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Econ Final Review
Econ Final Review
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econ economics review overview
Flashcards
37 cards
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Practice quiz
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Questions
37
Answers
1
A cooperative lending
organization that focuses on servicing a particular group of customers is
A credit union.
A savings bank.
A finance company.
A savings and loan association.
2
When the money supply increases
Each dollar will be able to buy more goods.
The price level will not be affected.
The price level will decrease
The price level will increase.
3
Rational decision
making in economics involves comparing an action’s
trade-offs.
opportunity costs.
allocation of resources
marginal benefits and marginal costs.
4
Which of the following explains a capital investment?
hiring employees
purchasing equipment
printing flyers for a business
renting a space for a business
5
If a nation encourages entrepreneurship, then which of the following is likely to occur?
little change in overall production of goods and services
a decline in the number of new businesses started
the development of many new products and production methods
fewer applications to the United States Patent Office
6
Term which command economic system MOST closely associated?
entrepreneurship
governmental regulation
perfect competition
absolute advantage
7
National debt is different than government deficits in that
deficits include all debts owed over time with interest.
national debt is the sum of all past deficits plus interest.
deficits only apply to monetary decisions madeby Congress.
debt only includes money owed for the current fiscalyear.
8
How are
equilibrium price and quantity determined?
the interaction of sellers and producers.
much money is available in the economy.
the government in their role as price setter.
the interaction of buyers and sellers
9
Which headline supports what has happened in the graph?
“Producers reducing supply of orange juice”
“Government imposes heavy tax on orange juice”
“Study shows orange juice causes disease”
“Government imposes heavy tax on orange juice”
10
Stocks are shares of a corporation,
a shareholderin a corporation
A shareholder is part owner of that business.
Are liable for anydebts accumulated by that corporation.
Does not share in the earnings of that corporation.
A shareholder may not transfer shares without permission.
11
Comparing real GDP between two consecutive years is useful in determining
exchange rates
economic growth
equity
equilibrium price
12
Which person below would be considered frictionally unemployed?
Person who shut down business
Person whose skills are no longer needed.
Person who recently exits the labor force
Parson who quit their job
13
These four categories are the method calculating GDP
Consumption, Interest Rates, Government, Net Exports
Consumption, Investment, Government Spending, Net Exports
Consumption, Investment, Government, Business expenditures
Wages, Rent, Interest, Dividends
14
An example of structural unemployment in an economy is a person who is
unemployed due to a change in the business cycle.
without job skills that match the economy’s needs.
unemployed due to a seasonal downturn in business.
between jobs or entering the work force.
15
Working on one task during the production process is
work focus
specializationof labor
16
In a mixed economy,the three economic questions are answered by
the individuals and firms in the nation’s marketplace.
the nation’s federal and/or local government.
a combination of market and command economies.
a nation’s social customs and traditions.
17
In a mixed economy, how are public goods paid for?
taxes collected from firms and individuals
Donations from corporations
18
Competition and free enterprise are most common in which type of economic system
planned
market
traditional
command
19
The actions theFederal Reserve takes to influence the level of real GDP is called
monetary policy
fiscal policy
labor policy
budget policy
20
Federal minimun wage is a
price floor
price ceiling
21
Demand is refered to as
How much consumers will purchase at different prices
Satisfaction buyers receive from a purchase
how much people want the product if it is free
how much sellers will supply at a particular price
22
A tariff will
hurt both domestic and foreign producers.
help foreign producers and domestic consumers.
help both domestic and foreign producers.
help domestic producers but hurt domestic consumers.
23
How do tariffs work
in the United States to protect infant industries
Protect the new industries from domestic competition
Increase competition for the new industry
protect the new industries from foreign competition
reduce sales taxes
24
Economic system where producers make goods that consumers like and are willing to pay for
command
market
socialism
traditional
25
What BEST explains the shift of the production possibilities curve from P1 to P2?
improvements in agricultural technology
inflationaryincreases in process
highercosts of producing wheat
highercosts of producing corn
26
After a contractionary period, which stage of the business cycle will be experienced next?
cyclical
expansion
trough
peak
27
Characterizes unlimited wants that exceed limited resources
surplus
specialization
shortage
scarcity
28
The period of the business cycle that is chracterized as "bottoming out" is the
contraction
peak
trough
expansion
29
What happens to the curve when household income increases?
The supply curve will shift to the right.
The demand curve will shift to the right.
The demand curve will shift to the left.
The supply curve will shift to te left.
30
If the government wanted to encourage spending by consumers, a fiscal policy to use would be
reducing the discount rate
balancing the budget
decreasing taxes
decreasing government spending
31
Opportunity cost is defined as
sumof all production costs
monetary value forgone when a choice is made
value of the best alternative forgone when a choice is made
mostexpensive resource used in production
32
The
economic system in which the government own
s
the means of production
market
command
mixed
traditional
33
Which factor is LEAST likely to affect whether or not someone gets credit?
current credit score
payment history
ownership of a car
regular income source
34
What trade barrier is
beneficial to both domestic producers AND domestic consumers of a good?
subsidy
tariff
quota
embargo
35
The Federal Reserve System conducts its business directly with
stock markets and bond markets
product markets and factor markets
individuals and firms
the government and banks
36
When there is inflation in an economy....
Unemployment will automatically decrease.
The purchasing power of the dollar increases.
Exports to other countries increases.
The consumer price index has increased
37
Which economic goal gives everyone a chance to be succesful within the economy?
Economic Security
Economic Equity
Economic Growth
Economic Stability
