The point at which quantity and demand are equal

What is the definition of unemployment?

Someone who is able to work, but chooses not to

What is elastic demand?

percentage change in quantity demanded > percentage change in price

What is a price floor?

A legislated price set above the equilibrium

When wants are greater than resources available

Financial payment from government for certain actions

What is the definition of opportunity cost?

The most valued opportunity/alternative forfeited when a choice is made

Do you feel more prepared for the econ exam?!

NO., YES YES YES, haha.. kinda?

What are the macroeconomic goals?

1. Economic growth 2. Stable prices 3. low unemployment

What is fiscal policy?

Changes government makes in spending/taxation to achieve particular goals

Expenditures made by the business sector

When prices decline across the economy

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Semester 1 econ Quiz :D

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Questions 30

Answers

1
Printing $ is a form of monetary policy
True
False
2
What is the federal reserve system?
The central bank of the US
All of Michigan's banks
The world bank
Europe's central bank
3
What is equilibrium?
When quantity demanded is greater than quantity supplied
The point at which quantity and demand are equal
When the quantity supplied is greater than the quantity demanded
The equal amount of librium
4
What is true about point F?
It's unobtainable
It's an inefficient use of resources
It's an opportunity cost
It's obtainable if all resources are used
5
What is the definition of unemployment?
Someone who is unable to work, but chooses to
Someone working part time wanting to work full time
Someone who is able to work, but chooses not to
Someone looking for work, but they can't find it
6
What is elastic demand?
percentage change in quantity demanded = percentage change in supply
how much of an impact that a change in price will have
percentage change in quantity demanded is = percentage change in price
percentage change in quantity demanded > percentage change in price
7
How is inflation measured?
Quantity demanded
Unemployment rate
CPI
GDP
8
What can be said about the opportunity cost?
It's increasing
It's constant
It's infinite
It's decreasing
9
There are 5 macroeconomic goals.
True
False
10
The central bank controls monetary policy
True
False
11
What is a price floor?
A legislated price set above the equilibrium
When stock prices hit rock bottom
Stock of goods on the floor
A legislated price set below the equilibrium
12
When is expansionary fiscal policy used?
When there's high unemployment
When there's high deficits
When there's deflation
When there's inflation
13
What is scarcity?
When wants are greater than resources available
Something scary
items owned and controlled by individuals
When there's an abundance of resources
14
What is this diagram called?
Circular Flow Diagram
Supply and Demand Diagram
Business cycle
15
What is a subsidy?
Restriction of product production
Financial payment from government for certain actions
The "extra" cost of doing business
Resource prices
16
Crowding in is the increase in government spending, leading to reductions in private spending.
False
True
17
What happens if demand increases more than supply?
Equilibrium price increases
Supply decreases
Equilibrium price decreases
Surplus occurs
18
What is the definition of opportunity cost?
The benefits V.S the cost
The most valued opportunity/alternative forfeited when a choice is made
A means for deciding who gets resources
when more of one thing means less than something else
19
Do you feel more prepared for the econ exam?!
NO.
YES YES YES
haha.. kinda?
20
Taxes are included in GDP.
True
False
21
If demand increases, supply_____
Increases
Decreases
Doesn't change at all
22
Who is in charge of fiscal policy?
The mayor
Federal reserve
Congress
The central bank
23
What are the macroeconomic goals?
1. increase GDP 2. decrease inflation 3. reach equilibrium
1. increase inflation 2. barely create resources 3. obtain high crime rates
1. Economic growth 2. Stable prices 3. low unemployment
1.make government rich 2. reduce poverty 3. high unemployment
24
Who came up with the "invisible hand"?
Alfred Marshall
Karl Marx
Adam Smith
David Ricardo
25
What is fiscal policy?
Changes government makes in spending/taxation to achieve particular goals
Change in resources to increase demand
Change in demand to increase resources
Manipulations in money supply to achieve macroeconomic goals
26
As price increases, quantity demanded _______
Decreases
Increases
27
What is investment?
Expenditures made by the business sector
Expenditures made by the household sector
A good at it's final user
A good that hasn't reached it's final user
28
What is deflation?
When prices decline across the economy
When supply increases across the economy
When supply decreases across the economy
When prices increase across the economy
29
GDP is enough to showcase economic growth.
False
True
30
If more of one soda is made, then there will be less of the other. What is this relationship considered?
Opportunity cost
Scarcity
Trade off
A choice

Semester 1 econ Quiz :D Flashcards | StudBud