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Final Review
Final Review
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Economics Final Exam Review #ssfhs #economics #boyd
Flashcards
60 cards
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Questions
60
Answers
1
Which of the following is an example of a durable good?
a pair of jeans
a hair cut
a pizza
a refrigerator
2
Economy that uses resources to produce the maximum number of goods & services is described as
growing
trading off
underutilized
efficient
3
A monopoly is
industry where the government provides all the output
license that gives inventor right to sell it
markey dominated by a single seller
industry rhat runs best when one firm produces all output
4
What happens when any market is in disequilibrium and prices are flexible?
unsold perishable goods are thrown out
market forces push toward equilibrium
excess demand is created
sellers waste their resources
5
How is a general partnership organized?
No partner is responsible for debt beyond his/her investment
Only 1 partner is responsible for debts of the partnership
people who form a general partnership hire others to run it
Each partner shares equally in both responsibility&liability
6
Any establishment formed to carry on commercial enterprise is a
corporation
sole proprietorship
partnership
business organization
7
After Civil War, National Banking Acts gave federal gov power to do all of the following EXCEPT
charter banks
issue a single national currency
require banks to hold adequate gold and silver reserves
insure banks against failure
8
What has been the pattern of union membership in recent years?
decline of public sector union membership only
decline of overall union membership
growth of private sector union membership only
steady increase of overall membership
9
The annual rate of return on a bond if the bond were held to maturity is
interest
prime rate
inflation rate
yield
10
The government's price floor on low wages is called the
minimum wage
base wage rate
employment guarantee
market equilibrium
11
The purpose of deregulation and antitrust laws is to
promote governement control
promote competition
promote inefficient
prevent monopolies
12
A right-to-work law is
measure that bans mandatory union membership
program requiring work in exchange for temporary assistance
law that designates seperate areas for residency & business
laws that encourage competition in the marketplace
13
A recession is
an especially long or severe economic contraction
a prolonged contraction
a prolonged economic ecpansion
a period of steady economic growth
14
If the price of a good rises and income stays the same, what is the effect on demand?
demand stays the same
more goods are bought
fewer goods are bought
the prices of other goods drop
15
What is a white-collar worker?
someone in a professional job who earns a salary
person who wants a job but has given up
person who links buyers and sellers of stocks
someone who works undustrial jobs and receives wages
16
An oligopoly is
agreement among firms to charge on price for the same good
a way to attract customers without lowering price
market structure which a few large firms dominate a market.
organization of producers agree to coordinate price&output
17
A bear market is
as steady rise in the stock market over a period of time
market in which money is lent for periods longer than a year
a steady drop in the stock market over a period of time
a market in which are goods are sold illegally
18
Opportunity cost is
all of the alternatives we sacrifice when we make a decision
least desirable alternative given up as result of a decision
most desirable alternative given up as result of a decision
any alternative we sacrifice when we make a decision
19
How do price changes affect equilibrium?
prevent inflation or deflation
serve as a tool for distributing goods and services
Price changes assist the centrally planned economy.
limit all markets to people who have the most money
20
Education programs make the economy more productive by
providing more jobs in manufacturing
reducing taxes
reducing injuries on the job.
adding to human capital and labor productivity
21
A bond is a
portion of ownership in a corporation.
loan that represents debt gov or corp must repay to investor
system that allows transfer of funds b/w savers&borrowers
collection of financial assets
22
Americans generally favor
strong government control of the economy.
government control of manufacturing only
no government intervention in the economy.
limited government intervention in the economy
23
What are royalties?
portion of corporate profits paide to stockholders
total amount of money a firm receives
income received by a gov from taxes and nontax sources
shares of earning given as a payment
24
How does a perfect market influence output?
diff firms make diff amount of good but some make a profit
makes output as large as possible with some goods not sold
diff firms strive to make more goods
each firm adjusts its output to cover all of its costs
25
What is the difference between a shortage and scarcity?
shortage - rising prices; a scarcity - falling prices
There is no real di!erence between a shortage and a scarcity
shortage - temporary or long-term scarcity always exists
shortage-lack of all goods&services;scarcity-a single item.
26
Why do people need to buy and sell goods or services?
People buy and sell to maintain a competitive society.
People need to buy and sell goods to make a profit.
People need to provide the market with goods and services.
No one is self-sufficient.
27
What is a glass ceiling?
maximum price that can be legally charged for good/service
barrier that prevents women&minorities from advancing
minimum price for a good or service
average of all prices in the economy
28
Income level below which income is insuficient to support a family or household is known as the
income inequality
poverty threshold
poverty rate
income gap
29
Which of the following is an example of the public sector of the economy?
laborers working for a private construction company
government funding for a new national park
individual donations to charity
consumers purchasing goods from a private company
30
What does elasticity of demand measure?
a decrease in the quantity available
amount of time consumers need to change demand for a good
an increase in the quantity available
buyers cut back/increase demand when prices rise/fall
31
A business franchise
attempts to improve the image & working conditions of people
semi-independent business tied to a parent company
is not required to pay income taxes
operates without the aim of profit
32
The money an investor receives above and beyond the money initially invested is called
return
prospectus
investment
savings
33
Which of the following does not cause a shift of an entire demand curve?
a change in price
a change in consumer expectations
a change in income
a change in the size of the population
34
Which of the following is not a goal of unions?
higher wages for employees
increase job secrurity
take control of company ownership
increase worker benefits
35
What prompts effcient resource allocation in a well-functioning market system?
the need to buy goods regardless of price
busnesses working to earn a profit
governament regulation
the need for fair allocation of resources
36
The learning effect states that
loss of fund for private investment is b/c of gov borrowing
completion of college indicates job applicant is inelligent
rising wages causes higher prices
education increases productivity and results in more $
37
Real GDP takes which of the following into account?
changes in aggregate demand
changes in supply
changes in prices
changes in demand
38
Investment is
providing money for your family
institution that help channel funds from savers to borrowers
a collection of financial intermediaries
redirecting resources from being consumed to create benefits
39
What is propectus?
expectation that encourages people to behave a certain way
investment report to potential investors
financial gain made in a transaction
buy/sell at specific date in future at todays price
40
How have the earnings of U.S. workers changed over the last 20 years?
Average wages of all workers have gone down
Average wages of non-college graduates only have gone up
Average wages of college graduates have gone up
Average wages of all workers have gone up
41
Which of the following is an advantage of a centrally planned economy?
the system can work quickly to accomplish specific goals
innovation is well rewarded
the system’s bureaucracies are small and flexible
consumers’ needs are well met
42
The United States economy is a mixed economy
traditional economy but allows some gov intervention
free market but allows some gov intervention
free market but allows no gov intervention
centrally planned with limited gov intervention
43
What are equities?
portion of coperate profits paid out to stockholders
price paid for the use of borrowed money
claims of owbership in a corporation
formal contract to repay borrowed money with interest
44
The law of demand states that
consumers will buy less when a price decreases
consumers will buy more when a price decreases
consumers will buy more when a price increases
price will not influence demand
45
Two units of the same type of money must be same in terms of what they will buy, they must be
acceptable
portable
uniform
divisible
46
Inflation is
a general increase in prices
the ability to purchase goods and services
the process by which rising wages causes higher prices
the price increase of a typical group of goods
47
The amount that investor pays to purchase a bond & will be repaid to investor at maturity is
yield
bond
prospectus
par value
48
Which of the following falls in the category of skilled worker?
waiter/waitress
doctor
teacher
auto mechanic
49
The money supply of the United States is made up of which of the following?
some money available in the economy
M1
M1 and part of M2
all the money available in the economy
50
Policymakers encourage all of the following EXCEPT
high employment
steady growth
stable productivity
stable prices
51
Capital deepening is the process of
increasing the amount of capital per worker
increasing consumer spending
selling obsolete equipment
decreasing the amount of capital per worker
52
Ceterus Paribus means
any form of defferred payment
failure to pay back a loan
claims of ownership in a corporation
all other things held constant
53
What is a financial asset?
legally bound obligation to pay debts
instutution that help channel funds from savers to borrowers
variable amounts you can deduct from gross income
claim on the property or income of a borrower
54
Too much money in the economy is the cause of inflation according to
the quantity theory
the cost-push theory
the quantum theory
the demand-pull theory
55
All of the following are advantages of incorporation EXCEPT
corporations have more potential for growth
the responsibility for the business is shared
capital is easier to raise than in other business forms
corporations face double taxations
56
Why are funds in checking accounts called demand deposits?
they are held without interest by the bank
they are not liquid
they are usually in great demand
available whenever depositor demands them by writing a check
57
A share of stocks represents
a portion of ownership in a corporation.
system that allows transfer of funds b/w savers&borrowers
debt government or corporation must repay to an investor
a collection of financial assets
58
Each society determines who will consume what is produced based on
the amount of factor payments
its unique combination of social values and goals
its needs and wants
economic equity
59
The unemployment rate
is the percentage of the labor force that is underemployed
is the number of people who are unemployed
includes only discouraged workers
is the percentage of the labor force that is unemployed
60
Which of the following is an example of using physical capital to save time and money?
hiring more workers to do a job
building extra space in a factory to simplify production
switching from oil to coal to make production cheaper
lowering workers’ wages to increase profits
