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PFET Unit I Review Flashcards | StudBud
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PFET Unit I Review
PFET Unit I Review
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An #economics review for principles of econ
Flashcards
21 cards
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Practice quiz
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Questions
21
Answers
1
Which of these is NOT one of the 3 basic economic questions?
How is it produced?
What is produced?
Who will produce it?
Who is it for?
2
What is the most used tool of monetary policy in modern times?
Bonds
Discount Rate
Tax Rates
Reserve Requirement
3
99% of the world's economies classify as which economic system?
Mixed
Modern
Free Market
Command
4
How is the government involved in the product market?
Government hires workers for labor
Government provides roads and other public goods
Government buys goods and services
Government sells goods and services
5
Which of these is NOT a part of our GDP?
Consumption Spending
Net Imports
Net Exports
Investment Spending
6
Socialism is a type of what economic system?
Command
Mixed
Free Market
Traditional
7
Consumer Price Index most directly measures what?
Inflation
Output of an economy
Standard of living
National Debt
8
Households purchase goods in the...
Resource Market
Specialization Market
Resource Market
Product Market
9
What is this?
Free Market Circular Flow
Cash Flow Model
The Water Cycle
Mixed Circular Flow
10
The price where Q Supplied= Q Demanded is the what?
Equilibrium Price
Ideal Price
Perfect Price
$5
11
Which of the following would occur during a contraction/recession?
Reserve Requirement Decreases
Discount rate Increases
Taxes Increase
Government Spending Decreases
12
Who controls monetary policy?
The President
The Fed
Federal Trade Commission
Congress
13
All monopolies are bad and therefore illegal
True
False
14
When the price of a complementary good is increased what will happen to a normal good?
Supply Increased
Demand Decreased
Demand Increased
Supply Decreased
15
When starting at equilibrium, if supply shifts to the right and demand left, we are in a...
Surplus
Shortage
16
Subsidies are the opposite of...
Not subsidies
OSHA Regulation
Income Taxes
Business Taxes
17
When the price of a substitute good is raised what will happen to the normal good?
Demand Decreased
Supply Increased
Demand Increased
Supply Decreased
18
Firms purchase factors of production from the...
Resource Market
Factor Market
Product Market
Labor Market
19
How can we combat high inflation?
Increase Government Spending
Raise the discount rate
Cut taxes
Lower the reserve requirement
20
Which structure has a few firms selling slightly different products?
Monopolistic Competition
Oligopoly
Perfect Competition
Monopoly
21
What is the ideal rate of unemployment?
LS
4-6%
0%
2-3%
