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Economics (Part 1) Flashcards | StudBud
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Economics (Part 1)
Economics (Part 1)
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1
GDP
Gross Domestic Product
Gross domestic people
Grass Domestic Product
Gross Domestic Development
2
What is market failure?
When there are not economies of scale.
When there is a 3-firm concentration ration of 95%.
When everyone has perfect knowledge about the market.
When the allocation of goods and resources is inefficient.
3
What best describes marginal cost?
The cost of labor
The cost of producing an additional unit or service
The cost of transportation
The cost of running a business
4
What best describes a subsidy
a substitution to a contingency
An allotment of money given to support U.S government operations
A way to support public schools
Government support given to incentivize bussinesses and their decisions
5
What is a shortage?
A scarcity of a resource
When supply exceeds demand
Unemployment
When demand exceeds supply.
6
The US uses a mixed economy
False
True
7
What is the best example of a service
Buying food from a grocery store
Purchasing a new vehicle
Purchasing a new laptop from Best Buy
Oil Change at a Jiffy Lube
8
Which statement expresses the law of demand?
The less expensive the product, the more demand there is for that product
The cheaper the product, the lower the quality
The more expensive a product, the more demand for that product
The more expensive the product, the higher the quality
9
What is marginal tax rate?
Increase in value of an investment over it's purchase price
Amount of tax payable on the next dollar earned
Total taxes paid divided by total taxable income
Tax formula that reduces the effective tax rate on dividends
10
Macroeconomics focuses on...
focuses on the decisions of businesses, CEO's, and employee's
focuses on the study of households
focuses on the study of individuals, consumers, and producers
focuses on the decisions of countries, governments, and nations.
11
What is one reason to use a Production Possibilities Curve
To find the opportunity cost for each product
To figure out your businesses expenses
To figure out a subsidy
To determine which product sells better than the other
12
Citizens pay taxes and own businesses. Government provides social services and sets rules for economy
Free-Market
Mixed
Command
Traditional
13
What is a surplus?
money
When supply exceeds demand
demand
exceeded amount
14
What is one reason to use a Production Possibilities Curve
To see how various products sell
To determine if your business is running efficiently
To measure GDP and unemployment
To determine what product consumers are more likely to buy
15
Guns or Butter describes the trade-off of ______goods
military / environmental
military / commercial
environmental / consumer
military / domestic
16
Microeconomics focuses on...
there is no right answer
studies an overall economy on both a national and international level
how individual consumers and firms make decisions
country, a continent, or even the whole world
17
What is not an example of the U.S government regulating the economy?
Controlling means of production
Breaking up businesses that control too much of one service or product
Forcing businesses to label their products
Providing businesses with subsidies
18
What wouldn't cause the production possibilities curve to "shift to the right"
A new technology or peice of equipment
Accessibility to more resources
Shifting from machine operation to manual labor
An increase in employment
19
Economist Friedrich Hayek supported...
Socialism
Keynesian Economics
Less government intervention in the economy
More government involvement in the economy
20
What best describes opportunity cost?
The most valuable/desirable trade-off you've forgone.
To omit or decline to take something of equal or lesser value
A decision-making grid
A list of trade-offs based upon the economics decision you've made.
21
If the Fed increases the discount rate....
Everything at Kmart is on sale
Money supply will increase
Money supply will remain the same
Money supply will decrease
22
Government controls production, sets prices, and wages
Free-Market
Mixed
Traditional
Command
23
Market Equilibrium is...
producer supply does not meet consumer demand
quantity consumer demands equals quantity producer supplies
consumer demand does not meet producer supply
quantity producer demands is lower than consumer's
24
A society that is producing on its production possibilities curve...
Not utilizing all of its resources.
Not being technologically efficient.
Fully utilizing all of its productive resources.
Producing too much output.
25
What best exemplifies the law of supply
The higher the prices the less that is supplied
The higher the prices the more that is supplied
The higher the prices the less that is demanded
The lower the prices the higher the demand
26
What statement would John Maynard Keynes agree with?
Consumers dictate the economy.
The market should be allowed to stabilize itself.
No one should be involved in the market.
The government is required to keep the economy on its feet.
27
What is an example of physical capital?
Auto mechanics
Doctorates Degree
Computers
Study of engineering
28
What are the three factors of production?
Money, Land, Capital
Labor, Capital, Factory
Land, People, Factory
Land, Labor, Capital
29
What does Laissez-Faire mean?
International trade that pushes for less tariffs (taxes)
Complete government control over business
An economy run by business; free from government involvement
International trade that pushes for more tariffs (taxes)
30
What is the explanation for the term public goods
The Union Gospel Mission is an example of a public good
Public goods are commodities or services that benefit all members
One example would be the food pantry
Public goods benefit individuals who pay their income taxes
31
What best desribes infrastructure?
The structural integrity of a building or bridge
The layout and design of a railroad, ship, or vehicle
Having to do with roads, buildings, bridges, and general transportation
An econimc term that has to do with the efficiency and efficacy or a market
32
How can the federal reserve manipulate the economy?
By providing businesses with subsidies
They increase or decrease the interest rate on the money they loan to banks
By capping the amount people can spend on a certain product
By placing a ceiling on tenants month to month rent
33
Human capital is
The demand, knowledge, and skills possessed by an individual
The skills, knowledge and money possessed by an individual
The skills, knowledge, and experience possessed by and individual
The knowledge, skills, and land possessed by an individual
34
Free Market
An economy where the government says what and how many goods can be made.
A place in a town where people can go to buy and sale goods.
An economy where prices are set by competition between private businesses.
The global economy in which countries can trade with each other.
35
What is GDP?
All goods made by a country outide the border of a country
The dollar value of all goods and arrived in the whole world
The dollar value of a Specific good & service in the USA
The dollar value of all goods and services in The USA
