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Economics Honors Final Exam Review Flashcards | StudBud
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Economics Honors Final Exam Review
Economics Honors Final Exam Review
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1
In which market would you receive a paycheck from working at Chic-fil-A?
Product Market
Factor Market
Government
Households
2
The decrease in the price of hotdogs results in a decrease in the demand for hamburgers. These two products are:
Complementary goods
Intermediate goods
Final goods
Substitute goods
3
What is the Federal Reserve?
The nation's central banking system
The nation's primary producer of coins
The nation's budget committee
The nation's economic advisors
4
Which of the following market structures is made up of
one firm
that dominates the market and supplies all the output?
Monopolistic competition
Monopoly
Perfect competition
Oligopoly
5
Which of the following is NOT a way in which fiscal policies would reduce inflation?
An increase in government spending
An increase in taxes
A reduction in government spending
A mixture of raising taxes and reducing government spending
6
The Production Possibilities Curve represents...
Minimum attainable amount of products that can be produced
The maximum amount of resources available in a society.
Maximum attainable amount of products that can be produced.
Unused resources by a society.
7
The physical effort of people to produce goods and services describes which factor of production?
Entrepreneurship
Labor
Capital
Land
8
The next best use of time, money, and/or resources is called:
opportunity cost
equilibrium price
A rational decision
production possibility
9
The point at which both quantity demanded and quantity supplied are equal on a graph is known as:
Equilibrium
Supply
Quantity
Demand
10
Which of the following examples would be included in the calculation for Gross Domestic Product?
Contributions to a charity organization
The purchase of new Nike Jordans as a Christmas gift
Social Security payment to a retired military officer
The purchase of a home built 10 years ago
11
When the government uses taxes and spending to address economic problems, it is practicing:
free enterprise
monetary policy
trickle-down economics
fiscal policy
12
Which of the following is NOT a tool that the Federal Reserve can use to change the supply of money?
Reserve requirement ratio
Taxation rate
Discount rate
Open-market operations
13
What is the opportunity cost for this person of moving from point a to point b?
$10 per hour of studying per week
$10 of income per week
$5 of income per week
$20 of income per week
14
Which graph shows an increase in price for suppliers?
Graph D
Graph A
Graph B
Graph C
15
Increased investment in technology within a country would most likely cause:
Movement along the curve
No change
The PPC to shift outward
The PPC to shift inward
16
Which of the following lists the three basic economic questions that must be answered?
What to produce, How to produce, Why to produce
What to produce, How to produce, For whom to produce
What to produce, When to produce, For whom to produce
When to produce, How to produce, For whom to produce
17
When choosing a credit card, you should consider all of the following EXCEPT:
If you can put a design on the card
Penalties and fees
Annual Percentage Rate
Credit limit
18
What form would you use to determine if you need to pay additional income taxes to the IRS or if you're getting a refund
W-4 form
1040 form
I-9 form
Gross pay form
19
What is the opportunity cost of increasing the production of dolls from 200 to 300?
200 fire trucks
100 fire trucks
350 fire trucks
150 fire trucks
20
A PRICE CEILING is a government imposed:
Regulation on safety standards
Minimum amount that can be charged for an item
A price ceiling is not government imposed
Maximum amount that can be legally charged for an item
21
The fact that people have unlimited wants but limited resources is known as:
Incentives
Scarcity
Opportunity Cost
Surplus
22
A type of unemployment that occurs when there is a downturn in the economy:
Natural
Structural
Cyclical
Frictional
23
The graph below shows:
A decrease in supply
A decrease in demand
a decrease in both supply and demand
no change in both supply and demand
24
Freedom of choice and competition are commonly found in which type of economic system?
Traditional
Command
Market
Socialist
25
If you are only making the minimum payment on a loan or credit card balance each month, which of the following is TRUE?
You are blocked from opening new lines of credit
You are charged interest on the remaining balance
Your credit line is restored to its original amount
26
When the price of a product is lower, people will demand/buy more of it. This describes:
Gross Domestic Product
Equilibrium
The Law of Demand
The Law of Supply
27
Trade-offs exist and choices must be made because:
human wants and needs are limited at a particular point in time
not all production is efficient
society has only a limited amount of productive resources
buyers and sellers must often negotiate prices
28
The efficient use of resources is represented by point(s):
Points A, B, and C
Point E
Point D
There are no points that represent an efficient use of resources.
29
Which of the following would be an example of complementary goods?
Flashlights, candles
DVDs, VHS tapes
Bar soap, body wash
Hot dogs, hot dog buns
30
What is a benefit that
corporations
have that other business structures do not have?
They have 100% of the liability/risk if the business fails
They can sell stock of the company to the general public
The do not have to share control of the business with other individuals
They obtain loans from banks.
31
A PRICE FLOOR typically leads to:
Surplus
Shortage
Equilibrium
Production Possibilities
32
Which of the following motivates entrepreneurs to take risks?
A steady increase in GDP
The potential to make a profit
A good credit score
A low unemployment rate
33
In which market structure is the consumer going to get the lowest price?
Monopolistic competition
Monopoly
Oligopoly
Perfect competition
34
Which of the 4 courses of action would a
rational
consumer choose?
Action D
Action C
Action B
Action A
35
Which of the following is an example of human capital?
the equipment used by a dentist to fix teeth
the knowledge a mechanic has about fixing cars
the machinery used to build cars
the salary paid to a plant supervisor
36
Which one of the individuals below would be considered unemployed?
A person who quits work to care for aging parents
A person who stayed home to raise children but now starts looking for a job
A person who works 2 part-time jobs, but wants full-time
A person who is qualified to teach but is driving a bus instead
37
What is the most important factor a bank will consider when deciding to give someone a loan?
Occupation
Credit score
Age
Gender
38
What conclusion can you draw by looking at the graph below?
People with college degrees get fewer job offers
There is no discernable connection between education level and income
People who work at "high stress" jobs earn more than those with normal jobs
People with college degrees earn more than people with only a HS diploma
39
What is the consumer price index used for?
track changes in the level of wholesale prices in the economy
track changes in the stock market
monitor changes in the level of real GDP
monitor changes in the cost of living
40
If your credit score is _________, your interest rate will be __________.
low , low
high , high
high , low
Credit scores to not impact interest rates
41
All of the following are barriers to entry except:
A person wanting to start a business is responsible for all start-up costs
Some states require liquor stores to open up after a certain time
Water companies must lay miles of pipe before serving any customers
In order to become a teacher, one must get a degree & become certified
42
A type of unemployment that occurs when an individual voluntarily leaves one job to find another job:
Cyclical
Natural
Structural
Frictional
43
The graph below shows:
No change in both supply and demand
An increase in supply
An increase in both supply and demand
An increase in demand
44
According to marginal analysis, rational choices and decision-making involves:
taking action if marginal benefit is slightly LESS than the marginal cost
taking action only if the decision involves needs - not wants
taking action if marginal benefit is GREATER than or EQUAL TO marginal cost
taking action if marginal cost is GREATER than marginal benefit
45
The interest rate that the Fed charges banks to borrow money from them is known as:
Equilibrium price
Reserve requirement ratio
Discount rate
Annual Percentage Rate
46
Which of the following is NOT an indicator rused by economists to measure the overall health of the economy?
The PPF
Gross Domestic Product
Consumer Price Index
Unemployment Rate
47
In this business structure, the owner has full control, keeps 100% of profits, but also has 100% of the liability/risk:
Partnership
Sole Proprietorship
Limited Liability Corporation
Corporation
48
Unemployment that occurs when there's a mismatch between skills people have learned and skills the job market requires
Cyclical
Structural
Frictional
Natural
49
If the Federal Reserve wants to INCREASE the money supply, it can do all of the following EXCEPT:
Sell government bonds
Reduce the discount rate
Reduce the reserve requirement
Purchase government bonds
50
Which of the following is NOT a problem caused by monopolies?
Fewer new products
Low quality
Poor customer service
More competition
51
An office building is an example of:
Labor
Capital
Entrepreneurship
Land
52
Economics is BEST defined as the study of how:
Capitalism has survived in today's world
Modern businesses have grown and prospered.
Various societies have dealt with unemployment and inflation
Choices are made due to the scarcity of resources
53
The economic system in which the government owns and controls the factors of production:
Command
Mixed
Market
Traditional
54
A type of fiscal policy that includes a reduction in taxes and/or increased government spending:
Expansionary
Contractionary
55
Which of the following market structures includes
many
businesses that sell the
same
products?
Monopolistic competition
Oligopoly
Monopoly
Perfect competition
56
According to the graph, how many cookies will Grace buy if the price is $1.00 per cookie?
2
3
4
5
57
The ideas & motivation a person has to produce something that people want to buy describes which factor of production?
Entrepreneurship
Labor
Capital
Land
58
This headline is an example of which economic role of government?
Protecting property rights
Maintaining competition in the market
Correcting for externalities
Stabilizing the economy
59
When the Federal Reserve makes decisions about the control of the money supply their decisions are referred to as:
Market policy
Investment policy
Monetary policy
Fiscal policy
60
Which of the following insurance coverages is required by law?
Health Insurance
Homeowner’s/Renter’s Insurance
Auto Insurance
Life insurance
