The two types of fiscal policy are

expansionary and contractionary

A production possibilities frontier shows

all possible combinations of two goods and econ can produce

If you are making decisions at the margin, you are

comparing the extra benefit tot he extra cost

Which of the following is an intermediate good

steel purchased by general motors

The word supply refers to

the willingness and ability to produce a good

The government produces public goods because

the private market will not produce them

Gross domestic product is

total market value of all final goods made inside the USA

Under a fractional reserve banking system, banks

hold only a fraction of deposits as reserves

An externality exists when

one persons actions affect another person

The money supply includes

currency, checking accounts, and travelers checks

expanded everyone's ability to sell to more people

studbud

Econ Final Review

29 termsStudBud Administration99 plays

Review

Flashcards29 cardsFPractice quizPHost liveL

Questions 29

Answers

1
The two types of fiscal policy are
short term and long term
demand side and supply side
reserve requirement and discount rate
expansionary and contractionary
2
A production possibilities frontier shows
all the possible production of one particular good
all the possible comb of four goods an economy canproduce
all possible comb. of all goods that an econ. can produce
all possible combinations of two goods and econ can produce
3
a shift of the demand curve repersnts
a change in demand
a change in the quality demanded
a movement on the demand curve
all of the above
4
The supply curve of one of Pablo Picasso's paintings would be shown as
downward sloping left to right
a vertical line
a horizontal line
upward-sloping, left to right
5
The amount of money that a business receives from the sale od its production is called
loss
profit
total revenue
average cost
6
If you are making decisions at the margin, you are
comparing the extra benefit tot he extra cost
all of the above
confused about what to do
selecting either all or nothing at all
7
Recurrent swings in an economy's real GDP are known as
shocks
recessions
the business cycle
increases in purchasing power
8
To an economist capital refers to
resources found in nature
machinery and tools
new business opportunities
money
9
Which of the following is an intermediate good
a tractor purchased by a farmer
milk purchased by your parents
steel purchased by general motors
a coke purchased by high school students
10
The word supply refers to
the ability to produce the good
the willingness and ability to produce a good
the quantity produced of a particular good
the willingness and desire to produce a good
11
Economists believe that people respond to
incentives
theories
politicians
unlimited wants
12
An increased in the average level of prices is called
deflation
inflation
expansion
contraction
13
An example of an excise tax is a tax on
fast food
shoes
gasoline
grocery store items
14
The government produces public goods because
all of the above
the private market will not produce them
it prohibits businesses from producing them
its the only entity that knows how to do so
15
Gross domestic product is
total market value of final goods and services in a year
total market value of all goods produced anywhere on earth
total market value of all final goods made inside the USA
total market value of final goods made by US citizens
16
In a recession, real GDP falls and
the unemployment rate falls
the unemployment rate rises
unemployment is unaffected
employers offer higher wages
17
One tool the Fed would use to decrease the money supply is
raising taxes
an open market purchase
an open market sale
lowering taxes
18
Under a fractional reserve banking system, banks
None of the above
loan out a fraction of their deposits to the Fed
they lend out only a fraction of their deposits
hold only a fraction of deposits as reserves
19
The circular flow diagram shows
how banks circulate money
economic policies
the flow of world trade
relationships in the economy
20
If there were a shortage of nurses we would expect
the wage of nurses to increase
a decrease demand for nurses
none of the above
the wages of nurses to decrease
21
An externality exists when
businesses sell their products to foreign countries
the government is involved
the buyers and sellers meet
one persons actions affect another person
22
Labor refers to
physical talents
goods that can be used as resources for production
physical and mental talents
foreign workers
23
Rationing exists because of
price
a surplus of products
scarcity
incentives
24
WHen government expenditures exceed tax revenues, the difference is
a national debt
a budget deficit
the international debt
a budget
25
The money supply includes
currency, check. accounts, travelers checks and credit cards
currency, checking accounts, travelers check and gold
currency and checking accounts
currency, checking accounts, and travelers checks
26
Globalization has
decreased peoples ability to communicate
raised prices for consumers
reduce the variety of products available in the world
expanded everyone's ability to sell to more people
27
In a free enterprise market who or what allocates resources
price
the government
consumers
producers
28
The major difference between free enterprise and socialism include
all o f the above
economic planning and income distribution
ownership of resources and the governments role in the econ
controlling prices and honoring private property
29
The largest source of tax revenues for the federal government comes from
property tax
corporate income tax
personal income tax
Social Security tax

Econ Final Review Flashcards | StudBud