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Economics GMAS
Economics GMAS
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Economics #Fundamentals #Microeconomics #Macroeconomics #International #Personal Finance
Flashcards
92 cards
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Questions
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Answers
1
As price increase, quantity demanded decreases.
Law of Increasing Opportunity Costs
Law of Supply
Law of Demand
Adam's Law
2
The total demand for goods and services.
efficiency
Aggregate supply
Aggregate demand
GDP
3
If you have more exports than imports, the balance of trade will be
negative
neutral
positive
undefined
4
How many district banks are there in the Federal Reserve System?
100
7
12
over 100,000
5
The highest point of the business cycle.
Trough
Expansion
Peak
Contraction
6
If you are out of work due to injury, you will receive this.
a check from AllState
A check from New York Life
a check from Progressive
a check from Social Security
7
Who's most likely to get rejected for a car loan?
Someone who has missed payments on a mortgage
Someone with no credit
Someone without a job
Someone paying in cash
8
How can the amount of work you do be measured?
Stability
Efficiency
Equity
Productivity
9
Which of the following is a public good?
Benedictine Military School
Lake Mayer
Oglethorpe Mall
St. Joseph's Hospital
10
If Sam can produce pizzas at a lower opportunity cost than Dave then, Sam has the
trade deficit
slight advantage
comparative advantage
absolute advantage
11
The customer is always right.
Voluntary exchange
Business cycle
Consumer sovereignty
Consumer interest
12
Where firms sell goods and services to households.
Capital market
Stock market
Factor market
Product market
13
If many companies make similar products then they fall into this market structure.
monopoly
monopolistic competition
oligopoly
perfect competition
14
Gas prices soared today, up $1.00.
Deflation
Inflation
Hyperinflation
Stagflation
15
The price of HDTVs drops from $1000 to $750
hyperinflation
deflation
stagflation
inflation
16
A water company
Geographical monopoly
Technological monopoly
Natural monopoly
Government monopoly
17
A general rise in prices
Deflation
Stagflation
Hyperinflation
Inflation
18
Which of the following is an action the government would take?
Lowering gas prices
Building a new Taco Bell
Increase unemployment benefits from 26 weeks to 1 year
Setting a quota on college admissions
19
The effect of education on income..
Workers who make high demand products are paid well
High school education required for interview
Employees in high risk jobs always get paid more
College graduates usually earn more than HS graduates
20
If you are low income and taxes hurt you more than the rich, then the tax is
progressive
regressive
fair
proportional
21
What is the dual mandate of the Fed?
Low unemployment and price stability
Inflation and high unemployment
provide jobs and fund wars
increase the money supply and raise taxes
22
If you travel to Europe and the U.S. Dollar depreciates,
just use American dollars
you will not be able to buy as much Euro than before
you will be able to buy more Euro
you will not be able to buy Euro
23
If the Fed wants to slow down inflation, it would
buy bonds
decrease the reserve requirement
raise taxes
increase the discount rate
24
If I go to school, I will miss out on watching ESPN.
ESPN is the trade-off
ESPN is the opportunity cost
Going to school is the trade-off
Going to school is the opportunity cost
25
The degree of wealth and material comfort available to a person or community.
Poverty threshold
Standard of living
Premium
Consumer soverignty
26
In which economic system would you see the most economic growth?
Market
Command
Mixed
Traditional
27
Which of the following is a measure of economic growth?
Consumer Price Index
Gross Domestic Product
Exchange rate
National Debt
28
Which of the following is a free market philosopher?
Stalin
Lenin
Karl Marx
Adam Smith
29
The government increases government spending.
expansionary fiscal policy
contractionary monetary policy
contractionary fiscal policy
expansionary monetary policy
30
Verizon, AT&T, Sprint, and T-Mobile control the cellular service industry.
Monopolistic competition
Oligopoly
Perfect competition
Monopoly
31
Which of the following causes supply of apples to decrease?
Raising the price of apples
An increase in apple suppliers
A drought
Lowering the price of apples
32
People who are against free trade are called
socialists
protectionists
abolitionists
communists
33
If a new company was built in Thunderbolt, how would that affect the demand locally?
Quantity demanded would decrease
Quantity demanded would increase
Demand would increase
Demand would decrease
34
Saved money that can be used to purchase real estate, stocks, and other assets of worth.
Savings
Currency
Investment
Debt
35
After graduation, you quit your job to get ready for college.
cyclical unemployment
frictional unemployment
seasonal unemployment
structural unemployment
36
Which of the following is a member of NAFTA?
China
United States
Japan
Russia
37
Unemployment rate is the total number of unemployed people divided by
the total number of transactions in the resource market
the inflation rate
the number of people in the labor force
the total number of discouraged workers
38
What is an advantage of living in a command economy?
Making a profit
Everyone has traditional roles
Sharing of resources
Paying for healthcare
39
The price at which quantity supplied and quantity demanded are equal.
Market clearing price
Floor price
Equilibrium price
Ceiling price
40
Gulfstream will layoff 1,000 workers in May.
cyclical unemployment
structural unemployment
frictional unemployment
seasonal unemployment
41
What do NAFTA, EU, and ASEAN have in common?
They are all interested in promoting free trade.
Each group attempts to enforce trade barriers rigidly.
All three groups use the same currency.
The United States is a member of all three.
42
How long can someone serve on the Board of Governors of the Fed?
12 years
2 years
14 years
4 years
43
An example of a regressive tax
sales tax
sin tax
federal income tax
state income tax
44
An extended period of economic decline.
Depression
Trough
Peak
Deflation
45
There are 300 dairy farmers in Georgia. They all produce milk.
Monopoly
Perfect competition
Oligopoly
Monopolistic competition
46
What is a disadvantage of a mixed economy?
Free healthcare
Higher taxes
Free education
No allies
47
Headline that would MOST LIKELY be found in a country that experienced future economic growth.
"Central bank to raise interest rates."
"Government to offer new educational opportunities."
"Inflation rate hits new highs."
"Country experiences population reduction."
48
Which of the following is NOT a factor of production?
Capital
Profit
Land
Labor
49
A short period of economic decline.
Peak
Trough
Expansion
Recession
50
If the government sets a price ceiling of $800, which is $200 below equilibrium, it is called a
rent control
quota
price control
embargo
51
Joe wants to open a business where he is the boss and all of his workers answer to him.
Partnership
Corporation
Franchise
Sole-propriertorship
52
Which of the following is NOT a rational decision?
Missing school to attend a college tour
Deciding to play professional baseball right after HS
Missing work to go to the beach
Deciding to play college baseball
53
Which of the following is the BEST example of a market failure resolved by the government?
Poverty
Inflation
National debt
Education
54
A graph that shows who a country uses productive resources.
Marginal analysis
Production possibilities curve
Demand curve
Supply curve
55
If you decide to sell an iPhone to a friend for $200.
price gouging
bartering
voluntary exchange
rationing
56
Comcast is the only cable provider in Georgia.
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
57
Which of the following is an advantage of a partnership?
One person keeps all profits
Own shares of stock
Specialization
Potential conflict
58
In college, everyone picks a major. This is an example of
specialization
productivity
underutilization
efficiency
59
If a labor union fights for higher wages, this is known as
labor strike
interviewing
boycotting
collective bargaining
60
Which of the following is a site for a Federal Reserve District Bank?
Atlanta
Charleston
Jacksonville
Tampa
61
If employing five workers has a marginal cost of $10, when should the company stop hiring?
When the marginal revenue is $10
When the marginal revenue is $15
When the marginal revenue is $5
When the marginal revenue is $9
62
Limiting the amount of items a country that can be imported into another country.
tariff
quota
standards
monopoly
63
If the government sets the minimum price above the equilibrium price.
Price ceiling
Supply floor
Price floor
Glass ceiling
64
The GDP has dropped and prices are still going up.
Stagflation
Inflation
Deflation
Hyperinflation
65
Who decides on the Federal Budget?
Congress and President Obama
President Obama and the Board of Governors
Consumers and producers
the Chairman of the Fed and the Board of Governors
66
Which country has the most economic freedom?
Hong Kong
North Korea
China
United States
67
As prices decrease, quantity supplied decreases.
The Law of Supply
Murphy's Law
Newton's Law
The Law of Demand
68
Which of the following would be a positive external for bringing a pro team to Savannah?
Restaurants increase prices
More jobs
Traffic problems
Increase in crime
69
If China, Japan, and United States decided to trade workers, goods and services they are
inefficient
independent
interdependent
solo
70
Which of the following is not a function of money?
unit of account
bartering
store of value
medium of exchange
71
Steve Jobs was fired as CEO at Apple. He was later rehired. When he died, Tim Cook took over.
sole-propriertorship
Corporation
partnership
franchise
72
What describes scarcity?
An unlimited demand for goods and services
A condition where supply exceeds demand.
A temporary storage of a good or service
Unlimited wants exceeding limited resources
73
Which of the following would be an example of a non-fraudulent exchange?
Taking a stapler home from work for personal use
Buying movies from the black market
Buying a car from a Honda dealership
Selling fake Jordan's
74
Which of the following would not be an example of a sin tax?
A tax on medicine
A tax on alcoholic beverages
A tax on cigarettes
A tax on gambling
75
A group of people that form to improve working conditions
cartel
labor union
collective
fraternity
76
Which economic system is not equitable?
market
mixed
traditional
command
77
Who is hurt the most by inflation?
Someone who borrows money
People living on a fixed income
A rich doctor
A corporation
78
Which of the following is NOT a trading bloc?
NAFTA
EU
ASEAN
OPEC
79
How is the Federal Budget experience scarcity?
Government decides to fund education
Government decides to cut education
National debt
Limited tax revenue to fund programs
80
Shaq decided to buy Five Guys restaurants all over the country.
Corporation
Sole-propriertorship
Franchise
Partnership
81
A market basket of goods that people normally purchase. Used to measure inflation.
Consumer Reports
Producer Price Index
Product market
Consumer Price Index
82
Which of the following would NOT be include in GDP in the US for 2015?
Nike produces shoes in Vietnam in 2015
Nissan opens a new store in Savannah in 2015.
The government builds a bridge in 2015.
A car produced in the US in 2015
83
Who answers the three basic economic questions in a market economy?
Consumers and producers
the President
Congress
Governor
84
Which of the following is an example of economic security?
Stock market
Georgia lottery
Investing in real estate
Unemployment check
85
What is an incentive to get a college degree?
Parties and social functions
No parental involvement
Only knowing people from your hometown
Potentially higher paying job with benefits
86
If the government sets the maximum price below equilibrium price.
Elastic price
Price ceiling
Inelastic price
Price floor
87
The actions of the FED that control and regulate the amount of money in the economy.
international trade
monetary policy
opportunity costs
fiscal policy
88
A individual who owns land in Pooler, sells it to real estate mogul in Savannah.
product market
factor market
resource market
real estate market
89
A model that shows how households and firms interact in the marketplace.
Laffer curve
Production possibilities curve
Circular flow diagram
Supply and demand curve
90
What committee regulates the purchasing and selling of bonds?
FOMC
Board of Governors
Illuminati
Congress
91
Which of the following is not a government regulation?
Minimum wage
Seat belts
Cell phone policy at work
Traffic lights
92
Who is the current chairman of the Fed?
Janet Yellen
Bill Gates
Alan Greenspan
Ben Bernanke
