How does the modern exchange rate system work?

Most countries allow their currency to float freely

What is opportunity cost?

The value of the next best choice

What is the labor force?

all members of pop. who have job or are actively seeking one

What is the market equilibrium point?

Where (The Laws of) supply and demand meet in the market.

What purpose did the Office of Emergency Management serve?

to direct the various wartime agencies

What is aggregate demand?

a country’s output for a period

What is a production possibilities frontier (ppf)?

curve showing possible maximum outputs for 2 or more goods

What is microeconomics?

Economics that focuses on individual decision making

What is the Law of Demand?

Less things are wanted at a higher price than a lower price

What is macroeconomics?

Focus/study of economics as a whole

Why is there scarcity?

Because resources are limited and wants are unlimited

What is the Law of Supply?

more things supplied at higher price than at lower price

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Acadec Econ

25 termsStudBud Administration141 plays

Fundamentals of Econ & Econ of WWII

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Questions 25

Answers

1
Through which means did the US PRIMARILY borrow money to finance its war effort?
by taxing the wealthiest Americans
by claiming private gold reserves
by selling war bonds
by soliciting funds from Canada and Britain
2
How does the modern exchange rate system work?
Countries compete to devalue others' currency
Most countries allow their currency to float freely
International Monetary Fund decides which exchange system
Currencies exchanged for US dollar are converted into gold
3
What is opportunity cost?
The cost of adding one more thing
The value of the next best choice
The value of the both choices combined
What you give up to get something else
4
Which act placed an American embargo on Japan in 1940?
Oil Restrictions Act
Exports Control Act
Trade Act of 1940
Wartime Embargo Act
5
The Office of Price Administration's policies resulted in...
inflation
shortages
externalities
monopolies
6
What is the labor force?
workers who are paid minimum wage
all members of pop. who have job or are actively seeking one
members of a population who are unemployed
members of population who have job
7
What is the market equilibrium point?
Where (The Laws of) supply and demand meet in the market.
where the market is perfectly competitive
where the laws of supply and demand do not exist
Where the market is perfectly stable
8
List three types of profit
Accounting, economic, normal
income, public, wages
Accounting, public, revenue
total income, normal, private
9
Which event ultimately lifted the US out of the Great Depression?
Roosevelt's investments in new technology
The Second World War
the implementation of New Deal policies
The discovery of oil in Alaska and California
10
What purpose did the Office of Emergency Management serve?
to direct the various wartime agencies
to create new wartime factories
to control the draft
to oversee the populace in case of invasion
11
How much of the US' GDP was spent on national defense in the final years of WWII?
1/4
1/3
1/2
1/5
12
How did the Federal Reserve help finance the war effort?
by creating new money
by collecting on defaulted loans
by levying taxes
by borrowing money from other countries
13
All of the following countries were allocated former German lands after WWII EXCEPT...
France
Czechoslovakia
Denmark
Russia
14
What is aggregate demand?
a country's input for a period
a country’s output for a period
supply of goods & services econ. produces at diff. prices
a measure of a country's imports
15
What is a production possibilities frontier (ppf)?
curve showing possible maximum outputs for 2 or more goods
curve showing possible minimum outputs for 2 or more goods
schedule showing opportunity costs
chart showing trade offs
16
Which American entity secured contracts and built production facilities during WWII?
Defense Plant Corporation
War and Defense Company
Office of the President
Bureau of Wartime Production
17
What is microeconomics?
Economics that focuses on the country's decision making
The decision of when to build infrastructure
Economics that focuses on individual decision making
The decision making of where to spend federal resources
18
What is real GDP?
real geese documentation project
real gross domestic product
real general development program
real gross domestic purchases
19
What is the Law of Demand?
Less things are wanted at a higher price than a lower price
the demand curve always shifts only left or right
More things are supplied when the demand is low
More things are wanted at a higher price than a lower price
20
What is macroeconomics?
study of economics of one business
creating equal economic opportunities for all
Focus/study of economics as a whole
focus of individual decision making
21
Between 1940 & 1944, the percentage of women in the American workforce increased by roughly...
5%
20%
22%
10%
22
Why is there scarcity?
Because wants are limited and resources are unlimited
Because resources are limited and wants are unlimited
Because producers don't want to waste money
Because producers have a shortages
23
Following the end of WWI, the German economy went through a period of...
hyperinflation
stability
extended depression
prolonged growth
24
What is the Law of Supply?
more things supplied at higher price than at lower price
as demand goes up, supply also goes up
less things supplied at higher price than at a lower price
as demand does down, supply goes up
25
Before WWII, income taxes were only collected from...
the wealthy
the employed
men
two-person households

Acadec Econ Flashcards | StudBud