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