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Econ 101 overview Flashcards | StudBud
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Econ 101 overview
Econ 101 overview
20 terms
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StudBud Administration
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350 plays
Review principles of economics
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
On what principle is the idea of a progressive tax based?
Simplicity
Efficiency
Ability to pay
Benefits received
2
A society that has public schools and ownership of private property has elements of what?
Traditional and socialist economic systems
Command and market economic systems
Traditional and market economic systems
Command and traditional economic systems
3
A sustained rise in the level of prices or a sustained fall in the purchasing power of money
Expansion
Deflation
Inflation
Stagflation
4
The demand for accessible funds would most likely increase when ...
A person's salary is lowered
A person goes on vacation
The bank raises interest rates
The price of apples drops
5
If the U.S. dollar is strong compared to the Japanese Yen, then the dollar buys ...
More in Japan then the Yen buys in the U.S.
Less in the U.S. then the Yen buys in Japan
Less in Japan then the Yen buys in the U.S.
More in the U.S. then the Yen buys in Japan
6
Unemployment caused by the time it takes workers to search for a job is called what?
Cyclical unemployment
Seasonal unemployment
Frictional unemployment
Structural unemployment
7
An example of perfect competition is when ...
A seller decides to sell clothing, including shirts & jeans
There is no such thing as perfect competition
Several electronic companies form a cartel
Many sellers compete and no one person controls the market
8
According to the law of supply, when prices increase ...
Quantity supplied increases
Supply increases
Demand increases
Quantity demanded increases
9
Why do rising energy costs reduce productivity?
Tools become more expensive to use
Taxes on equipment decrease
Tools become less expensive to use
Taxes on equipment increase
10
Which of the following is most likely to have inelastic demand?
Organic fruits and vegetables
Experimental cosmetic surgery
An effective cancer fighting drug
An expensive sports car
11
When comparing a traditional economy with a command economy, which of the following is true?
Freely fluctuating prices
Private ownership of business
Slow economic growth
Supports competition of business
12
In the price system of a market economy, prices are determined by what?
Political forces
Private investors
Market forces
Central planning
13
Which statement is true about discretionary spending?
The government must use user fees to fund it
The government is required by law to fund it
The government uses payroll taxes to fund it
The government can choose whether or not to fund it
14
As sales of digital cameras increase, so do sales of photo printers. What factor affects demand
Consumer taste
Substitiutes
Complements
Consumer expectation
15
An example of a geographic monopoly is when...
There are four grocery stores within an entire city
There are many gas stations, but they are spaced evenly
There are Walgreen stores on every corner
There is only one gas station within a radius of 200 miles
16
What is primarily traded through economic interdependence?
Services
Goods
Raw materials
All answers are correct
17
To increase the money supply, the Federal Reserve does what?
Prints new money
Buys government bonds
Raises taxes
Buys government securities
18
An entity that mines resources in the US, produces goods in Germany, and sells them in China...
Multinational monopoly
Multinational cartel
Multinational conglomerate
Multinational corporation
19
The government can alter economic outcomes by means of taxes and spending...
Foreign Trade policy
Easy money policy
Monetary policy
Fiscal policy
20
Why should fiscal and monetary policies be coordinated?
To avoid economic instability
To avoid economic expansion
To help create jobs
To stimulate aggregate demand
