Having agood credit score canbenefit individuals Which isNOT abenefit 2having agood creditscore

A person paying less for consumer goods and services

How does Roth IRAs increase the amount people save?

Roths offer tax-free investment growth of all contributions

How does future expectations ofwhat will happen to a goods prices affect what consumers buy now

consumers will purchase more if its is expected to rise

In order to maintain a balanced budget, a person should do which if the following

make sure that total expenses are less than total income

The portion of corporate profits paid out to stockholders

What does it mean when you have demand for a good or service

You are willing and able to buy the good at the given price

Which is NOT a function of the Federal Reserve?

loan money to individuals and small business

What does the economic concept of “guns or butter” mean?

Government must decide to make military or consumer goods.

Which of the following activities creates money?

depositing money into a demand deposit account

The United States economy is a mixed economy

free market allowing some GOVT intervention

How can investors lose a profit from stocks?

selling at a lower price than stock was purchased

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Econ FINAL

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Economics FINAL

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Questions 29

Answers

1
Having agood credit score canbenefit individuals Which isNOT abenefit 2having agood creditscore
A person being charged a lower premium on car insruance
A person paying less for consumer goods and services
A person being able to rent a luxury condomimium
A person getting hired by the local bank
2
Rent controls are examples of
price floors
equilibrium prices
price ceilings
target prices
3
How does Roth IRAs increase the amount people save?
Roths have very high returns because they are high risk
Roths offer tax-free investment growth of all contributions
Roths are used for educational purposes
Roths offer tax deductions on amounts contributed each year
4
Divisibility means that money can be easily divided into
Different units of exchange
currency and coins
representative money and fiat money
smaller units
5
How does future expectations ofwhat will happen to a goods prices affect what consumers buy now
consumers will purchase more if its is expected to rise
consumerwill purchasemore ifthe foodis expected 2beplentiful
Consumer willpurchase lessifthe priceisexpected 2staythesame
Consumerpurchases Rnot affectedby futureexpectations onprice
6
In order to maintain a balanced budget, a person should do which if the following
use savings when emergencies occur
work more hours than the average worker
make sure that total expenses are less than total income
make sure that total income is less than total expenses
7
What is a dividend ?
The portion of corporate profits paid out to stockholders
a promise to repay borrowed money w interest at a fixed rate
a business owned and managed by a single individual
certificate of ownership in a corporation
8
What does it mean when you have demand for a good or service
You are willing and able to buy the good at the given price
You are able to buy the good but the not at the given price
you want the good but may not have the money for it
you can afford the good but may be unwilling to buy it
9
Which is NOT a function of the Federal Reserve?
regulate the money supply
clear checks
process checks for the federal GOVT
loan money to individuals and small business
10
Which of the following is considered physical capital?
a computer
a flight attendant
a certified culinary class
water
11
What is a major advantage of investing in a mutual fund?
Your interest rate is high.
Your risk is spread out.
Your dollar cost is averaged.
Your returns are guaranteed.
12
How do 401(k) retirement plans allow workers to set aside money for retirement?
by not taxing them on the amount saved
by using part of their Social Security tax
by not taxing them when the money is spent
by lowering their income tax
13
Divisibility means that money can be easily divided into
Different units of exchange.
smaller units of value.
currency and coins.
representative money and fiat money.
14
What does the economic concept of “guns or butter” mean?
Companies must make guns or butter.
People choose between guns and food.
Government can buy unlimited military and consumer goods.
Government must decide to make military or consumer goods.
15
What are the factors of production?
land
capital, entrepreneurship
All of the above
labor
16
Which is NOT a characteristic of a traditional society?
expectations are know at a young age
low standard of living
embraces new technology
close tight knit communit
17
The ways in which factors of production are combined determines the what economic question
what will be produced
who will consume goods
how will goods be produced
how can we provide a safety net?
18
What “invisible hand” directs the free market?
specialization
incentives and efficiency
circular flow
competition
19
Generally, the type of account earning the lowest interest is
a certificate of deposit (CD).
a savings account.
a money market account.
an Individual Retirement Account (IRA).
20
What "invisible hand" directs the free market?
competition
circular flow
incentives and efficiency
specialization
21
compound interest helpsincrease wealth bypaying interest on the money put in2 anaccount &on the
interest you previously earned
money you save for emergencies
taxes you avoid paying
fees you pay the bank
22
Which of the following activities creates money?
withdrawing money from a demand deposit account
depositing money into a demand deposit account
putting money into a safe
paying off a loan to a friend
23
In order to decrease the money supply, the Federal Open Market Committee can
raise the prime rate
sell bonds
lower the prime rate
purchase bonds
24
Unlike saving money in a savings account, investing involves
risk of losing the money.
safety and security.
getting expert advice.
guaranteed growth.
25
The United States economy is a mixed economy
based on a free market, allowing no government intervention.
traditional economybut allowingsome government intervention
free market allowing some GOVT intervention
centrally planned economy limiting government intervention
26
Which of the following is a disadvantage of a corporation?
ability to raise money
more regulation
potential for growth
long lifespan
27
How can investors lose a profit from stocks?
selling it when you see it nationally advertised
selling at higher price than stock was purchase
selling it when you see the stock increase in price
selling at a lower price than stock was purchased
28
If economists predict the economy isfacing along recession whatwould the Fed be most likely 2do
wait for the economy to correct itself
introduce tax rebates
introduce a tight money policy
introduce an easy money policy
29
Stockholders make money when the company that issued the stock pays
bonds
dividends
capital gains
interest

Econ FINAL Flashcards | StudBud