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Final Review
Final Review
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Economics Final Exam Review #ssfhs #economics #boyd
Flashcards
60 cards
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Questions
60
Answers
1
How does a perfect market influence output?
makes output as large as possible with some goods not sold
diff firms make diff amount of good but some make a profit
diff firms strive to make more goods
each firm adjusts its output to cover all of its costs
2
A monopoly is
industry rhat runs best when one firm produces all output
markey dominated by a single seller
license that gives inventor right to sell it
industry where the government provides all the output
3
Which of the following is an example of a durable good?
a refrigerator
a pair of jeans
a pizza
a hair cut
4
What has been the pattern of union membership in recent years?
decline of overall union membership
steady increase of overall membership
decline of public sector union membership only
growth of private sector union membership only
5
Ceterus Paribus means
all other things held constant
claims of ownership in a corporation
any form of defferred payment
failure to pay back a loan
6
Inflation is
the process by which rising wages causes higher prices
the price increase of a typical group of goods
the ability to purchase goods and services
a general increase in prices
7
Americans generally favor
strong government control of the economy.
no government intervention in the economy.
limited government intervention in the economy
government control of manufacturing only
8
The purpose of deregulation and antitrust laws is to
promote competition
promote inefficient
promote governement control
prevent monopolies
9
The United States economy is a mixed economy
traditional economy but allows some gov intervention
free market but allows no gov intervention
free market but allows some gov intervention
centrally planned with limited gov intervention
10
Any establishment formed to carry on commercial enterprise is a
partnership
sole proprietorship
corporation
business organization
11
All of the following are advantages of incorporation EXCEPT
corporations have more potential for growth
the responsibility for the business is shared
corporations face double taxations
capital is easier to raise than in other business forms
12
Education programs make the economy more productive by
reducing injuries on the job.
providing more jobs in manufacturing
reducing taxes
adding to human capital and labor productivity
13
How have the earnings of U.S. workers changed over the last 20 years?
Average wages of college graduates have gone up
Average wages of all workers have gone up
Average wages of all workers have gone down
Average wages of non-college graduates only have gone up
14
Real GDP takes which of the following into account?
changes in supply
changes in aggregate demand
changes in prices
changes in demand
15
The money supply of the United States is made up of which of the following?
M1
some money available in the economy
all the money available in the economy
M1 and part of M2
16
A bond is a
portion of ownership in a corporation.
system that allows transfer of funds b/w savers&borrowers
loan that represents debt gov or corp must repay to investor
collection of financial assets
17
The law of demand states that
consumers will buy more when a price decreases
consumers will buy more when a price increases
consumers will buy less when a price decreases
price will not influence demand
18
Economy that uses resources to produce the maximum number of goods & services is described as
trading off
growing
efficient
underutilized
19
Opportunity cost is
least desirable alternative given up as result of a decision
most desirable alternative given up as result of a decision
any alternative we sacrifice when we make a decision
all of the alternatives we sacrifice when we make a decision
20
How do price changes affect equilibrium?
prevent inflation or deflation
Price changes assist the centrally planned economy.
serve as a tool for distributing goods and services
limit all markets to people who have the most money
21
What is a white-collar worker?
someone who works undustrial jobs and receives wages
someone in a professional job who earns a salary
person who wants a job but has given up
person who links buyers and sellers of stocks
22
What is the difference between a shortage and scarcity?
shortage - rising prices; a scarcity - falling prices
shortage - temporary or long-term scarcity always exists
There is no real di!erence between a shortage and a scarcity
shortage-lack of all goods&services;scarcity-a single item.
23
Which of the following is an example of the public sector of the economy?
individual donations to charity
government funding for a new national park
laborers working for a private construction company
consumers purchasing goods from a private company
24
What is propectus?
expectation that encourages people to behave a certain way
investment report to potential investors
financial gain made in a transaction
buy/sell at specific date in future at todays price
25
What is a glass ceiling?
maximum price that can be legally charged for good/service
average of all prices in the economy
barrier that prevents women&minorities from advancing
minimum price for a good or service
26
Which of the following is not a goal of unions?
increase worker benefits
increase job secrurity
take control of company ownership
higher wages for employees
27
Two units of the same type of money must be same in terms of what they will buy, they must be
acceptable
uniform
divisible
portable
28
What are royalties?
portion of corporate profits paide to stockholders
total amount of money a firm receives
income received by a gov from taxes and nontax sources
shares of earning given as a payment
29
Capital deepening is the process of
decreasing the amount of capital per worker
increasing consumer spending
selling obsolete equipment
increasing the amount of capital per worker
30
How is a general partnership organized?
Each partner shares equally in both responsibility&liability
No partner is responsible for debt beyond his/her investment
Only 1 partner is responsible for debts of the partnership
people who form a general partnership hire others to run it
31
Why do people need to buy and sell goods or services?
No one is self-sufficient.
People need to provide the market with goods and services.
People need to buy and sell goods to make a profit.
People buy and sell to maintain a competitive society.
32
The learning effect states that
loss of fund for private investment is b/c of gov borrowing
education increases productivity and results in more $
rising wages causes higher prices
completion of college indicates job applicant is inelligent
33
Which of the following is an advantage of a centrally planned economy?
the system’s bureaucracies are small and flexible
innovation is well rewarded
consumers’ needs are well met
the system can work quickly to accomplish specific goals
34
A bear market is
a market in which are goods are sold illegally
as steady rise in the stock market over a period of time
market in which money is lent for periods longer than a year
a steady drop in the stock market over a period of time
35
The amount that investor pays to purchase a bond & will be repaid to investor at maturity is
prospectus
par value
bond
yield
36
A recession is
a prolonged contraction
a period of steady economic growth
an especially long or severe economic contraction
a prolonged economic ecpansion
37
Why are funds in checking accounts called demand deposits?
available whenever depositor demands them by writing a check
they are held without interest by the bank
they are usually in great demand
they are not liquid
38
A right-to-work law is
measure that bans mandatory union membership
program requiring work in exchange for temporary assistance
laws that encourage competition in the marketplace
law that designates seperate areas for residency & business
39
After Civil War, National Banking Acts gave federal gov power to do all of the following EXCEPT
insure banks against failure
issue a single national currency
charter banks
require banks to hold adequate gold and silver reserves
40
What are equities?
formal contract to repay borrowed money with interest
portion of coperate profits paid out to stockholders
price paid for the use of borrowed money
claims of owbership in a corporation
41
If the price of a good rises and income stays the same, what is the effect on demand?
demand stays the same
fewer goods are bought
the prices of other goods drop
more goods are bought
42
An oligopoly is
a way to attract customers without lowering price
agreement among firms to charge on price for the same good
organization of producers agree to coordinate price&output
market structure which a few large firms dominate a market.
43
Investment is
institution that help channel funds from savers to borrowers
redirecting resources from being consumed to create benefits
providing money for your family
a collection of financial intermediaries
44
The government's price floor on low wages is called the
base wage rate
minimum wage
employment guarantee
market equilibrium
45
What is a financial asset?
instutution that help channel funds from savers to borrowers
variable amounts you can deduct from gross income
claim on the property or income of a borrower
legally bound obligation to pay debts
46
What happens when any market is in disequilibrium and prices are flexible?
excess demand is created
market forces push toward equilibrium
sellers waste their resources
unsold perishable goods are thrown out
47
The unemployment rate
is the percentage of the labor force that is unemployed
is the number of people who are unemployed
is the percentage of the labor force that is underemployed
includes only discouraged workers
48
Which of the following falls in the category of skilled worker?
waiter/waitress
auto mechanic
doctor
teacher
49
Which of the following is an example of using physical capital to save time and money?
switching from oil to coal to make production cheaper
lowering workers’ wages to increase profits
hiring more workers to do a job
building extra space in a factory to simplify production
50
What prompts effcient resource allocation in a well-functioning market system?
busnesses working to earn a profit
the need to buy goods regardless of price
governament regulation
the need for fair allocation of resources
51
Income level below which income is insuficient to support a family or household is known as the
income inequality
income gap
poverty threshold
poverty rate
52
Too much money in the economy is the cause of inflation according to
the cost-push theory
the quantity theory
the demand-pull theory
the quantum theory
53
A business franchise
semi-independent business tied to a parent company
operates without the aim of profit
attempts to improve the image & working conditions of people
is not required to pay income taxes
54
Each society determines who will consume what is produced based on
economic equity
its needs and wants
the amount of factor payments
its unique combination of social values and goals
55
Policymakers encourage all of the following EXCEPT
stable productivity
high employment
stable prices
steady growth
56
The money an investor receives above and beyond the money initially invested is called
return
prospectus
investment
savings
57
Which of the following does not cause a shift of an entire demand curve?
a change in consumer expectations
a change in the size of the population
a change in income
a change in price
58
What does elasticity of demand measure?
amount of time consumers need to change demand for a good
an increase in the quantity available
a decrease in the quantity available
buyers cut back/increase demand when prices rise/fall
59
The annual rate of return on a bond if the bond were held to maturity is
interest
yield
inflation rate
prime rate
60
A share of stocks represents
debt government or corporation must repay to an investor
a collection of financial assets
a portion of ownership in a corporation.
system that allows transfer of funds b/w savers&borrowers
