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Crazy Story's Economics....the Queen or King of the World Flashcards | StudBud
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Crazy Story's Economics....the Queen or King of the World
Crazy Story's Economics....the Queen or King of the World
49 terms
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StudBud Administration
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218 plays
#econwithStory#seniors#endofschoolyear#yikes
Flashcards
49 cards
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Questions
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Answers
1
In order to establish a credit history a consumer must?
use credit over a period of time to show payment activity
apply for credit history at a local bank
let your bills go delinquent
attend courses in the history of credit
2
Demand is measured not only by consumer desire for a product, but also by..
opportunity costs
competition for the consumer
ability and willingness to buy the product
demand for similar products
3
Banks are required to......
be holding companies
report every loan to the government
maintain reserve requirements
make all saving available for loans
4
The role of the labor union in neotiating contracts with management is known as
benefit functionality
collective bargaining
limited motivation
corporate negotiation
5
commercial and savings banks are forms of???
credit unions
The Federal Reserve System
corporation
financial institutions
6
The price paid to use another's money
principal
stocks
interest
dividends
7
To make a profit, a bank must
buy up home mortgages in the area
have less deposits than loans
pay depositors more interest than is charged on loans
charge more for the loans it makes than it pays on deposits
8
One of the most important ways local governments raise revenue is through
property taxes
driver's license fees
college tuitions
Social Security contributions
9
Basic requirement for survival is a
need
opportunity cost
building block
want
10
Money serves which of the following purposes or functions
store of value
standard of measure of value
medium of exchange
All of the above
11
prices serve as a link between producers and
supply elasticities
consumers
production estimates
natural resorces
12
Money serves the following functions in our society.
store of value
All of the above
standard of measure of value
medium of exchange
13
At a given price, a surplus occurs when
the quantity demanded is more than the quanity supplied
the quantity demanded is the same as the quantity supplied
the quantity supplied is less than the quality demanded
the quantity supplied is greater than the quantity demanded.
14
In a market economy the decision of what to produce is often determined by?
Regulatory guidelines
consumer demands
Labor unions
corporate leadership
15
During periods of inflation, people living on a fixed income have........
unlimited resources
declining purchasing power
no financial problems
no voice in the government
16
In a market economy, a high price is a signal for
producers and consumers to buy more.
government to step in and protect consumers
producers to offer less and consumers to buy more
producers to supply more and consumers to buy less
17
The FDIC was established to
federalize the banking system
protect the savings of the American people
create a banking monopoly
establish a basis for savings
18
If the increase in the price of skis causes a decrease in demand for ski boots
the marginal utility for additional cameras is increasing
the two goods are substitutes
The two goods are complements
demand for cameras is inelastic
19
The basic decision for a supplier is
the ability of consumers to purchase
how much to produce without regard to supply or demand
the willingness of consumers to purchase
the amount to supply for sale at various prices
20
Who determines the products that a free enterprise economy produces
partnerships
Property owners
consumers
congress
21
Which of the following is the basic reason for countries to engage in trade?
benefit to government
Individual benefit from exchange
mutual benefit from exchange
benefit to neither trading partner
22
Choices in a command economy are made by
every Joe on the street
government controls it all
private businesses
competition
23
Economics is best defined as?
How to satisfy unlimited wants with scarce resources
What people spend money on.
A scientific study of supply and demand
limited description of economic activities
24
A price compromise between a buyer and seller is known as a(n)
adjustment price
deficiency payment
equilibrium price
target price
25
Which one is considered a fixed cost
salary
rent or mortgage
insurance
cost of raw materials
26
What is conspicuous consumption?
trade-off for something cheaper
buying something to impress others
consuming goods and services to survive
factor markets
27
The Law of Demand states that
demand for economic product varies inversely with its price
relationship in changing prices is a direct one.
the relative change in price is caused by changes in supply
consumers select alternative ways of spending income
28
What is it called when you buy something now and pay for it later?
budget
garnishment
credit
rebate
29
National defense is the responsibility of the
United Nations
Federal Government
States
National Guard
30
A great variety of goods and services is called a
market economy
traditional economy
controlled economy
command economy
31
The Securities and Exchange Commission regulates the
Better Business Bureau
Corporation
sole proprieterships
sale of corporate stock to the public
32
FICA inclues taxes to pay for
workmans comp
Social Security and Medicare
unemployment insurance
life insurance
33
The most common form of business in the U.S. is
partnership
corporation
cooperative
sole proprietorship
34
The Dow-Jones average is
is based on the performance of all stocks
advertises good stock investments
is based on the performance of 30 representative stocks
involves only the bond market
35
The three major federal taxes are
luxury, user fees, value added taxes
gas, food, property
individual income, VAT and luxury taxes
individual income, FICA, corporate income tax
36
The supply curve is a mirror image of
the law of supply
elasticities
production estimates
demand curve
37
One advantage enjoyed by a corporation is
limited liability
ease of obtaining a license
limited life
limited taxes
38
The concept of laisses-faire means
let the buyer beware
keep government out of the affairs of business
the consumer is ruler
let the government become involved.
39
Which form of credit would most likely cost you the highest interest(AR)
Home mortgage
Car loan
Credit card
Loan from family
40
The prime rate refers to the
interest rate that banks charge large corporations
average interest rate charged by all banks
lowest interest rate paid to savings depositors
median interest rate on mortgages
41
All banks are required to
be holding companies
make all savings available for loans
maintain reserve requirements
report every loan to the Federal Reserve
42
What is the most promising strategy for success that an investor can follow?
Invest in penny stocks
Concentrate on options rather than equities
Invest consistently over long periods of time
Look for complex investment strategies
43
What is the most desirable alternative given up as a result of a decision?
opportunity cost
thinking on the margin
marginal benefit
under utilization
44
What does lowering interest rates do to the housing market?
raises the cost of borrowing
increases consumer borrowing
decreases auto sales
discourages home building
45
Store catalogs and television commercials are methods of
creating demand
entertainment
income
consumer needs
46
Price competition is a characteristic of a
corporate economy
traditional economy
command economy
market economy
47
Land, Labor, capital and entrepreneurship are
Basics of survival
results of production
Factors of the economy
Factors of productions
48
High rates of taxation on business often will
decrease investment
increase savings
slow economic growth
stall production
49
Local governments provide such public goods as
private schools and shopping malls
police and fire protection
highways and private schooling
highways and national defense
