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Eco Final Review Flashcards | StudBud
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Eco Final Review
Eco Final Review
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1
What is the equilibrium price?
$130
$50
$200
$100
2
"The government should totally keep its hands off the economy!" Which of the following economists?
John Maynard Keynes
Jerome Powell
Milton Friedman
F.A. Hayek
3
Which of the following statements best summarizes the table?
The gains resulting from international trade
The benefits of production in traditional economies
The results of protectionist trade policy
The outcome of the Fed pursuing tight money policy
4
Which of the following would occur if the fed were to increase the money supply?
Interest rates will decrease
nvestors will buy more government securities
Interest rates will increase
Corporate taxes will increase
5
Protectionists believe which of the following?
Free trade should be supported
Domestic jobs are not at risk from free trade
Infant industries are a type of industry not worth protecting
National defense will be at risk due to free trade
6
The amount of a good or service that someone is willing and able to
buy
at a given price
is referred to as
supply.
.demand.
quantity supplied.▲
quantity demanded.
7
Congress and the President working together to achieve desired levels of economic performance is referred to as
fiscal policy.
monetary policy.
foreign policy.
domestic policy.
8
The unemployment rate is
the percentage of people in the civilian labor force that are unemployed.
all of the people in the economy not working
healthy when it is between 10-15 percent
calculated by private businesses
9
The two markets represented in the circular flow model are
producer and consumer
government and business.
household and business
product and resource
10
The three economic questions are:
where to produces, how to produce, and for whom to produce.
how much to produce, for whom to produce, and what to produce.
what to produce, where to produce, and for whom to produce.
what to produce, how to produce, and for whom to produce.
11
When the government's expenditures exceed its revenues, the government runs a
budget crisis.
balanced budget.
budget deficit.
budget surplus.
12
The economic system in which the government's role is most
limited
democratic socialism.
free market.
communism.
authoritarian socialism.
13
AT&T to move corporate headquarters means 700 of the company's best-paid executives were moving to the dallas.
The curve would shift from D1 to D2 as in Panel C.
The curve would shift from S1 to S2 as in Panel A.
The curve would shift from S1 to S2 as in Panel D.
The curve would shift from D1 to D2 as in Panel B
14
Patents and copyrights are associated with which type of monopoly?
Natural Monopolies
Technological Monopolies
Government Monopolies
Geographical Monopolies▼▲
15
Scarcity of resources leads the U.S. economy to pursue the goal of economic
freedom.
efficiency.
equity.
growth.
16
A __________ is a share of ownership in a company.
.stock
bond
mutual fund
money market account
17
The Fed is organized on two levels—the national and the district—in order to
distribute financial control among different regions.
allow districts Presidents to elect the Chair of the Board of Governors.
eliminate the power of state-chartered banks.
put power clearly in the Fed's hands.
18
The 9-11 terrorist attacks impacted the United States and its trading partners in which of the following ways?
The North American Free Trade Agreement (NAFTA) ceased to exist
The U.S. ran neither a trade deficit or trade surplus
Imports moving into the U.S. slowed due to more detailed inspections
The U.S. GDP grew considerably which allowed Americans to buy huge amounts
19
What does "B" represent?
The peak
The trough
A recovery or expansion
A recession or contraction
20
Which payment option takes money out of your bank account immediately?
Debit Card
Check
Cash
Credit Card
21
When the new technology is introduced, the production possibilities curve will
inward towards point C.
will not shift.
become vertical.
shift outward towards point D.
22
Why is using a budget beneficial?
Helps to prioritize your spending.
Helps reach short- and long-term financial goals.
These are all benefits of a budget.
Helps to keep track of the money you receive.
23
An increase in the average price level of all goods and services in an economy causes
deflation.
aggregate demand.
stagflation.
inflation.
24
Which determinant will shift the curves as shown if the price of Pepsi-Cola decreases?
Price of Substitutes
Market Size
Consumer Tastes and Preferences
Income
25
The fact that you are more likely to earn more money over your lifetime with a post secondary degree means...
the cost of a post secondary degree should be avoided.
the more money you pay for the degree guarantees a higher salary.
the cost of a post secondary degree is worth it.
you should not be more concerned about the amount of debt you go into
26
In which highly competitive market structure do sellers offer slightly different, rather than identical products?
Oligopoly
Monopolistic Competition
Monopoly
Perfect Competition
27
What type of business organization is legally distinct from its owners and treated as if it were an individual?
Sole Proprietorship
General Partnership
Corporation▲
Limited Partnership
28
The national debt
is interest-free.
has reached more than $100 trillion.
exists due to economic booms
is a result of years of deficit spending.
29
If money can be carried from place to place and transferred from person to person, it has the characteristic of
acceptability
durability
divisibility
portability
30
Natural, human, and capital resources and entrepreneurship are all
used to measure productivity.
unlimited.
requirements for economic growth.
not important to economists.
31
The goals of economic stability are
high employment and falling prices.
high employment and low prices.
full employment and stable prices.
full employment and rising prices.
32
The major goals of the Fed are to
attract domestic and foreign investors into the stock market.
promote full employment and price stability.
decrease taxes and government spending.
increase the money supply and decrease the national debt.
33
The buildings, structures, machinery, and tools used in the production process are called
natural resources.
consumer goods.
capital goods.
human resources
34
What does the W-2 form tell you?
How much you've earned and how much taxes you've paid in the last year.
How often your employer will be paying you.
When to file your tax return.
How much federal income tax your employer will withhold from your paycheck.
35
Which of the following is the largest source of tax revenue for the federal government?
Excise Taxes
Corporate Income Taxes
Payroll (Social Security and Medicare) Taxes
Individual Income Taxes
36
An insurance deductible is...
a commission paid to the agency for the purchase of a policy.
the monthly premium on an insurance policy.
the contract fee applied to the monthly premium.
the amount you owe before insurance will cover the rest of the bill.
37
Open market operations is the
printing of currency
buying and selling of bonds
the minimum reserves that must be held by a commercial bank
interest a commercial bank pays the Fed on loans
38
This production possibilities curve illustrates all the
technological changes that help to increase production.
combinations of two goods or services that can be produced.
choices a person can make between three items.
prices a society has to pay for products.
39
What type of business organization are you most likely to use for complete control and exclusive right to all profits?
Limited Partnership
Sole Proprietorship
Corporation
General Partnership
40
What is NOT a benefit of having a good credit score?
It will be easier to get an apartment.
When you need a loan, you'll have more loan offers to pick from.
You'll get accepted to better education institutions.
You'll get better interest rates on your loans.
41
Which is not one of the three main tools of monetary policy?
Reserve Requirement
Discount Rate
Open Market Operations
Taxes
42
This morning's paper reads: "Robots Make Automobile Assembly Faster, Cheaper". Which panel reflects what occurs?
C
B
D
A
43
Ownership of private property is a characteristic of
democratic socialism.
manorialism.▲
communism.
free enterprise.
44
The fundamental economic problem, basic fact of economic life, is
scarcity.
sacrifice.
interdependence.
productivity.
45
When a surplus exists in a market,
quantity demanded = quantity supplied.
quantity demanded < quantity supplied.
quantity demanded > quantity supplied.
demand = supply
46
Which of these items is NOT important to consider when selecting a credit card?
Annual Percentage Rate (APR)
The look of the credit card
Penalties and Fees
Credit limit
47
Which of the following statements about savings accounts is true?
Savings accounts are best used for everyday purchases
Savings accounts can hold a maximum of only $1000
Savings accounts cannot be accessed through online apps
Savings accounts limit the # of withdrawals that can be made each month.
48
What type of business organization do some partners not take an active role in business decisions?
Cartel
Limited Partnership
Sole Proprietorship
General Partnership
49
Selected ResponseWhich of the following statements is true about taxes?
Taxes pay for schools and government departments.
All of these statements are true.
Taxes are often used at the federal, state, and local levels.
Taxes pay for roads and emergency services.
50
A family's purchase of a new washing machine for their home would be included in which of the
Consumption
Net Exports
Investment
Government Spending
