The Law of Supply States

the supply will increase if the price increases

For investment, how are risk and return related?

when risk is high, the return is high

actions by the government to use spending, taxes

An opportunity cost is

the 2nd best choice you gave up

What can the government do to improve the productivity of its human resources?

expand funding for vocational training

Because of scarcity, any strategy for allocating resources must include

for whom, how to, and what to produce

Which is the best example of debt?

A person pays interest on their mortgage

Who would be most impacted by inflation?

individuals living on fixed income

How much wood could a woodchuck chuck if a woodchuck could chuck wood?

A woodchuck couldchuck as much as a woodchuck couldchuck, 42

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Economics Exam Review 2

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Economics Exam Review Part 2

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Questions 25

Answers

1
The basic condition that exists because wants are unlimited and resources are limited
scarcity
hyper inflation
opportunity cost
capital
2
The Law of Supply States
price does not effect supply
when the supply decreases, the price falls
the supply will increase if the price increases
When the supply increases, the price rises
3
Who is responsible for collecting taxes?
Obama
The IRS
Trump
congress
4
For investment, how are risk and return related?
when risk is low, return is high
It cannot be calculated
when risk is high, return is low
when risk is high, the return is high
5
Fiscal Policy is
benefits received by employees other than salary
actions by the government to use spending, taxes
actions by the FED to change money supply
using supply and demand to value currency
6
The federal income tax is a
value-added tax
progressive tax
regressive tax
proportional tax
7
What motivates people to start a business in the free enterprise system?
the risk of failure
the desire for profit
the need for job security
the desire to make economic decisions
8
An opportunity cost is
the 2nd best choice you gave up
when goods are recycled
only an issue when there isn't scarcity of a good
usually absent in a command economy
9
The law of demand states that
price does not effect demand
when price rises, demand rises
when demand rises, price rises
when price rises, demand falls
10
What can the government do to improve the productivity of its human resources?
commit to drilling for oil in wildlife areas
Lower interest rates and make borrowing easier
invest more money in developing alternative energy
expand funding for vocational training
11
Because of scarcity, any strategy for allocating resources must include
for whom, what to produce, which resources to produce
for whom, how to, and what to produce
how to produce, and which resources to produce
when to produce which resources
12
Which is the best example of debt?
A person withdraws $ from an ATM
A person pays interest on their mortgage
A person buys a car
A person deposits $ into their savings
13
Who would be most impacted by inflation?
employees that received raises
members of strong unions.
individuals living on fixed income
people with no debt
14
A decrease in the price of a product will result in
a decrease in demand
an increase in demand
a shift in the production possibilities curve
an increase in supply
15
How much wood could a woodchuck chuck if a woodchuck could chuck wood?
Pizza
Steve
A woodchuck couldchuck as much as a woodchuck couldchuck
42
16
Which is a capital resource?
metal tools
Low cost labor
an abundance of coal
clean water supply
17
A way to measure an economy's performance is to measure categories of national
resources
income
output
imports
18
If a bank is offering a high interest rate, borrowers will
an increased savings rate
have an decreased interest rate
a decreased savings rate
have an increased interest rate
19
How do people benefit from saving money in a bank?
The bank pays them interest
the person cannot take it back out
you can invest in the stock market
helping out the bank is awesome
20
What would be a reasonable monetary policy in a recession?
reduce the money supply
raise taxes
increase the money supply
cut taxes
21
When a business is successful
it makes a new product
it has a deficit
it can make a profit
it makes an investment
22
What happens to the price of oil when production is limited?
oil prices rise
oil stops being sold
no change
oil prices drop
23
What are the school colors?
Brown and Gold
Brown and Silver
Black and Vegas Gold
Black and White
24
The price of one country's currency in terms of another country's currency is called
the exchange rate
the discount rate
monetary policy
fiscal policy
25
What factor might cause an increase in the supply of a product?
an increase in the cost of materials
a decrease in productivity
fewer sellers
introduction of new technology

Economics Exam Review 2 Flashcards | StudBud