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Economics Final Exam Review Flashcards | StudBud
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Economics Final Exam Review
Economics Final Exam Review
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Econ Final Exam Review
Flashcards
28 cards
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Questions
28
Answers
1
All of the following are the 3-C's of credit EXCEPT:
Capital
Capability
Character
Capacity
2
Which of these does your state (AZ) government regulate?
A property tax rate charged to support public schools.
Requirements for obtaining a driver's license.
A tariff that is charged to import automobiles.
Age at which Social Security benefits are paid.
3
Inflation stemming from an increase in the price level of resources is called:
Demand-pull inflation
Cost-push inflation
Hyperinflation
Deflation
4
Who gains in voluntary trade?
The seller only.
The buyer only.
Both the buyer and seller but the seller usually gains more.
Both the buyer and seller.
5
The Consumer Price Index (CPI) can be defined as:
A decline in total production lasting at least two quarters.
The rise & fall of activity relative to long-term growth.
A measure of inflation based on a fixed "market basket."
The market value of all final goods and services.
6
All of the following are questions each economy must answer EXCEPT:
For whom will the goods & services be produced.
How will the goods & services be produced?
How many goods & services will be produced?
What goods & services will be produced?
7
All of these are components of aggregate demand (GDP) EXCEPT:
Government Spending
Consumption
Taxes
Investment
8
The increase in unemployment caused by the recession phase of the business cycle is called:
Seasonal unemployment
Frictional unemployment
Structural unemployment
Cyclical unemployment
9
The law of demand states that consumers are willing to buy:
More of a good or service at lower prices.
More of a good when there is less demand.
Less of a good or service at lower prices.
Less of a good when there is more demand.
10
The unemployment rate equals the:
Total people employed - Total unemployed.
Total # of unemployed/Total # in labor force.
Total people unemployed - Total employed.
Total # of people in labor force/# of unemployed.
11
A loan backed up by collateral is referred to as:
A cash loan
A secured loan
An unsecured loan
An installment loan
12
All of the following are characteristics of a pure market economy EXCEPT:
Resources are owned entirely by the government.
Market prices guide resources to their most productive use.
Markets answer the fundamental economic questions.
Resource owners have property rights.
13
All of the following are functions of money EXCEPT:
Store of value
Standard of value
Medium of exchange
Commodity money
14
Private ownership of property:
Causes the Tragedy of the Commons to occur.
Creates an incentive for owners to ignore wishes of others.
Provides owners an incentive to maintain/conserve resources.
Leads to overuse of resources.
15
The primary purpose of the Federal Reserve System is to:
Be the central bank and monetary authority in the US.
Be a model central bank for other nations to follow.
Monitor international trade.
Collect taxes and to regulate spending.
16
The Fed can reduce the money supply by doing each of the following EXCEPT:
Increasing the discount rate.
Purchasing more US government securities
Selling more US government securities
Increasing the required reserve ratio
17
The Federal Open Market Committee (FOMC) is a:
12 member group that buys & sells US government securities
Board of Governors that is responsible for monetary policy
Board of Governors that is responsible for fiscal policy
12 member group responsible for deciding types of currency
18
In economics, the word marginal means:
Unskilled.
Not very good.
Additional.
Lazy.
19
Who sets the price of a good or service in a market economy?
Buyers and sellers
Government economic policies
Mostly buyers
Mostly sellers
20
Which of the following provides information requested to a lender when applying for credit?
A credit bureau
A credit investigation
A credit card
A credit application
21
An established minimum price that buyers must pay for a product or service is called:
Equilibrium price
Price ceiling
Market price
Price floor
22
To take advantage of a lower opportunity cost to produce certain goods, countries must:
Have fertile soil
Import most goods
Employ specialization
Have higher labor costs
23
Scarcity is defined as:
Unlimited resources with limited wants.
The value of the alternative not chosen.
Limited resources with unlimited wants.
Lack of resources to satisfy wants.
24
Capital goods consist of:
Music lesson, oil changes, and haircuts.
Machines, tools, and equipment.
Raw material, labor, and finished products.
Money, savings, and investment.
25
If the Fed wanted to increase the money supply, they would:
Raise the reserve requirement
Raise the discount rate
Buy bonds and securities
Lower government spending
26
Being able to do something using fewer resources than other producers require is:
A comparative advantage
A pure monopoly
An absolute advantage
A specialization
27
The opportunity cost of a chosen item or activity is:
How many chances you will have to buy it.
The value of the choice made.
The value of the next best alternative not chosen.
How much money it will cost.
28
The law of supply states that producers are willing to sell:
Less of a good or service at higher prices.
Less of a good when there is more demand.
More of a good or service at higher prices.
More of a good when there is less demand.
