What is the major difference between a corporationand other kids of business?

A corporation is a separate legal entity apart from that of the owners

An increase in the price of bicycles will most likely result in:

A decrease in the quantity of bicycles demanded

Assume that people like onions on their burgers. If the supply of burgers decreases, the demand for onions will do what?

Decrease because burgers and onions are complements

Why does a free market economy need some government intervention?

To provide thingsthat the marketplace does not address

The diagram shows the market for US oil. The US begins to import oil at the world market price of $70. Which is ture?

The US will produce 35 barrels of oil and import 170 barrels to meet demand

What is the opportunity cost of a decision?

The most desirable alternative is given up for the decision

You know your country is in a recession when you have which of the following?

A decrease in industrial production

-Ease of start up at low cost; Sole reciever of profit; Few regulations; Full control

Advantages of Sole Proprietorships

Which of the following is an example of lower production costs brought about the use of technology?

The use of e-mail to replace slower surface mail

The study of economics involves

How people choose from limited resources to meet unlimited wants & needs.

1. Domestic Unemployment 2. Financial crisis in one country spreads quickly to another 3. Manufacturing jobs move away

Disadvantages of international trade

Which of the following statements best completes the chart above?

Cars manufactured at Toyota Plant outside of Sanantonio

"Economists predict record # of 1st time home buyers this year"-How will the market for houses be affected?

Supply curve will shift right, causing equilibrium prices to fall

haircuts, oil changes and carpet cleaning are examples of:

services performed in an economy

Annual Income,Desires/Taste/Preferences,Consumer Expectations,Related Goods.......What is the best title for this list?

Non-price Determinats of Demand

Which of these is the best argument for free trade?

Some nations produce goods more efficiently than others good for trade

Componets of GDP are: Consumption, Investment, Gov Spending, Net Exports.

Required to determine a country's economic growth

The exerpt below describes

restrictions the gov places on use of individual or business property

A natrual Monolopy is most likely to exist when there...

is government regulation of the industry

What affect can an increase in taxes have on the economy?

Less money in consumers pockets to spend

Calculate GDP: Consumption and investment is 24 million. Imports is 2 million. What is the best way to calculate GDP?

Subtract 2 million from 24 million because imports bought by consumers

How does the government impact the circular flow model?

Households & firms pay taxes directly to the government

Kenya and Laos produce only soybeans and robots. Which of the following statements is true?

Kenya has the comparative ADV in robots and absolute ADV in soybeans

_____ +_____ = Natural Unemployment Rate

Structural and Frictional unemployment

What is happening at Point C in the diagram below?

Employment and output have reached their lowest levels

What is an advantage a sole proprietorship has over a partnership?

Owner entitled to all business profits

Which of the following statements concerning trade is true?

Trade enables people to consume more and raise their standard of living

Why is it easier for a partnership to borrow money and keep better employees compared to a sole proprietor?

A partnership has more personalstability and access to more money

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Final Exam Review

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Questions 98

Answers

1
What is the major difference between a corporationand other kids of business?
A corporation is a separate legal entity apart from that of the owners
A corporation is not responsible for its debts if it fails
A corporation is much larger than other kids of business
A corporation has officers who are responsibile for the business
2
An increase in the price of bicycles will most likely result in:
An increase in the quantity of bicycles demanded
A shift to the right of the supply curve for bicycles
A decrease in the quantity of bicycles
A decrease in the quantity of bicycles demanded
3
Assume that people like onions on their burgers. If the supply of burgers decreases, the demand for onions will do what?
Increase because burgers and onionsare substitutes
Decrease because burgers and onions are complements
Decrease because burgers and onions are substitutes
Increase because burgers and onions are complements
4
Which of these is NOT a function of money?
a statis symbol
a store of value
Medium of exchange
a measure of value
5
Why does a free market economy need some government intervention?
To make sure consumers get an equal share of the resources
To ensure that the government has the freedom to tax as needed
To prevent businesses from becoming too profitable
To provide thingsthat the marketplace does not address
6
The list below is controlled by whom? 1. Reserve Requirement 2. Discount Rate 3. Open Market Operations
The President
The Federal Reserve
Congress
The Stock Market
7
Which one of the 3 instruments is most often used by the Federal Reserve System and is most effective?
Changing the reserve requirement
Change in the tax rate
Open market operations
Changing the discount rate
8
The diagram shows the market for US oil. The US begins to import oil at the world market price of $70. Which is ture?
The US will import the largest quantity of 205 barrels due to high demand
The US will choose not to import and domestically produce 35 barrels
The US will produce 35 barrels of oil and import 170 barrels to meet demand
The US will import 50 barrels, the difference between supply and demand
9
When a producer is able and willing to produce a product at current price levels this is called
Supply
Demand
Inelastic
Elactic
10
What is the opportunity cost of a decision?
The most desirable alternative is given up for the decision
a good
The best possible way the question could have been decided
A series of alternative decisions could have been
11
During the pandemic, the Fed lowered interests rates to motivate consumers to take out loans. What action is this?
Monetary policy
Demand side economics
Fiscal Policy
Supply side economics
12
You know your country is in a recession when you have which of the following?
An increase in government savings
A decrease in industrial production
A lenghtly period of increasing GDP
An increase in consumer spending
13
A company decides to install more machines and lay off workers. Which economic question is addressed directly?
For whom to produce?
Where to produce?
How to produce?
What to produce?
14
-Ease of start up at low cost; Sole reciever of profit; Few regulations; Full control
Motives for starting a Partnership
Reasons to start a Corporation
Benefits of the Stock Market
Advantages of Sole Proprietorships
15
Performance, Durability, Reliability, Design, Style....What is the best title for these words?
Advantages of Monolopies
Values of Perfect Competition
Products Differentiated
Sizes of firm
16
Which of the following applies to both Sole Proprietorships and Partnerships?
Complete control of business
High deficit spending
Unlimited liability for debts
Responsible to a board of directors
17
If the price for Xbox1 increases, what would represent the change this would have on the market for the PS4?
Supply curve shift right
Demand curve shift right
Demand curve shift left
Supply curve shift left
18
Which of the following is an example of lower production costs brought about the use of technology?
The use of e-mail to replace slower surface mail
The delivery costs of gasoline to the consumer by diesel tucks
The making of breads and pastires in local shops rather than large bakeries
the importing of fresh vegtables from South Africa rather than using cans
19
The study of economics involves
studying how to go on a spending sprees
exploring how people deal with always having more than enough
How people choose from limited resources to meet unlimited wants & needs.
people dealing with surplus
20
1. Domestic Unemployment 2. Financial crisis in one country spreads quickly to another 3. Manufacturing jobs move away
Benefits to importing commodities
Disadvantages of international trade
Obstacles to increasing trade in North America
Advantages of Trade Barriers
21
The relationship between Q supplied and price is_____ and the relationship between Q demanded and price is _____?
Inverse, Direct
Direct, Inverse
Inverse, Inverse
Direct, Direct
22
Which of the following statements best completes the chart above?
Apple Stock purchased by an American citizen
Cars manufactured at Toyota Plant outside of Sanantonio
Purchasing a used Dogde Truck from the Houston Carmax dealership
Toys manufactured in China at a factory owned by a U.S company
23
According to the newpaper headline, what type of unemployment would a recent college graduate be considered?
Frictional
Cyclical
Seasonal
Structual
24
"Economists predict record # of 1st time home buyers this year"-How will the market for houses be affected?
Supply curve will shift left, causing equilibrium prices to rise
Equilibrium price will stay the same
Supply curve will shift right, causing equilibrium prices to fall
Demand curve will shift left, causing equilibrium prices to fall
25
"Price of peanut butter increases"___?___"Demand curve for jelly shifts to the left" What should fill the question mark?
Supply for jelly increases
Demand for jelly decreases
Supply for jelly decreases
Demand for jelly increases
26
haircuts, oil changes and carpet cleaning are examples of:
resources used in an economy
services performed in an economy
opportunity cost
things that nobody wants or needs
27
What incentive motivates a manufacturer to sell a product?
Popularity of th product
Making profits on sales
Putting others out of business
Pleasing the consumer
28
Annual Income,Desires/Taste/Preferences,Consumer Expectations,Related Goods.......What is the best title for this list?
Non-price Determinats of Demand
Non-price Determinats of Supply
Economic Changes in Supply and Demand
Government Changes Affecting the Price Ceiling
29
Which of these is the best argument for free trade?
Labor & safety standards in other countries help lower wages
Some nations produce goods more efficiently than others good for trade
American steel and automobile workers like it
contradiction between gross domestic product & market vlaue
30
Componets of GDP are: Consumption, Investment, Gov Spending, Net Exports.
Required to determine a country's economic growth
Fixed prices for goods and services set by the government
Shift according to consumer tastes
Used by economists to calculate the unemployment rate
31
The exerpt below describes
separation of gov property
how taxes are applie to local properties
restrictions the gov places on use of individual or business property
instructions for obtaining a permit
32
A natrual Monolopy is most likely to exist when there...
are long term patents in an industry
is government regulation of the industry
are extremely large economies of scale
are large barriers to entry
33
What affect can an increase in taxes have on the economy?
Prices increase
Less money in consumers pockets to spend
Less money for government spending
Companies invest more
34
Calculate GDP: Consumption and investment is 24 million. Imports is 2 million. What is the best way to calculate GDP?
Subtract 2 million from 24 million because imports cost domestic jobs
Add 2 million to 24 million because imports are used for produciton
Add 2 million to 24 million because imports are bought by consumers
Subtract 2 million from 24 million because imports bought by consumers
35
How does the government impact the circular flow model?
State & local government can't enforce taxes.
The government determines what to produce
The government collects taxes just like the factor market
Households & firms pay taxes directly to the government
36
When a business needs to decide whether a action is worth the cost they often use:
PPC / PPF
cost benefit analysis
needs assessment
economic models
37
Kenya and Laos produce only soybeans and robots. Which of the following statements is true?
Both Kenya and Laos have the absolute advantage in soybeans
Laos has the absolute advantage in soybeans
Kenya has the comparative ADV in robots and absolute ADV in soybeans
Laos has the comparative advantage in robots
38
Big Macs were cheaper in Canada compared to the US. Therefore, the Canadian dollar is___ and one would expect it to___.
Undervalued, increase
Undervalued, decrease
Overvalue, increase
Overvalued, decrease
39
Reducing a tariff will____ the domestic production of the good and _____the total domestic comsumption ofthe good.
increase, increase
decrease, increase
decrease, decrease
increase, decrease
40
What is not a change in the U.S Free Enterprise system in recent years?
Technology progression
All of the above
Tax incentives
Investment Opportunities
41
Unlimited Wants + Limited Resources =
competition
savings
equilibrium
scarcity
42
Which of the following is an economic goal of the United States Government policy?
To limit international competition
To createa classless society
To promote full employment
To own the factors of production
43
Which country has the most stable prices?
Brazil
Mexico
El Salvador
India
44
_____ +_____ = Natural Unemployment Rate
Casual and technological unemployment
Structural and Frictional unemployment
Seasonal and regional unemployment
Cyciclal and Structural unemployment
45
Adam Smith believed in "lasissez faire", which event in history caused many to change their ideas about Smith's theory?
the American Revolution
the Russian Revolution
the Great Depression
the Vietnam War
46
Potential Profit, Collateral for Loans and Customize for Preferred use...What is an appropriate title for the above list
Benefits of owning property
Costs of selling property
Costs of owning property
Benefits of selling property
47
The American dollar has value because the Government has ordered (says so) that it is an acceptable means to pay.
Commodity Money
Fiat Money
Stock Money
Represenatative Money
48
What is happening at Point C in the diagram below?
The inflation rate is at its lowest
Cyclical unemployment is at a minimum point
Employment and output have reached their lowest levels
The natrual rate of unemployment is at a minimum point
49
What is an advantage a sole proprietorship has over a partnership?
Unlimited personal liability
More expensive to startup
Ease to raise capital
Owner entitled to all business profits
50
Which of the following statements concerning trade is true?
Trade tends to promote inefficient use of resources
Trade enables people to consume more and raise their standard of living
Trade should only occur when two countries border each other
Nations should trade only when they have the absolute advantage
51
Why is it easier for a partnership to borrow money and keep better employees compared to a sole proprietor?
A partnership has more personalstability and access to more money
The less access to a partners personal funds make the business more careful
The larger # of partners makes it more likely the business will succeed
The larger # of partners means that people are easier to get along with
52
Inflation occurs whenever-
The money supply increases
The price level risescontinuously overa period of time
The exchange rate increases
The price level falls continuously over a period of time
53
Based on the picutres below, which statement best describes the impact shown?
New shelving will have to be purchased for better mobility
The company will no longer have to hire human workers
Productivity will increase due to robots being faster
New technology saves money for the company in the long run
54
How are economic transactions conducted in a Traditional Economy?
Elders & ancestors ensure that customs are upheld
The 3 basic questions of production don't arise in this economy
Each community decides as a group for whom the group will produce
Individuals form networks within which they buy
55
What incentive motivates a manufacturer to sell a product?
pleasing the consumer
popularity of the product
making profits on sales
putting others out of business
56
U.S can produce 80 hammers and 65 designer jeans. Canada can produce 150 hammers and 70 designer jeans. Which is true?
Canada has an absolute adv in both goods
Canada has an absolute adv in one good but not both.
US has an absolute adv in one good but not both
US has an absolute adv in both goods
57
Using the chart below, what phase of the business cycle is represented by the economy moving from Year A to Year B?
Contraction
Expansion
Peak
Trough
58
These 3 companies are classified into what market structure? 1. Google 2. Yahoo 3. Bing
Monopolistic Competition
Monolopy
Perfect Competition
Oligopoly
59
Which statement below is true about govenmernt invovlement with the U.S economy?
Controls all aspects of the U.S economy
None of these statements make sense
Not invovled at all with the economy
Has become more invovled since the early 20th century
60
What statement is best aligned with the contributions of John Maynard Keynes and his philosophy on the market economy?
laissez faire
Government intervention is needed to achieve full employment
Americans are not allowed to own their own property
The central planning of the economy will help regulate inflation
61
Father of Modern Economics that wrote "The Wealth of Nations" and believed in the invisible hand & free enterprise
John Maynard Keynes
Joe Biden
Adam Smith
Donald Trump
62
A local store buys 200 cases of Coke a week and sells them at $6 each. Week 1 they sold 160 cases. What happens next?
Shortage and price will need to fall
Shortage and price will need to rise
Surplus and price will need to fall
Surplus and price will need to fall
63
What does it mean when the demand for a product is inelastic?
Customers are sensitive to the price
A price increase does not have a significant impact on buying habits
People will not buy any of the products when prices go up
There are very few satisfactory substitutes for the product
64
If the price is set at 10$ then Mid-World will produce___and consumers will purchase___.
4 & 2
2 & 4
1 & 5
5 & 1
65
Which of the following explains why products made under a command economy are more likely to be low in quality?
The workers who make them are not given quality control
The workers have no supervision
The workers who make them have little incentive to make them work well
The workers who make them like traditions and old technology
66
Who appoints the members of the Board of Governors of the Federal Reserve?
The state Legislatures
Coach Cocke
The U.S Senate
The U.S President
67
Oil, timber, and fresh water are examples of:
entrepreneurial resources
land resources
capital resources
labor resources
68
What statement best destcribes private property in the United States?
Americans are not allowed to own their own property
A business has no property rights
Land is the only thing recognized as property
Property includes land, material items, conscience, thoughts, etc.
69
The barter economy is different from a money economy in that a barter economy...
invovles higher costs for each transation
has only a few assets that serve as a medium of exchange
Encourages specialization and division of labor
promotes market exchanges
70
Goods are scarce because-
the desire for goods is far greater than their availability from nature
of surplus
of greed; if human beings were not so selfish, goods would be less scarce
of private property
71
Complete the diagram below...
Examples of Government debt
Factors that influence Exchange Rates
Ways to determine inflation
Influence of Free Trade Agreements
72
What statement is correct about this picture?
Consumers expect monolopies to produce toothpaste because its all the same
Toothpaste is an Oligopoly market cause they control all prices
Toothpaste is the number one selling item at the grocery store
Toothpaste is an example of Monopolistic cause they some control on pricing
73
When a consumer is able and willing to buy a good or service, he or she creates which of the following?
Elasticity
Consumption
Demand
Allocation
74
A graph that shows alternative ways to use an economy's resources is called
a production possibilities curve
a supply curve
a production possibilities possibilty
a demand curve
75
The markettype known as perfect competition is what?
marked by firms trying to change their products to retain comsumers
dominated by fierce advertising campaigns
highly competitive and firms find it impossible to earn large profits
free from competition and firms earn large profits
76
What is the biggest sourse of revenue for the Federal Government?
Personal Income Taxes
Corporate Income Taxes
Property Taxes
Sales and Excise Taxes
77
In what kind of an economy does the government make all the decisions?
laissez-faire
socialist
centrally planned
free enterprise
78
How is a general partership organized?
Only one partner is responsbile for debts ofthe partership
No partner is responsible for the debts of the partnership
The government is responsible for paying the debts of failed partnerships
Every partner equally shares both responsibility and liability
79
The price of copper rises from $1.65/lb to $3.75/lb. Which scenario is best supported by the law of supply?
Consumers will purchase less copper at lower prices than they will higher
Producers will offer more copper at higher prices than they will lower
Producers will offer more copper at lower prices than the will higher
Consumers will purchase less copper at higher prices than they will lower
80
How do economists think private ownership most affects property maintenance?
It is harmful because owners save money by letting property get run down
It is helpful because owners have an incentive to care for the property
It is harmful because non-owners may throw trash on the property
It is helpful because owners have to pay taxeson the property
81
The equilibrium price and quantity for sugar is $.06 cents and 30 million lbs. What would cause an excess supply?
A price ceiling of 10 cents per lb
A price ceiling of 3 cents per lb
A price floor of 10 cents per lb
A price floor of 3 cents per lb
82
Businesses sell finished goods to individuals in the
factor market
farmers market
product market
stock market
83
When the economy experiences location D, it is most likely the case that...
GDP is increasing, unemployment is decreasing and inflation is increasing
GDP is decreasing, unemployment is decreasing and inflation is increasing
GDP is increasing unemployment is decreasing and inflation is decreasing
GDP is increasing, unemployment is increasing and inflation is decreasing
84
Which of the following is a characteristic of money?
Facility
Divisibility
Accountability
Responsibility
85
The US produces rice in a competitive market. With free trade the world price is higher than the domestic. What is true?
The US exports rice to make up for domestic shortage
The US imports rice to make up for domestic shortage
There is no incentive to import or export rice
The US exports rice to eliminate domestic surplus
86
If there is a competitive market, price and quantity will always move towards what?
Suppy
Scarsity
Equilibrium
Demand
87
You spend $9.50 at the movie theater to watch Star Wars. What part of GDP is this?
Government Spending
Net imports
Consumption
Investment
88
What is an important advantage of a free market?
It is easy to regulate
It protects the less fortunate
It offers a wide variety of goods and services
It does not change unless the government directs it
89
Which of the following best explains the effect on the market for sugar cane in a hurricane hits the carribean?
The Q demanded will decrease and price will increase
The supply will decrease and price will increase
The Q supplied will increase and price will remain unchanged
The demand will increase and price will decrease
90
Communist countries such as Vietnam believe in which of these economic concepts or characteristics:
abolition of private property
all of the above
government control of business
power resting with an authoritarian government
91
When buyers will purchase exactly as much as sellers are willing to sell, what is the condition that has been reached?
Equilibrium
Balanced Budget
Price Ceiling
Price Floor
92
Individuals receive payments for resources from businesses in the:
Super Market
Stock Market
Hyper Market
Factor Market
93
New government regulations require all cell phones to have anti-theft devices. What would be the result?
Supply curve shifts to the Left
Demand curve shifts to the Left
Supply curve shifts to the Right
Demand curve shifts to the Right
94
Which statement explains the cartoon below?
Workers believe exchange rates between all countries should increase
Workers support trade agreement because it will lower wages in Europe
Workers support trade agreement cause they are unemployed
Workers dont support cause it involves more government regulations
95
Which of the following is an example of business property?
A manager who has a masters degree in business
Land that a business pays a monthly fee to use for production
An owner signs a leasing agreeement for a new machine
A computer and vehicle used to deliver products
96
Which of the following would be most likely to occur if the U.S placed a high tariff on imported goods?
The overall debt of the country will increase due to the revenue collected
The US economy would be less efficient due to higher priced imports
The US economy will become more efficient
The US would have an increase in the amount of good imported from China
97
Which of these is a disavantage of turning a partnership into a corporation?
Expanded liability
Continuity issues
Loss of control
Less management skill
98
What completes the diagram below?
Perfect competition and Monolopy Markets
Perfect competition and Monopolistic Competition Markets
Monopolistic Competition and Oligopoly Markets
Monopoly and Oligopoly Markets

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