What is a function of financial institutions in an economy are?

Provide access to capital for people and businesses

The price of perfume increased $10. How will the price change affect the quantity demanded and supplied?

Demand will decrease, and supply will increase

New manufacturing technologies affect economic growth by increasing?

increasing the productivity of labor

Why do countries specialize in particular trade products?

unequal distribution of resources

Why did U.S. dollar decline in value when the U.S. abandoned the gold standard?

More currency was able to be printed thus reducing its value

Why is pure competition distinctive?

There are no examples of this type of market structure

One advantage of placing savings in a high-risk investment as opposed to low-risk investment is?

The potential rate of return on investment is higher

Fluctuations to the international exchange rate of a nation’s currency affect tis balance of trade by?

The exchange rate increases, the country can import goods less expensively

Why have some cities have passed ordinances to restrict the size of houses being built on city lots to?

Protect the property owners already living in the neighborhood

Benefits of the U.S. free enterprise system is?

Amount of choices for consumers

Something to consider when deciding to declare personal bankruptcy is?

impact it has on future credit options

Why should one purchase insurance?

Insurance is available when unexpected need for repair or services arises

Name a basic characteristic of all economic systems?

Distribution of goods and services

What is commodity money?

something in its own right rather than being a token of financial value

Effects of an increase in the amount of savings in an economy are?

An increase in financial resources for business investment

Which action of the Federal Reserve strongly influences local economies?

It can make loans cheaper or more expensive ab adjusting interest rates

One disadvantage of operating a barter system is that trading is?

Limited by availability and demand

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ECONOMICS FINAL REVIEW

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Questions 47

Answers

1
Which type of bank account is not insured?
Savings account
Money market fund
Mutual fund
Checking account
2
A cost consideration made when purchasing personal property is?
Assest value of the property
Potential co-owners of the property
Time spent viewing the property
Maintenance of the property
3
When businesses decrease labor needed to increase inventory, what will mostly happen?
increased inflation
economic growth
increased taxes
decreased productivity
4
An expansionary period in the business cycle is distinguished by?
low employment
fewer excise taxes
high inflation
declining sales
5
A basic problem with scarcity is?
People have trouble making choices
Governments limit production
Opportunity costs limit demand
Resources are limited
6
What is the most effective way to manage credit card debt?
finding a credit card with the lowest interest rate
Paying the minimum balance
Paying off balance each month
Working a parttime job to pay for credit
7
What is a line of credit that allows a borrower to repeatedly use it within a certain monetary amount?
a secured loan
close ended credit
open ended credit
a retirement account
8
What is a function of financial institutions in an economy are?
Prepare taxes for individuals and buisinesses
Createinvestment portfolios for venture capitalists
Offer incentives to businesses for investing
Provide access to capital for people and businesses
9
The price of perfume increased $10. How will the price change affect the quantity demanded and supplied?
Demand will increase, and supply will decrease
Demand will decrease, and supply will increase
Demand will stay the same, and supply will increase
Demand will increase, and supply will stay the same
10
New manufacturing technologies affect economic growth by increasing?
restricting growth because of the additional expense
stopping production while workers learn the new technology
creating safer work environments
increasing the productivity of labor
11
What advantages corporations have over sole proprietorships are?
lack of special taxes
ease of start up
rights to all profits
Limited liability
12
One was the U.S. economy can be adversely affected when interest rates are lowered is?
Unemployment
Prices may inflate
Taxes rates may decrease
Less capital may available
13
The first step to beginning a savings program is?
Set financial goals
Sign up for direct deposit
Obtain credit
Open checking account
14
An advantage of donating to charitable causes is that the donation is?
Considered a tax deduction
Used to fund investments
Veiwed
Taken directly from a pay check
15
During the expansionary phase of the business cycle the govt. can implement a contractionary fiscal policy in order to?
promote spending
encourage investment
create jobs
addresses any inflation issues
16
Why do countries specialize in particular trade products?
variety in the types of economics systems
government regulations
unequal distribution of resources
variation in the sizes of markets
17
___________ ____________is both a federal revenue source and an expenditure.
Net interest
Income taxes
Social security
Defense spending
18
Why did U.S. dollar decline in value when the U.S. abandoned the gold standard?
People began hording dollar bills so the value would decline
Buisness preferred to be paid with gold thus dollars were less valued
Americans did not want to use fiat currency so the value declined
More currency was able to be printed thus reducing its value
19
Why has the late twentieth century been characterized by an increase in free trade agreements?
Increased immigration
Increased economic growth
Higher unemployment
Lower coporate taxe rates
20
Why is pure competition distinctive?
The sellers in this market structure have no control over price
There are no examples of this type of market structure
Only one seller is needed in this market structure
There are large numbers of barriers to entry into this market structure
21
One obligation of borrowing money is?
make payments on time
cosing loans for others
designate in your will whopays the loan
requst the lowest intrest rate possible
22
One government restriction to consider when proposing to build a new buisness includes?
repayment of loans
Investor taxes
hiring subcontractors
Zoning laws
23
High levels of unemployment combined with high levels of inflation indicate that a buisness cycle has enterd into a
expansion
stagflation
recession
investment
24
The U.S. government was given the authority to collect income taxes with the passge of the
Dodd- Frank Act
14th Amendment
Sherman Ant-trust Act
16th Amendment
25
Which retirement investment option is usually offered as a benefit of employment?
401(k)
Bonds
College tution reimbursement
Mutual funds
26
One advantage of placing savings in a high-risk investment as opposed to low-risk investment is?
The amount of money needed to invest is lower
The potential rate of return on investment is higher
The tax rate oh high risk investments is lower
The money is more secure in high-risk investment
27
Fluctuations to the international exchange rate of a nation’s currency affect tis balance of trade by?
The exchange rate increases, the countrys balance of trade stays the same
The exchange rate decreases, the countrys balance of trade stays the same
The exchange rate increases, the country can import goods less expensively
The exchange rate decreases, a negative trade balance occurs 4 that country
28
Why have some cities have passed ordinances to restrict the size of houses being built on city lots to?
Collect higher property taxes to build infrastructure for the neighborhood
Protect the property owners already living in the neighborhood
Ensure that new houses are available to inner city buyers
Lower building costs for local construction companies
29
Investments with high rates of return are generally accompanied with?
no risk
high levels of risk
lower level risk
very litlle risk
30
Benefits of the U.S. free enterprise system is?
Equal distribution of goods and services
Guaranteed returns on investments
Amount of choices for consumers
Lack of union participation by workers
31
Something to consider when deciding to declare personal bankruptcy is?
number of investments made in the last year
impact it has on future credit options
amount of interest paid on credit cards
cost of using a collection agency
32
Give examples of resources that would be considered factors of productions called land?
Tractor
Factory
Coal
Money
33
Why should one purchase insurance?
Insurance coverage can remburse
Insurance is available when unexpected need for repair or services arises
Insurance can be used to cover the cost of moving expenses
Insurance coverage can reimburse for losses investments
34
Name a basic characteristic of all economic systems?
Small buisness owners
Price controls
Distribution of goods and services
Wage incentives
35
Choice presents which problem in economics?
people get what they want
people get to decide what they want
choice is a way of life
deciscions produce cost
36
Making a car payment instead of purchasing movie tickets is an example of?
Opportunity cost
Scarcity
Circular flow model
Property sights
37
What is commodity money?
trade goods services between two people without the exchange of money
something in its own right rather than being a token of financial value
money that consists of a token that can be exchanged as gold, silver, water
currency that govt. has declared a legal tender despite no intrinsic value
38
One important financial detail to consider when purchasing a home is?
Number if rooms
time for commuting
Saving for a down payment
Family size
39
One advantage of home ownership is?
funding large capital outlays
paying propery taxes
purchasing insurance
building equity
40
What actions improve a credit score?
Consolidating creditcard balances
Keeping credit card balances as high as possible
Paying off debts
Checking credit reports on a regular basis
41
Effects of an increase in the amount of savings in an economy are?
Increase in consumer spending
A decrease in the production of goods and services
Decrease in retirement investments
An increase in financial resources for business investment
42
What of the following is a non price determiinant of demands
productivity
consumer preferences
price ceiling
subsidy
43
Supporters of protectionism argue that free trade adversely affects which group of people?
Multi-national corporations
Workers
Consumers
Shareholders
44
Loans that are obtains by offering an asset to guarantee repayment of the loan
Repossesion loans
Default loans
Secured loans
Unsecured loans
45
Which action of the Federal Reserve strongly influences local economies?
It can make loans cheaper or more expensive ab adjusting interest rates
It can require banks to provide savings accounts to the community
It can provide stimuls moneyforjob creation
It can raise lower property taxes
46
In a free market society, who determines how much is produced?
Profit projections
Government quotes
Consumer demand
Census data
47
One disadvantage of operating a barter system is that trading is?
Limited by availability and demand
carried out in very large markets
taking place without currency
conducted without consumer protections

ECONOMICS FINAL REVIEW Flashcards | StudBud