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Economics Final Exam Review PART ONE Flashcards | StudBud
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Economics Final Exam Review PART ONE
Economics Final Exam Review PART ONE
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Economics final exam review part 1
Flashcards
45 cards
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Questions
45
Answers
1
What might a country have if they have a higher standard of living than another country?
a good outlook on life as a whole
greater human capital
more natural resources
more foreign people living in their country
2
When demand responds to change in price this is called
elasticity
utility
productivity
revenue
3
what would happen to the supply of soccer balls if the materials needed decreased in price?
it would decrease
there would be a shortage in soccer balls
it would increase
it would stay the same
4
People normally choose something when the costs will be less than its
maintenance to keep
anticipated benefits
competition
time spent
5
Why is a lot of clothing manufacturing in other countries than the U.S.?
education hasn't kept up here
other countries have a comparative adv. for assembly line
we have a weaker work ethic
the products are overseas
6
The equilibrium price is the price where
demand and supply dont move
demand is lowered
revenue is highest
demand and supply curves intersect
7
If people were stuck at home in a bad snowstorm, the demand in a clothing store would likely
shift to the left
become more curved
shift to the right
go completely verticle
8
Miss K had a Redbox (didn't watch) & doesn't want to pay fee so she returns it. opp. cost is
watching a new one
the awesome movie
paying for another night
watching the movie
9
In the circular flow model, which of these is a factor payment?
hourly wage a store pays a clerk
a check for groceries
credit card charge for games
mortgage on a house
10
Which of these is most likely to quickly become available in larger quantities if priceincrease
midsize cars
babysitters
airline service
medical doctors
11
What are the three economic questions?
what to produce, where, and why
yes, no, and maybe
what to produce, how to produce it, and for whom
where to produce it, for how long, and with who
12
What are the good ole factors of production?
land, labor, and capital
wages, salaries, and opportunity
supply, demand, and productivity
what, how, and for whom
13
Spark Plug ... Risk Taker ... Strategist ... Innovator ...
entrepreneur
investor
communist
average joe
14
Why is Adam Smith so influential?
he told us everyone is different
he wanted to become a power hungry giant in the economy
he wrote the argument for American interdependence
he showed us a way of thinking about economics
15
Quantity demanded moves along the demand curve in response to changes in
expectations
income
productivity
price
16
Because people's wants are unlimited, ________ is always there.
supply
production costs
scarcity
utility
17
Rationing during WWII was to ensure that
productivity would increase
products went to those who valued them most
job incentive was higher
everyone could get essential scarce goods
18
The law of diminishing marginal utility is explained best by which example?
eating 17 pizzas is less satisfying than eating one
a dollar to a millionaire is more exciting than to a poorman
a car breaks down more the older it gets
eating 9 ice cream cones never gets old, i always do it
19
What is the main reason Americans specialize more today than in earlier times?
we have more access to markets
we live in less populated areas
we depend less on transportation
we have more training
20
Thinking at the margin is best explained by...
I have 10 pair of shoes and am trying to decide if I need 11
I will volunteer this weekend instead of work for money
I want to buy a house, but don't have the money
My cost of pizza is higher than last year
21
How does division of labor increase productivity?
workers require little training
workers move from job to job
workers are paid less
workers are experts at one task
22
In a traditional economy, which economic goal is the most important?
economic stability
economic freedom
economic goals
economic efficiency
23
When people depend on others to produce most goods and services they want is
economic interdependence
absolute advantage
productivity
oligopoly
24
A good example of specialization is
a monkey who acts like a dog
a heart doctor specializing only in bypasses
a shoe store selling tacos
a cook who builds houses
25
Why might tradeoffs be necessary?
people want different things
resources are too plentiful
products are promoted in different ways
resources are limited
26
Martket equilibrium is when
the market is crashing
productivity meets utility
supply meets demand
supply is greater than demand
27
The "invisible hand" represents what?
the way that markets coordinate trade
the big purple polka dot hand that floats in the air
how the economy should be run
the role of governments
28
As price increases, the quantity supplied increases is what?
the law of demand
the law of productivity
the law of supply
the law of diminishing marginal utility
29
A statement about normative economics would read something like...
"inflation is lower this year"
"the cost of bread is the same"
"taxes ought to be lowered"
"we had a Great Depression"
30
What would cause a shift on the supply curve for Michigan apples to the left?
Michigan had a booming apple year
Michigan farmers didn't do their jobs right
Michigan was too hott all winter
Michigan had a bad winter, with late frost, hurting apples
31
In a voluntary exchange, why do people give something up?
to be more self sufficient
to allocate resources fairly
to meet state standards
to get something they want more
32
When a price ceiling is set for rent, what happens?
construction jobs increase
people cannot afford to rent
more people want apartments than are available
the demand for apartments is lower
33
An example of a transfer payment is
fee for parking
Social Security checks
change
a firefighters salary
34
As quantity demanded decreases, price increases.... this describes what?
the law of modern economics
the law of supply
the law of diminishing marginal utility
the law of demand
35
In the summer months, a sharp rise in chicken might lead to an increase in demand in
chips
relish
sandwiches
burgers
36
How might trade increase the value of something?
it provides more work for people
it gives item to someone who values it more
it makes it less money
it puts different goods into competition
37
Diminishing marginal utility is best described in which example?
my jeans have holes in them but i still wear them
people without cars have less use for bikes
I ate 3 pieces of pizza & satisfied w/ no need for another
I ate an entire pizza & will probably eat another
38
How is the market clearing price determined?
it is reached through trial and error
it is calculate by economists
it is fixed individuallly
it is set by government
39
When people's actions have unforeseen or unintended effects, this is
the law of the world
the law of unintended consequences
the law of demand
the law of diminishing utility
40
_________ forces tradeoffs
supply
scarcity
demand
incentives
41
What is the most common kind of economy today?
mixed
market
command
traditional
42
If Alex has a comparative advantage over Bill for weeding gardens, what does that mean?
Alex charges more
Alex is more of an expert
Alex is quicker
Alex's opportunity cost for weeding is lower
43
Which of these might best signal furniture makers to cut back on production?
a drop in price consumers are willing to pay
a drop in material cost
more competition in markt
increase in workers
44
The Commerce Clause keeps states from creating trade barriers to promote ______________
trade barriers
pressure on states to increase production
economic interdependence
local markets
45
______ depends on the willingness and ability of producers to produce.
purchase
supply
demand
utility
