there is no change in price
When a change in price affects supply or demand
4
What is the BEST defintiion for 'monetary policy'?
When Congress creates new regulations for safety.
When the US Treasury prints more money.
When the tax rates are increased.
When government spending is reduced.
5
What does the term "specialization" mean?
Bottom Up Law
Division of Labor
Common Law
Misalocation of Resources
6
What is called when you do one thing instead of something else?
Opportunity cost
Incentive
Trade-off
Variable cost
7
What is the BEST description of 'fiscal policy'?
When the government sells bonds to raise money.
When Congress passes a bill.
When the federal government increases the tax rate.
When The Fed adjusts interest rates.
8
Which word means "total amount of goods or service available for purchase"?
Price
Demand
Quantity
Supply
9
What is economics?
The study of Common law.
The study of price and quantity.
The study of national income.
The study of the allocation of scarce resources.
10
Which term means, "the consumer's willingness and ability to purchase a good at a given price"?
Price
Demand
Supply
Quantity
11
"The trade-off made for the next best use of that resource" is called?
Comparative Advantage
Top Down Law
Specialization
Entail
12
What is the effect of complements on supply and demand?
When the price increases a complement's supply decreases
When the price increases a complement's demand decreases
When the price increases a complement's demand increases
When the price increases a complement's supply decreases
13
Which economic system allows the State to own all property and means of production?
Socialism
Free Market
Communism
Capitalism
14
What is the
best
explanation of the Law of Demand?
As the demand increases the supply increases
As the supply decreases the demand increases
As the price decreases, the demand decreases
As the price increases, the demand decreases
15
Which is NOT a characteristic of Monopolistic Competition?
Low barriers to entry
Product differentiation
Many sellers
Identical products
16
Which is the
best
statement about Price Ceilings?
Government imposed cap on price that creates a surplus
Government imposed cap on price that creates a shortage
Government imposed minimum price to be charged to consumers
Government imposed minimum price to be charged by producers
17
What does GDP measure?
Value of production in the U.S. adjusted for price changes.
Total market value of the production of American companies.
Determines whether costs are going up.
Total market value of production within the U.S.
18
What is the value of the next-best alternative given up when making a choice called?
Efficiency
Opportunity cost
Trade-off
Incentive
19
What is a "need" in economics?
Android, ipod,vehicle
Food, clothing, beer
Food, air, iphone
Food, shelter, water
20
What is another term for a free-enterprise?
Capitalism
Socialism
Central Planning
Communism
