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Economics Final Exam Review Flashcards | StudBud
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Economics Final Exam Review
Economics Final Exam Review
30 terms
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#economics #final #review
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
What happens to the P & QD of airplanes if the cost of titanium, used to make planes, goes up?
P decreases and QD increases.
P and QD decrease
P increases and QD decreases.
P and QD increase.
2
The value of the next best thing that could have been chosen is known as...
opportunity cost
supply cost
demand cost
true cost
3
In a typical business cycle, what stage
immediately
follows a peak?
growth
expansion
contraction
trough
4
What is monopolistic competition?
very few companies sell identical products
one company selling different products
many companies sell similar but not identical products
one company sells identical products
5
If P = Price and QD = Quantity Demand, what variable is on the Y-axis?
Demand
P
Supply
QD
6
During what period are sudden increases in prices most likely occur?
recession
unemployment
inflation
depression
7
Which of the following is an example of structural unemployment?
A construction worker is laid off.
A teacher retires at 66.
A football player does not work in March.
A UPS driver loses her job to Amazon's Drone Delivery.
8
Why does the Federal Reserve alter monetary policy?
to make sure banks don't fail
to provide services to its branches
to lessen the effects of business cycles
to regulate the banks
9
A gallon of milk is an example of what?
nondurable good
perishable
durable good
excellent reading
10
What does GDP measure?
total spending in a country for one year
total value of all new goods and services produced
price levels of goods and services
quantity of goods and services produced by businesses
11
Borrowing money and starting a business is when you act like...
a rich person
the boss
a business man/woman
an entrepreneur
12
Which of the following best describes the law of demand?
The higher the price, the more people will want a good.
Everyone has limited income to spend.
When goods are cheap, people will buy more of it.
Services are just as important as goods.
13
What are Medicare and Social Security taxes referred to as on a paycheck?
Obamacare
HSA 1500
Federal Withholding
FICA
14
What does the Dow Jones Industrial Average consist of?
60 stocks from various markets
the top selling 250 stocks over 10 years
500 stocks that change annually
30 stocks that represent the market as a whole
15
What's the difference between a recession and depression?
recessions are period of growth and depressions are not
depressions always have high levels of unemployment
recessions are more severe and last longer
depressions include high levels of inflation
16
What does a demand curve show a relationship between?
supply and demand
income and demand
demand and price
price and quantity demanded
17
Which of the following is an example of scarcity?
⦁ A popular toy is sold out during the holidays.
You have spent your last penny and payday is next week.
A person wants an endless supply of everything.
Gasoline was rationed during WWII.
18
What is the best example of oligopoly?
three to four firms produce 80% output
ten or more firms produce 90% output
one firm produces 95% output
eight to ten firms produce 65% output
19
What do you buy when you loan money to the government and receive interest in return?
United States Savings Bond
United States Stock
United States Investment Estates
ownership of government business
20
What is the largest source of income for banks?
checking accounts
interest they receive from loans
the Federal Reserve
fees charged to customers
21
Which of the following makes someone an entrepreneur?
running a service that hires people to install plumbing
inventing computer games
earning lots of money
becoming a paid athlete
22
What is the best example of the law of supply?
A farmer adds fields and grows more crops.
Levis expands their factories.
Pizza Hut supplies more pizzas when prices go up
UPS buys a new fleet of trucks and airplanes.
23
What is the basic problem economics tries to solve?
money
illiteracy
scarcity
credit
24
Pepsi and Coke are substitutes. What happens to P & QD for Coke if the price of Pepsi goes up?
P increases and QD decreases.
P decreases and QD increases,
P and QD stay the same
P increases and QD increases.
25
Why is a 7% sales tax a bigger burden for someone making $20,000 rather than $100,000?
the tax burden is the same for both
some people pay more tax
the tax is a larger proportion of a low income
the tax rate is higher for lower incomes
26
If P = Price and QD = Quantity Demand, what variable is on the X-axis?
P
QD
Supply
Demand
27
What exists when expenditures exceed revenue?
budget surplus
budget deficit
profit
bonds are issued
28
Why would Apple locate its manufacturing facility in China?
labor is plentiful and therefore cheaper
closer to raw materials
china has better technology
closer to large cities
29
Which of the following is an example of cyclical unemployment?
A police officer quits her job and moves to Florida
A farm worker loses his job during winter
A manufacturer is replaced by a machine
A factory worker loses their job during a recession
30
Which of the following is NOT a factor of production?
capital
land
time
labor
