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Duplicate of Econ Final 2021 Flashcards | StudBud
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Duplicate of Econ Final 2021
Duplicate of Econ Final 2021
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1
Which of the following is included in the unemployment rate?
people who hold only a part-time job
the jobless who made an effort to look for a job
underemployment
all of the above
2
What are the characteristics of demand?
the ability and willingness to buy a product
the willingness and desire to buy a product
the desire, ability, and willingness to buy a product
the desire and ability to buy a product
3
Economics is best defined as the study of how societies deal with
the division of labor
the paradox of wealth
the factors of production
the problem of scarcity
4
Which of the following is an advantage of a 401(k) plan?
You never pay taxes on your contributions.
contributions are invested in high-return funds
Most employers match your contributions to a certain amount.
You may withdraw funds at any time without penalty.
5
Which are associated with globalization?
leads to interdependence only among industrial nations.
multinationals only in industrial nations.
specialization and division of labor creating interdependence
multinationals only in free trade zones.
6
Equilibrium is reached when what occurs?
prices are inelastic
quantity supplied equals quantity demanded
price increases
there is no change in the quantity supplied
7
Which of the following would a supporter of free trade most likely favor?
an embargo
NAFTA
the infant industries argument
a revenue tariff
8
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
9
Evaluating the costs and benefits of each choice to decide which meets your criteria. These are called
trade-offs.
priorities.
opportunities.
resource frontiers.
10
Three ways people can save money with little risk include _____.
savings account, CDs, money market account
insurance policy, stock and contributing to a pension fund
savings account, buying stock and CDs
insurance policy, contributing to a finance company, CDs
11
For which of these would a consumer be the least likely to find a substitute?
postal delivery
electricity
fruit drinks
DVD players
12
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.
it has a tendency to make people change spending habits.
increase in the level of prices for goods/services
13
How does inflation affect the minimum wage?
It decreases the buying power of the wage.
creates conversion of wages of current to constant dollars.
It increases the buying power of the wage.
creates conversion of wages of constant to current dollars.
14
Which product most likely has a demand that is inelastic?
green beans
a vacation
a meal at a restaurant
a vital medicine
15
Which of the following is a form of instability that reverses economic growth?
deflation
an increase in demand
recession
creeping inflation
16
The Federal Deposit Insurance Corporation (FDIC) was created to ____.
help people provide for their own retirement
provide bank insurance for depositors
prevent working people from being exploited by employers
regulate companies that were soliciting funds from investors
17
Consumers in a free enterprise economy ultimately determine ________ to produce
what
when
where
how
18
The economic system of the United States is considered a
command economy.
traditional economy.
social economy.
free market capitalist economy.
19
Exchange rates among the currencies of the world change _____.
annually
constantly
rarely
slowly
20
Societies are faced with which three basic questions about production of goods?
what, how, and for whom
what, where, and when
when, where, and for whom
what, how, and why
21
Which is a likely complement to a tablet computer?
movie tickets
DVDs
pencils
apps
22
What two investments are at opposite ends of the risk spectrum?
stocks and mutual funds
stocks and US Treasury Bills/Bonds
money market accounts and CDs
CDs and mutual funds
23
Which of these statements most clearly indicates a way out of poverty?
college graduate earns twice that of a high school dropout.
Taxes on high incomes are reduced more than lower incomes.
increased technology in service jobs require fewer skills.
a program in which welfare recipients work for benefits.
24
Which of these would most likely negatively impact a country’s GDP?
a decrease in demand for used automobiles
a decrease in demand for new automobiles
increased commercial activity during the holiday season
an increase in the GDP
25
Which of these is the most likely to create a shortage of an item?
a price floor
a market price
a fixed price
a price ceiling
26
____________ protect consumers against harm from products on the market.
government regulations
profit motive
private property rigths
franchises
27
Which term is associated with the cost of shipping for a producer?
marginal cost
fixed cost
variable cost
total cost
28
Which of the following terms describes a strong stock market?
futures market
spot market
bull market
bear market
29
Which of these statements describes a disadvantage of a traditional economy?
Difficult economic decisions are made by the state
Everyone knows his or her role
New ways of doing things are encouraged
New ways of doing things are discouraged
30
Who issues municipal bonds?
local commericial banks
local credit unions
federal and state governments
state and local governments
31
What is the main advantage of a mutual fund for an investor?
it offers diversity in investments
it has a maturity date
it can be sold at a profit
its price doesn't change much
32
Which of the following is an advantage of a corporation?
All of the above statements are true
Limited liability to shareholders.
Unlimited life.
Risk is limited to the amount invested.
33
Which of the following can cost you money in large interest payments?
a checking account
a savings account
a debit card
a credit card
34
What do Fed member banks do with customer deposits?
use them to conduct monetary policy.
keep a portion as reserve and loan out a portion with interest.
use a portion to calculate interest rates and a portion as reserves.
use them to enforce wage-price controls.
35
Net income is defined as
total income after expenses.
total dividends paid to investors.
total sales before expenses.
total expenses before sales.
36
Which of these best describes the influence of high prices on the behavior of producers?
They have no significant overall effect on producer.
They are an incentive for producers to buy less.
They are an incentive for producers to produce more.
They encourage producers to modify their supply schedules.
37
Which of these do economists use to illustrate combinations of output?
a production possibilities curve
a division of labor
a factor of production
a cost-benefit analysis
38
What will your “creditworthiness” be based on?
capital
capacity
credit history
all of the above
39
What is diversification?
combining a variety of assets to reduce risk
another term for stocks
investment which loans money
group of financial assets
40
Which of these economic systems have the least in common?
command economy and socialism
market economy and capitalism
command economy and capitalism
free-enterprise economy and market economy
41
The Federal Reserve is the nation’s _____ bank.
only
central
first
oldest
42
Which factor of production involves risk and combining resources to produce goods/services?
land
labor
entrepreneurs
capital
43
Keynesian economic policies are designed to lower unemployment by _____.
reducing aggregate demand
creating government jobs
stimulating aggregate demand
stimulating aggregate supply
44
What is the main cause of a change in quantity demanded?
substituion
change in revenue
the income effect
change in price
45
Which type of economy is most prevalent in the world today?
traditional
command
mixed
market
