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Econ - Final Exam Review
Econ - Final Exam Review
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Ch. 1-7
Flashcards
45 cards
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Practice quiz
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Host live
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Questions
45
Answers
1
Which of the following is NOT a US economic and social goal?
economic interdependence
economic efficiency
economic security
economic equity
2
The MOST important factor affecting consumer spending is
the level of current consumer income
the expectations of what the economy will be in the future
amt of assets held by consumers (homes, cars, stocks, etc.)
the level of current consumer debt
3
Regulates the sale of stock in a corporation
SEC
FCC
FTC
EEOC
4
If a nation encourages entrepreneurship, then which of the following is likely to occur?
fewer applications to the US Patent Office
a decline in the number of new businesses started
very little change in overall production of goods & services
dev. of many new products and process methods
5
Manufactured goods needed to produce other goods and services are called
capital goods
Gross National Product (GNP)
Gross Domestic Product (GDP)
consumer goods
6
The payments for land, labor, capital, and entrepreneurial ability respectively are
profits, wages, interest, and rent
rent, wages, interest, and profit
rent, profit, wages, and interest
wages, rent, profit, and interest
7
An economy at its production possibilities frontier is operating
as a free enterprise economy
at full potential
with slow economic growth
beyond its potential
8
A market economy has an advantage over a trad'l economy in that the market economy
limits the profits of large corporations
fixes incomes of consumers
controls prices and wages
adjusts to consumer demands over time
9
In the American economy, the goal of economic equity is MOST connected with
giving participants a fair chance to succeed
restoring laissez-faire capitalism
creating limits on corporate profits
subsidizing businesses that would otherwise fail
10
In the year 2000, Bill Gates was the world's richest person. This stemmed from his
inherited wealth
experience in human relations
concern for the natural environment
entrepreneurial skills
11
A shift of demand occurs when
price changes
the amount demanded changes for every price
time is not held constant
prices change and the good is a normal good
12
Polypoly is another name for
monopolistic competition
oligopoly
monopoly
perfect competition
13
Most common form of business organization in the United States
monopolies
corporations
partnerships
sole proprietorships
14
An increase in the price of cameras results in a decrease in the demand for film. Because
they are complements
they are substitutes
demand for those products is inelastic
of a shift of the demand curve to the right
15
The United States has a
pure free enterprise system
traditional economy
command economy
modified free enterprise system
16
Which of the following is an example of a microeconomic decision?
how to reduce the unemployment rate
whether to increase or decrease taxes
whether to increase or decrease the money supply
how many hours an employee should work each week
17
Which of the following is an example of an investment in human capital?
A company builds a new factory
A state puts in a new highway
A country builds new schools
A person goes to college
18
Which of the following will cause the market supply curve to shift?
a change in the price of the product
a change in the number of consumers
a change in demand for the product
a change in the number of sellers of the product
19
At a given price, a shortage occurs when
the quantity demanded is the same as the quantity supplied
the quantity supplied is less than the quantity demanded
the quantity demanded is less than the quantity supplied
the quantity supplied is greater than the quantity demanded
20
Which of the following is NOT a characteristic of free enterprise capitalism?
Private property rights
Profit motive
Competition
Economic equity
21
All of the following are factors of production EXCEPT
land
gov't
labor
capital
22
What is the unit of study in microeconomics?
inflation and recession
individual businesses and households
national consumption and expenditures
hiring ten employees
23
Minimum wage is an example of a
price ceiling
equilibrium price
monopolistic competition
price floor
24
In which economic system does the gov't own the means of production?
market
traditional
command
mixed
25
Least numerous form of business organization in the United States
sole proprietorships
partnerships
multinationals
corporations
26
Does not provide for everyone's basic needs
command economy
traditional economy
market economy
communism
27
The largest variable input is usually
capital
labor
price
land
28
In which market structure does a firm have greatest control over its product's price?
perfect competition
monopoly
monopolistic competition
oligopoly
29
Which of the following is true about a shareholder in a corporation?
A shareholder is part owner of that business
A shareholder may not share in the earnings of that corp
A shareholder may not transfer his share without permission
A shareholder is liable for any debts accumulated by corp
30
When economists refer to "demand," they mean which of the following?
how much people want the product if it is free
how much sellers will supply at a particular price
how much consumers will purchase at different prices
how much satisfaction buyers receive a purchase
31
In a market economy, a high price is a signal for
gov't to intervene to protect consumers
producers to supply less and consumers to buy more
producers to supply more and consumers to buy less
producers to supply less and consumers to buy less
32
Develops and enforces environmental standards for air, water, and toxic waste.
FDA
EEOC
EPA
SEC
33
Opportunity cost
the combined value of all the alternatives not selected
the value of the next best alternative
based on the intrinsic value of the good itself
the same thing as the money price of a good
34
Which form of bus. org. = easiest to organize but is LEAST able to benefit from specialization?
sole proprietorship
corporation
partnership
limited partnership
35
People against raising the min wage argue that when a legal min wage is est above equil. wage
there will be an increase in unemployment
the quantity of labor supplied will decrease
employers will have an incentive to use more labor
the quantity of labor demanded by firms will increase
36
Interdependence and price leadership are char. of firms in what kind of market structure?
oligopoly
monopoly
monopolistic competition
perfect competition
37
The minimum wage is a type of
comparable worth
price floor
marginal price
price ceiling
38
Perfect competition is characterized by
uniformed buyers and sellers
sellers acting together to set prices
a large number of buyers and sellers
diverse products
39
Producers make goods that consumers like and are willing to pay for = principle of
traditional economy
market economy
command economy
socialism
40
When the US gov't purchases a submarine from a company, the gov't has made a transaction in the
factor market
product market
public market
foreign exchange market
41
In the US, how are public goods paid for?
Non-profit orgs collect charitable donations from people
The gov't collects tax revenues from indivs. and firms
Private firms collect fees from their employees
Corporations make profits from selling goods and services.
42
Kim works on an auto assembly line. Kim's job illustrates a production process that relies on
division of labor
autonomous work groups
team decision making
quality circles
43
Who ultimately determines the products that a free enterprise economy produces?
Congress
state and local gov'ts
consumers
the President
44
For most products and services, an increase in price results in
increased demand for complements
an increase in quantity demanded
reduced demand for substitutes
a decrease in quantity demanded
45
What basic econ problem do both higher income nations and lower income nations have in common?
too much gov't
lack of capital goods
too many unskilled laborers
scarcity of resources
