Economics Final Review

Question 1

According to this school of economic thought, gov. deficit spending is the way of a recession

Accepted Answer

Keynesian economics

Question 2

Min. wage proponents argue that the rise in unempl. will be low because demand for labor is...

Accepted Answer

Inelastic

Question 3

When a price ceiling is imposed above the equilibrium price,

Accepted Answer

the equilibrium outcome prevails.

Question 4

How has the distribution of income in the United States changed over the last 30 years?

Accepted Answer

It has become less equal.

Question 5

In a market economy __________ ___________

Accepted Answer

prices adjust to reconcile scarcity and desires

Question 6

Which of the following organizations is primarily focused on increasing free trade globally?

Accepted Answer

The WTO

Question 7

Because of...all of us face tradeoffs

Accepted Answer

Scarcity

Question 8

According to the Laffer curve if gov. were to raise taxes on corp.s now gov. revenue will...

Accepted Answer

decrease

Question 9

Which of the following is not one of the three econ. questions all societies must answer

Accepted Answer

How much to produce

Question 10

Why does government subsidize K-12 education?

Accepted Answer

Education is an example of a positive externality.

Question 11

The willingness and ability to buy something.

Accepted Answer

demand

Question 12

If the price for a can of soda goes down...

Accepted Answer

The quantity demanded will go up

Question 13

According to this school of econ. thought, gov. intervention causes more problems.

Accepted Answer

Classical Economics

Question 14

Antitrust legislation has been passed to allow the government to _______.

Accepted Answer

break up monopolies

Question 15

Which of the following is not one of the four factors of production

Accepted Answer

Technology

Question 16

When the economy is working properly, what is the unemployment rate?

Accepted Answer

4 to 6 percent

Question 17

In order to avoid another econ. crisis in 2008, some argue this must be reinstated.

Accepted Answer

The Glass Steagall Act

Question 18

If the cost of computer components falls, then

Accepted Answer

the supply curve for computers shifts to the right

Question 19

In what quarter of 2011 has economic growth peaked?

Accepted Answer

4th

Question 20

Fiscal policy is purposeful movements in ____________ designed to direct an economy

Accepted Answer

Government spending and taxes

Question 21

In what area of the job market are most union jobs today?

Accepted Answer

Government

Question 22

At point D, what is the opportunity cost of producing 40 more units of X?

Accepted Answer

1

Question 23

In inflation-adjusted dollars how have average wages in the U.S. changed in the last 30 years?

Accepted Answer

Wages have gone down.

Question 24

Adam Smith's inv. hand theory posits businesses will produce what peo. most desire b/c

Accepted Answer

this will maximize business profits.

Question 25

This provides bank depositors the peace of mind that their deposits are safe.

Accepted Answer

The FDIC

Question 26

A country has absolute advantage if they...

Accepted Answer

can produce more of a good or service than the other country

Question 27

In the mixed economy...

Accepted Answer

economic problems are solved by the government and market

Question 28

To Adam Smith, the "invisible hand" refers to

Accepted Answer

the free market.

Question 29

If an excise taxes was increased, the effect would...

Accepted Answer

Shift supply to the left

Economics Final Review

Questions 29

Economics Final Review

Questions 29