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Econ - Part II Final Exam Flashcards | StudBud
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Econ - Part II Final Exam
Which is not part of GDP?
Preferred Stock
Econ - Part II Final Exam
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Applied and macro econ concepts
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Answers
1
Preferred Stock
Type of stock that gives holder right to vote
Type of stock that guarantees a rate of return
Type of stock that gives owner a first claim to dividends
2
Which is not part of GDP?
products produced for business
consumer goods
imports
goods produced for government
3
Law of Diminishing Returns
Putting more $ into something does not guarantee $ back
Profits decrease when you raise the price
You should always invest more into a business
Putting more $ into something guarantees a positive return
4
Macroeconomics
The study of the stock and bond market
The study of the individual parts of an economic system
The study of different forms of businesses
The study of the entire economic system
5
Entrepreneur
Someone who has limited liability
Someone who goes to work
Someone who accepts the risk of starting their own business
6
Profit
The money that remains after all expenses have been paid
The money received by a business
A reason for taking a risk
When expenses are more than income
7
If aggregate demand increases faster than aggregate supply:
the economy is in a recession.
there are not many consumer loans being made.
the average price level will be increasing.
GDP will be decreasing.
8
In return for his/her skills, labor receives:
wages.
labor.
interest.
rent.
9
Proxy
Stockholder authorizes someone else to vote stock
Bondholder authorizes someone else to vote bonds
Fancy term for "unlimited liability"
Being close to someone
10
CPI
Consumer 'POW' Indicator
Consumer Power Index
Consumer Price Index
Consumer Pay Index
11
General Partnership
Has limited liability
Has only limited partners
Is illegal
Has unlimited liability
12
Gross Domestic Product
is figured by the Federal Reserve
includes products produced in previous years
is a measure of total new output
is a measure of the average price leve
13
Rewards for the efficient use of the factors of production are?
There are no rewards. There is no free lunch.
Rent, Wages, Interest
Land, Labor, Capital
Trees, Accountants, Garbage Trucks
14
Which of the following is true?
Increasing resources will not cause an increase in output
To have economic growth, there must be 0% unemployment
The standard of living is not dependent on economic growth
Recession hurts economic growth
15
If the Fed Res wants to increase the money supply, it would:
raise the reserve requirement
sell bonds to banks
raise the discount rate
lower the reserve requirement
16
Factors of production are . . .
Land, Wages, Interest
Rent, Wages, Interest
Land, Labor, Capital
All of the above
17
Chairman of the Federal Reserve
Jerome Powell
Ben Bernanke
Santa Claus
Alan Greenspan
18
Submarginal
Not enough land, labor and capital are being used
a good use of land, labor or capital
the cost of using LLC was greater than what the factors earn
above the margin or break-even point
19
SEC
South-Eastern Conference
Securities and Exchange Commissary
Securities and Exchange Commission
"So, Eat Chowder!"
20
Proprietorship
Is a business owned by two or more persons
Has limited liability
Business owned by one person, can also be husband and wife
Is illegal
21
Which of the following is not a monetary policy tool?
taxation
reserve requirement
discount rate
buying and selling government bonds
22
Which of the following is true about a proprietorship?
They are easy to start up
They have limited liability
Profits are shared with other part-owners
Owners are considered stockholders
23
Economics is:
the best class at YHS!
all of the above!
always interesting!
my favorite class.
24
A marginal worker
Produces as much in revenue as they are paid
Is considered lazy
Should never be hired
Is actually submarginal
25
Bondholders earn . . .
Dividends
Shares of stock
Free lunches
Interest
26
Corporation
Has unlimited liability
Is owned by bondholders
Seen as a legal person in the eyes of the law
27
If the circular flow of money slows down:
spending is increasing and so is demand.
output will be increasing.
GDP figures will be increasing.
recession sets in.
28
Inflation
increase in the average level of prices
a decreasing circular flow and demand
a low level of prices
increase in the price of a particular product
29
In circular flow, businesses:
are not included
purchase land, labor and pay wages.
provide labor
receive wages, and produce goods and services
30
Risk
The money paid out by a business
A reason for taking a risk
Possibility of suffering a loss
The money received by a business
31
GDP
Gross Downturn Products
Gross Domestic Product
Gross Domestic Power
32
Rent, or profit from land:
will be high regardless of how the land is used.
will not influence the way the land will be used.
is paid to labor.
will be high if land is used productively.
33
The government contributes to inflation by:
decreasing spending.
over-spending.
taking tax money out of circular flow
imposing price controls.
34
Payment made to stockholders from the earnings of a corporation?
Dividend
Non-existent
Interest
35
Partnership
Business owned by more than one person
Ownership limited to two people
Business owned by one person
Is considered a legal person in the eyes of the law
36
CPI is a:
measure of inflation
measure of how much we have produced
measure of time
measure of depression
37
What does an economic system most want to avoid?
improved technological capabilities
increasing aggregate demand
savings and investment
high inflation or deep recession
