What is the difference b/w fixed and variable costs?

fixed costs remain the same; variable costs depend on how much is produced

businesses are customers and individuals are producers

What do producers have to do as a result of cost-push inflation?

raise prices to maintain profits

willingness and ability of producers to offer goods and services for sale

What is one of the greatest advantages of a mutual fund?

allows individuals without a lot of $ to own a variety of financial assets

If new restaurants open and that causes the supply curve for burgers to shift right, what can you conclude?

an increase in the number of producers increased supply

What should an investor do before choosing among investment options?

determine an investment objective

What is an advantage of a pure market economy?

allows communities to set their own economic development

What is a helpful guideline for investing?

the longer you have to invest, the more risk you can take

What is the best measure of a nation's economic growth?

the amount of change in its real GDP

the Federal Reserve System is

12 regional banks with a central decision-making board

Why do consumers benefit from imports?

selection of goods increases and prices decrease

How are stock prices determined?

the market forces of supply and demand

Given a RIGHTWARD shift of a demand curve for jeans, what can be concluded?

advertising increased demand for jeans

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Economics Final Review

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Questions 25

Answers

1
What is the difference b/w fixed and variable costs?
fixed costs depend on outside forces; variable costs depend on internal
fixed costs are always low; variable costs are always high
fixed costs remain the same; variable costs are determined by fixed costs
fixed costs remain the same; variable costs depend on how much is produced
2
In a factor market
individuals are customers and businesses are producers
businesses sell productive resources
businesses are customers and individuals are producers
individuals buy goods and services
3
What do producers have to do as a result of cost-push inflation?
raise prices to maintain profits
lower prices to increase profits
raise prices to produce more goods
lower prices to produce more goods
4
idea that countries gain when they produce items they are most efficient at producing & are at the lowest opp cost
law of economic advantage
law of absolute advantage
law of trade advantage
law of comparative advantage
5
What is supply?
willingness and ability of laborers to work for producers for pay
willingness and ability of the gov to offer protections to citizens
willingness and ability of consumers to purchase goods and services
willingness and ability of producers to offer goods and services for sale
6
What is one of the greatest advantages of a mutual fund?
is traded on the NASDAQ rather than on the New York Stock Exchange
allows individuals to move investments from money markets to capital market
allows individuals without a lot of $ to own a variety of financial assets
specializes in the stock of companies on the Dow Jones Industrial Average
7
What are the 2 basic tools the gov uses to influence the economy?
taxation and wages
entitlements and spending
taxation and spending
entitlements and wages
8
If new restaurants open and that causes the supply curve for burgers to shift right, what can you conclude?
a drop in the number of producers decreased supply
competition drove one of the restaurants out of business
an increase in the number of producers increased supply
a drop in input costs caused producers to increase supply
9
Government plan to reduce demand and slow the economy
contractionary fiscal policy
discretionary fiscal policy
stabilizing fiscal policy
expansionary fiscal policy
10
What should an investor do before choosing among investment options?
hire a financial analyst
consult a stockbroker
determine an investment objective
read a financial newspaper
11
What is an advantage of a pure market economy?
has mechanisms for providing public goods
allows communities to set their own economic development
provides security to those who are not economically productive
prevents unequal distribution of wealth
12
A situation in which producers in one nation depend on others to provide goods & services they do not produce is called
international interdependence
corporate interdependence
trade interdependence
economic interdependence
13
Which of the following can change supply?
input costs
substitutes
equilibrium
income
14
Which of the following examines the costs and expected benefits of a choice?
choice-benefit analysis
cost-profit analysis
choice-profit analysis
cost-benefit analysis
15
According to the law of supply, when price increases
quantity demanded increases
quantity supplied increases
demand increases
supply increases
16
With monopolistic competition there are
many buyers and many sellers
few sellers and few buyers
few buyers and many sellers
many buyers but few sellers
17
What is a helpful guideline for investing?
if you have a low income, you must worry about tax liability first
invest in stocks before paying off credit card debt
the longer you have to invest, the more risk you can take
the less time you have to invest, the more risk you should take
18
What is the best measure of a nation's economic growth?
the amount of change in its imports
the amount of change in its taxes
the amount of change in its population
the amount of change in its real GDP
19
A factory closes, laying off hundreds of workers and consumer spending in town falls. What factor is affecting demand?
substitutes
income
consumer expectations
consumer taste
20
the Federal Reserve System is
an agency in Washington, DC, that must approve all banking policies
12 regional banks with a central decision-making board
a set of vaults used to store the national treasury
a network of local banks with a special national charter
21
Why do consumers benefit from imports?
selection of goods decreases and price increases
selection of goods and prices both decrease
selection of goods increases and prices decrease
selection of goods and prices both increase
22
Which age group is most severely affected by unemployment during and economic slowdown?
young
the late middle-aged
middle-aged
elderly
23
How are stock prices determined?
the ruling of the Securities and Exchange Commission
the market forces of supply and demand
the valuation made by corporate auditors
price fixing by workers at the stock exchanges
24
What is an effect of inflation on the economy?
decreasing interest rates
decreasing unemployment
decreasing value of the dollar
increasing returns on savings
25
Given a RIGHTWARD shift of a demand curve for jeans, what can be concluded?
advertising increased demand for jeans
advertising did not affect the demand for jeans
advertising decreased the demand for jeans
jeans advertising misled customers

Economics Final Review Flashcards | StudBud