The study of how people make choices to satisfy their wants

Define Progressive tax

the more you make the more you pay

What is Social Security?

federal insurance program for retired people

Federal health insurance program for old people

Federal health insurance program for low income people

Which describes a market economy?

economic decisions are made by individuals

Which of the following is not a question a society must answer about their economy?

Will our government protect all domestic production?

Why is Social Security potentially problematic?

more older people are pulling from the fund

Which answer describes a traditional economy?

rely on habit or custom to determine what to produce & how

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Macro Test Review

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#Gov141 Microeconomics test 17-18

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Questions 33

Answers

1
Where does the federal govt get most of its money?
Tariffs
Tacos
Taxes
Trade
2
What is opportunity cost?
the price of non-tangible items
the cost of an alternative
the cost of helpful goods
The price of an experience
3
The following was a program used by the federal govt during the Great Depression
Obamacare
GI Bill
Bush tax cuts
WPA
4
Which of the following is not a way the FED controls the money supply?
Buying and selling govt bonds
controlling the discount rate
speculation in stocks
Controlling the reserve requirement
5
What is economics?
The study of how people make choices to satisfy their wants
the study of money
the study of relations between nations
the study of how people and governments handle debt
6
What does the Federal Reserve do?
oversee commercial banks
conduct monetary policy
conduct fiscal policy
both A and B
7
When the dollar losses value and prices increase
Moneyflation
Inflation
Deflation
Stagflation
8
The amount paid back to a lender on top of the principle amount is the...
Loan Return
Discount rate
Interest Rate
Tax rate
9
The money the govt spends on the military is otherwise known as
mandatory spending
executive decision
discretionary spending
extra spending
10
Define Progressive tax
the more you make the more you pay
tax progressively gets lower
pay more as you get older
Everyone pays the same amount
11
Define flat tax
everyone pays the same
the more you make the more you pay
you pay more as you get older
the amount to be paid never changes
12
Which of these is not one of the 3 advantages through a free market system?
Economic Stability
Economic Efficiency
Economic Growth
Economic Freedom
13
What is Social Security?
federal insurance program for retired people
Federal health insurance program for old people
Federal insurance program for low income families
Federal health insurance program for low income people
14
In exchange for wages from firms the household provides....
Labor
Land
Capital
Consumer Confidence
15
What opportunities does the GI Bill provide?
all of the above
housing
college education
unemployment insurance
16
The total value of goods produced and services provided in a country during 1 year
GDP
CPI
PPP
FED
17
What is a consumer?
Someone who sells things
Someone who eats things
Someone who needs things
Someone who buys things
18
Wages from the house go back to the firms in exchange for...
Goods
Services
none of the above
both A and B
19
The cost added by producing one additional unit of a product or service is called...
Opportunity Cost
Surplus
Marginal Gain
Marginal Cost
20
An index of the variation in prices paid by typical consumers for retail goods and other items
Purchasing Power Parity
Producer Price Index
Profit Expansion Metric
Consumer Price Index
21
What is medicare?
Federal insurance program for low income families
Federal insurance program for retired people
Federal health insurance program for low income people
Federal health insurance program for old people
22
What is Medicaid?
Federal health insurance program for low income people
Federal insurance program for retired people
Federal health insurance program for old people
Federal insurance program for low income families
23
The amount of money a bank must keep on site from each deposit is called...
Reserve Requirement
Open Market Operations
Interest Rate
Discount Rate
24
When the govt spends less money than it makes, the budget is operating in a
Deficit
Optimal Gain
Marginal Gain
Surplus
25
Which of these is not a factor of production?
Entrepreneurship
Capital
Land
People
26
The Soviet Union was an example of a _____ economy
Market
Mixed
Traditional
Command
27
Which describes a market economy?
central govt makes all decisions on production & consumption
decisions based on habit or custom
Economy based on farmers markets
economic decisions are made by individuals
28
When a nation concentrates its production efforts on a limited variety of goods
Specialization
Traditional Economy
Limited Economy
Fixated Interest
29
The US is a _____ economy
Mixed
Command
Traditional
Market
30
Which of the following is not a question a society must answer about their economy?
Will our government protect all domestic production?
How should these goods and services be produced?
Who consumes the goods and services?
What goods and services should be produced?
31
Why is Social Security potentially problematic?
its an outdated system
more older people are pulling from the fund
younger people are now eligible to pull from it
government expects us to pay more for social security
32
Which answer describes a traditional economy?
an old economy
economic decisions are made by individuals
rely on habit or custom to determine what to produce & how
central gov makes all decisions on production & consumption
33
Producers of goods must set prices based on
Export Costs
Supply and Demand
Stock Value
Investor interest

Macro Test Review Flashcards | StudBud