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Roe Economics Flashcards | StudBud
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Roe Economics
Roe Economics
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Questions
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Answers
1
A sustained rise in the level of prices or a fall in the purchasing power of money is what?
Deflation
Expansion
Contraction
Inflation
2
On a market supply and demand graph, the vertical axis (Y) indicates what?
Price
Demand
Quantity
Supply
3
The act of buyers and sellers freely and willingly engaging in market transactions is:
An example of Global exchange
An example of global interdependence
An example of voluntary exchange
An example of pooling of resources
4
Stock prices are determined by what?
Investors
Workers at the stock Exchange
Securities and Exchange Commission
Market forces of supply and demand
5
Economic investment differs from personal investment in that economic investment...
Specifically refers to money lent to businesses
Refers to individuals putting money in the bank
Refers to government spending
Refers to investments held by the government
6
Street lighting is an example of:
Utility
A public good
A local service
Subsidy
7
An economy where government officials decide the distribution of resources is an example of:
Mixed Market
Command
Free Market
Traditional
8
The market value of all goods and services within a nation in a given time period:
Gross Domestic Product
Gross International Product
Gross National Product
Gross Income Product
9
Why do suppliers often reduce prices?
They want to create a monopoly
They need more money
They have a surplus
They have a shortage
10
If the U.S. dollar is strong compared to the Japanese Yen, then the dollar buys:
Less in Japan than the Yen buys in the U.S.
More in Japan than the Yen buys in the U.S.
Less in the U.S. than the Yen buys in Japan
More in the U.S. than the Yen buys in Japan
11
On what principle is the idea of a progressive tax based on?
Simplicity
Ability to pay
None of the above
Efficiency
12
The U.S. sells manufactured goods to Third World nations and buys raw materials from them...
Protectionism
Voluntary exchange
Pooling of resources
Global interdependence
13
Diversification means that an investor does what?
Invests in stocks from a variety of corporations
Makes different types of investments to minimize risk
Purchases stocks on several stock exchanges
Buys corporate bonds
14
A society that has public schools and ownership of private property has elements of both:
Market and Traditional
Mixed and Command
Mixed and Market
Traditional and Command
15
When comparing a traditional economy with a command economy, which of the following is true?
Private ownership
Free market
Fluctuating prices
Slow economic growth
16
Which statement is true of discretionary spending?
The government uses tax dollars to fund it
None of the above
The government is forced by law to fund it
The government can choose whether or not to fund it
17
What payroll tax is taken out to cover Medicare and Social Security
NAFTA
FICA
FERPA
FMLA
18
What are the four factors of production?
Land, resources, capital, and entrepreneurship
Land, labor, capital, and entrepreneurship
Land, labor, resources, and entrepreneurship
Land, labor, money, and entrepreneurship
19
Peaks, recessions, troughs, and expansions are all a part of what?
The Dow Jones
The Federal Reserve
The Business Cycle
The Circular Flow of money
20
Why is coordinating monetary and fiscal policy a good idea?
To avoid economic instability
To create more jobs
To help pay the National Deficit
To influence inflation and growth
21
Which of the following is most likely to have an inelastic demand?
A new cancer fighting drug
Toothpaste
Cosmetic surgery
Organic produce
22
According to the law of supply, when prices increase what happens?
Supply increases
Demand decreases
Quantity demanded decreases
Quantity supplied increases
23
In economic terms laissez faire means what?
The government controls the market
The government has limited control
The government moves in and out of the market
The government stays out of the market
24
Which of the following happens during a contraction?
Resources become more scarce, and prices fall
Resources become less scarce, and prices fall
Resources become more scarce, and prices rise
Resources become less scarce, and prices rise
25
An example of perfect competition is:
Several businesses form a cartel
A seller is misinformed causing them to overprice goods
A seller decides to sell blue jeans and T-shirts
Many sellers compete and no one company controls the market
26
The only grocery store within a radius of 150 miles has a what?
Geographic monopoly
Pure competition
Control over the market
Monopoly
27
Based on the law of Demand, what happens to the demand of a product when prices decrease?
Nothing - demand stays the same, quantity demanded decreases
Nothing - demand stays the same, quantity demanded increases
Nothing - demand stays the same, quantity supplied decreases
Nothing - demand stays the same, quantity supplied increases
28
A microeconomist would most likely study what?
The law of supply and demand
A rise in tea prices
The business cycle
World trade
29
What are the two basic tools that the federal government uses to influence the economy?
Discretionary spending
Fiscal spending
Taxation and spending
Taxation and wages
30
The government can alter economic outcomes by means of taxes and spending; which is:
Easy money policy
Monetary policy
Fiscal policy
Foreign-Trade policy
31
An economy that has few regulations that adjust free enterprise is an example of what?
Modified free enterprise
Voluntary enterprise
Free enterprise
Economic enterprise
32
What will happen to the demand curve for lunch at ASU when all students leave for the summer?
Hard to say
Decreases
Demand stays the same
Increases
33
As sales of Peanut Butter increase, so do the sales of Jelly. What factor affects demand?
Consumer expectations
Complements
Price
Substitutes
34
Why do rising energy costs reduce productivity?
Tools become less expensive to use
Taxes on equipment decrease
Tools become more expensive to use
Taxes on equipment increase
35
Why is competition in a free market system a good idea?
Supports private ownership
Everyone gets to compete against each other
Prevents scarcity
Producers can create an abundance of new products, cheaper
