Econ Exam Review

Question 1

Everytime you exchange the use of one thing for the use of another it is a

Accepted Answer

Trade-off

Question 2

What is the fundamental problem in economics?

Accepted Answer

Scarcity

Question 3

What percentage inflation is considered healthy and normal?

Accepted Answer

1-2%

Question 4

A country can have an absolute advantage in everything they produce?

Accepted Answer

True

Question 5

Which of the following is not a determinant of demand?

Accepted Answer

taxes

Question 6

When the quantity supplied is above the quantity demanded at the current price we have a

Accepted Answer

surplus

Question 7

Sally is over 18 and a (paid) firefighter. Economically speaking Sally is

Accepted Answer

employed

Question 8

When the quantity demanded is above the quantity supplied at the current price we have a

Accepted Answer

shortage

Question 9

Wilbur retired at 65 and is enjoying his beach house and grandchildren visiting. Wilbur is

Accepted Answer

not in the labor force

Question 10

What type of curve is shown here?

Accepted Answer

PPF

Question 11

Which law says "As the price of a good increases the _______ decreases?"

Accepted Answer

Demand

Question 12

What type of curve is shown here?

Accepted Answer

Demand

Question 13

Quitting your job is considered to be what type of unemployment?

Accepted Answer

frictional

Question 14

The U.S. only imports 5,000 cars from Japan a year. This is an example of a(n)

Accepted Answer

quota

Question 15

Land, Labor, Capital, and Entrepreneurship are the

Accepted Answer

4 Factors of Production

Question 16

Expenses, Advertising, Risks, Receipts and Records are the

Accepted Answer

4 Elements of Owning a Business

Question 17

What percentage must the unemployment rate be under to be considered healthy?

Accepted Answer

4%

Question 18

Mallory, 22, just graduated college and is looking for her first big career job. Mallory is

Accepted Answer

unemployed

Question 19

What is shown here?

Accepted Answer

Equilibrium

Question 20

What type of curve is shown here?

Accepted Answer

Supply

Question 21

What is the word used to describe when two currencies are equal to each other?

Accepted Answer

exchange rate

Question 22

Which of the following is not a leakage?

Accepted Answer

investments

Question 23

Which indicator measures the total value of all final goods and services made in a nation?

Accepted Answer

GDP

Question 24

The U.S. stopped all trade with Cuba in 1960. This is an example of a(n)

Accepted Answer

embargo

Question 25

Jonathon (25 years old) got laid off last year and has not looked for a job since. Jonathon is

Accepted Answer

not in the labor force

Question 26

When people lose their jobs due to a contracting business cycle it is what type of unemployment

Accepted Answer

cyclical

Question 27

The government raises tax rates on orange juice companies. What will happen?

Accepted Answer

Supply of OJ will decrease

Question 28

Which of the following shows the flow of income between businesses and households?

Accepted Answer

Circular Flow of Income

Question 29

What does this graph show?

Accepted Answer

Business Cycle

Question 30

What is it called when the government spends more money than they bring in?

Accepted Answer

deficit spending

Question 31

The U.S. only accepts oranges that have a diameter less than 6in. This is an example of a(n)

Accepted Answer

standard

Question 32

Each additional donut you eat gets less tasty. This is due to the

Accepted Answer

law of diminishing marginal utility

Question 33

What is it called when goods or services are sent to be produced in a foreign country

Accepted Answer

outsourcing

Question 34

What two things can monetary policy adjust to control the economy?

Accepted Answer

money supply and interest rates

Question 35

The study of how individuals and nations make choices about how to use scarce resources.

Accepted Answer

Economics

Question 36

The U.S. issues a tax on bananas imported from Costa Rica. This is an example of a(n)

Accepted Answer

tariff

Question 37

Honda opens 5 new factories. What will happen?

Accepted Answer

Supply of Hondas will increase

Question 38

If demand for a good skyrockets when the price drops we would say that that good is

Accepted Answer

elastic

Question 39

Job loss due to technology replacing job's previously done by hand is called

Accepted Answer

structural

Question 40

What do we call the 2nd best option, or the thing you give up?

Accepted Answer

Opportunity Cost

Question 41

What percentage of GDP growth is considered healthy for our economy?

Accepted Answer

2-3%

Question 42

A country can have a comparative advantage in everything they produce?

Accepted Answer

False

Question 43

Which of the following is not a determinant of supply

Accepted Answer

substitutes

Question 44

Which of the following is not an injection?

Accepted Answer

imports

Question 45

The price of peanut butter increases. What will happen to jelly?

Accepted Answer

Demand for jelly will decrease

Question 46

Which of the following is not one of the Government's 3 goals for the economy?

Accepted Answer

decreased taxes

Question 47

Which law says "As the price of a good increases the _______ increases?"

Accepted Answer

Supply

Question 48

10 people can make 30 hats, you hire 7 new employees but you only produce 10 more hats. Why?

Accepted Answer

law of diminishing marginal returns

Question 49

What two things can fiscal policy adjust to control the economy?

Accepted Answer

taxes and public spending

Question 50

The U.S. experiences a baby boom. What will happen to daycares?

Accepted Answer

Demand for daycares will increase

Question 51

What term is used to describe the unfortunate event where prices rise but your income doesn't?

Accepted Answer

Real Income Effect

Question 52

Which type of economy is the most common in the world?

Accepted Answer

Mixed

Question 53

What are 2 goods called that essentially fulfill the same purpose?

Accepted Answer

substitutes

Question 54

What is the name for when the quantity supplied and the quantity demanded are equal?

Accepted Answer

Equilibrium

Econ Exam Review

Questions 54

Econ Exam Review

Questions 54