Produces at least four completely unrelated goods and services.

A cause for Inflation could be?

Too much money in economy causing rise in prices for consumer goods

Which is NOT an example of a market failure?

Long waiting list for handmade guitars (manufacturing shortfal)

When a business has total control over an entire market

What is the substitution effect?

When prices rise, consumers buy cheaper alternatives

What is economic utility?

The amount of usefulness in a product/service

the desire, willingness and ability to buy a product

What's the law of demand?

As prices go up, demand will go down

how does supply and demand determine equilibrium price and quantity

PRICE makes quantity demanded equal to quantity supplied

Market is dominated by a small number of large producers.

What is Cyclical Unemployment?

Unemployment due to a downturn of the business cycle, not long term

What is the single BIGGEST disadvantage of a sole proprietorship?

you are on your own and have UNLIMITED liability

"FIAT" currency is currency....

because the government says it is

Diminishing marginal utility means

additional satisfaction from each unit tends to fall as you consume more

In Monopolistic Competition, .....

producers supply a differentiated product.

Portable, durable, divisible, limited in supply, and store of value

Which of the following is NOT a 'legal' monopoly?

Only one company that provides Phone services to the whole U.S. (corporate)

An example of a horizontal merger is:

A cell-phone service provider buying a rival cell-phone service provider

made to last more than 3 years with regular use

The management of the supply of money in circulation

What are the three economic questions?

What to produce, for whom to produce, how to produce it?

The value of all final goods and services in a country in a year

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Econ Final Review

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Questions 30

Answers

1
A conglomerate...
Produces at least four completely unrelated goods and services.
Is not usually allowed by the government
Any business that operates overseas
Produces the same goods and services.
2
A cause for Inflation could be?
The fall in prices for consumer goods
Too little money circulating in economy increasing it's value
Too much money in economy causing rise in prices for consumer goods
Unemployment rises
3
Which is NOT an example of a market failure?
Only five news media corporations (insufficient competition)
Unfilled Tech jobs in CA, unemployed coal miners in WV (resource immobility
Polution caused by a paint fctory (externality)
Long waiting list for handmade guitars (manufacturing shortfal)
4
What is a monopoly?
when a business has no control over a market
when a business has limited control over a market
When a business has total control over an entire market
there are unlimited sellers
5
What is the substitution effect?
When supply increases, producers lower prices
When prices drop, consumers invest in stocks
When prices rise, consumers buy cheaper alternatives
When demand increases, the cost of a good decreases
6
What is economic utility?
The amount of usefulness in a product/service
The price paid for something
How easy it is for a product to enter into the economy
How a thing is promoted in the economy
7
What two taxes do we call FICA?
Social Security and Medicare
Selective service and medicine
Soylent Green and Medicare
Financial Incompetence Catastrophe Assurance
8
The U.S economic goal of making prices predictable and consistent is:
Economic security
Economic Stability
Economic disparity
Economic Equality
9
Which of the following would be classified as a service?
A car
Apps for your phone
A defective product
A Cheeseburger
10
Demand is
a name of a coin used in the Caribbean
another name for a service
the desire, willingness and ability to buy a product
the amount of something that is available
11
What's the law of demand?
Demand goes up as production costs goes up
As prices go up supply goes up too
Something people buy that you can hold or touch.
As prices go up, demand will go down
12
how does supply and demand determine equilibrium price and quantity
PRICE makes quantity demanded equal to quantity supplied
The price doesn't determine equilibrium
The price makes the quantity demanded impossible to reach
The PRICE is unrelated to the good in question
13
In an oligopoly...
Market is dominated by many producers
no-one is in charge.
Market is dominated by a small number of large producers.
Consumers dominate the market
14
What is Cyclical Unemployment?
Unemployment caused by new technologies
Unemployment due to a downturn of the business cycle, not long term
Joblessness because of the end of a seasonal specific position
Unemployment due to a permanent or long- term change in the economy.
15
When the Fed buys and sells treasury bonds...
Reserve Operations
Discount Operations
Margin Operations
Open Market Operations
16
What is the single BIGGEST disadvantage of a sole proprietorship?
Co-owners who share responsibility for management and debt
Sell stock and easily raise Capital
you are on your own and have UNLIMITED liability
Charter giving you LIMITED Liability
17
"FIAT" currency is currency....
because we are free to choose our own money
because it is online only
because we like fiat cars
because the government says it is
18
Diminishing marginal utility means
The cost of gas and electric falls as you consume more
demand increases as you consume more
production rises as you demand more
additional satisfaction from each unit tends to fall as you consume more
19
In Monopolistic Competition, .....
Products are identical from every supplier
producers supply a differentiated product.
there are large start-up costs
firms have high market power
20
Money must be:
A gas, a hit, a crime, and the root of all evil today (so they say)
Combustible, fragile, ethereal, glamorous, and segmented
round, paper, gold, and decorated with famous dead people
Portable, durable, divisible, limited in supply, and store of value
21
Which of the following is NOT a 'legal' monopoly?
Only one gas station on a long stretch of desert highway (geographic)
Only one company that provides Phone services to the whole U.S. (corporate)
Scoundrel is sole maker of a cancer drug he holds patent on (technological)
A single electricity utility in a whole state (natural)
22
Which of these is NOT a determinant of demand ELASTICITY
Cost of production
Urgency of need
Price as portion of consumer income
Availability of many substitutes
23
An example of a horizontal merger is:
A cell-phone service provider buying a rival cell-phone service provider
A bicycle manufacturer buying an inner-tube manufacturer
An internet retailer starting a space travel company
A perfume manufacturer buying a fast-food chain
24
Corporation that sells stock on the open market
Limited Partnership
Open corporation
Market Corporation
Closed corporation
25
A durable good is:
any good or service used by a consumer
made to last more than 3 years with regular use
a good or service that that is only in production of other goods
made to last less than 3 years with regular use
26
Monetary policy is
The management of the supply of money in circulation
Immigration laws for ownership of land
The regulation of business practices and ethics
The increase of global trade tax
27
Which of the following is NOT one of the four factors of production?
Land
Labor
Equality
Capital
28
Taxation on corporations
All of the above
Are payed by owners on their profits from stock
Are payed on profit earned by corporations as individual legal entities
Are not the greatest source of revenue for U.S. Government
29
What are the three economic questions?
What to produce, who will produce, how to distribute profit?
What to produce, who will produce it, how to produce it?
What resources to use, for whom to produce, how to produce?
What to produce, for whom to produce, how to produce it?
30
What is GDP?
The value of all final goods and services in a country in a year
Unemployment X inflation/number of citizens over 16
Sum of all imports from foreign trade
The dollar value of a Specific good & service in the USA

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