Which of the following is NOT one of the economic questions all countries must answer?

How to allocate scarce resources?

Which of the following is NOT included in the GDP?

Jack sells his lawn mower to his neighbor.

Which people are most affected by sudden inflation?

People who live on a fixed income.

studbud

Econ Final Exam Review Summer School

81 termsStudBud Administration29 plays

Final Exam

Flashcards81 cardsFPractice quizPHost liveL

Questions 81

Answers

1
Which of the following is NOT one of the economic questions all countries must answer?
Who to produce it for?
What to produce?
How to produce it?
How to allocate scarce resources?
2
If I offer you extra credit, and you do it, you are responding to which principle of economics?
Trade Makes Everyone Better Off
The Cost of Something is What You Give Up To Give It
Rational People Think at the Margin
People Respond to Incentives
3
The economic law that says as prices increase, people will buy less of a product is the law of
demand
supply
poverty
elasticity
4
Which of the following is a determinant of productivity?
Technological knowledge
Human capital per worker
Physical capital per worker
They all are
5
If the market in the last graph showed PIZZA, what could have caused the shift?
New pizza oven makes pizza faster.
Great growing weather for wheat.
Pizza Hut closed.
Cheese gets cheaper.
6
The ability to make more of a given product using the same amount of inputs is called
comparative advantage
markets
capitalism
absolute advantage
7
Which point on this Production Possibilities Curve represents INEFFICIENCY?
Point D
Point A
Point E
Point B
8
A person who wouldn't pay for a good but would receive the benefit anyways is a/an
externality
discouraged worker
monopoly
free rider
9
What you give up to get something (the most desirable alternative given up) is a/an
scarcity
trade off
opportunity cost
want
10
Which of the following is considered a "normal" unemployment rate?
4-6%
12-13%
2-8%
1-3%
11
Water, wood, and tomatoes would be considered which type of factors of production?
labor
capital
land
12
Price ceilings usually lead to
surpluses
shortages
inflation
unemployment
13
Which of these items is a capital resource?
a pizza oven
tomatoes
Joe working at the Pizza Hut.
water
14
The minimum wage is an example of a
underemployment
price ceiling
price floor
externality
15
This type of business is a legal entity, owned by stockholders.
Corporation
Sole Proprietorship
Franchise
Partnership
16
Which group has the highest poverty rate?
African-American Households
Elderly Households
Hispanic men
female-headed households
17
If your dad makes you mow your own lawn, which limit of GDP does that show?
nonmarket activities
real GDP
underground economy
negative externality
18
Price floors usually result in
surpluses
shortages
inflation
poverty
19
Which point represents a level of production that is IMPOSSIBLE?
Point B
Point E
Point D
Point A
20
Which point represents the short-run equilibrium?
C
None
A
B
21
Which of the following is considered a price TAKER?
Perfect Competition
Oligopoly
Monopoly
Monopolistic Competition
22
A business owned and managed by a single person is called a/an
partnership
sole proprietorship
corporation
multinational
23
A government imposed MAXIMUM price is a
price floor
price balcony
price basement
price ceiling
24
"Full" Employment exists when there is no _______________ unemployment.
cyclical
frictional
seasonal
structural
25
Which of the following would cause the SRAS curve to shift, but NOT the LRAS curve?
A spike in the price of oil
New technology.
The discovery of new oil deposits.
New government regulations on pollution.
26
Which of the following is considered a good?
Oil Change
Cell Phone
Haircut
Pizza Delivery
27
What is the equilibrium price?
50
30
40
60
28
Which point represents the initial long-run equilibrium?
B
C
None
A
29
What do economists feel is the best measure of a country's standard of living?
unemployment rate
poverty rate
inflation rate
per capita GDP
30
When quantity supplied exceeds quantity demanded.
price floors
surplus
shortage
price ceiling
31
Which of the following is NOT included in the GDP?
Jack sells his lawn mower to his neighbor.
Jack buys a lawn mower from Sears.
Jack rents a billboard to advertise his business.
Jack sells lawn care packages to his neighbors.
32
The Fed usually targets an inflation rate of ____% per year.
6-8
4-6
3-4
2-3
33
Contracting with another company to do a job that would otherwise be done by your workers.
brain drain
externality
offshoring
outsourcing
34
If I pay you cash to mow my lawn, which limitation of GDP does that show?
nonmarket activity
real GDP
negative externality
underground economy
35
In which type of market system do people live in small communities without any luxuries?
mixed
traditional
command
market
36
Which of the following is NOT a determinant of demand?
Complements
Substitutes
Weather/Disaster
Population
37
Which people are most affected by sudden inflation?
People who live on a fixed income.
Banks
People who invest.
People who borrow money.
38
One disadvantage of __________ is that they unduly influence culture and politics.
multinationals
corporations
sole proprietorships
partnerships
39
The ability to produce a good or service at a lower opportunity cost is
absolute advantage
externality
fiscal policy
comparative advantage
40
What is the most common type of business organization in the U.S.?
partnership
corporation
franchise
sole proprietorship
41
A rise in price levels across country is called
shortage
unemployment
inflation
externality
42
The dollar value of all final goods and services produced within a country's borders in a year.
Per Capita GDP
Gross Domestic Product
Monopolistic Competition
Regressive Tax
43
The principle that limited amounts of goods and services are available to meet wants and needs.
opportunity cost
externality
scarcity
trade off
44
Steve loses his job because the factory buys a machine that can do it faster. This is
structural unemployment
cyclical unemployment
frictional unemployment
underemployment
45
What type of economic system does the U.S. have?
market
traditional
mixed
command
46
Advertising is an example of
product differentiation
outsourcing
offshoring
nonprice competition
47
The national debt is currently near
21 trillion
22 trillion
19 trillion
20 trillion
48
If I have a college degree and I am working at Costco, I am suffering from
underemployment
frictional unemployment
seasonal unemployment
discouraged worker
49
What is one fiscal policy action that can be taken to fix this problem?
Sell securities on the open market.
Raise the reserve requirement.
Increase the discount rate.
Decrease government spending.
50
Market structure in which a large # of firms sell products that are similar but not identical.
Monopolistic Competition
Perfect Competition
Monopoly
Oligopoly
51
Population growth can impact productivity in which of the following ways?
Dilutes capital stock.
Promotes technological progress
Stretches natural resources
All of these
52
What does this graph show?
Decrease in Demand
Increase in Supply
Increase in Demand
Decrease in Supply
53
The type of unemployment that exists when people take time to find a new job is called
frictional
seasonal
structural
cyclical
54
The desire to own something and the ability to pay for it is the
externality
supply
demand
outsourcing
55
An economic side effect is a/an
externality
absolute advantage
elasticity
price floor
56
The economy is currently in this situation. What is it called?
Depression
Inflationary Gap
Long-Run Macroeconomic Equilibrium
Recessionary Gap
57
On average, the GDP rises by about ____% each year in the United States.
4-6
6-8
2-3
3-4
58
In a command economy, who makes all economic decisions?
people
competition
government
tradition
59
Which of the following is NOT a tool of monetary policy?
tax cuts
reserve requirements
discount rate
open market operations
60
At which point is there a recessionary gap?
None
C
B
A
61
What is the equilibrium quantity?
200
400
600
800
62
This market structure is considered a price MAKER.
Perfect Competition
Monopolistic Competition
Oligopoly
Monopoly
63
The amount of goods available is known as the
demand
export
supply
import
64
A country is producing at Point B and wants to increase truck production. They should move to
Point C
Point E
Point A
Point D
65
Market structure in which a large # of firms produce the same product and can't control price
perfect competition
monopoly
oligopoly
monopolistic competition
66
A market structure in which a few large firms dominate is called a
monopoly
oligopoly
perfect competition
monopolistic competition
67
This graph shows
Change in Demand
Change in Supply
Change in Quantity Demanded
Change in Quantity Supplied
68
A good whose demand is VERY responsive to a change in price is said to have __________ demand.
inelastic
normal
no
elastic
69
In this type of business, you pay fees to a parent company to sell their products
corporation
partnership
franchise
multinational
70
Which of the following is a NEED?
car
cell phone
shower
food
71
The average quantity of goods produced per unit of labor is known as
comparative advantage
GDP
productivity
externality
72
The U.S. has shifted from a ____________ economy to a ____________ economy.
manufacturing/service
service/manufacturing
agricultural/manufacturing
manufacturing/lazy
73
Which of the following could cause the shift from AD2 to AD3?
People lose confidence in the economy.
A decrease in government spending.
The stock market booms.
Mass deportation of illegal immigrants.
74
What could have caused the situation in the previous graph?
Change in population
Change in number of sellers
Change in expectations
Change in price
75
The study of how people seek to satisfy their needs and wants by making choices.
opportunity cost
trade off
scarcity
economics
76
A market structure in which one seller dominates is a
monopoly
oligopoly
monopolistic competition
perfect competition
77
A "normal" unemployment rate is
2-3%
4-6%
6-8%
3-4%
78
When quantity demanded is more than quantity supplied, you have a
price floor
shortage
surplus
price ceiling
79
Which of the following is NOT a determinant of supply?
number of suppliers
weather/disaster
price of substitute
change in technology
80
Which type of business organization is the most profitable in the U.S.?
corporation
sole proprietorship
partnership
franchise
81
This economic system is based on competition and profit.
Command
Market
Traditional
Mixed

Econ Final Exam Review Summer School Flashcards | StudBud

Econ Final Exam Review Summer School

81 termsStudBud Administration29 plays

Final Exam

Flashcards81 cardsFPractice quizPHost liveL

Questions 81

Answers

1
Which of the following is NOT one of the economic questions all countries must answer?
Who to produce it for?
What to produce?
How to produce it?
How to allocate scarce resources?
2
If I offer you extra credit, and you do it, you are responding to which principle of economics?
Trade Makes Everyone Better Off
The Cost of Something is What You Give Up To Give It
Rational People Think at the Margin
People Respond to Incentives
3
The economic law that says as prices increase, people will buy less of a product is the law of
demand
supply
poverty
elasticity
4
Which of the following is a determinant of productivity?
Technological knowledge
Human capital per worker
Physical capital per worker
They all are
5
If the market in the last graph showed PIZZA, what could have caused the shift?
New pizza oven makes pizza faster.
Great growing weather for wheat.
Pizza Hut closed.
Cheese gets cheaper.
6
The ability to make more of a given product using the same amount of inputs is called
comparative advantage
markets
capitalism
absolute advantage
7
Which point on this Production Possibilities Curve represents INEFFICIENCY?
Point D
Point A
Point E
Point B
8
A person who wouldn't pay for a good but would receive the benefit anyways is a/an
externality
discouraged worker
monopoly
free rider
9
What you give up to get something (the most desirable alternative given up) is a/an
scarcity
trade off
opportunity cost
want
10
Which of the following is considered a "normal" unemployment rate?
4-6%
12-13%
2-8%
1-3%
11
Water, wood, and tomatoes would be considered which type of factors of production?
labor
capital
land
12
Price ceilings usually lead to
surpluses
shortages
inflation
unemployment
13
Which of these items is a capital resource?
a pizza oven
tomatoes
Joe working at the Pizza Hut.
water
14
The minimum wage is an example of a
underemployment
price ceiling
price floor
externality
15
This type of business is a legal entity, owned by stockholders.
Corporation
Sole Proprietorship
Franchise
Partnership
16
Which group has the highest poverty rate?
African-American Households
Elderly Households
Hispanic men
female-headed households
17
If your dad makes you mow your own lawn, which limit of GDP does that show?
nonmarket activities
real GDP
underground economy
negative externality
18
Price floors usually result in
surpluses
shortages
inflation
poverty
19
Which point represents a level of production that is IMPOSSIBLE?
Point B
Point E
Point D
Point A
20
Which point represents the short-run equilibrium?
C
None
A
B
21
Which of the following is considered a price TAKER?
Perfect Competition
Oligopoly
Monopoly
Monopolistic Competition
22
A business owned and managed by a single person is called a/an
partnership
sole proprietorship
corporation
multinational
23
A government imposed MAXIMUM price is a
price floor
price balcony
price basement
price ceiling
24
"Full" Employment exists when there is no _______________ unemployment.
cyclical
frictional
seasonal
structural
25
Which of the following would cause the SRAS curve to shift, but NOT the LRAS curve?
A spike in the price of oil
New technology.
The discovery of new oil deposits.
New government regulations on pollution.
26
Which of the following is considered a good?
Oil Change
Cell Phone
Haircut
Pizza Delivery
27
What is the equilibrium price?
50
30
40
60
28
Which point represents the initial long-run equilibrium?
B
C
None
A
29
What do economists feel is the best measure of a country's standard of living?
unemployment rate
poverty rate
inflation rate
per capita GDP
30
When quantity supplied exceeds quantity demanded.
price floors
surplus
shortage
price ceiling
31
Which of the following is NOT included in the GDP?
Jack sells his lawn mower to his neighbor.
Jack buys a lawn mower from Sears.
Jack rents a billboard to advertise his business.
Jack sells lawn care packages to his neighbors.
32
The Fed usually targets an inflation rate of ____% per year.
6-8
4-6
3-4
2-3
33
Contracting with another company to do a job that would otherwise be done by your workers.
brain drain
externality
offshoring
outsourcing
34
If I pay you cash to mow my lawn, which limitation of GDP does that show?
nonmarket activity
real GDP
negative externality
underground economy
35
In which type of market system do people live in small communities without any luxuries?
mixed
traditional
command
market
36
Which of the following is NOT a determinant of demand?
Complements
Substitutes
Weather/Disaster
Population
37
Which people are most affected by sudden inflation?
People who live on a fixed income.
Banks
People who invest.
People who borrow money.
38
One disadvantage of __________ is that they unduly influence culture and politics.
multinationals
corporations
sole proprietorships
partnerships
39
The ability to produce a good or service at a lower opportunity cost is
absolute advantage
externality
fiscal policy
comparative advantage
40
What is the most common type of business organization in the U.S.?
partnership
corporation
franchise
sole proprietorship
41
A rise in price levels across country is called
shortage
unemployment
inflation
externality
42
The dollar value of all final goods and services produced within a country's borders in a year.
Per Capita GDP
Gross Domestic Product
Monopolistic Competition
Regressive Tax
43
The principle that limited amounts of goods and services are available to meet wants and needs.
opportunity cost
externality
scarcity
trade off
44
Steve loses his job because the factory buys a machine that can do it faster. This is
structural unemployment
cyclical unemployment
frictional unemployment
underemployment
45
What type of economic system does the U.S. have?
market
traditional
mixed
command
46
Advertising is an example of
product differentiation
outsourcing
offshoring
nonprice competition
47
The national debt is currently near
21 trillion
22 trillion
19 trillion
20 trillion
48
If I have a college degree and I am working at Costco, I am suffering from
underemployment
frictional unemployment
seasonal unemployment
discouraged worker
49
What is one fiscal policy action that can be taken to fix this problem?
Sell securities on the open market.
Raise the reserve requirement.
Increase the discount rate.
Decrease government spending.
50
Market structure in which a large # of firms sell products that are similar but not identical.
Monopolistic Competition
Perfect Competition
Monopoly
Oligopoly
51
Population growth can impact productivity in which of the following ways?
Dilutes capital stock.
Promotes technological progress
Stretches natural resources
All of these
52
What does this graph show?
Decrease in Demand
Increase in Supply
Increase in Demand
Decrease in Supply
53
The type of unemployment that exists when people take time to find a new job is called
frictional
seasonal
structural
cyclical
54
The desire to own something and the ability to pay for it is the
externality
supply
demand
outsourcing
55
An economic side effect is a/an
externality
absolute advantage
elasticity
price floor
56
The economy is currently in this situation. What is it called?
Depression
Inflationary Gap
Long-Run Macroeconomic Equilibrium
Recessionary Gap
57
On average, the GDP rises by about ____% each year in the United States.
4-6
6-8
2-3
3-4
58
In a command economy, who makes all economic decisions?
people
competition
government
tradition
59
Which of the following is NOT a tool of monetary policy?
tax cuts
reserve requirements
discount rate
open market operations
60
At which point is there a recessionary gap?
None
C
B
A
61
What is the equilibrium quantity?
200
400
600
800
62
This market structure is considered a price MAKER.
Perfect Competition
Monopolistic Competition
Oligopoly
Monopoly
63
The amount of goods available is known as the
demand
export
supply
import
64
A country is producing at Point B and wants to increase truck production. They should move to
Point C
Point E
Point A
Point D
65
Market structure in which a large # of firms produce the same product and can't control price
perfect competition
monopoly
oligopoly
monopolistic competition
66
A market structure in which a few large firms dominate is called a
monopoly
oligopoly
perfect competition
monopolistic competition
67
This graph shows
Change in Demand
Change in Supply
Change in Quantity Demanded
Change in Quantity Supplied
68
A good whose demand is VERY responsive to a change in price is said to have __________ demand.
inelastic
normal
no
elastic
69
In this type of business, you pay fees to a parent company to sell their products
corporation
partnership
franchise
multinational
70
Which of the following is a NEED?
car
cell phone
shower
food
71
The average quantity of goods produced per unit of labor is known as
comparative advantage
GDP
productivity
externality
72
The U.S. has shifted from a ____________ economy to a ____________ economy.
manufacturing/service
service/manufacturing
agricultural/manufacturing
manufacturing/lazy
73
Which of the following could cause the shift from AD2 to AD3?
People lose confidence in the economy.
A decrease in government spending.
The stock market booms.
Mass deportation of illegal immigrants.
74
What could have caused the situation in the previous graph?
Change in population
Change in number of sellers
Change in expectations
Change in price
75
The study of how people seek to satisfy their needs and wants by making choices.
opportunity cost
trade off
scarcity
economics
76
A market structure in which one seller dominates is a
monopoly
oligopoly
monopolistic competition
perfect competition
77
A "normal" unemployment rate is
2-3%
4-6%
6-8%
3-4%
78
When quantity demanded is more than quantity supplied, you have a
price floor
shortage
surplus
price ceiling
79
Which of the following is NOT a determinant of supply?
number of suppliers
weather/disaster
price of substitute
change in technology
80
Which type of business organization is the most profitable in the U.S.?
corporation
sole proprietorship
partnership
franchise
81
This economic system is based on competition and profit.
Command
Market
Traditional
Mixed