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Econ Final Exam Review Flashcards | StudBud
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Econ Final Exam Review
Econ Final Exam Review
20 terms
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StudBud Administration
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89 plays
For Fall 2022
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
Why does our government collect taxes?
to provide public goods and services
to keep the economy balanced
because people can't control their own spending
to make sure all children get a christmas present
2
Opportunity cost is the cost of the choice you didn't make.
True
False
3
Sales tax impacts the rich and the poor exactly the same.
True
False
4
What productive resource is being provided by the person who assumes risk and starts a business?
Labor
Entrepreneurship
Capital
Land
5
Which of these would cause a supply curve to shift to the LEFT?
an increase in consumer income levels
a decrease in the cost of a subsitute good
an increase in the costs of inputs to produce the product
an increase in technology
6
Cindy fell on broken steps at Allen's house. What will pay for her medical bills?
Cindy's liability insurance
Cindy's health insurance
Allens liabilty insurance
Allen's health insurance
7
True or False: When the government gets more involved in a mixed economy, it generally hurts consumer sovereignty.
False
True
8
Which of the followning BEST illustrates the role of money as a medium of exchange?
Jane puts 5% of her income into savings
Jane pays her balance of $500 on her credit card
Jane writes a check for $600 to pay rent
Jane uses her investments as collateral for a business loan
9
Who benefits when there is unantcipated inflation?
a borrower with a 30 year adjustable rate mortgage
the owner of a savings account with a fixed interest rate
a college student who signs a three year lease on an apartment
a retiree who lives on a fixed income from a government pension
10
Which of the following will cause a decrease in quantity supplied in the cupcake market?
Costs of ingredients for cupckes rise
People decide they prefer cakes to cupcakes
Price of cupcakes increase
Government passes new nutritional labeling regulation for cupcakes
11
Which of the following is the LEAST risky investment option?
investment in state and local government bonds
investment in a stock mutual fund
investment in US savings bonds
direct purchase of penny stocks
12
Which of the following is an example of monopolistic competition?
buying the cheapest green beans
visiting the same barber out of many because you like the way he cuts hair
choosing among five different airlines for your trip
NOT having a choice of natural gas providers
13
Which type of tax takes a larger proportion of money from people who make more money?
Proportional
Fair tax
Regressive
Progressive tax
14
Anna lost her job to a robot at the factory. What kind of unemployment is she experiencing?
frictional
structural
cyclical
seasonal
15
When we all go Christmas shopping, we will exchange our money for products in the product market.
True
False
16
What is meant by the term "public sector"?
the government
banks
schools
parks and recreation
17
Because the Federal Reserve is divided into 12 districts, it is considered decentralized.
True
False
18
Why would an entrepreneur choose to start a corporation rather than a sole proprietorship?
minimizinfg the long-term tax burden
getting the product to market quickly
to raise capital for maufacturing and distribution
maintaining control over product development
19
Government debt is caused when yearly deficits add up.
True
False
20
I buy a new high-tech airbrush machine to make the t-shirts to sell at the circus.
Supply curve shifts right, equilibrium quantity increases
demand curve shifts right, equilibrium quantity increases
demand curve shifts left, equilibrium quantity decrease.
Supply curve shifts left. equilibrium quantity decreases
