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Weesner Econ Review for Final Flashcards | StudBud
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Weesner Econ Review for Final
Weesner Econ Review for Final
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Econ Review for Econ
Flashcards
40 cards
F
Practice quiz
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Host live
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Questions
40
Answers
1
In which of the following economic systems is the “factors of production” privately owned?
B Socialism
A Capitalism
D Confucianism
C Communism
2
What is the result of a price ceiling which is a price set below the equilibrium price?
D Equidistant
B Surplus
A Shortage
C Equilibrium
3
What is likely to happen when consumers want to buy more scooters than the store has
B Price of the scooter will increase.
C Manufacturers will stop making it.
A Profit on scooter sales will be smaller.
D Stores will make a different model.
4
Which factor will decrease the demand for a product?
C A decrease in the price of a complementary good
B A decrease in the number of buyers
D An increase in the price of a substitute good
A Increased popularity of a product
5
What would most likely happen to the orange market if a hurricane destroyed half of crop?
B The price of oranges will fall
D Supply of oranges will increase
C The price of oranges will increase
A Demand for oranges will rise
6
when consumers and producers act in their own self-interest, what will be the overall result?
less variety and fewer products will be made.
businesses will lose money no matter what they sell.
C The producers earn a profit making products people want.
excessively high prices for goods and services.
7
In every economic system, what must people choose to do?
C Create an equal distribution of income
B Make the best use of scarce resources
D Save money to reduce the national debt
A Satisfy all the wants of their society
8
Which of the following is a result of the specialization of labor?
D Less interdependence
A Increased inflation
B Identical income
C Increased output
9
In a market economy, what determines the price and quantity of most goods produced?
B Supply and demand
D Quality of goods
C Economic policies
A Substitute goods
10
What is the main idea behind the study of economics?
B Efficiency of production
D Business decisions
A. Monetary policy
C Allocation of scarce resources
11
a type of unemployment about people who are out of work because of a downturn in the economy
Cyclical
Structural
Frictional
Seasonal
12
If a government sets a maximum price for a good or service, what does it create?
A Price ceiling
D Illegal price
C Inflated price
B Price floor
13
Point at which quantity demanded equals quantity supplied on Supply and Demand Graph
A Surplus
C Shortage
B Equilibrium
D Equidistant
14
In economic terms, what is a “stock”?
B Pieces of paper that represent money
C Ownership of an entire company
A A share, or part ownership, of a company
D A place where individuals raise money
15
Unlimited Wants + Limited Resources = ?
A Scarcity
B Competition
D Equilibrium
C Savings
16
How many businesses make up an oligopoly?
Most
None
One
Few
17
What is the primary incentive that motivates a manufacturer to sell a product?
B Putting others out of business
A Making profits on sales
D Reputation of the product
C Pleasing the government
18
Which of the following situations would result in a government budget deficit?
C The Federal Reserve lends more than it borrows.
A The Federal Reserve borrows more than it lends.
D The government spends the same as it collects in taxes.
B The government spends more than it collects in taxes.
19
Which of the following is an economic goal of United States government policy?
C To create a classless society
B To limit international competition
D To promote full employment
A To own the factors of production
20
What would be a positive externality to electric scooters in cities
more sidewalk accidents
crowded sidewalks
Layoff of more taxi drivers
Less pollution
21
Which decision will guarantee that a person will make money in the stock market?
A Buying the stock of a big company like Microsoft
B Nothing will guarantee making money in the market
C Buying the stock of a small company like Starbucks Coffee
D Purchasing stocks after the market has dropped for a week
22
What is the most basic economic issue for all societies?
Scarcity
Taxation
Recession
Inflation
23
Macro Economics studies
The economy as a whole
Net exports
Individual markets
Government spending
24
In general, what type of economy does the United States have?
A Transitional
C Command
B Market
D Traditional
25
In a market economy, what is the government’s role?
D Sets prices on goods and services
A Decides what goods are manufactured
C Encourage competition among businesses
B Owns and operates major industries
26
competitive market that has only a few firms controlling the production of a product?
B Oligopoly
A Fierce competition
C Pure competition
D Monopoly
27
“There is no free lunch.” In economic terms, what does this mean?
D People only think of others when making choices.
C Choices are never based on self-interest.
B All production is designed to reduce scarcity.
A Someone must pay for everything.
28
Which of the following statements will help to maximize your stock investment?
D Buy high, sell high
A Buy low, sell low
C Buy low, sell high
B Buy high, sell low
29
How does the process of specialization change an economy?
D Increases government to control
B Decreases competition
C Improves efficiency of production
A Eliminates unemployment
30
Which of these actions would most likely result in a decrease in consumer spending?
D Decreasing the reserve requirement
A Increasing income taxes
B Decreasing the interest rate
C Increasing government spending
31
Which of the following factors contributes the most to economic growth?
B Greater economic freedom
C Low investment in human capital
D High rates of inflation
A Large amounts of natural resources
32
In the model GDP = C + I + G + (X - M), “G” stands for _______
Give A Ways
Government Revenue
Grants
Government Spending
33
What is the benefit of competition in a free market system?
D Follow the traditional methods of production
A Make sure everyone gets an equal share of resources
B Create a variety of new and cheaper products
C Cause producers to try to put each other out of business
34
happens when a country’s money supply increases faster than the goods and services it produces?
B Unemployment
D Stability
C Equilibrium
A Inflation
35
A company decides to install more machines and lay off workers. What is answered?
How to produce
What to produce
D Where to produce
C For whom to produce
36
Which of the following is the best example of the law of supply?
shop increases the supply when the price increases.
company builds a new factory to process flour to export.
supplier provides more to local stores as prices fall.
company buys a new dishwasher to make employee work easier.
37
Which of the following government actions is likely to stimulate the economy?
C Decrease government spending and increase incomes taxes
A Increase income taxes and increase government spending
B Decrease income taxes and decrease government spending
D Increase government spending and decrease income taxes
38
In economic terms, what are land, labor, capital and entrepreneurship
B Factors of production
D Opportunity costs
C Production trade-offs
A Production possibility
39
describes a market in which one firm controls the supply and pricing of a good or service?
B Oligopoly
A Monopolist competition
C Perfectly competitive
D Monopoly
40
You buy either a CD or to go to a movie. What is the choice that you “give up” called?
B Negative cost
C Opportunity cost
D. Marginal cost
A Positive cost
