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Econ 101 overview Flashcards | StudBud
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Econ 101 overview
Econ 101 overview
20 terms
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StudBud Administration
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350 plays
Review principles of economics
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
Unemployment caused by the time it takes workers to search for a job is called what?
Frictional unemployment
Seasonal unemployment
Structural unemployment
Cyclical unemployment
2
To increase the money supply, the Federal Reserve does what?
Prints new money
Buys government bonds
Buys government securities
Raises taxes
3
As sales of digital cameras increase, so do sales of photo printers. What factor affects demand
Substitiutes
Complements
Consumer taste
Consumer expectation
4
Which of the following is most likely to have inelastic demand?
Experimental cosmetic surgery
An expensive sports car
An effective cancer fighting drug
Organic fruits and vegetables
5
An entity that mines resources in the US, produces goods in Germany, and sells them in China...
Multinational monopoly
Multinational corporation
Multinational conglomerate
Multinational cartel
6
What is primarily traded through economic interdependence?
Raw materials
Services
Goods
All answers are correct
7
An example of a geographic monopoly is when...
There are Walgreen stores on every corner
There are four grocery stores within an entire city
There are many gas stations, but they are spaced evenly
There is only one gas station within a radius of 200 miles
8
Which statement is true about discretionary spending?
The government must use user fees to fund it
The government uses payroll taxes to fund it
The government can choose whether or not to fund it
The government is required by law to fund it
9
In the price system of a market economy, prices are determined by what?
Private investors
Market forces
Central planning
Political forces
10
Why do rising energy costs reduce productivity?
Tools become more expensive to use
Taxes on equipment increase
Taxes on equipment decrease
Tools become less expensive to use
11
According to the law of supply, when prices increase ...
Quantity supplied increases
Demand increases
Quantity demanded increases
Supply increases
12
A society that has public schools and ownership of private property has elements of what?
Command and market economic systems
Traditional and market economic systems
Traditional and socialist economic systems
Command and traditional economic systems
13
The government can alter economic outcomes by means of taxes and spending...
Monetary policy
Foreign Trade policy
Easy money policy
Fiscal policy
14
An example of perfect competition is when ...
A seller decides to sell clothing, including shirts & jeans
Several electronic companies form a cartel
Many sellers compete and no one person controls the market
There is no such thing as perfect competition
15
A sustained rise in the level of prices or a sustained fall in the purchasing power of money
Inflation
Deflation
Expansion
Stagflation
16
When comparing a traditional economy with a command economy, which of the following is true?
Freely fluctuating prices
Slow economic growth
Supports competition of business
Private ownership of business
17
The demand for accessible funds would most likely increase when ...
The bank raises interest rates
A person's salary is lowered
A person goes on vacation
The price of apples drops
18
On what principle is the idea of a progressive tax based?
Simplicity
Efficiency
Benefits received
Ability to pay
19
Why should fiscal and monetary policies be coordinated?
To help create jobs
To stimulate aggregate demand
To avoid economic instability
To avoid economic expansion
20
If the U.S. dollar is strong compared to the Japanese Yen, then the dollar buys ...
More in the U.S. then the Yen buys in Japan
More in Japan then the Yen buys in the U.S.
Less in Japan then the Yen buys in the U.S.
Less in the U.S. then the Yen buys in Japan
