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Economics: Unit 3 Review Flashcards | StudBud
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Economics: Unit 3 Review
Economics: Unit 3 Review
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Answers
1
According to the circular flow model, individuals
provide resources in the resource market
tax businesses
produce goods and services for consumers
demand resources in the product market
2
Which insurance pays for damages to the holder’s real estate or injuries that occur on the policy holder’s property?
Disability
Health
Life
Property
3
A decrease in the demand for carpenters will
increase the number of carpenters employed by the government
decrease the wages of carpenters
increase the demand for wood
increasethe number of people that want to become carpenters
4
The 3 “C’s” of creditworthiness are
a. Character, Competency, Circumstances
a. Character, Capacity, Competency
a. Character, Capacity, Collateral
a. Capacity, Collateral, Competency
5
Which of the following will most likely increase the supply of lawyers?
A decrease in the price of law schools
A decrease in the wages of lawyers
A decrease in the demand for lawyers
A decrease in the number of people that go to law school
6
Which of the following will most likely decrease the demand for pet groomers?
An increase in the productivity of pet groomers
An increase in the number of qualified pet groomers
A decrease in the wages of pet groomers
A decrease in the demand for pets
7
Education and training will result in all the following EXCEPT
a decrease in human capital
more productivity
innovation
higher wages for workers
8
All the following are true regarding the circular flow model EXCEPT
businesses sell goods and services in the product market
individuals supply resources in the resource market
the government buys goods and services in the product market
businesses sell resources in the product market
9
Bank and credit unions offer many of the same services. One key difference between a bank and a credit union is
banks are open to any customers while credit unions are only open to member
credit unions only offer savings accounts and lines of credit.
banks only offer investments accounts and lines of credit.
credit unions are open to any customers while bank are only open to member
10
Which of the following will most likely increase the wages of car mechanics?
A decrease in the number of qualified car mechanics
An increase in the number of people that fix their own cars
An increase in the number of schools that train car mechanics
A decrease in the demand for cars
11
The amount you pay your insurance company before any benefits are paid to/for you is called the
Deductible
Co-pay
Credit
a. Premium
12
A minimum wage is
a wage ceiling placed below the equilibrium wage
a wage floor placed below the equilibrium wage
a wage ceiling placed above the equilibrium wage
a wage floor placed above the equilibrium wage
13
The supply for labor shows a(n) ______ relationship between wages and the number of workers that want a job.
Direct
Complicated
Temporary
Inverse
14
This is the amount that you pay monthly or annually for your insurance:
Credit
a. Premium
Deductible
Co-pay
15
According to the circular flow model, businesses
produce resources for individuals
produce goods and services for consumers
tax individuals
provide public goods
16
The idea that hiring extra workers will result in each worker eventually producing less additional output is called
the law of supply
the law of demand
the law of diminishing marginal returns
derived demand
17
Which of the following is true regarding the labor market?
The government sets wages in the labor market
Individuals demand labor in the labor market
Businesses supply labor in the labor market
Businesses demand labor in the labor market
18
Which type of insurance protects against financial loss caused by the costs of illness or accident?
Disability
Life
Health
Automobile
19
A plan designed to help manage money by monitoring income and tracking expenses is called a
Tracker
Portfolio
Planner
Budget
20
Which of the following occurs when wages increase?
The quantity of labor supplied decreases
The quantity of labor demanded decreases
Thenumber of workers employed by the government increases
The minimum wage falls
21
This type of investment option pools an investor’s money with other people to buy a variety of stocks and bonds:
bonds
money market mutual fund
certificate of deposit
stocks
22
Which of the following is the best way to minimize your risk when investing?
diversify your investments
buy stocks in foreign stock exchanges
invest in one company
purchase stocks that do not pay dividends
23
When money you are saving is put into an account or asset that earns interest, it is called
budgeting
income
spending
investing
24
This type of investment option deposits funds into an account for a specified period of time:
stocks
certificate of deposit
money market mutual fund
bonds
25
Interest that is earned on the principal and any previously earned interest is called
compound interest
doubling interest
interest- earning interest
simple interest
26
A/An ________________ is an entity that acts as the middleman between two parties in a financial transaction.
market
brokerage
financial institution
exchange
27
Which type of insurance provided financial protection to a family when the policy holder dies?
Health
Life
Disability
Automobile
28
Which type of insurance offers financial protection to the owners, drivers, and passengers of a car in case of accidents
Life
Automobile
Disability
Health
29
Which type of investment option represents direct ownership on a company and may pay dividends to investors?
certificate of deposit
bonds
stocks
money market mutual fund
30
This type of investment option is like a loan, the debt that the government or corporation must repay to an investor
certificate of deposit
stocks
money market mutual fund
bonds
31
This type of tax takes a larger percent of income from higher income individuals
Progressive
Regressive
Proportional (Flat)
Sales
32
In general, the greater the expected return, the greater the
risk
chance
opportunity
cost
