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Final Exam Review 3 Flashcards | StudBud
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Final Exam Review 3
Final Exam Review 3
26 terms
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#economics
Flashcards
26 cards
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Questions
26
Answers
1
A business arguing for a trade barrier that would increase revenue is likely to lobby for
Tariff
Standards
Quota
Monopoly
2
Which type of financial institution would require membership, offer lower rates & special perks
savings and loan banks
bank holding companies
credit unions
large national banks
3
An increase in sales tax has a larger negative effect on
workers getting paid in foreign wages
people with incomes that change according to prices
higher income groups that have larger discretionary spending
low/middle income groups that buy only essential items
4
Which best describes exchange rates?
An increase in the price of a market basket over time
The difference between total number of exports minus imports
An interest rate charged to consumers who take out a loan
The price of one nation's currency in terms of another
5
Which group benefits when the US dollar depreciates against other currencies?
Foreign governments with US Treasury Bonds
US Citizens traveling in foreign countries
US citizens buying foreign goods and services
Foreign citizens vacationing in the US
6
In terms of inflation, people repaying a loan with fixed interest
often adjust the payments to match the inflation rate
are unaffected: the terms of the loan have not changed
lose: the loan must still be re-paid with inflated money
benefit: they can repay the loan with worth less money
7
Maria is considering whether or not to buy a car & with rational decision making, she considers
the marginal costs/benefits of her decision
whether her decision will carry any opportunity costs
if the car will lose value over time
only the price of the car
8
A strongly opposed trade barrier like quotas or tariffs are argued that they
will lead to higher prices and fewer imported goods
might cause more UE in domestic industries
would completely eliminate imported goods
would lead to lower G involvement
9
Why would a person take a line of credit and want to choose one that charges simple interest?
simple interest would only charge interest on the principal
compound interest is illegal in most states
simple interest would pay them the most on their investment
compound interest would charge interest on the principal
10
What happens to US imports & exports if the US dollar appreciates relative to other currencies?
imports will decrease, exports will increase
imports will increase, exports will decrease
both imports and exports will decrease
both imports and exports will increase
11
Which skill is most useful no matter what type of job a person gets?
neat handwriting
running fast
critical thinking
math expertise
12
People typically respond to incentives
by removing opportunity costs
in predictable ways
randomly
with rational decisions
13
What do NAFTA, EU, and ASEAN have in common?
Each group attempts to enforce trade barriers rigidly
All three groups use the same currency
They are all interested in promoting free trade
The US is a member of all three
14
What trade barrier is beneficial to both domestic producers and consumers of a good?
tariff
subsidy
quota
embargo
15
International trade most often takes place because of differences in
exchange rates
trade barriers
comparative advantages
absolute advantages
16
In country A, everyone pays a 10% income tax and this system is known as
regressive
proportional
progressive
sales
17
Why would an employee purchase disability insurance?
Only kind of insurance to get through employer
All employers are required to issue disability insurance
Still receive a portion of paycheck while out
Lower co-pay for doctor visits
18
A person that wishes to invest & looks for the least risk should choose
mutual funds
bonds
stocks
progressive taxes
19
A good example of the effect of education on income would be that of
only job applicants with HS diplomas get job interviews
people/college degrees usually earn more than HS diplomas
employees who learn to perform high risk jobs are paid more
workers who learn to make high demand products are well paid
20
A country imposes a trade barrier to hurt foreign producers & help domestic producers/consumers
Subsidies
Quotas
Standards
Embargo
21
Which headline is an example of using standards as a trade barrier?
"Limit of 1 million tons of sugar to be imported."
"US producers of wheat get big payday from Congress."
"Only professionally cleaned Oranges allowed in US"
"Mexican imports completely abolished."
22
Which type of insurance does a person need if they want to receive a paycheck while injured?
property
life
automobile
disability
23
When there is rapid inflation in a country, people on fixed incomes
must get a second job to make ends meet
are hurt because their paycheck buys fewer goods/services
are not affected because their income is always the same
benefit because their paycheck buys more goods/services
24
Which factor is least likely to affect whether or not someone gets credit?
current credit score
regular income source
payment history
ownership of a car
25
Why is an embargo used in situations where countries have severe political differences?
A country can set unfair standards for the opposing country
Embargoes typically ban all trade between two countries
Taxes collected on imports can be used for military tactics
It is a way for countries to resolve their differences
26
Typically, as risk of losing money on an investment increases
the chance of getting a greater return increases
there is less incentive to put money in the investment
the chance of getting a greater return decreases
people put more money in that investment
