The Law of Supply states

The quantity supplied varies directly with it price

All of the following are characteristics of rationing EXCEPT

provides an efficient link between producers and consumers

Which of the following is more likely to cause a change in the quantity demanded for a product?

A massive decrease the price of the product

Which of the following is an advantage of a command economy?

It can change direction drastically in a short time

The Law of Demand states that

More will be purchased at low prices than at high ones

What are the factors of production?

Capital, land, labor, entrepreneurs

The three criteria for effective taxes are

Equity, simplicity and efficiency

All of the following are determinants of demand elasticity EXCEPT

Whether the product has utility

Which is NOT a strength of a market economy?

It supports all of its people equally

Which is NOT an advantage of a traditional economy?

Promotes new ideas and ways of doing things

The ability-to-pay principle of taxation states that

People should be taxed according to their ability to pay

All of the following can cause an increase in supply EXCEPT

Fewer sellers in the marketplace

designed to raise revenue and reduce consumption of products

Which of the following is NOT a capital good?

a television set for sale at an appliance store

studbud

Economics

33 termsStudBud Administration95 plays

Econ final review #wchseconfinal

Flashcards33 cardsFPractice quizPHost liveL

Questions 33

Answers

1
What is the single largest source of revenue for the federal government?
FICA taxes
Corporate income tax
Customs duty
Individual income tax
2
The Law of Supply states
The quantity supplied varies irregularly with its price
The quantity supplied varies directly with it price
The quantity supplied varies inversely with it price
The quantity demanded varies inversely with it price
3
All of the following are characteristics of rationing EXCEPT
Rationing decreases the incentive to work
provides an efficient link between producers and consumers
Rationing is often viewed as unfair
Rationing creates high administrative costs
4
Which of the following is more likely to cause a change in the quantity demanded for a product?
A moderate increase in consumer income
Changing prices of related products
Changing consumer tastes
A massive decrease the price of the product
5
A payment to stock holders representing a portion of corporate profit
Dow Jones Industrial Average
customs duty
gift tax
dividend
6
Which of the following is an advantage of a command economy?
There is no incentive to work hard
Requires a large decision-making bureaucracy
It can change direction drastically in a short time
Does not meet the demands of consumers
7
The Law of Demand states that
All people have the ability, desire, and willingness to buy
More will be purchased at low prices than at high ones
Less will be purchased at low prices than at high ones
same amount will be purchased at low prices than at higher
8
The next best alternative use of resources when one choice is made rather than another
subsides
opportunity costs
price floor
price ceiling
9
What are the factors of production?
Capital, land, machines, entrepreneurs
Capital, land, labor, entrepreneurs
Capital, machines, labor, entrepreneurs
Capital, land, labor, transportation
10
Which product is likely to have the most elastic supply?
Ships
Automobiles
Dishwashing machines
Ice cream cones
11
The three criteria for effective taxes are
Equity, progressiveness and efficiency
Equity, simplicity and efficiency
Efficiency, simplicity and progressiveness
Efficiency, simplicity, and regressive
12
Which of the following is an example of a consumer good?
A car
A car wash
A tune-up
An oil change
13
Tax on donation of money or wealth that is paid by the donor
customs duty
dividend
gift tax
Dow Jones Industrial Average
14
If there is a surplus in the market, the price is likely to
Fluctuate
Increase
Remain the same
Decrease
15
All of the following are determinants of demand elasticity EXCEPT
Whether the purchase requires a large portion of income
hether the purchase can be delayed
Whether there are adequate substitutes for the product
Whether the product has utility
16
Which is NOT a strength of a market economy?
It supports all of its people equally
It can adjust to change over time
It has decentralized decision making
It gives producers and consumers freedom
17
Government payment to encourage or protect a certain economic activity
opportunity costs
price ceiling
subsides
price floor
18
The maximum legal price that can be charged for a product
Price floor
Opportunity cost
Subsides
Price ceiling
19
What is NOT a basic economic question?
What to produce
Who can produce
For whom to produce
How to produce
20
The lowest legal price that can be charged for a product
opportunity costs
price floor
subsides
price ceiling
21
Taxes have all of the following economic effects EXCEPT
Changing consumer behavior
Removing sources of revenue
Affecting a nation’s productivity and growth
Altering resource allocation
22
Which is NOT an advantage of a traditional economy?
Everyone knows which role to play
It is clear what needs to be produced
There is little question as to how to produce
Promotes new ideas and ways of doing things
23
If there is a shortage in a market, the price is likely to
Remain the same
Fluctuate
Decrease
Increase
24
The ability-to-pay principle of taxation states that
People should be taxed according to their ability to pay
Taxes collected if citizens have the ability to pay
Only people who have the ability to pay should be taxed
If you benefit from government services, you pay for them
25
The individual income tax is a
Proportional tax
Gift tax
Regressive tax
Progressive tax
26
Which of the following products does not have relatively inelastic demand?
Stereo equipment
Prescription drugs
Weekly groceries
A doctor’s services
27
Statistical series of 30 representative stocks used to monitor prices changes
gift tax
dividend
Dow Jones Industrial Average
customs duty
28
All of the following are examples of complements EXCEPT
Flashlights and batteries
Butter and margarine
Cameras and film
Peanut butter and jelly
29
All of the following can cause an increase in supply EXCEPT
An increase in productivity
A decrease in the cost of inputs
Fewer sellers in the marketplace
A change in taxes or subsides
30
A sin tax is
imposes the same percentage rate of taxation on everyone
Simple tax levied on most consumer purchases
designed to raise revenue and reduce consumption of products
Complex tax on people’s earnings
31
Which of the following is NOT a capital good?
a television set for sale at an appliance store
an oven at a bakery
a cash register at a clothing store
a bulldozer at a construction site
32
Tax on imported products
gift tax
dividend
Dow Jones Industrial Average
customs duty
33
Which of the following is considered a service?
A Haircut
Scissors
A blow dryer
Hair spray

Economics Flashcards | StudBud