What is happening at Point C in the diagram below?

Employment and output have reached their lowest levels

haircuts, oil changes and carpet cleaning are examples of:

services performed in an economy

New government regulations require all cell phones to have anti-theft devices. What would be the result?

Supply curve shifts to the Left

You know your country is in a recession when you have which of the following?

A decrease in industrial production

What is an advantage a sole proprietorship has over a partnership?

Owner entitled to all business profits

The diagram shows the market for US oil. The US begins to import oil at the world market price of $70. Which is ture?

The US will produce 35 barrels of oil and import 170 barrels to meet demand

The markettype known as perfect competition is what?

highly competitive and firms find it impossible to earn large profits

Inflation occurs whenever-

The price level risescontinuously overa period of time

Based on the picutres below, which statement best describes the impact shown?

Productivity will increase due to robots being faster

Which statement explains the cartoon below?

Workers support trade agreement cause they are unemployed

Why is it easier for a partnership to borrow money and keep better employees compared to a sole proprietor?

A partnership has more personalstability and access to more money

Annual Income,Desires/Taste/Preferences,Consumer Expectations,Related Goods.......What is the best title for this list?

Non-price Determinats of Demand

Which of the following best explains the effect on the market for sugar cane in a hurricane hits the carribean?

The supply will decrease and price will increase

The equilibrium price and quantity for sugar is $.06 cents and 30 million lbs. What would cause an excess supply?

A price floor of 10 cents per lb

Which of the following statements best completes the chart above?

Cars manufactured at Toyota Plant outside of Sanantonio

Which of the following statements concerning trade is true?

Trade enables people to consume more and raise their standard of living

Which of these is the best argument for free trade?

Some nations produce goods more efficiently than others good for trade

1. Domestic Unemployment 2. Financial crisis in one country spreads quickly to another 3. Manufacturing jobs move away

Disadvantages of international trade

What does it mean when the demand for a product is inelastic?

A price increase does not have a significant impact on buying habits

-Ease of start up at low cost; Sole reciever of profit; Few regulations; Full control

Advantages of Sole Proprietorships

How do economists think private ownership most affects property maintenance?

It is helpful because owners have an incentive to care for the property

Assume that people like onions on their burgers. If the supply of burgers decreases, the demand for onions will do what?

Decrease because burgers and onions are complements

The barter economy is different from a money economy in that a barter economy...

has only a few assets that serve as a medium of exchange

Which of the following explains why products made under a command economy are more likely to be low in quality?

The workers who make them have little incentive to make them work well

A natrual Monolopy is most likely to exist when there...

is government regulation of the industry

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Final Exam Review

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Questions 98

Answers

1
Which of the following is a characteristic of money?
Divisibility
Responsibility
Accountability
Facility
2
Businesses sell finished goods to individuals in the
factor market
stock market
product market
farmers market
3
What is happening at Point C in the diagram below?
The natrual rate of unemployment is at a minimum point
Cyclical unemployment is at a minimum point
The inflation rate is at its lowest
Employment and output have reached their lowest levels
4
haircuts, oil changes and carpet cleaning are examples of:
opportunity cost
services performed in an economy
resources used in an economy
things that nobody wants or needs
5
New government regulations require all cell phones to have anti-theft devices. What would be the result?
Demand curve shifts to the Left
Supply curve shifts to the Left
Demand curve shifts to the Right
Supply curve shifts to the Right
6
You know your country is in a recession when you have which of the following?
An increase in government savings
A lenghtly period of increasing GDP
A decrease in industrial production
An increase in consumer spending
7
What is an advantage a sole proprietorship has over a partnership?
More expensive to startup
Unlimited personal liability
Owner entitled to all business profits
Ease to raise capital
8
When a business needs to decide whether a action is worth the cost they often use:
needs assessment
economic models
PPC / PPF
cost benefit analysis
9
When a producer is able and willing to produce a product at current price levels this is called
Supply
Demand
Inelastic
Elactic
10
During the pandemic, the Fed lowered interests rates to motivate consumers to take out loans. What action is this?
Monetary policy
Demand side economics
Supply side economics
Fiscal Policy
11
If the price for Xbox1 increases, what would represent the change this would have on the market for the PS4?
Demand curve shift left
Supply curve shift left
Supply curve shift right
Demand curve shift right
12
Performance, Durability, Reliability, Design, Style....What is the best title for these words?
Advantages of Monolopies
Products Differentiated
Sizes of firm
Values of Perfect Competition
13
The diagram shows the market for US oil. The US begins to import oil at the world market price of $70. Which is ture?
The US will import the largest quantity of 205 barrels due to high demand
The US will import 50 barrels, the difference between supply and demand
The US will produce 35 barrels of oil and import 170 barrels to meet demand
The US will choose not to import and domestically produce 35 barrels
14
The markettype known as perfect competition is what?
marked by firms trying to change their products to retain comsumers
highly competitive and firms find it impossible to earn large profits
free from competition and firms earn large profits
dominated by fierce advertising campaigns
15
Inflation occurs whenever-
The price level risescontinuously overa period of time
The money supply increases
The price level falls continuously over a period of time
The exchange rate increases
16
Communist countries such as Vietnam believe in which of these economic concepts or characteristics:
all of the above
power resting with an authoritarian government
abolition of private property
government control of business
17
Based on the picutres below, which statement best describes the impact shown?
New technology saves money for the company in the long run
New shelving will have to be purchased for better mobility
The company will no longer have to hire human workers
Productivity will increase due to robots being faster
18
If there is a competitive market, price and quantity will always move towards what?
Suppy
Scarsity
Equilibrium
Demand
19
Which statement explains the cartoon below?
Workers support trade agreement because it will lower wages in Europe
Workers believe exchange rates between all countries should increase
Workers support trade agreement cause they are unemployed
Workers dont support cause it involves more government regulations
20
Which of these is a disavantage of turning a partnership into a corporation?
Less management skill
Loss of control
Expanded liability
Continuity issues
21
Why is it easier for a partnership to borrow money and keep better employees compared to a sole proprietor?
A partnership has more personalstability and access to more money
The less access to a partners personal funds make the business more careful
The larger # of partners makes it more likely the business will succeed
The larger # of partners means that people are easier to get along with
22
When a consumer is able and willing to buy a good or service, he or she creates which of the following?
Allocation
Elasticity
Demand
Consumption
23
Annual Income,Desires/Taste/Preferences,Consumer Expectations,Related Goods.......What is the best title for this list?
Economic Changes in Supply and Demand
Non-price Determinats of Demand
Government Changes Affecting the Price Ceiling
Non-price Determinats of Supply
24
Which of the following best explains the effect on the market for sugar cane in a hurricane hits the carribean?
The Q demanded will decrease and price will increase
The Q supplied will increase and price will remain unchanged
The supply will decrease and price will increase
The demand will increase and price will decrease
25
In what kind of an economy does the government make all the decisions?
centrally planned
socialist
free enterprise
laissez-faire
26
The equilibrium price and quantity for sugar is $.06 cents and 30 million lbs. What would cause an excess supply?
A price ceiling of 10 cents per lb
A price floor of 10 cents per lb
A price ceiling of 3 cents per lb
A price floor of 3 cents per lb
27
Which of the following statements best completes the chart above?
Apple Stock purchased by an American citizen
Purchasing a used Dogde Truck from the Houston Carmax dealership
Cars manufactured at Toyota Plant outside of Sanantonio
Toys manufactured in China at a factory owned by a U.S company
28
Father of Modern Economics that wrote "The Wealth of Nations" and believed in the invisible hand & free enterprise
John Maynard Keynes
Donald Trump
Adam Smith
Joe Biden
29
Which of the following applies to both Sole Proprietorships and Partnerships?
High deficit spending
Responsible to a board of directors
Unlimited liability for debts
Complete control of business
30
What incentive motivates a manufacturer to sell a product?
Putting others out of business
Popularity of th product
Making profits on sales
Pleasing the consumer
31
The American dollar has value because the Government has ordered (says so) that it is an acceptable means to pay.
Commodity Money
Stock Money
Fiat Money
Represenatative Money
32
Which of the following statements concerning trade is true?
Nations should trade only when they have the absolute advantage
Trade should only occur when two countries border each other
Trade tends to promote inefficient use of resources
Trade enables people to consume more and raise their standard of living
33
Which of these is the best argument for free trade?
Labor & safety standards in other countries help lower wages
contradiction between gross domestic product & market vlaue
American steel and automobile workers like it
Some nations produce goods more efficiently than others good for trade
34
Oil, timber, and fresh water are examples of:
land resources
labor resources
entrepreneurial resources
capital resources
35
1. Domestic Unemployment 2. Financial crisis in one country spreads quickly to another 3. Manufacturing jobs move away
Disadvantages of international trade
Obstacles to increasing trade in North America
Advantages of Trade Barriers
Benefits to importing commodities
36
What does it mean when the demand for a product is inelastic?
Customers are sensitive to the price
There are very few satisfactory substitutes for the product
People will not buy any of the products when prices go up
A price increase does not have a significant impact on buying habits
37
The list below is controlled by whom? 1. Reserve Requirement 2. Discount Rate 3. Open Market Operations
The Federal Reserve
The Stock Market
The President
Congress
38
Which of these is NOT a function of money?
a measure of value
a store of value
Medium of exchange
a statis symbol
39
-Ease of start up at low cost; Sole reciever of profit; Few regulations; Full control
Advantages of Sole Proprietorships
Reasons to start a Corporation
Motives for starting a Partnership
Benefits of the Stock Market
40
The relationship between Q supplied and price is_____ and the relationship between Q demanded and price is _____?
Direct, Direct
Inverse, Inverse
Direct, Inverse
Inverse, Direct
41
Potential Profit, Collateral for Loans and Customize for Preferred use...What is an appropriate title for the above list
Costs of owning property
Benefits of owning property
Benefits of selling property
Costs of selling property
42
Which one of the 3 instruments is most often used by the Federal Reserve System and is most effective?
Changing the discount rate
Change in the tax rate
Changing the reserve requirement
Open market operations
43
According to the newpaper headline, what type of unemployment would a recent college graduate be considered?
Cyclical
Seasonal
Frictional
Structual
44
How do economists think private ownership most affects property maintenance?
It is helpful because owners have to pay taxeson the property
It is helpful because owners have an incentive to care for the property
It is harmful because non-owners may throw trash on the property
It is harmful because owners save money by letting property get run down
45
Assume that people like onions on their burgers. If the supply of burgers decreases, the demand for onions will do what?
Increase because burgers and onionsare substitutes
Decrease because burgers and onions are substitutes
Decrease because burgers and onions are complements
Increase because burgers and onions are complements
46
These 3 companies are classified into what market structure? 1. Google 2. Yahoo 3. Bing
Perfect Competition
Monopolistic Competition
Oligopoly
Monolopy
47
The barter economy is different from a money economy in that a barter economy...
Encourages specialization and division of labor
invovles higher costs for each transation
promotes market exchanges
has only a few assets that serve as a medium of exchange
48
"Price of peanut butter increases"___?___"Demand curve for jelly shifts to the left" What should fill the question mark?
Supply for jelly increases
Demand for jelly decreases
Supply for jelly decreases
Demand for jelly increases
49
If the price is set at 10$ then Mid-World will produce___and consumers will purchase___.
4 & 2
5 & 1
1 & 5
2 & 4
50
Which of the following explains why products made under a command economy are more likely to be low in quality?
The workers who make them like traditions and old technology
The workers who make them are not given quality control
The workers have no supervision
The workers who make them have little incentive to make them work well
51
A natrual Monolopy is most likely to exist when there...
are long term patents in an industry
are large barriers to entry
is government regulation of the industry
are extremely large economies of scale
52
Why does a free market economy need some government intervention?
To make sure consumers get an equal share of the resources
To provide thingsthat the marketplace does not address
To prevent businesses from becoming too profitable
To ensure that the government has the freedom to tax as needed
53
The US produces rice in a competitive market. With free trade the world price is higher than the domestic. What is true?
The US exports rice to make up for domestic shortage
The US exports rice to eliminate domestic surplus
There is no incentive to import or export rice
The US imports rice to make up for domestic shortage
54
Big Macs were cheaper in Canada compared to the US. Therefore, the Canadian dollar is___ and one would expect it to___.
Undervalued, decrease
Overvalue, increase
Overvalued, decrease
Undervalued, increase
55
Unlimited Wants + Limited Resources =
competition
savings
scarcity
equilibrium
56
Who appoints the members of the Board of Governors of the Federal Reserve?
The U.S Senate
The U.S President
Coach Cocke
The state Legislatures
57
Which of the following is an example of business property?
A computer and vehicle used to deliver products
An owner signs a leasing agreeement for a new machine
Land that a business pays a monthly fee to use for production
A manager who has a masters degree in business
58
Which of the following is an economic goal of the United States Government policy?
To promote full employment
To limit international competition
To own the factors of production
To createa classless society
59
What completes the diagram below?
Monopolistic Competition and Oligopoly Markets
Perfect competition and Monopolistic Competition Markets
Perfect competition and Monolopy Markets
Monopoly and Oligopoly Markets
60
A local store buys 200 cases of Coke a week and sells them at $6 each. Week 1 they sold 160 cases. What happens next?
Shortage and price will need to fall
Shortage and price will need to rise
Surplus and price will need to fall
Surplus and price will need to fall
61
How are economic transactions conducted in a Traditional Economy?
The 3 basic questions of production don't arise in this economy
Elders & ancestors ensure that customs are upheld
Each community decides as a group for whom the group will produce
Individuals form networks within which they buy
62
Reducing a tariff will____ the domestic production of the good and _____the total domestic comsumption ofthe good.
decrease, increase
increase, increase
decrease, decrease
increase, decrease
63
What incentive motivates a manufacturer to sell a product?
popularity of the product
making profits on sales
putting others out of business
pleasing the consumer
64
Componets of GDP are: Consumption, Investment, Gov Spending, Net Exports.
Required to determine a country's economic growth
Used by economists to calculate the unemployment rate
Shift according to consumer tastes
Fixed prices for goods and services set by the government
65
How is a general partership organized?
The government is responsible for paying the debts of failed partnerships
Every partner equally shares both responsibility and liability
No partner is responsible for the debts of the partnership
Only one partner is responsbile for debts ofthe partership
66
What statement is best aligned with the contributions of John Maynard Keynes and his philosophy on the market economy?
laissez faire
Government intervention is needed to achieve full employment
Americans are not allowed to own their own property
The central planning of the economy will help regulate inflation
67
What affect can an increase in taxes have on the economy?
Companies invest more
Less money in consumers pockets to spend
Prices increase
Less money for government spending
68
When the economy experiences location D, it is most likely the case that...
GDP is increasing, unemployment is decreasing and inflation is increasing
GDP is increasing unemployment is decreasing and inflation is decreasing
GDP is increasing, unemployment is increasing and inflation is decreasing
GDP is decreasing, unemployment is decreasing and inflation is increasing
69
You spend $9.50 at the movie theater to watch Star Wars. What part of GDP is this?
Consumption
Investment
Net imports
Government Spending
70
What is the biggest sourse of revenue for the Federal Government?
Property Taxes
Sales and Excise Taxes
Personal Income Taxes
Corporate Income Taxes
71
Individuals receive payments for resources from businesses in the:
Hyper Market
Stock Market
Factor Market
Super Market
72
What is the major difference between a corporationand other kids of business?
A corporation has officers who are responsibile for the business
A corporation is not responsible for its debts if it fails
A corporation is much larger than other kids of business
A corporation is a separate legal entity apart from that of the owners
73
What is not a change in the U.S Free Enterprise system in recent years?
Tax incentives
Technology progression
All of the above
Investment Opportunities
74
U.S can produce 80 hammers and 65 designer jeans. Canada can produce 150 hammers and 70 designer jeans. Which is true?
Canada has an absolute adv in both goods
US has an absolute adv in both goods
Canada has an absolute adv in one good but not both.
US has an absolute adv in one good but not both
75
What is an important advantage of a free market?
It offers a wide variety of goods and services
It is easy to regulate
It protects the less fortunate
It does not change unless the government directs it
76
A graph that shows alternative ways to use an economy's resources is called
a demand curve
a production possibilities curve
a production possibilities possibilty
a supply curve
77
_____ +_____ = Natural Unemployment Rate
Structural and Frictional unemployment
Seasonal and regional unemployment
Cyciclal and Structural unemployment
Casual and technological unemployment
78
Goods are scarce because-
of private property
of greed; if human beings were not so selfish, goods would be less scarce
of surplus
the desire for goods is far greater than their availability from nature
79
The study of economics involves
people dealing with surplus
How people choose from limited resources to meet unlimited wants & needs.
exploring how people deal with always having more than enough
studying how to go on a spending sprees
80
Which of the following would be most likely to occur if the U.S placed a high tariff on imported goods?
The US economy will become more efficient
The US economy would be less efficient due to higher priced imports
The US would have an increase in the amount of good imported from China
The overall debt of the country will increase due to the revenue collected
81
What is the opportunity cost of a decision?
The best possible way the question could have been decided
The most desirable alternative is given up for the decision
A series of alternative decisions could have been
a good
82
Calculate GDP: Consumption and investment is 24 million. Imports is 2 million. What is the best way to calculate GDP?
Subtract 2 million from 24 million because imports cost domestic jobs
Add 2 million to 24 million because imports are used for produciton
Subtract 2 million from 24 million because imports bought by consumers
Add 2 million to 24 million because imports are bought by consumers
83
Complete the diagram below...
Factors that influence Exchange Rates
Ways to determine inflation
Influence of Free Trade Agreements
Examples of Government debt
84
What statement best destcribes private property in the United States?
Land is the only thing recognized as property
Americans are not allowed to own their own property
Property includes land, material items, conscience, thoughts, etc.
A business has no property rights
85
What statement is correct about this picture?
Toothpaste is an example of Monopolistic cause they some control on pricing
Toothpaste is the number one selling item at the grocery store
Toothpaste is an Oligopoly market cause they control all prices
Consumers expect monolopies to produce toothpaste because its all the same
86
The exerpt below describes
instructions for obtaining a permit
restrictions the gov places on use of individual or business property
how taxes are applie to local properties
separation of gov property
87
How does the government impact the circular flow model?
State & local government can't enforce taxes.
Households & firms pay taxes directly to the government
The government determines what to produce
The government collects taxes just like the factor market
88
An increase in the price of bicycles will most likely result in:
A shift to the right of the supply curve for bicycles
A decrease in the quantity of bicycles
A decrease in the quantity of bicycles demanded
An increase in the quantity of bicycles demanded
89
The price of copper rises from $1.65/lb to $3.75/lb. Which scenario is best supported by the law of supply?
Consumers will purchase less copper at higher prices than they will lower
Producers will offer more copper at higher prices than they will lower
Consumers will purchase less copper at lower prices than they will higher
Producers will offer more copper at lower prices than the will higher
90
Which country has the most stable prices?
India
El Salvador
Brazil
Mexico
91
Kenya and Laos produce only soybeans and robots. Which of the following statements is true?
Kenya has the comparative ADV in robots and absolute ADV in soybeans
Laos has the absolute advantage in soybeans
Laos has the comparative advantage in robots
Both Kenya and Laos have the absolute advantage in soybeans
92
Using the chart below, what phase of the business cycle is represented by the economy moving from Year A to Year B?
Peak
Contraction
Trough
Expansion
93
"Economists predict record # of 1st time home buyers this year"-How will the market for houses be affected?
Supply curve will shift right, causing equilibrium prices to fall
Demand curve will shift left, causing equilibrium prices to fall
Supply curve will shift left, causing equilibrium prices to rise
Equilibrium price will stay the same
94
Which of the following is an example of lower production costs brought about the use of technology?
The use of e-mail to replace slower surface mail
The making of breads and pastires in local shops rather than large bakeries
the importing of fresh vegtables from South Africa rather than using cans
The delivery costs of gasoline to the consumer by diesel tucks
95
Adam Smith believed in "lasissez faire", which event in history caused many to change their ideas about Smith's theory?
the Great Depression
the Vietnam War
the American Revolution
the Russian Revolution
96
When buyers will purchase exactly as much as sellers are willing to sell, what is the condition that has been reached?
Price Ceiling
Balanced Budget
Price Floor
Equilibrium
97
A company decides to install more machines and lay off workers. Which economic question is addressed directly?
How to produce?
What to produce?
Where to produce?
For whom to produce?
98
Which statement below is true about govenmernt invovlement with the U.S economy?
Controls all aspects of the U.S economy
None of these statements make sense
Not invovled at all with the economy
Has become more invovled since the early 20th century

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