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Duplicate of Economics Final Exam Review Flashcards | StudBud
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Duplicate of Economics Final Exam Review
Duplicate of Economics Final Exam Review
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review for final exam
Flashcards
39 cards
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Questions
39
Answers
1
What is an example of a want?
shelter
starbucks
food
water
2
When graphing a demand curve which way does the curve slope?
it would be horizontal
it would be vertical
downward from left to right
upward from left to right
3
Which economist believed the government shouldn't step in and stimulate the economy
John Maynard Keynes
Adam Smith
Milton Friedman
Alan Greenspan
4
What is land?
human effort
Individuals who start new businesses
natural resources like water, soil
manufactured goods and services
5
The basic economic questions that all socities must decided how to answer are
When to produce it, for whom, and how to produce it
what to produce, where to get it from, and for whom
What to produce, when to produce it, and for whom
What gets produced, how it gets produced, and for whom it is produced for
6
What does inflation do?
brings the business cycle quickly to a peak or boom
increases purchasing power
reduces purchasing power
value of goods decline with wear and tear
7
What is not part of the factors of production?
Land
Credit
Capital
Labor
8
What could cause a supply curve to shift to the right?
the number of firms decrease
inputs become more costly
taxes increase
technology improves production
9
What is NOT a main type of tax?
property
sales
income
business
10
When the price of a good increases and becomes too high for consumers, they look for
substitutes
elastic demand
inelastic demand
complements
11
In general the more substitutes there are for a product the
more compliments there are
less price changes
more elastic the demand
less valuable it is
12
The Real GDP takes this into account
investments
depression
inflation
exports
13
What is the basic economic problem?
time
unlimited wants and needs
limited resources
scarcity
14
The FED implementing a loose money could cause and increase in
inflation
interest rates
the reserve requiement
unemployment
15
What type of monetary policy leads to an increase in the interest rate?
tight
loose
reserve requirement
market
16
What type of economy does the US have?
market
command
traditional
mixed
17
Who controls the factors of production with Freedom of Enterprise?
The central planners
Individuals
Government
18
Which are factors of production?
labor, products, capital, and entreprenuership
entreprenuership, labor, land, and capital
land, technology, products, and entreprenuership
capital, labor, services, and goods
19
Which of the following is not one of the 4 economic systems?
Command
traditional
Limited
Mixed
20
What part of the business cycle indicates that the economy is getting better?
recovery
recession
depression
peak
21
What could cause a supply curve shift to the right?
technology
higher PPI
tax increase
lower GDP
22
according to a supply curve, if the price of something decreases, the quantity supplied will
shift to the right
rise
fall
stay the same
23
what would you use if you didn't have cash on hand in an emergency?
cash
debit card
check
credit card
24
What is the fee lenders charge for borrowing money?
interest
credit
principle
balance
25
The FED might implement a tight money policy if they are trying to lower
the money supply
unemployment
interest rates
the reserve requiement
26
which part of the business cycle indicates 2 or more quarters of a decline in the economy?
recession
recovery
depression
peak
27
What could cause a shift to the left on a demand curve?
an increase in population
an increase in the price of a substitute
a decrease in income
a decrease in the price of a complement
28
What the value of the next best alternative that has been given up for a choice is called?
costs of production
trade-off
factor of production
opportunity cost
29
What could cause a supply curve to shift to the left?
inputs become cheaper
the number of firms increases
taxes increase
technology improves production
30
What states the more you have of something, the less satisfaction you will get from more of it
law of demand
law of supply-side
law of equilibrium
law of diminishing marginal utility
31
What is the total dollar of all finished goods and services produced in one year called?
net exports
disposable personal income (DPI)
Gross Domestic Product (GDP)
National Income Accounting (NIA)
32
What could cause a shift to the right on a demand curve?
a decrease in population
a decrease in the price of a substitute
the product became a fad
an increase in the price of a complement
33
What is usually the result of a product if its price is above its equilibrium price?
a surplus
a black market
demand increases
a shortage
34
According to the Law of Supply, as the price rises for a good
consumers buy more
quantity supplied decreases
quantity supplied increases
35
Which part of the business cycle indicates a downturn in the economy?
peak
recovery
depression
Contraction/recession
36
The main tool the FED uses to affect interest rates is
check clearing
open market operations
a loose money policy
a tight money policy
37
What is Economic Stability?
reducing the ups and downs in the standard of living
fairness in economic policy
Rivalry among producers
Using limited resources wisely
38
When the FED lowers reserve requiements they are trying to
start open market operations
lower the discount rate
raise the discount rate
increase the money supply
39
What helps determine the maximum combinations of goods and services that can be produced?
production possibility curve
demand curve
factors of production
supply curve
