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Crazy Story's Economics....the Queen or King of the World Flashcards | StudBud
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Crazy Story's Economics....the Queen or King of the World
Crazy Story's Economics....the Queen or King of the World
49 terms
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218 plays
#econwithStory#seniors#endofschoolyear#yikes
Flashcards
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Questions
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Answers
1
The prime rate refers to the
median interest rate on mortgages
lowest interest rate paid to savings depositors
interest rate that banks charge large corporations
average interest rate charged by all banks
2
The Securities and Exchange Commission regulates the
Better Business Bureau
Corporation
sole proprieterships
sale of corporate stock to the public
3
In order to establish a credit history a consumer must?
attend courses in the history of credit
apply for credit history at a local bank
let your bills go delinquent
use credit over a period of time to show payment activity
4
What does lowering interest rates do to the housing market?
increases consumer borrowing
discourages home building
raises the cost of borrowing
decreases auto sales
5
The role of the labor union in neotiating contracts with management is known as
benefit functionality
limited motivation
corporate negotiation
collective bargaining
6
prices serve as a link between producers and
production estimates
supply elasticities
natural resorces
consumers
7
What is the most promising strategy for success that an investor can follow?
Concentrate on options rather than equities
Invest consistently over long periods of time
Invest in penny stocks
Look for complex investment strategies
8
To make a profit, a bank must
buy up home mortgages in the area
have less deposits than loans
pay depositors more interest than is charged on loans
charge more for the loans it makes than it pays on deposits
9
A price compromise between a buyer and seller is known as a(n)
deficiency payment
adjustment price
equilibrium price
target price
10
Money serves which of the following purposes or functions
medium of exchange
store of value
standard of measure of value
All of the above
11
During periods of inflation, people living on a fixed income have........
no voice in the government
declining purchasing power
unlimited resources
no financial problems
12
In a market economy, a high price is a signal for
producers and consumers to buy more.
producers to offer less and consumers to buy more
producers to supply more and consumers to buy less
government to step in and protect consumers
13
What is it called when you buy something now and pay for it later?
rebate
garnishment
credit
budget
14
The Dow-Jones average is
advertises good stock investments
is based on the performance of 30 representative stocks
is based on the performance of all stocks
involves only the bond market
15
The three major federal taxes are
luxury, user fees, value added taxes
gas, food, property
individual income, VAT and luxury taxes
individual income, FICA, corporate income tax
16
Money serves the following functions in our society.
store of value
medium of exchange
All of the above
standard of measure of value
17
High rates of taxation on business often will
decrease investment
stall production
increase savings
slow economic growth
18
Who determines the products that a free enterprise economy produces
consumers
partnerships
congress
Property owners
19
In a market economy the decision of what to produce is often determined by?
Labor unions
consumer demands
Regulatory guidelines
corporate leadership
20
commercial and savings banks are forms of???
corporation
The Federal Reserve System
financial institutions
credit unions
21
The supply curve is a mirror image of
elasticities
production estimates
demand curve
the law of supply
22
Which one is considered a fixed cost
salary
insurance
cost of raw materials
rent or mortgage
23
Choices in a command economy are made by
competition
government controls it all
private businesses
every Joe on the street
24
National defense is the responsibility of the
Federal Government
States
United Nations
National Guard
25
Which form of credit would most likely cost you the highest interest(AR)
Credit card
Loan from family
Car loan
Home mortgage
26
The concept of laisses-faire means
the consumer is ruler
let the government become involved.
keep government out of the affairs of business
let the buyer beware
27
Banks are required to......
report every loan to the government
make all saving available for loans
be holding companies
maintain reserve requirements
28
Local governments provide such public goods as
highways and national defense
highways and private schooling
private schools and shopping malls
police and fire protection
29
What is conspicuous consumption?
buying something to impress others
factor markets
trade-off for something cheaper
consuming goods and services to survive
30
Economics is best defined as?
limited description of economic activities
A scientific study of supply and demand
What people spend money on.
How to satisfy unlimited wants with scarce resources
31
The most common form of business in the U.S. is
partnership
sole proprietorship
corporation
cooperative
32
The Law of Demand states that
demand for economic product varies inversely with its price
the relative change in price is caused by changes in supply
relationship in changing prices is a direct one.
consumers select alternative ways of spending income
33
The basic decision for a supplier is
the willingness of consumers to purchase
the ability of consumers to purchase
how much to produce without regard to supply or demand
the amount to supply for sale at various prices
34
One advantage enjoyed by a corporation is
ease of obtaining a license
limited life
limited taxes
limited liability
35
One of the most important ways local governments raise revenue is through
driver's license fees
property taxes
Social Security contributions
college tuitions
36
At a given price, a surplus occurs when
the quantity supplied is greater than the quantity demanded.
the quantity supplied is less than the quality demanded
the quantity demanded is the same as the quantity supplied
the quantity demanded is more than the quanity supplied
37
The price paid to use another's money
dividends
stocks
principal
interest
38
Store catalogs and television commercials are methods of
creating demand
entertainment
income
consumer needs
39
The FDIC was established to
establish a basis for savings
create a banking monopoly
protect the savings of the American people
federalize the banking system
40
What is the most desirable alternative given up as a result of a decision?
opportunity cost
thinking on the margin
marginal benefit
under utilization
41
Basic requirement for survival is a
opportunity cost
need
building block
want
42
If the increase in the price of skis causes a decrease in demand for ski boots
the two goods are substitutes
The two goods are complements
demand for cameras is inelastic
the marginal utility for additional cameras is increasing
43
Price competition is a characteristic of a
market economy
traditional economy
corporate economy
command economy
44
A great variety of goods and services is called a
command economy
traditional economy
market economy
controlled economy
45
Which of the following is the basic reason for countries to engage in trade?
Individual benefit from exchange
mutual benefit from exchange
benefit to government
benefit to neither trading partner
46
All banks are required to
maintain reserve requirements
make all savings available for loans
be holding companies
report every loan to the Federal Reserve
47
Land, Labor, capital and entrepreneurship are
Basics of survival
Factors of productions
Factors of the economy
results of production
48
Demand is measured not only by consumer desire for a product, but also by..
opportunity costs
ability and willingness to buy the product
demand for similar products
competition for the consumer
49
FICA inclues taxes to pay for
workmans comp
Social Security and Medicare
unemployment insurance
life insurance
