stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Economics Final Review 1 Flashcards | StudBud
Explore
/
Economics Final Review 1
Economics Final Review 1
50 terms
·
StudBud Administration
·
619 plays
Final review.
Flashcards
50 cards
F
Practice quiz
P
Host live
L
Questions
50
Answers
1
The value of the next best alternative refers to what?
opportunity cost
expanded production
horizontal merger
negative externality
2
Which statement describes a market economy?
Major economic decisions are made by producers
The government determines what is produced and by whom
Major economic decisions are made by consumers
Most media is state-owned and operated
3
When a nation’s total output increases over time, the nation is experiencing...
economic growth
an expansion of the possibilities curve.
economic interdependence
a decrease in gross domestic product
4
What happens when the quantity supplied equals quantity demanded?
there is no change in either quantity or quality of supplies
Prices become inelastic
Equilibrium is reached
Prices increase dramatically
5
Of the following, which is an example of a natural monopoly?
a city water system
an intergovernmental revenue payment
a balanced budget amendment
none of the above
6
When there are unlimited demands and limited resources it is known as
demand
shortage
scarcity
surplus
7
Which of these
best
describes the influence of high prices on the behavior of producers?
High prices are an incentive for producers to produce less.
High prices have no real influence on producers' behavior.
High prices force producers to use cheaper raw materials.
High prices are an incentive for producers to produce more.
8
Ability to carry money & transfer it easily to others reflects which characteristic of money?
portability
legal tender
durability
limited supply
9
When a power plant pollutes a lake, the resulting water pollution is an example of a ______ .
neutral spillover effect
public good
technological monopoly
negative externality
10
Inflation caused by rising input costs & that increase product costs for manufacturers is...
cost-push inflation
demand-pull inflation
creeping inflation
hyperinflation
11
What has the following characteristics: equity, simplicity, and efficiency?
An ineffectual legislator
A martial law
An effective tax
An effective law
12
What is the the name of the application that all students must complete to get financial aid?
CARPA application
Draft card
Social Security application
FAFSA
13
What two measures are used to keep prices from reaching the equilibrium?
auction house
price limit
price basement
price ceilings & price floors
14
Which retirement plan has most employers matching portions of people's contributions?
Roth IRA
401 (k)
Coverdell ERA
Individual IRA
15
It is illegal to discriminate on the basis of age, sex, race, religion, or disability refers to
Economic equity
Basic human rights
Economic inequality
Discriminatory laws
16
sole proprietorships have __________.
comprehensive protection
diminishing returns
unlimited life
limited life
17
The definition of economics is the study of
unlimited resources but limited needs
of the production and consumption of goods and services
how the economy interacts
scarcity and the need to make trade-offs
18
Of the following, which is NOT considered to be a non-profit organization?
Schools
community organizations
labor unions
churches
19
A "modified” free enterprise economy denotes that almost everything is in some way affected by
inventors.
credit.
government.
business.
20
Why is it that products made under a command economy are more likely to be of low quality?
workers who make them are not given good direction/guidance
workers who make them have little incentive to do a good job
workers who make them use traditional, old-fashioned methods
workers who make them manage their own production facilities
21
High schools, fire departments, & water service are typically paid for by...
state governments
the federal government
municipality monopolies
local government
22
Why are consumers considered "powerful?"
they have more rights than producers.
because they hold the "pocket strings."
they help decide a business’s expenditure cost basis.
they drive decisions about what to produce in the economy
23
What is it that gives people and businesses the opportunity to make their own decisions?
profit motive
commercial access
free enterprise
economic freedom
24
These people tend to invest consistent contributions over a long period of time.
most revered celebrities
most successful musicians
most successful business professors
most successful investors
25
The efficient use of scarce resources leads to an increase in...
productivity
capital
scarcity
investment
26
A fee that is paid for an insurance policy is known as what?
contribution
prime interest
pension
premium
27
Of the following, which is considered a conglomerate?
A company that has many businesses & make related products.
A company with 4 + businesses that make unrelated products.
A company with two or more CEOs that make unrelated products
A company with two divisions that make related products.
28
Comparative advantage is measured in _____, when it comes to international trade.
difference between money paid and money received in trade
efficiency
trade-weighted value
foreign exchange
29
Why would the sale of an older house
not
be included in a calculation of GDP?
The home is a free-market transaction.
The house is an intermediate product.
The house does not represent new production.
The transaction occurs in the underground economy.
30
______________ is considered the single largest source of federal revenue.
individual income tax
Medicare payroll taxes
borrowing
corporate income tax
31
Fiscal policy may involve ____.
taxing corporations
regulating labor unions
recognizing an economic problem
estimating the GDP
32
What is it called when the general level of prices rise in the economy?
inflation
deflation
deconstruction
stagflation
33
movement along the demand curve, as opposed to a shift in the entire curve, is a result of ___.
a decrease in demand.
a change in price.
a change in demand.
an increase in demand.
34
How does a corporation's creation of product/services output affect individuals?
It increases the number of nonmarket transactions.
It results in the establishment of a base year.
It reduces the no# of secondhand sales & decreases income
It generates jobs and therefore increases income.
35
Most states receive their intergovernmental revenue funds from what source?
income tax.
other state governments
the federal government.
local governments
36
Jon works at a grocery store, where he gets paid a wage for his labor. Jon is participating in
entrepreneurship.
the product market.
the factor market.
human capital
37
Which is considered to be the FED's primary monetary policy-making body?
Consumer Advisory Committee
Federal Open Market Committee
Thrift Institutions Advisory Committee
Federal Advisory Committee
38
a tight money policy results in...
a decrease in the price of credit
an increase in wage-price controls
a decrease in interest rates
an increase in the price of credit (interest rates).
39
Which of the following is a disadvantage of a market economy?
It sustains a high degree of uncertainty
It discourages creativity and new ideas for doing things
It restricts personal freedom
Unlike other economies, inefficient at allocating resources
40
What do supply-side policies aim to do?
increase regulation of corporations
strengthen the government’s role in the economy
strengthen the economy by increasing taxes
reduce the government’s role in the economy
41
An expansion is...
a period of rising interest rates.
a period of recovery from a recession.
when the economy deflates unexpectedly.
when hot air inflates a balloon.
42
A $20.00 that you have in your possession is considered...
a Federal Reserve note
fiat money
currency
all of the above
43
The _____ rates for adjustable-rate mortgages vary over time, unlike fixed-rate mortgages.
inflation
interest
insurance
tax
44
By having this, it will make your life easier...
a budget
a family
a divorce
a mortgage
45
partnership in which one partner has less responsibility in business ops and less liability
Corporation
Sole Proprietorship
Limited Partnership
Limited Liability Corporation
46
What type of tax is placed on specific items such as tobacco, liquor, gasoline, etc.?
customs duty
estate tax
gift tax
excise tax
47
Which investment tool offers diversity in investment?
common stock
mutual fund
commodities
gold
48
The four factors of production are land, labor, _______, and entrepreneurs.
capital
franchises
inflation
corporations
49
In Keynesian economics, which economic sector could offset a decline in business spending?
business
foreign
government
consumer
50
Country A produces more oil than Country B. Due to this, country A has _____ over country B.
an export advantage
a production possibility advantage
an absolute advantage
a comparative advantage
