Which of these is an advantage for corporations?

Stockholders have limited liability

If the US economy was in a recession, what type of fiscal policy would be used?

Increase government spending and/or decrease taxes

If the Congress wants to contract the economy it will

Raise taxes; lower government spending

Which of these is a disadvantage of turning a partnership into a corporation?

Loss of control over the company

What is human capital?

Work and educational experience

Why are U.S. dollars considered money?

The government tells us they must be accepted as a means of payment

If the Federal Reserve wants to expand the economy it will

Lower the reserve requirement; lower the discount rate

Why would a 0% unemployment rate be bad for a country and its economy?

There will be a significant increase in inflation

If the Federal Reserve wants to contract the economy it will

Raise the reserve requirement; raise the discount rate

Why did labor unions start?

Poor working conditions and low wages for men, women, and children

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Reg. Econ Final Exam Review Part II

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Questions 30

Answers

1
What is the natural rate of unemployment?
1-2%
8-10%
0%
4-6%
2
If one person's use of a public good doesn't prevent someone else from also using that same public good, then it is...
Non-excludable
Rival
Excludable
Non-rival
3
Which of these is an advantage for corporations?
Pay fewer taxes
Business usually stops after CEO dies
Founder of the company can lose control of the company
Stockholders have limited liability
4
If the US economy was in a recession, what type of fiscal policy would be used?
Decrease interest rates and/or increase government spending
Decrease government spending and/or increase taxes
Increase discount rate and/or increase reserve ratio
Increase government spending and/or decrease taxes
5
If the Congress wants to contract the economy it will
Raise taxes; raise government spending
Lower taxes; raise government spending
Raise taxes; lower government spending
Lower taxes; lower government spending
6
Who supplies in the factor market?
Businesses
Consumers
Foreign Investors
The Government
7
Which of these is a disadvantage of turning a partnership into a corporation?
Continuity issues
Loss of control over the company
Less management skills
Loss of mentors
8
Which statement is true of all entrepreneurs?
They take risks
They make profit
They hire employees
They are successful
9
If one can still use a public good even if they did not pay their taxes, then that public good is said to be...
Excludable
Rival
Non-rival
Non-excludable
10
Which of the following is true about Oligopolies?
Products have no variation
There are only a few producers
Price is set by the market
They were first discovered by Oliver Gopoly.
11
The federal government receives most of its tax revenue from which of the following?
Corporate (business) taxes
Government borrowing from other countries
Payroll taxes
Personal inocme taxes
12
The government has a __________ ___________ when they spend more than they bring in, in taxes.
Balanced budget
Budget surplus
Budget deficit
Monetary fiscal earnings
13
What is human capital?
Work and educational experience
Tools used to make other tools
Outward appearance
Street smarts
14
Why are U.S. dollars considered money?
Their value rises and falls with the economy
The government tells us they must be accepted as a means of payment
They are backed by government owned gold or silver
They are printed on money or minted on coins
15
Which of the following is true about Monopolistic Competition?
Only a couple of firms operate in the market
When you argue with someone about which game piece you get in Monopoly
Production variation
One firm dominates the market
16
The US Federal income tax is this type of tax structure:
Progressive
Proportional
Regressive
Flat
17
Money that has no intrinsic or use value is _________ money
Fiat
Bitcoin
Barter
Commodity
18
Who demands in the product market?
Businesses
Foreign Investors
Consumers
The Government
19
When someone is unemployed and then stops looking for a job they are considered:
Cyclically unemployed
Structurally unemployed
Unemployed
A discouraged worker
20
Which of these is an example of a positive externality?
Roads
Pollution
Parks
Education
21
Which of the following is true about Perfectly Competitive Markets?
They have a few producers
Price is set by the market
Barriers to entry are high
They have deadweight loss
22
Which of these is not an advantage of a partnership
Shared responsibility and decision making
More skill sets to run a business
Specialization
Disagreements between partners
23
The market value of all final goods and services produced within a country in a year is the
Wage-price spiral
Consumer price index (CPI)
Gross domestic product (GDP)
Net exports
24
If the Federal Reserve wants to expand the economy it will
Lower the reserve requirement; raise the discount rate
Lower the reserve requirement; lower the discount rate
Raise the reserve requirement; raise the discount rate
Raise the reserve requirement; lower the discount rate
25
The difference between real and nominal GDP is that real GDP is adjusted for
Deflation
Entitlements
Unemployment
Inflation
26
Unemployment that comes from economic downturn in the business cycle is
Cyclical
Structural
Seasonal
Frictional
27
Which of these is not a disadvantage of a partnership?
Conflict between partners
Unlimited liability for general partners
Continuity issues
Specialization
28
Why would a 0% unemployment rate be bad for a country and its economy?
Not enough jobs for recent college graduates
There will be a significant increase in inflation
Pay will decrease drastically
When the economy dips into a recession, it will turn into a depression
29
If the Federal Reserve wants to contract the economy it will
Raise the reserve requirement; raise the discount rate
Lower the reserve requirement; raise the discount rate
Lower the reserve requirement; lower the discount rate
Raise the reserve requirement; lower the discount rate
30
Why did labor unions start?
Poor working conditions and low wages for men, women, and children
Company leaders wanted a way to unite their workers under a common goal
Lazy workers
Unions were promoting strikes on companies

Reg. Econ Final Exam Review Part II Flashcards | StudBud