Economics Final Exam Study Guide

A decrease in competition within an industry can result in

Consumer's willingness to replace a costly item with a less costly item is an example of

A business doubled the price of a product. What might have occurred?

Money loses its value when it

Advertising, fashion trends, and new product introductions serve to

The government's role in a mixed economy is that it is the

An example of a market economy is

Under perfect competition,

Division of labor is a characteristic of

All of the following are characteristics of a command economy EXCEPT

The Lorenz curve is used to demonstrate

This regulates the sale of stock in a corporation

Prices enable a market economy to adjust to unexpected events by

In order for money to have value, it must have all of the following EXCEPT

A market economy

At a given price, a surplus occurs when

The money used to buy the tools and equipment needed for production is known as

A monopoly that is based on the ownership or control of a manufacturing process is a

All of the following are characteristics of allocation of rationing EXCEPT

Because a modest price increase has little or no effect, the demand for a product is

The purpose of the government in a command economy

A persistent trade deficit causes

The supply of the product normally decreases if

The international agency that administers trade agreements and settles trade disputes is

The FDIC was established to

A merger of corporations involved in different steps of manufacturing is known as

The largest sector in the macroeconomy is the

Money that has an alternative use as an economic good is

A decrease in competition within an industry can result in

A demand schedule shows

The Federal Reserve

A protective tariff is used to

When the Fed refers to M1, it is referring to such elements of the money supply as

An economy at its production possibilities frontier is operating

The Fed's Federal Open Market Committee

Under the fixed exchange rate, the value of a country's currency is determined by the

An increase in the price of cameras results in a decrease in the demand for film. The products

When a major car company lowers its prices, other car makers will probably

The federal minimum wage demonstrates

Revenue tariffs are levied to

The dollar value of all final goods and services produced within a country's borders is called

In a market economy, a high price is a signal for

Deficiency payments are part of a program to assist

Local banks in the 1800s that printed too much money were called

When a customer's need for a product is not urgent, demand tends to be

An increase in the price of milk causes a decrease in the demand for cereal. The two products

Mergers and acquisitions might result in

For most products and services, increased price results in

The Federal Reserve System was established in

Under perfect competition

Tariffs and quotas have all of the following effects EXCEPT

Manufactured goods used to produce other goods and services are called

The North American Free Trade Agreement proposed free trade between

Perfect competition is characterized by all of the following EXCEPT

The minimum wage is an example of a federal law that supports

The situation in which some necessities have little value and non-necessities have great value

The United States can be best described as having a

In a market economy, a high price is a signal for

All of the following can change the market supply curve EXCEPT

An increase in the price of milk cause a decrease in the demand for cereal. The 2 products are

The concept of voluntary exchange

Mergers and acquisitions may result in