What happens when the aggregate demand shifts to the left?

Prices and output falls aggregate demand shifts to the right

Structural unemployment

elimination of jobs because of a technology change

Contains 2 aspects government revenue and government spending

Monetary policy tools include

reserve requirements, discount rates, open mrkt operations

The skills, knowledge, and experience possessed by and individual

What is a natural monopoly?

One large firm controls all output

What is a disadvantage of free trade?

If one major economy crashes, the rest are impacted.

A production possibility curve represents the...

various combination of two goods that can be produced.

an example of a regressive tax could be ...

both B & C, B)Sales tax, C) property tax

Which of these are Included in GDP?

A Car from a American Dealership In America.

Albion has no government regulation of industries and uncontrolled access to resources.

It is a free enterprise economy.

What is comparative advantage?

Specialising in areas with lowest opportunity cost

How can conflicts between economic goals be resolved?

Comparing the cost of a goal to its benefit

The Expansionary Policy of the fiscal policy

increases government spending and reduced taxes

What is an insurance deductable

The out of pocket expense for an insured loss

a model, which the major exchanges are represented as flows of money

Which leads to an increase in supply?

Decrease in the cost of raw materials

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Final Exam Review

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Questions 34

Answers

1
How is economic growth represented on the PPC?
A shift outwards
A shift inwards
2
Which is not a factor contributing to economic growth?
Labour productivity
Natural resources
increased national debt
Accumulation of capital
3
What happens when the aggregate demand shifts to the left?
Aggregate demand shifts to the left
Prices rise
Output rise
Prices and output falls aggregate demand shifts to the right
4
Unemployment that is directly to swings in the business cycle is
structural unemployment
frictional unemployment
seasonal unemployment
cyclical unemployment
5
In 2020, the federal government paid more than $350 billion in interest on the national debt
False
True
6
Structural unemployment
reduction in jobs due to seasonal changes
elimination of jobs because of a technology change
a temporary reduction of jobs due to a downturn in business
increase in workers looking for higher paying jobs
7
What does the circular flow model show us?
The flow of money around the economy
what different economic participants consume and produce
all of the above
The relationships between governments, firms, and households
8
Typically, the ___ the risk, the ___ return on investment.
Higher, Higher
Higher, Lower
Lower, Lower
Lower, Higher
9
Government Budget
Contains 3 aspects government revenue, government income and government tax
Contains 2 aspects government revenue and government spending
Contains 2 aspects government revenue and government profit
Owo
10
Monetary policy tools include
gov. spending, taxing, open market operations
reserve requirements, discount rates, open mrkt operations
discount rate, taxes, open market operations
open market operations, discount rates, government spending
11
COMPOUND INTEREST IS DIFFERENT THAN SIMPLE INTEREST IN THAT IT......
NONE OF THESE
PAYS INTEREST ON INTEREST
DOES NOT PAY INTEREST ON INTEREST
DOES NOT PAY INTEREST
12
Human capital is
The knowledge, skills, and land possessed by an individual
The skills, knowledge and money possessed by an individual
The skills, knowledge, and experience possessed by and individual
The demand, knowledge, and skills possessed by an individual
13
According to rational economic decision making, we should accept an option when ____.
there are no costs
costs outweigh the benefits
benefits outweigh the costs
there are no benefits
14
What is a natural monopoly?
One large firm controls all output
Multiple firms control each control parts of the output
Multiple firms control the output
One large firms controls parts of the output
15
Who is hurt most by inflation?
People who have stagnant wages
Borrowers
Owners of appreciating assets
All of these
16
What is a disadvantage of free trade?
Businesses are restricted to their original country.
If one major economy crashes, the rest are impacted.
Countries are less open to democracy.
17
How does the Fed attempt to reduce inflation?
By raising interest rates
By renegotiating trade agreements
By lowering interest rates
By granting certain citizens exemption from interest rates
18
A production possibility curve represents the...
various combination of two goods that can be produced.
options for a government.
future choices for a business.
way factors of production can be used.
19
When quantity demanded exceeds quantity supplied
Surplus
Subsidy
Shortage
Recession
20
an example of a regressive tax could be ...
both B & C
B)Sales tax
A) Income tax
C) property tax
21
The point where quantity demanded equals quantity supplied
Quantity Supplied
Entrepreneur
Quantity Demanded
Equilibrium
22
Which of these are Included in GDP?
A car radio for a car that is going to be bought.
A car bought From a company that isn't American.
Social security that people pay throughout the year.
A Car from a American Dealership In America.
23
A Proportional Tax is also called a....
Flat Tax
Regressive Tax
Fair Tax
Great Tax
24
Albion has no government regulation of industries and uncontrolled access to resources.
It is a command economy.
It is a socialist economy.
It is a mixed economy.
It is a free enterprise economy.
25
Impact of falling exchange rates on imports?
Higher prices and lower demand
Higher prices and higher demand
Lower prices and lower demand
Lower prices and higher demand
26
What is comparative advantage?
Specialising in areas with lowest opportunity cost
Being better than who you're comparing yourself against
The cost of using alternative resources.
All of the above
27
How can conflicts between economic goals be resolved?
Randomly picking the best sounding choice
Making a choice based on the sound
Comparing the economic system with another
Comparing the cost of a goal to its benefit
28
The Expansionary Policy of the fiscal policy
decreased government spending and decreased taxes
decreased government spending and increased taxes
increases government spending and reduced taxes
increased government spending and increased taxes
29
What is an insurance deductable
A type of Insurance policy
What you have to pay to be insured
Max amount that insurances determine is reasonable for services
The out of pocket expense for an insured loss
30
The consumer price index helps measure
indication.
inflation.
inflatuation.
inflatulence.
31
SOME OF THE MAJOR TRADE BLOCS IN THE WORLD ARE...
EU, ASEAN, MERCOSUR & NAFTA
EUROPE, NORTH AMERICA AND THE SOUTH EAST OF ASIA
CHINA AND JAPAN
THE USA AND EUROPE
32
Circular flow is...
a model the goes in an oval explaining why life is important
a model, which the major exchanges are represented as flows of money
Just a blank diagram
A chart
33
Which leads to an increase in supply?
Decrease in the cost of raw materials
An increase in the cost of raw materials
Change in the law of supply
Diminishing marginal returns
34
How many Federal Reserve districts are there?
9
6
12
20

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