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ECON FINAL REVIEW Flashcards | StudBud
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ECON FINAL REVIEW
ECON FINAL REVIEW
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1
One negative impact of globalization is...
increased environmental awareness
increased access to global markets
adaptation of new technologies
loss of U.S. jobs
2
What are two broad social goals of the market economic system?
socialism that evolves into pure communism
freedom and efficiency
profit, traditions, and government control
choice, central planning, and security
3
What is it called when the union negotiators meet with company reps to agree on a new contract?
court proceedings
collective bargaining
a strike
picketing
4
Which tax structure takes a larger percentage of income as income increases?
Proportional (Flat tax)
Regressive
Progressive
5
A price floor of $700 would result in a surplus of _______ units.
3,000
5,000
4,000
7,000
6
Adam Levine begins endorsing beanie babies. Which graph represents the beanie baby market?
Graph B
Graph C
Graph D
Graph A
7
How many cakes will be demanded at the price of $2?
10
5
8
1
8
What economic system did Adam Smith favor?
Traditional Economy
Market Economy
Mixed Economy
Command Economy
9
One way the gov't incentivizes firms to invest in research and development is by granting ____.
public goods
taxes
patents
awards
10
The gov't decides to subsidize dairy farming. Which graph represents the market for milk?
Graph C
Graph A
Graph D
Graph B
11
When investors "diversify" their investments, what happens to their risk level?
It decreases.
It increases.
It stays the same.
12
A price ceiling of $300 would result in a _________ of 4,000 units.
surplus
shortage
13
What is the term for the most desirable alternative given up for the decision?
opportunity cost
trade-off
economic system
scarcity
14
How would the Fed adjust the discount rate to encourage banks to make more loans?
INCREASE the discount rate
DECREASE the discount rate
leave the discount rate untouched
15
Why is scarcity the basic problem of economics? Limited ____ vs. Unlimited ____!
jobs; skills
resources; wants
goods & services; government policies
wants; resources
16
If a country experienced an increased standard of living, its GDP would most likely ______.
stay the same
decrease
increase
17
Which market structure is represented in each row?
A)Perfect Comp B)Monopolistic Comp C)Oligopoly D)Monopoly
A)Perfect Comp B)Monopoly C)Monopolistic Comp D)Oligopoly
A)Monopolistic Comp B)Monopoly C)Perfect Comp D)Oligopoly
18
When demand decreases, what happens to equilibrium price and quantity in the market?
Price Increases, Quantity Decreases
Price Decreases, Quantity Increases
Price Decreases, Quantity Decreases
Price Increases, Quantity Increases
19
The Fed would ______ the growth of the money supply if it wanted to decrease economic activity.
accelerate
slow
maintain constant
20
Compound interest ________ the rate at which your investment grows.
decreases
doesn't change
increases
21
What is the opportunity cost of increasing production of X from 2 (Pt C) to 3 (Pt D)?
4 units of Y
1 unit of X
3 units of X
11 units of Y
22
Inflation causes purchasing power to _________.
decrease
increase
stay the same
23
Police and fire protection are nonexcludable and nonrival in consumption, making them ____ ___.
complementary goods
private goods
substitute goods
public goods
24
Demand for prescription medication would be __________.
Inelastic
Elastic
25
Your credit score would be ___________ affected if you made a late payment.
negatively
positively
26
INCREASING tax rates and DECREASING government spending are ________ fiscal policy tools.
contractionary
expansionary
27
What is one argument in favor of free trade?
increases the number of U.S. jobs
decreases competition
decreases prices of consumer goods
increases wages in the U.S.
28
The ability of one country to produce a product at a lower opportunity cost than another is
The Theory of Absolute Advantage
The Theory of Comparative Advantage
29
Demand is ___________ when price changes have a significant impact on buyers.
Inelastic
Elastic
30
The reason for government deficit spending (overspending) is to increase ______ in the economy.
happiness
supply
demand
scarcity
31
During economic contractions, what type of unemployment is increasing?
Cyclical
Frictional
Structural
Seasonal
32
Which of the following would be included in the calculation of GDP?
$ earned from babysitting
the price of materials used to build a house
the selling price of a new iPhone
the selling price of a used car
33
The price of Coke, a sub for Pepsi, decreases. Which graph represents the market for Pepsi?
Graph A
Graph B
Graph C
Graph D
34
The government collects taxes so it can provide _______ goods.
free rider
public
private
used
35
An individual would _______ his/her human capital by becoming educated, certified, or licensed.
decrease
increase
not change
36
What is the group that defends workers by fighting to improve work conditions & benefits?
parent teacher organization
labor union
board of directors
citizen council
37
Which role of government is represented by redistribution of income?
promoting economic well-being
protecting property rights
protecting savers and investors
maintaining competition
38
When supply decreases, what happens to equilibrium price and quantity in the market?
Price Decreases, Quantity Increases
Price Increases, Quantity Decreases
Price Decreases, Quantity Decreases
Price Increases, Quantity Increases
39
What are the factors of production?
goods and services
land, labor, capital, and entrepreneurship
technology products and entrepreneurship
all of the products in an economy
40
One way the gov't prevents the formation of monopolies is by enforcing ______ laws.
civil
criminal
antitrust
constitutional
41
Which of the following would NOT cause a decrease in demand (curve SHIFTING left)?
a decrease in the price of a substitute
a decrease in consumer income
a decrease in the price of this good
an increase in the price of a complement
42
What econ law states the following? When a good's price is higher, businesses will sell more."
Law of Gravity
Law of Absolute Advantage
Law of Demand
Law of Supply
43
During economic contractions, what is generally happening to the unemployment rate?
It is not changing.
It is decreasing.
It is increasing.
44
What economic law states the following? "When a good's price is lower, people buy more of it."
Law of Diminishing Marginal Returns
Law of Comparative Advantage
Law of Demand
Law of Supply
45
The price of cream, an input for oreos, increases. Which graph represents the Oreo market?
Graph C
Graph A
Graph D
Graph B
46
Which of the following would NOT cause an increase in supply?
There are advances in production technology
Prices of resources decrease
The number of sellers of the product decreases
47
What 3 basic production ?'s must be addressed by all economic systems because of scarcity?
Why, Where, When?
When, How, Where?
What, How, For Whom?
What, For Whom, Why?
