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Econ - Final Exam Review
Econ - Final Exam Review
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Ch. 1-7
Flashcards
45 cards
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Practice quiz
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Host live
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Questions
45
Answers
1
Kim works on an auto assembly line. Kim's job illustrates a production process that relies on
division of labor
autonomous work groups
team decision making
quality circles
2
When the US gov't purchases a submarine from a company, the gov't has made a transaction in the
factor market
public market
foreign exchange market
product market
3
Which of the following is NOT a US economic and social goal?
economic security
economic interdependence
economic equity
economic efficiency
4
Which of the following is true about a shareholder in a corporation?
A shareholder may not share in the earnings of that corp
A shareholder is part owner of that business
A shareholder is liable for any debts accumulated by corp
A shareholder may not transfer his share without permission
5
An increase in the price of cameras results in a decrease in the demand for film. Because
demand for those products is inelastic
of a shift of the demand curve to the right
they are complements
they are substitutes
6
Which of the following is an example of an investment in human capital?
A state puts in a new highway
A person goes to college
A country builds new schools
A company builds a new factory
7
What is the unit of study in microeconomics?
inflation and recession
hiring ten employees
individual businesses and households
national consumption and expenditures
8
Producers make goods that consumers like and are willing to pay for = principle of
command economy
traditional economy
socialism
market economy
9
At a given price, a shortage occurs when
the quantity supplied is less than the quantity demanded
the quantity demanded is the same as the quantity supplied
the quantity supplied is greater than the quantity demanded
the quantity demanded is less than the quantity supplied
10
Manufactured goods needed to produce other goods and services are called
Gross Domestic Product (GDP)
consumer goods
capital goods
Gross National Product (GNP)
11
Which form of bus. org. = easiest to organize but is LEAST able to benefit from specialization?
partnership
limited partnership
sole proprietorship
corporation
12
People against raising the min wage argue that when a legal min wage is est above equil. wage
the quantity of labor supplied will decrease
employers will have an incentive to use more labor
the quantity of labor demanded by firms will increase
there will be an increase in unemployment
13
An economy at its production possibilities frontier is operating
with slow economic growth
at full potential
beyond its potential
as a free enterprise economy
14
Regulates the sale of stock in a corporation
EEOC
FCC
SEC
FTC
15
Which of the following is NOT a characteristic of free enterprise capitalism?
Private property rights
Economic equity
Competition
Profit motive
16
Most common form of business organization in the United States
monopolies
sole proprietorships
corporations
partnerships
17
Least numerous form of business organization in the United States
partnerships
corporations
sole proprietorships
multinationals
18
In the year 2000, Bill Gates was the world's richest person. This stemmed from his
inherited wealth
experience in human relations
concern for the natural environment
entrepreneurial skills
19
In a market economy, a high price is a signal for
producers to supply more and consumers to buy less
gov't to intervene to protect consumers
producers to supply less and consumers to buy less
producers to supply less and consumers to buy more
20
Perfect competition is characterized by
sellers acting together to set prices
diverse products
uniformed buyers and sellers
a large number of buyers and sellers
21
When economists refer to "demand," they mean which of the following?
how much consumers will purchase at different prices
how much satisfaction buyers receive a purchase
how much people want the product if it is free
how much sellers will supply at a particular price
22
A market economy has an advantage over a trad'l economy in that the market economy
fixes incomes of consumers
limits the profits of large corporations
controls prices and wages
adjusts to consumer demands over time
23
The largest variable input is usually
price
labor
land
capital
24
Who ultimately determines the products that a free enterprise economy produces?
the President
Congress
consumers
state and local gov'ts
25
Does not provide for everyone's basic needs
traditional economy
command economy
communism
market economy
26
Minimum wage is an example of a
equilibrium price
price ceiling
monopolistic competition
price floor
27
In which economic system does the gov't own the means of production?
market
traditional
command
mixed
28
Develops and enforces environmental standards for air, water, and toxic waste.
FDA
SEC
EPA
EEOC
29
Interdependence and price leadership are char. of firms in what kind of market structure?
monopoly
oligopoly
perfect competition
monopolistic competition
30
All of the following are factors of production EXCEPT
gov't
land
labor
capital
31
The payments for land, labor, capital, and entrepreneurial ability respectively are
wages, rent, profit, and interest
rent, wages, interest, and profit
rent, profit, wages, and interest
profits, wages, interest, and rent
32
In which market structure does a firm have greatest control over its product's price?
monopolistic competition
oligopoly
perfect competition
monopoly
33
For most products and services, an increase in price results in
increased demand for complements
a decrease in quantity demanded
an increase in quantity demanded
reduced demand for substitutes
34
In the US, how are public goods paid for?
The gov't collects tax revenues from indivs. and firms
Corporations make profits from selling goods and services.
Private firms collect fees from their employees
Non-profit orgs collect charitable donations from people
35
The United States has a
pure free enterprise system
modified free enterprise system
traditional economy
command economy
36
In the American economy, the goal of economic equity is MOST connected with
subsidizing businesses that would otherwise fail
giving participants a fair chance to succeed
restoring laissez-faire capitalism
creating limits on corporate profits
37
A shift of demand occurs when
time is not held constant
the amount demanded changes for every price
price changes
prices change and the good is a normal good
38
Which of the following is an example of a microeconomic decision?
whether to increase or decrease the money supply
how to reduce the unemployment rate
whether to increase or decrease taxes
how many hours an employee should work each week
39
Which of the following will cause the market supply curve to shift?
a change in the price of the product
a change in the number of consumers
a change in the number of sellers of the product
a change in demand for the product
40
What basic econ problem do both higher income nations and lower income nations have in common?
too many unskilled laborers
lack of capital goods
too much gov't
scarcity of resources
41
Polypoly is another name for
monopoly
monopolistic competition
oligopoly
perfect competition
42
Opportunity cost
the value of the next best alternative
the same thing as the money price of a good
the combined value of all the alternatives not selected
based on the intrinsic value of the good itself
43
The minimum wage is a type of
price floor
price ceiling
comparable worth
marginal price
44
The MOST important factor affecting consumer spending is
the level of current consumer debt
the expectations of what the economy will be in the future
amt of assets held by consumers (homes, cars, stocks, etc.)
the level of current consumer income
45
If a nation encourages entrepreneurship, then which of the following is likely to occur?
dev. of many new products and process methods
fewer applications to the US Patent Office
a decline in the number of new businesses started
very little change in overall production of goods & services
