stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Econ Review Norton 2021 Flashcards | StudBud
Explore
/
Econ Review Norton 2021
Econ Review Norton 2021
35 terms
·
StudBud Administration
·
503 plays
Review of monetary policy, the fed, the role of money.
Flashcards
35 cards
F
Practice quiz
P
Host live
L
Questions
35
Answers
1
What are the three basics questions all economies seek to answer?
Where is it? When is it? When do I get it?
Where is it? How much does it cost to make? How much does it cost to buy?
What is made? How is made? Who gets it?
When do I get it? When do you get it? When do they get it?
2
Which of the following is NOT a function of a bank?
Collect taxes
Give financial advice
Provide loans
Keep valuables safe
3
Is the FED a branch of the US government?
Yes! The President controls the FED!
I have no idea...
Like a tree branch?
No! It works closely with the gov't, but it is independent!
4
What is another function of the FED?
Acting as a 'lender of last resort' giving bailouts
Analyzing the latest political polls projecting a winner
Monitoring viral videos on the Internet
Establishing rules for swimming pool safety
5
Define the Federal Reserve.
Branch of the US Government that handles money
The central bank of the US
Nickname for the 'Federales' an anti-immigration group
A special division at the FBI
6
A member of the Board of Governors of the Federal Reserve serves for
14 years
life
two years
10 years
7
How does the FED raising the interest rate impact society?
It makes getting a loan harder
Unemployment rates will drop significantly
Inflation increases
There is an increase in GDP
8
What is NOT a function of money
a unit of account
medium of exchange
A means to barter
a store of value
9
Which of the following is an important function of the FED?
Establishing monetary policy
Monitoring foreign businesses
Exercising quality control over TV
Establishing rules for presidential elections
10
The Fed Board of Governors are appointed by
The President of the United States
State Governors
Secretary of the Treasury
Fed Chair
11
What function of money is shown in the image?
unit of account
Medium of exchange
store of value
12
If economic indicators show an unhealthy economy, what can the FED do?
Increase or decrease interest rates
Move to another country that is doing better
Make some chicken noodle soup
Advise the President to print more money
13
Because of scarcity, every decision involves a
trade off
marginal benefit
cost/benefit analysis
Marignal cost
14
Where is the FED Board of Governors located?
Chicago
San Francisco
Washington, D.C.
The Moon
15
How does the Chairperson get their job?
Rock, Paper, Scissors Tournament
Appointed by the President
Elected by US popular vote
Application & Interview
16
Who is this Chairperson?
Bill Clinton
Cassius Mackerel
Jerome Powell
Matthew Thatcher
17
What is monetary policy?
Providing bailouts to banks and businesses when they mess up
Creating rules for US citizens to follow when voting
Establishing rules to follow during presidential elections
Creating a healthy economy by controlling the money supply
18
The difference between macro and micro economics is
Macro is food stuffs(macaroni for short), micro from("microscope)
Micro looks at small segmentsl while macro examines the whole economy!
Macro looks at small segments, while micro examines the whole economy
19
In a free market, "consumer sovereignty" means
consumers ultimately decide what gets produced
Consumers struggle with producers for control of the marketplace
Government intervenes to mitigate between consumers and producers
consumers are left with few choices
20
Which function of money is depicted in the image?
Unit of Account
Medium of Exchange
Store of value
21
The phrase "guns or butter" expresees the idea that
government decsions involve trade offs between military and domestic needs
factor resources are limited
government decsions involve opportunity costs
individuals, business and governments face trade-offs
22
Congress chartered the Second Bank of the United States to eliminate the financial chaos of the early 19th century
False
True
23
Which is charateristic of a centrally planned economy
stagflation
government control
hyperinflation
consumer sovereignty
24
Which economist would say, "Let the market solve economic problems, the government needs to stay out
Freidman
Keynes
FDR
Galbraith
25
How long is an average $1 in circulation?
8 inches
10 inches
6 inches
4 inches
26
What is another function of the FED?
Establishing rules for consumer protection
Supervising and regulating banks
Advising the President
Selecting new members of Congress
27
According to the law of demand, as a price of a good or service increases,
consumers purchase other goods
consumers buy more
consumers buy less
consumers save more
28
Which is NOT a type of unemployment
functional
frictional
structural
Cyclical
29
Which of the following was a CAUSE of the 2008 financial crisis?
Decline in inflation
Decline in GDP
Guaranteed loans
Subprime loans
30
Why should you care/know about the FED?
They create new rules and regulations regarding driving
They decide who the next President will be.
They control your ability to get money & loans!
They pick who sings the National Anthem at the Superbowl
31
What are the three factors of production
land, labor and capital
workers, management, entrepreneurs
Yneeds, wants and choices
human capital, physical capital, mental capital
32
An opportunity cost is one of the best alternatives one can make other than the decision they DO make
True
False
33
How does the FED know if the economy is healthy?
They listen to the President
They ask it how it's feeling
They look at economic indicators
They poll the America public about their thoughts
34
Which is a tool the Fed uses to manpulate the money supply
reserve ratios
contracting printer services
stimulus checks
immigration
35
What was an EFFECT of the 2008 financial crisis?
The gov't supported taking out more subprime loans
The gov't organized a $700 billion bailout
The gov't took borrowed money from international banks
The gov't allowed the banks to go bankrupt
