stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Economics Review Quiz Flashcards | StudBud
Explore
/
Economics Review Quiz
Economics Review Quiz
70 terms
·
StudBud Administration
·
1,041 plays
Actual test questions for the Economics Exam
Flashcards
70 cards
F
Practice quiz
P
Host live
L
Questions
70
Answers
1
The portion of a company's profit paid to the owner of stock:
Profit Sharing
Stock Share
Dividend
Bonus
2
Historically the stock market is one of the best investments for the average American.
True
False
3
In economics, rent is the payment for:
land the factory is on
Natural resources, "gifts of the earth"
Labor that goes into making a product
Apartments the workers live in
4
According to Adam Smith in the “Wealth of Nations”, what is the Invisible Hand?
high prices
government regulations
big corporations and the rich manipulating the market
self-interest
5
Paper money is called currency.
True
False
6
According to Economics, everything is scarce.
False
True
7
Which economic measurement to we use to calculate the average standard of living for the average citizen?
Per Capita GDP
Unemployment Index
GDP
Stock Market
8
Human beings are rational creatures and therefore always behave rationally in the market.
False
True
9
Human wants and needs are limited by the amount of money a person has.
True
False
10
Historically, the stock market is one of the best investments available
True
False
11
Money = Wealth
False
True
12
When stock prices are falling it is called a:
Bull Market
Bear Market
Fish Market
Bird Market
13
What does Capitalism focus on?
The machinery of production
The distribution of wealth to all
The creation of wealth in a free market and profits for the entrepreneur.
The machinery of production
14
Paper Money is called:
currency
barter
specie
treasuries
15
When stock prices fall less than 10% in a trading session:
correction
market flux
liquidity crisis
crash
16
What Economic Law does Communism ignore that makes it doomed to fail from the start?
Law of Demand
Law of Supply
Law of Scarcity
Law of Comparative Advantage
17
Human Needs and Wants are:
unlimited
limited by scarce resources
not part of the economic puzzle
pretty bizarre
18
The fundamental fact of human existence is:
Human wants and needs are unlimited
Resources are plentiful, but are distributed unequally
Scarcity: there is not enough of anything to go around.
Beautiful People deserve more than regular people.
19
There is always equilibrium in the market.
False
True
20
The Law of Supply and Demand governs Economics.
False
True
21
Coin money (made from metal) is called specie.
True
False
22
The United States has a pure, laissez-faire capitalist economy.
False
True
23
Communism can never really work because it ignores the Law of Scarcity.
True
False
24
Economics has to do with almost every aspect of human activity
False
True
25
The President of the United States has the most control over the management of the US economy.
False
True
26
What is the engine that makes Capitalism work?
Wealth
Money
Competition in a free market
Government Regulation of the market
27
Deflation is worse than Inflation.
True
False
28
a portion of profit paid to a shareholder
profit
payment
dividend
share
29
The US has a laissez-faire economy
True
False
30
Economics is the study of the allocation of scarce resources.
True
False
31
Who is responsible for managing the US economy through regulating the money supply and interest rates?
Congress
The Federal Reserve
The Free Market
The President
32
Who is the Father of Capitalism and author of “Wealth of Nations”?
John Locke
Karl Marx
Adam Smith
Voltaire
33
Inflation is caused by:
gas, the economy needs to pass some! brabbbbpppptttttt . .
too little money chasing too few goods
too much money chasing too few goods
too much money chasing too many goods
34
In the 19th century, Economics was often called “The Dismal Science”.
True
False
35
Trading goods for goods is called:
Socialism
Capitalism
Free Exchange
Barter
36
What economic system is characterized by a command economy, price controls, no free market and no private property?
Socialism
Capitalism
Anarchism
Communism
37
Anything can be used as money
True
False
38
The New York Stock Exchange is the most closely watched stock market in the world.
True
False
39
The 8 goals of economics will all be met at some point in the future.
False
True
40
Who is the Father of Communism and the author of “The Communist Manifesto”?
Bernie Sanders
Frederich Engels
Adam Smith
Karl Marx
41
In economics, capital is:
Wealth
Money
Government place of business
Means of Production
42
Coin money made from metal is called(choose the best response):
coinage
metallica
specie
currency
43
The basic law that governs economics is:
Law of Demand
Law of Unintended Consequences
Law of Supply
Law of Scarcity
44
Economics has to do with most aspects of human activity.
False
True
45
When the stock market loses up to 10% of value in a short period of time it is called a:
reduction in value
crash
correction
shrinkage
46
The objective of Economics is:
To provide the greatest good to the greatest number of people
To produce as much as possible
To measure human economic activity
To make as much money as possible
47
Macroeconomics deals with:
the national economy
small business
price of macaronis at Shoprite
economics of the home
48
The basic law that governs economics is:
Law of Full Employment
Law of Demand
Law of Supply
Law of Scarcity
49
Economists have learned so much that they have been able to overcome the business cycle.
False
True
50
Macroeconomics deals with:
the economy regarding macaronis
the economy of small business
the economy of the home
the national economy
51
“From each according to his ability, to each according to his need” is the basic premise for which economic system?
Communism
Anarchism
Capitalism
Socialism
52
Which economic system is characterized by individuals, private property, markets and pursuit of profits?
Capitalism
Communism
Socialism
Anarchism
53
If Capitalism works the way it is supposed to work, it will destroy itself.
True
False
54
If Capitalism works the way it is supposed to, it will eventually destroy itself.
False
True
55
At what percent in the unemployment index do economists believe the economy is at full employment?
3%
0%
1%
5%
56
When stock prices are rising it is called a:
Bear Market
Bull Market
Fish Market
Bird Market
57
What is opportunity cost?
The choice you gave up to make the choice you made
What an opportunity costs in relation to what you gain.
What it costs to create an opportunity
Who you have to pay to get an opportunity
58
Anything can be money as long as we all agree on it.
True
False
59
Economists have learned enough to help us avoid the step of depression in the business cycle.
True
False
60
Who gains in a voluntary trade between buyer and seller?
the government through sales tax
both buyer and seller
the buyer only
the seller only
61
The US has not had another depression since the Great Depression of the 1930's.
False
True
62
Economics is so complex nobody understands it completely.
False
True
63
What is equilibrium in the market?
When the amount of money equals the number of goods to buy in the economy
when the market is extremely active and prices are rising
Where everything that is produced is sold at just the right price.
when wages for work are equalized and everyone can afford more
64
Prices on the New York Stock Exchange only influence American markets and have no impact on other markets
True
False
65
Besides being a medium of exchange, money is a tool for assessing and assigning value.
False
True
66
Economic Progress comes primarily through:
tax cuts, government spending and equal income distribution
entrepreneurial activity directed by a free market
government planning, oversight and regulation
large corporations and monopolies directing business activity
67
The study of the national economy is microeconomics.
False
True
68
Monopolies are bad for Capitalism.
False
True
69
The government of the United States regulates the economy.
True
False
70
The Business Cycle cannot be avoided or overcome by economists.
True
False
