stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Economics Unit 3 Exam Flashcards | StudBud
Explore
/
Economics Unit 3 Exam
Economics Unit 3 Exam
30 terms
·
StudBud Administration
·
598 plays
Imported from external platform
Flashcards
30 cards
F
Practice quiz
P
Host live
L
Questions
30
Answers
1
Based on the information in the graph and the table, what is the equilibrium price of pizza?
$3.00
$4.00
$2.00
$5.00
2
On a supply and demand graph, supply will decrease and shift to the left when which of the following happens?
The total cost of inputs decreases.
Production taxes decline over a short period of time.
There are fewer government regulations in place.
The number of firms leaving the industry increases.
3
One of the advantages corporations have that sole proprietorships do not is —
lack of special taxes
limited liability
rights to all profits
ease of start up
4
the gov. said that it would stop the production of a particular military aircraft. How will this affect the area?
an increase in the market because aircraft makers will be more efficient
a reduction in the income of households resulting in reduced purchasing pwr
There will be a shift of gov spending to the production of alternatives
Unemployment will increase resulting in the creation of new types of jobs
5
Advocates of free trade argue that it results in —
lower corporate tax rates
increased economic growth
increased immigration
higher unemployment
6
Scarcity is a basic economic problem because —
governments limit production
resources are limited
people have trouble making choices
opportunity costs limit demand
7
Which one of the following is both a federal revenue source and an expenditure?
Defense spending
Income taxes
Net interest
Social Security
8
Which of the following accounts for why countries specialize in particular trade products?
Government regulations
Variety in the types of economic systems
Variation in the size of markets
Unequal distribution of resources
9
What economic policy distinguishes Sweden’s free market economy from that of the United States?
Government funding of education and health care
High levels of administrative inefficiency
Sweden limits government spending
Privatization of the social welfare system
10
The market structure of pure competition is distinctive because —
there are no examples of this type of market structure
the sellers in this market structure have no control over price
only one seller is needed in this market structure
there are large numbers of barriers to entry into this market structure
11
The introduction of new manufacturing technologies generally affects economic growth by —
creating safer work environments
increasing the productivity of labor
stopping production while workers learn the new technology
restricting growth because of the additional expense
12
An expansionary period in the business cycle is distinguished by —
declining sales
fewer excise taxes
high inflation
low unemployment
13
One of the benefits of the U.S. free enterprise system is the —
equal distribution of goods and services
amount of choices for consumers
guaranteed returns on investments
lack of union participation by workers
14
Economic growth would most likely result from —
decreased trade
increased productivity
decreased sales of stock
increased employment
15
Which of the following conditions could explain the shift in the demand curve shown on the graph?
Surveys found that people are eating more cooked tomatoes.
Eating cooked tomatoes was found to have more health benefits.
Farmers harvested a bumper crop of tomatoes.
Shoppers learned that cans of cooked tomatoes are spoiled.
16
If businesses can decrease the amount of labor needed to increase inventories, the result will most likely be —
increased inflation
decreased productivity
increased taxes
economic growth
17
One of the benefits of renting a home is that the cost of maintenance is —
the responsibility of the landlord
covered by renters insurance
cheaper in a rental property
refunded with the deposit
18
Based on the information on the table above, which economic condition is characteristic of all three nations?
Low GDP per capita
Low inflationary levels
High levels of unemployment
High levels of inflation
19
One government restriction to consider when proposing to build a new business includes —
hiring subcontractors
investor taxes
zoning laws
repayment of loans
20
High levels of unemployment combined with high levels of inflation could indicate that the business cycle has entered in
expansion
investment
stagflation
recession
21
In the U.S. free enterprise system one of the primary roles of the government is to —
provide new sources of funding for technology start ups
ensure the safety of products through regulation
employ a majority of the workforce
guarantee that investors profits are secure
22
One cost consideration made when purchasing personal property, such as a car would be —
asset value of the property
maintenance of the property
potential co-owners of the property
time spent viewing the property
23
Which of the following is a non-price determinant of demand?
Productivity
Consumer preferences
Price ceiling
Subsidy
24
Which non-price determinate is sometimes used by the govt to decrease demand for a product that is viewed as harmful
Subsidies
Excise taxes
Consumer boycotts
Rationing
25
In a free market society, the answer to the question about how much to produce is determined by —
government quotes
census data
consumer demand
profit projections
26
Jenny needs a computer and a new television for college. She only has enough for the computer. Which is the opp cost
A new television
A new computer
College tuition money
Moving expenses
27
Supporters of protectionism would argue that free trade adversely affects which group of people?
Consumers
Workers
Multi-national corporations
Shareholders
28
With a given amount of resources, a country with a comparative advantage will produce a product with —
higher quality specifications
decreased demand
lower opportunity costs
cheaper natural resources
29
In comparison to the U.S. free enterprise system the economy of China is characterized by a lack of —
trade incentives
manufacturing industries
well-paying jobs
competition
30
Which of the following best completes the diagram?
Characteristics of Partnerships
Characteristics of Free Enterprise
Characteristics of Corporations
Characteristics of Sole Proprietorships
