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Spring 2017 Economics Final Exam Review Flashcards | StudBud
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Spring 2017 Economics Final Exam Review
Spring 2017 Economics Final Exam Review
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Spring semester final exam
Flashcards
50 cards
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Practice quiz
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Questions
50
Answers
1
groups of stocks, bonds, and other investments managed by an investment fund
money market mutual funds
Dow Jones 500
CD's
2
The difference between representative money and fiat money is that
fiat money is more traditional and rep. is a new concept
fiat is counted in coins; rep. money in paper dollars
representative money can be converted into gold/silver
rep. money is worth more per dollar; fiat is worthless
3
Substitutes are:
goods that are bought and used together
goods used in place of one another
goods which cause prices to rise
goods that cannot be replaced
4
The fact that money must withstand wear and tear is a measure of its
age
portability
currency
durability
5
What is a basic principle of the law of demand?
services are of interest in the same way that goods are
the higher the price, the more people will want the good
when a good's price is lower, people will buy more of it
everyone has a limited income they will spend
6
What is another name for a checking account?
securities account
demand deposit account
exchange account
7
What is a
mortgage
used to purchase?
college tuition
real estate
car
business expenses
8
If a sole proprietorship fails, the owner of the business
must pay off the investors
has to do complicated legal work to close the business
must pay all of the business debts
can close the business without paying anyone
9
Which of the following relies on habit, custom, or ritual to answer the 3 basic economic ?'s
a market economy
a centrally planned economy
a mixed economy
a traditional economy
10
The purpose of the free enterprise system is to:
give free goods and services to consumers
give consumers freedom to make economic choices
eliminate economic choices
create campaign slogans
11
Which of these is an insured, interest earning savings account with restricted access to funds?
mutual fund
certificate of deposit
passbook account
12
What is a major advantage that a
partnership
has over a
sole proprietorship
?
the responsibilities of the business are shared
partners are not responsible for the business debt
the business is easy to sell
13
What do we call "the struggle among various producers for the consumer's business?"
self-regulation
competition
socialism
incentive
14
What defines a corporation?
a business owned by individual stockho
an international business
a business with more than two owners
a large business firm
15
What is
monopolistic competition?
many companies selling similar but not identical products
very few companies selling identical products
one company selling many products under different names
16
How does a firm generally respond to a higher demand for its goods?
there is no set response to this sitiuation
it cuts prices
it raises prices
it rations goods
17
Which of the following is NOT an example of complements?
skis and ski boots
row boats and oars
cheerios and milk
calculator and cell phone
18
Which of the following is the best example of the
law of supply?
a milling co. builds a new factory to process flour to ship
as the price of sandwiches goes up, so does the # supplied
19
Goods that consumers demand more of when income increases
superior goods
any kinda
normal goods
20
An economy that is producing
the maximum amount of goods and services is considered:
underutilized
growing
trading off
efficient
21
Each society determines who will consume what is produced based on:
its unique combination of social values and goals
the amount of factor payments
its needs and wants
economic equity
22
Equilibrium in a market means which of the following:
the point at which Q. supplied and Q. demanded are the same
the point at which unsold goods begin to pile up
the point at which suppliers begin to reduce prices
the point at which prices fall below the production costs
23
A shift in the demand curve means:
a change in consumer income
a change in demand at every price
a rise in prices
a decrease in bth price and quantity demanded
24
According to the law of supply,
the higher the price, the larger the quantity produced
the lower the price, the larger the quantity consumed
if the price of a good rises, some firms will produce less
if the price of a good falls, new firms may enter the market
25
What percentage of U.S. businesses are sole proprietorships?
35%
75%
50%
90%
26
Two goods that are used together
luxury goods
packaged goods
complements
27
The government of a country must choose between spending money on a hospital or border patrol..
decision at the margin
production efficiency decision
global trade-off
guns or butter
28
Which of these is the single largest source of federal revenue?
corporate income tax
individual income tax
borrowing
Medicare payroll taxes
29
The most common form of business organization is
the franchise
corporation
the general partnership
the sole proprietorship
30
What is the opportunity cost of a decision?
the most desirable alternative given up for the decision
all of the trade-offs
different ways a different person might have decided
the best way the question could have been decided
31
Which type of tax is levied on specific goods and services? i.e. gasoline and telephone service
gift tax
estate tax
customs duty
excise tax
32
The price ceiling used to control the price of housing in New York was called
rent abatement
housing control
rent control
equilibrium price
33
What does new technology generally do to production?
It lowers costs and decreases supply
it increases costs and decreases supply
it has very little effect on production
it lowers costs and increases supply
34
When a consumer is able and willing to to buy a good or service, he/she creates what?
consumption
elasticity
allocation
demand
35
Which of the following makes someone an
entrepreneur?
becoming a highly paid athlete
earning lots of $$$ as a computer programmer
inventing and selling the rights to manufacture their good
running a service that hires people to install sprinklers
36
Which of the following is NOT a responsibility of the Federal Reserve?
supervising commercial banks
overseeing taxation and government spending
providing financial services to member banks
conducting monetary policy
37
How are goods and services distributed in a free market economy?
through prices
through government action
through disequilibrium
through rationing
38
Which countries are most directly affected by NAFTA?
the U.K., France, and Germany
all the most favored nations (MFNs)
the U.S., Canada, and Mexico
members of the World Trade Organization
39
The resources used to make all goods and services are the
production trade-offs
opportunity costs
factors of production
production possibilities
40
A non-profit, member owned financial institution that provides financial services is a:
credit union
state-chartered bank
locally owned bank
41
An economy in which only the government makes economic decisions is a
market economy
traditional economy
mixed economy
centrally planned economy
42
The most common and safest financial institutions are:
Commercial Banks
Payday Loan Express
Savings and Loans
43
Finance charges expressed at an annual rate is the:
yearly finance rate
yearly interest rate
annual percentage rate
annual interest rate
44
What are money and other valuables belonging to a corporation or partnership called?
liabilities
ownership
assets
liens
45
What's the difference between scarcity and shortage?
there is no real difference
shortage can be temporary or long term; scarcity always IS
rising prices cause shortages; falling prices scarcity
shortage is a lack of all goods; scarcity is a lack of one
46
Goods that are used in place of one another
inferior goods
substitutes
abnormal goods
47
The U.S economy is a mixed economy
based on free market principles with limited government
mainly based on traditional principles with some government
based on centrally planned principles with some government
based on free market principles with no government
48
What does an economist mean by the term "land"?
all natural resources used to produce goods and services
goods and services produced from the land
farmland only
crops grown on farmland plus the farmland itself
49
Goods for which demand falls as income increases
substitutes
abnormal goods
inferior goods
50
What is the purpose of the Federal Deposit Insurance Corporation (FDIC)?
to make sure that banks charge a fair amount on interest
to make sure that banks do not fail
to make sure that customers don't lose money if a bank fails
to make sure the government has enough gold for expenses
