What is Cyclical Unemployment?

Unemployment due to a downturn of the business cycle, not long term

The value of all final goods and services in a country in a year

A cause for Inflation could be?

Too much money in economy causing rise in prices for consumer goods

An example of a horizontal merger is:

A cell-phone service provider buying a rival cell-phone service provider

What is economic utility?

The amount of usefulness in a product/service

made to last more than 3 years with regular use

Which is NOT an example of a market failure?

Long waiting list for handmade guitars (manufacturing shortfal)

When a business has total control over an entire market

Diminishing marginal utility means

additional satisfaction from each unit tends to fall as you consume more

What's the law of demand?

As prices go up, demand will go down

Portable, durable, divisible, limited in supply, and store of value

"FIAT" currency is currency....

because the government says it is

What is the single BIGGEST disadvantage of a sole proprietorship?

you are on your own and have UNLIMITED liability

how does supply and demand determine equilibrium price and quantity

PRICE makes quantity demanded equal to quantity supplied

Market is dominated by a small number of large producers.

Which of the following is NOT a 'legal' monopoly?

Only one company that provides Phone services to the whole U.S. (corporate)

What are the three economic questions?

What to produce, for whom to produce, how to produce it?

In Monopolistic Competition, .....

producers supply a differentiated product.

the desire, willingness and ability to buy a product

The management of the supply of money in circulation

What is the substitution effect?

When prices rise, consumers buy cheaper alternatives

Produces at least four completely unrelated goods and services.

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Econ Final Review

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Questions 30

Answers

1
What is Cyclical Unemployment?
Joblessness because of the end of a seasonal specific position
Unemployment due to a downturn of the business cycle, not long term
Unemployment due to a permanent or long- term change in the economy.
Unemployment caused by new technologies
2
Taxation on corporations
Are payed by owners on their profits from stock
Are not the greatest source of revenue for U.S. Government
All of the above
Are payed on profit earned by corporations as individual legal entities
3
What is GDP?
Sum of all imports from foreign trade
The value of all final goods and services in a country in a year
Unemployment X inflation/number of citizens over 16
The dollar value of a Specific good & service in the USA
4
A cause for Inflation could be?
Too little money circulating in economy increasing it's value
The fall in prices for consumer goods
Too much money in economy causing rise in prices for consumer goods
Unemployment rises
5
An example of a horizontal merger is:
A cell-phone service provider buying a rival cell-phone service provider
A bicycle manufacturer buying an inner-tube manufacturer
A perfume manufacturer buying a fast-food chain
An internet retailer starting a space travel company
6
The U.S economic goal of making prices predictable and consistent is:
Economic Equality
Economic disparity
Economic security
Economic Stability
7
What is economic utility?
How a thing is promoted in the economy
The price paid for something
How easy it is for a product to enter into the economy
The amount of usefulness in a product/service
8
Corporation that sells stock on the open market
Market Corporation
Limited Partnership
Open corporation
Closed corporation
9
Which of the following would be classified as a service?
A defective product
A car
Apps for your phone
A Cheeseburger
10
A durable good is:
any good or service used by a consumer
made to last more than 3 years with regular use
a good or service that that is only in production of other goods
made to last less than 3 years with regular use
11
Which is NOT an example of a market failure?
Polution caused by a paint fctory (externality)
Unfilled Tech jobs in CA, unemployed coal miners in WV (resource immobility
Long waiting list for handmade guitars (manufacturing shortfal)
Only five news media corporations (insufficient competition)
12
What is a monopoly?
when a business has limited control over a market
there are unlimited sellers
When a business has total control over an entire market
when a business has no control over a market
13
Diminishing marginal utility means
additional satisfaction from each unit tends to fall as you consume more
demand increases as you consume more
The cost of gas and electric falls as you consume more
production rises as you demand more
14
What's the law of demand?
Something people buy that you can hold or touch.
As prices go up supply goes up too
Demand goes up as production costs goes up
As prices go up, demand will go down
15
Money must be:
round, paper, gold, and decorated with famous dead people
A gas, a hit, a crime, and the root of all evil today (so they say)
Portable, durable, divisible, limited in supply, and store of value
Combustible, fragile, ethereal, glamorous, and segmented
16
"FIAT" currency is currency....
because we are free to choose our own money
because we like fiat cars
because it is online only
because the government says it is
17
What is the single BIGGEST disadvantage of a sole proprietorship?
Co-owners who share responsibility for management and debt
Charter giving you LIMITED Liability
you are on your own and have UNLIMITED liability
Sell stock and easily raise Capital
18
how does supply and demand determine equilibrium price and quantity
The PRICE is unrelated to the good in question
The price makes the quantity demanded impossible to reach
PRICE makes quantity demanded equal to quantity supplied
The price doesn't determine equilibrium
19
In an oligopoly...
Market is dominated by a small number of large producers.
Market is dominated by many producers
no-one is in charge.
Consumers dominate the market
20
Which of the following is NOT a 'legal' monopoly?
Scoundrel is sole maker of a cancer drug he holds patent on (technological)
Only one gas station on a long stretch of desert highway (geographic)
A single electricity utility in a whole state (natural)
Only one company that provides Phone services to the whole U.S. (corporate)
21
What two taxes do we call FICA?
Selective service and medicine
Financial Incompetence Catastrophe Assurance
Soylent Green and Medicare
Social Security and Medicare
22
What are the three economic questions?
What to produce, for whom to produce, how to produce it?
What resources to use, for whom to produce, how to produce?
What to produce, who will produce, how to distribute profit?
What to produce, who will produce it, how to produce it?
23
In Monopolistic Competition, .....
producers supply a differentiated product.
Products are identical from every supplier
firms have high market power
there are large start-up costs
24
Demand is
another name for a service
the amount of something that is available
the desire, willingness and ability to buy a product
a name of a coin used in the Caribbean
25
When the Fed buys and sells treasury bonds...
Reserve Operations
Open Market Operations
Margin Operations
Discount Operations
26
Monetary policy is
Immigration laws for ownership of land
The regulation of business practices and ethics
The increase of global trade tax
The management of the supply of money in circulation
27
Which of the following is NOT one of the four factors of production?
Land
Equality
Capital
Labor
28
What is the substitution effect?
When supply increases, producers lower prices
When prices drop, consumers invest in stocks
When demand increases, the cost of a good decreases
When prices rise, consumers buy cheaper alternatives
29
Which of these is NOT a determinant of demand ELASTICITY
Urgency of need
Cost of production
Price as portion of consumer income
Availability of many substitutes
30
A conglomerate...
Produces the same goods and services.
Any business that operates overseas
Produces at least four completely unrelated goods and services.
Is not usually allowed by the government

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