Traditional economies are usualy

small, close communities that avoid change and new tech

improved tech allows for a higher standard of living for future generations by

providing additional goods and services

Why does a government place price ceilings on some "essential" goods?

to keep the goods from becoming too expensive

Which of the following are ways the government controls markets?

price ceilings and price floors

A hot summer causes demand for ice cream to go up. What happens next?

ice cream makers raise the price of ice cream

Savings bonds differ from most other bonds in that

the buyer does not receive periodic interest payments

What does a supply schedule show?

supply for a good at many prices

What is the difference between real GDP and nominal GDP

RGDP based on constant prices, NGDP based on current year

Why is the federal income tax a progressive tax?

a higher income pays a higher percentage in taxes

why would investors buy a junk bond?

junk bonds can pay higher interest than other bonds

What is critical in determining whether something is produced as a public good?

whether the benefits to society are greater than the costs

Various fed, state, and local gov programs help raise people's standard of living because

certain groups have fewer opportunities to be productive

the difference between the economics of China and NK are

China is privatizing state-run business

Why is sales tax regressive?

it is a higher % of income if you earn less money, it is a higher % of income if you earn less money

What is one advantage of a centrally planned economy?

low unemployment due to guaranteed jobs

A stock split is more likely to occur when

the price of a stock is too high

Who issues US paper currency?

the district Federal Reserve Banks

How can an economist compare the standard of living in two different countries?

by comparing real GDP per capita

Which of the following is an entrepreneur?

a person who starts a cleaning supplies business

Which is a summary of the three key economic questions?

what should be produced, how, and for whom?

Which of the following will happen if the price of butter goes up?

the demand for margarine increases

Why are goods and services scarce?

resources used to produce them are limited

What are the differences between CDs and money market mutual funds?

CDs require less money than MMMFs and are less risky

How can expectations about the future change consumer behavior?

immediate demand will rise if price is going to rise

which of the following events could cause a god's supply curve to shift to the right?

new tech is used to produce the good

Which goods are included in the calculation of GDP?

cars made in Tenn at a factory owned by a Japanese company

You put money in your bank account, how are you helping businesses expand?

banks lend your saved money to businesses

A day trader tries to make a profit by

taking advantage of minute-by-minute changes in stock prices

Why is real GDP more accurate than nominal GDP?

it is adjusted for price changes (inflation)

a factory sells pencils, new machines make that job faster and cheaper, what happens next?

costs will go down and supply will go up

What characteristic of socialism is designed to spread wealth evenly?

gov controls the centers of economic power

How are savers and borrowers linked?

through financial intermediaries

studbud

Economics Final Exam Review

54 termsStudBud Administration1,635 plays

Review for econ final

Flashcards54 cardsFPractice quizPHost liveL

Questions 54

Answers

1
Traditional economies are usualy
large, widespread communities that welcome change
small, close communities that welcome change
large, widespread communities that can deal with disasters
small, close communities that avoid change and new tech
2
improved tech allows for a higher standard of living for future generations by
reducing the number of unemployed workers
providing additional goods and services
preventing drastic shifts in general price levels
creating specialized jobs for workers
3
What state does a free market move toward naturally?
disequilibrium
shortage
equilibrium
surplus
4
What is one of the major uses of gov fiscal policy?
to control economic growth
to allow the gov to control its own spending on programs
to let lawmakers change economic decisions
to keep the amount of taxes collected low
5
Why does a government place price ceilings on some "essential" goods?
to keep businesses from making large profits
to keep the goods from becoming too expensive
to prevent inflation during boom times
to reduce demand for these goods
6
Which of the following are ways the government controls markets?
equilibrium price and equilibrium point
subsidies and disequilibrium
price ceilings and price floors
shortages and surpluses
7
A hot summer causes demand for ice cream to go up. What happens next?
factories make less ice cream
ice cream makers raise the price of ice cream
workers go on strike and stop production
stores import ice cream from overseas
8
What did Congress pass in 1913 to regulate our banking system
Federal Reserve Act
Banking Responsibility Act
Federal Allocation of Resources Act
Dawes Act
9
A bond has a coupon rate of 5% a year, PV of $2,000. How much interest will you get each year?
$200
$500
$100
$2,500
10
you want stock but are concerned about losing your investment if the company closes
buy growth stock
buy common stock
buy income stock
buy preferred stock
11
Savings bonds differ from most other bonds in that
they are issued in fairly large denominations
the buyer does not receive periodic interest payments
they are held for a shorter period of time
they usually provide a higher rate of return
12
If you create a demand schedule for an individual and a market, what will remain the same?
quantity demanded
price
demand curve
percent difference at each price level
13
Which is the Federal Reserve's biggest customer?
the federal government
its 12 district banks
individuals and small businesses
its member banks
14
John Maynard Keynes believed the gov's role in the economy should be
contractionary fiscal policy
emergency action only
active involvement
laissez-faire
15
What does a supply schedule show?
factors that could influence supply
changes in costs of labor and parts
supply for a good at many prices
quantity supplied at one price
16
What is the difference between real GDP and nominal GDP
RGDP is accurate to hundreds of %, NGDP is to thousands
RGDP allows for depreciation, NGDP does not
RGDP includes nonmarket act, NGDP has no nonmarket act
RGDP based on constant prices, NGDP based on current year
17
If you choose between two summer jobs, the one you do not choose is the ______ of your decision
opportunity at the margin
decision at the margin
opportunity cost
trade-off
18
Why is the federal income tax a progressive tax?
corporations can lower their taxable income
a higher income pays a higher percentage in taxes
higher income has more deductions
higher income pays a lower rate
19
Which of the following helped the US economy recover from the Great Depression
WWII
Vietnam War
Korean War
WWI
20
why would investors buy a junk bond?
they want a steady source of income with low risk
junk bonds can pay higher interest than other bonds
junk bonds have higher rating than municipal bonds
they want to invest an a company although it may not pay off
21
What is critical in determining whether something is produced as a public good?
whether the benefits to society are limited to the poor
whether the market will provide it
whether the benefits to society are greater than the costs
whether the gov needs to use tax $ to provide it
22
Various fed, state, and local gov programs help raise people's standard of living because
people in poverty cant pay taxes
people want gov to intervene in the market
people expect to maintain a high standard of living
certain groups have fewer opportunities to be productive
23
suppose demand is inelastic, which word would describe this good?
replaceable
necessary
normal
inferior
24
The price of home computers rises. According to the law of supply, what will cpu makers do?
make more computers
stop making computers
make fewer computers
make the same # of computers
25
the difference between the economics of China and NK are
NK has begun to introduce free market practices
China is privatizing state-run business
China does not allow ownership of private property
NK does not have a centrally planned economy
26
Why is sales tax regressive?
it is a different amount for all incomes
it is a higher % of income if you earn less money
it is a different amount for low incomes
it is a higher % of income if you earn less money
27
What is one advantage of a centrally planned economy?
incentives for workers to have new ideas
high levels of consumer satisfaction
quick adjustment to changing conditions
low unemployment due to guaranteed jobs
28
What theory did Ronald Reagan base his policies on?
Keynesian economics
demand-side economics
supply-side economics
classical economics
29
Which are some of the factors of production?
capital and land
scarcity and shortages
economics and business decisions
technology and productivity
30
A stock split is more likely to occur when
the stock market as a whole is doing poorly
the price of a stock is too high
a company is losing money
stockholders demand higher dividends
31
Who issues US paper currency?
Treasury Department
the US bank examiners
the district Federal Reserve Banks
US Mint
32
How can an economist compare the standard of living in two different countries?
by comparing real GDP per capita
by seeing how the GDP is distributed
by looking at the quality of life
by measuring physical capital
33
Which of the following is an entrepreneur?
a person who teaches courses at a college
a highly-paid singer
a person who starts a cleaning supplies business
a highly-paid computer programmer
34
Which is a summary of the three key economic questions?
who will buy which goods and services, what will they pay
what should be produced, how, and for whom?
when, where, and by whom should goods and services be made
how, when, and from whom should consumers get what they want
35
Which of the following will happen if the price of butter goes up?
the demand for margarine increases
the demand curve for butter moves to the right
the demand curve for margarine moves to the left
the demand for butter increases
36
Why are goods and services scarce?
resources used to produce them are limited
greedy people want to many goods
some goods cost more than others
people want more than they can have
37
What are the differences between CDs and money market mutual funds?
CDs are more liquid, but much more risky than MMMFs
CDs require less money than MMMFs and are less risky
MMMFs are safer than CDs and pay higher ates
MMMFs are insured wheras CDs are not
38
How can expectations about the future change consumer behavior?
immediate demand will drop if there are no substitutes avail
immediate demand will rise if price is going to rise
immediate demand will rise if good will be plentiful
immediate demand will drop if price will stay the same
39
What is considered a normal unemployment rate when the economy is working properly?
4 to 6 %
10 to 12 %
8 to 10 %
0 to 3 %
40
which of the following events could cause a god's supply curve to shift to the right?
raw materials shortage
a minimum wage increase
new tech is used to produce the good
higher taxes on the good
41
Which goods are included in the calculation of GDP?
cars made in Tenn at a factory owned by a Japanese company
plastic made in Kentucky and sold to a toy maker in Ohio
cloth made in India and sold to clothes makers in the US
toys made in china at a factory owned by a US company
42
You put money in your bank account, how are you helping businesses expand?
by learning to save and increasing your value as a worker
the interest you earn can be spent on businesses
by saving money, you can open a business one day
banks lend your saved money to businesses
43
Businesses often use age, income level, and job to sell stuff to people this data is called
markets
revenues
complements
demographics
44
A day trader tries to make a profit by
investing only in blue chip stocks
taking advantage of minute-by-minute changes in stock prices
reducing risky investments
speculating with borrowed money
45
Why is real GDP more accurate than nominal GDP?
it includes unrecorded business
it is adjusted for price changes (inflation)
it is adjusted for depreciation
it includes unpaid and paid work
46
What is considered a negative effect of government regulations?
they stifle competition
they cause higher prices for consumers
all of the above
they cut into company profits
47
What gives the US gov the right to collect taxes?
an act of the US Congress
custom of government
the US constitution
state laws in all 52 states
48
a factory sells pencils, new machines make that job faster and cheaper, what happens next?
supply and costs will both decrease
costs will drop, supply will remain the same
supply will rise and then decrease
costs will go down and supply will go up
49
What characteristic of socialism is designed to spread wealth evenly?
gov stays out of the economy
consumers use their purchasing power to influence production
central planners make all decisions about the economy
gov controls the centers of economic power
50
How are savers and borrowers linked?
through stockbrokers
through capital loss
through financial intermediaries
through corporate bonds
51
What is one likely trade-off for investing in something with a high rate of return?
low risk
will not mature
investment will have no assets
low liquidity
52
Why does the gov sometimes use expansionary fiscal policy?
to expand the govs control over non-defense spending
to slow down the economy
to control the demand for consumer goods and services
to encourage growth and try to stop a recession
53
What is one limitation of GDP?
does not include intermediate goods
does not include non durable goods
does not show how economy is doing over time
does not measure health and happiness
54
Which is not a function of the Federal Reserve?
print and press money
regulate the money supply
loan money to individuals and small businesses
process checks for the federal government

Economics Final Exam Review Flashcards | StudBud