Economics EOC Review 1

Question 1

A general increase in prices in the economy

Accepted Answer

Inflation

Question 2

A fee charged for goods brought into a country from another country

Accepted Answer

Tariff

Question 3

Who does inflation help?

Accepted Answer

Debtors

Question 4

Tax system that taxes everyone at the same rate equally.

Accepted Answer

Proportional

Question 5

The market structure in which only a few sellers produce a similar product

Accepted Answer

Oligopoly

Question 6

The process where unions and company mgmt meet to negotiate a new labor contract

Accepted Answer

Collective Bargaining

Question 7

Tax system that taxes the rich at a lower rate than the poor.

Accepted Answer

Regressive

Question 8

When prices go down, suppliers will supply...

Accepted Answer

Less

Question 9

A market structure with only one seller that sells a product that has no substitute

Accepted Answer

Monopoly

Question 10

What do you call a period of growth in rGDP in the business cycle?

Accepted Answer

Expansion

Question 11

Land, Labor, Capital, & Entrepreneurship are

Accepted Answer

Factors of Production

Question 12

A combination of traditional, market, and command economies (example- USA).

Accepted Answer

Mixed Economy

Question 13

M2 is defined as

Accepted Answer

M1 + Savings Accounts, Money Market Accounts, CD&#x27;s

Question 14

Which of the following is NOT a function of money?

Accepted Answer

Measure of Liquidity

Question 15

M1 is defined as...

Accepted Answer

Currency, Travelers' Checks, Checks/Debit Cards

Question 16

A balance in production between losses & gains made given the resources that one was allocated

Accepted Answer

Economic Efficiency

Question 17

If the price of a large Dominos Pizza goes up by $3, what happens to the demand for Papa Johns?

Accepted Answer

Demand Curve shifts right

Question 18

What is the formula for GDP?

Accepted Answer

C+I+G+Nx

Question 19

A limit on the amount of a product than can be imported

Accepted Answer

Quotas

Question 20

The value of a nation's currency in relation to a foreign country

Accepted Answer

Exchange Rate

Question 21

What happens if the government mandates a price ceiling on cable service (i.e. Comcast)?

Accepted Answer

Shortage Occurs

Question 22

The ability of 1 trading nation to produce something at a lower opportunity cost than another

Accepted Answer

Comparative Advantage

Question 23

Which action could the Fed use to control inflation (tight policy)?

Accepted Answer

Increase RRR, Sell Bonds

Question 24

The sum of all the supply in an economy

Accepted Answer

Aggregate Supply

Question 25

As the price of a good/service decreases, quantity demanded increases. This is the...

Accepted Answer

Law of Demand

Question 26

A way to attract customers through style, service, or location, but not a lower price

Accepted Answer

Non-Price Competition

Question 27

An economic system based on private ownership of the factors of production

Accepted Answer

Capitalism

Question 28

The relationship between the value of a country's exports & its' imports...

Accepted Answer

Balance of Trade

Question 29

Which monetary policy action does the Fed use most often?

Accepted Answer

Open Market Operations

Question 30

The market structure that lacks one of the characteristics necessary for perfect competition

Accepted Answer

Imperfect Competition

Question 31

Which type of unemployment is most affected by new technology? (think)

Accepted Answer

Structural

Question 32

A trade in which the parties involved anticipate the benefits outweigh the costs

Accepted Answer

Voluntary Exchange

Question 33

The difference between the purchase price and selling price of a stock that results in profit

Accepted Answer

Capital Gain

Question 34

Entrepreneurs are risky... what motivates them to do this?

Accepted Answer

Profit

Question 35

The ability of 1 trading nation to make a product more efficiently than another trading nation

Accepted Answer

Absolute Advantage

Question 36

A market structure in which many sellers offer similar but not identical products to consumers.

Accepted Answer

Monopolistic Competition

Question 37

Which business organization has the disadvantage of unlimited liability for its owner(s)?

Accepted Answer

Sole Proprietorships, General Partnerships

Question 38

What makes up the largest percentage of the federal budget?

Accepted Answer

Social Security/Medicare/Medicaid

Question 39

Gov&#x27;t Spending that is required by law and cannot be changed.

Accepted Answer

Mandatory Spending

Question 40

An economic system in which the gov&#x27;t makes all or most of the economic decisions

Accepted Answer

Command Economy

Question 41

Chemotherapy is an example of a(n) ....

Accepted Answer

Inelastic Good

Question 42

Cell phone service providers are an example of....

Accepted Answer

Oligopolies

Question 43

What is the type of unemployment that occurs due a decrease in rGDP?

Accepted Answer

Cyclical

Question 44

What do we call the central bank of the United States?

Accepted Answer

The Federal Reserve

Question 45

The restaurant market is an example of

Accepted Answer

Monopolistic Competition

Question 46

A situation that exists when there are not enough resources to meet human wants...

Accepted Answer

Scarcity

Question 47

What is Adam Smith&#x27;s famous piece of work?

Accepted Answer

The Wealth of Nations

Question 48

A market situation in which the costs of production are cheapest when only one firm provides

Accepted Answer

Natural Monopoly

Question 49

Ray Ban has to pay more for their lens. What happens to prices?

Accepted Answer

Equilibrium Price increases

Question 50

Which economist believed government action could be used to stabilize & grow the economy?

Accepted Answer

John Maynard Keynes

Question 51

When corporations that are from different parts of the production process merge together...

Accepted Answer

vertical merger

Question 52

Tax system that taxes the rich at higher percentages than the poor.

Accepted Answer

Progressive, Ability to Pay Principle

Question 53

When corporations that produce similar goods/services combine operations...

Accepted Answer

horizontal merger

Question 54

Which of the following concepts were created by Adam Smith?

Accepted Answer

The "Invisible Hand"

Question 55

When corporations that produce unrelated goods/services join together...

Accepted Answer

conglomerate

Question 56

The portion of a corporations profits that are paid out to the company&#x27;s stockholders are...

Accepted Answer

Dividends

Question 57

The monetary value of all final goods/services produced w/in a country&#x27;s borders in a given yr

Accepted Answer

Gross Domestic Product

Question 58

An economic system based on individual choice & voluntary exchange

Accepted Answer

Market Economy

Question 59

What is a good/service provided by the government and consumed by the public as a group?

Accepted Answer

Public Good

Question 60

Chik-Fil-A buys new ovens/fryers that cook food faster, how does this affect price?

Accepted Answer

Equilibrium Price Decreases

Question 61

What type of unemployment occurs when a person's skills don't align with available jobs?

Accepted Answer

Structural

Question 62

An organization of workers that seek to improve wages, working conditions, benefits, etc...

Accepted Answer

Labor Union

Question 63

The point where market supply and market demand intersect is called ...

Accepted Answer

Market Equilibrium

Question 64

A graph used to illustrate the impact of scarcity on an economy or opportunity costs

Accepted Answer

Production Possibilities Curve

Economics EOC Review 1

Questions 76

Economics EOC Review 1

Questions 76