Econ Final Review

1.      A favorable balance of trade occurs when the value of a nation’s

    How does division of labor increase productivity?

Gross domestic product (GDP) is defined as:

A movement along a demand curve is caused by a change in 

1.      Which of the following is not a function of the Federal Reserve System?

A tax that is that all people pay the same percentage of their income in taxes is a(an): 

When Amy returns a book without finishing avoiding the late fee, what is her opportunity cost?

1.      The Fed’s principal decision-making body is the

1.      Assuming that bus travel is an inferior good, a decrease in consumer income will cause

What type of economic system is commonly described as being controlled by an “invisible hand”?

1.      If the federal government were to run a budget deficit, this would: 

  A demand curve is a graph that shows combinations of

The three fundamental economic questions are what to produce, ______________, and for whom.

A textbook is an example of

In the years following the completion of NAFTA in 1993, trade between the US,Canada and Mexico

A price ceiling that sets the price of a good below the equilibrium price will cause

1.      People’s wants are unlimited. This fact means which of the following is always present?

The point at which real GDP reaches a maximum during a business cycle is the

1.      A limit on the quantity of a good that may beimported in a given time period is

The subject of economics is primarily the studyof

Which of these items is a measure of productivity

A tax that charges a lower percentage of income as income rises.

When the demand for a product has increased, the

1.      A tax levied on imported goods is a(n)

What are the factors of production?

What does it mean to say that Jen has acomparative advantage over Julian for weeding gardens?

Economic growth is measured by the annual percentage increase in a nation’s level of 

1.      Which of the following is not part of the Federal Reserve System?

1.      The theory of comparative advantage suggests that nations should produce a good if they

When economists say there is a decrease in the supply of a product, they mean

A budget in which government spending exceeds government tax revenues

What famous economist said that the market economy seemed to be controlled by an invisible hand

A tax that charges the same percentage of income, regardless of the income

1.      When the tax structure is progressive, as incomes increase, the tax rate: 

If equilibrium is present in a market,

If a surplus of a product currently exists in the market

 If the demand for a good increases because consumer income increases, the good is called a (an)

1.      A country has an comparative advantage in the production of a good when

The market demand is the 

1.      A budget in which government spending equals tax revenues.

1.      Which statement is the best example of thinking at the margin?