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Economics Final Exam Review Flashcards | StudBud
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Economics Final Exam Review
Economics Final Exam Review
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1
This headline is an example of which economic role of government?
Protecting property rights
Stabilizing the economy
Correcting for externalities
Maintaining competition in the market
2
The graph below shows:
no change in both supply and demand
A decrease in demand
a decrease in both supply and demand
A decrease in supply
3
In this business structure, the owner has full control, keeps 100% of profits, but also has 100% of the liability/risk:
Corporation
Partnership
Sole Proprietorship
Limited Liability Corporation
4
Unemployment that occurs when there's a mismatch between skills people have learned and skills the job market requires
Frictional
Natural
Cyclical
Structural
5
Which of the following is an example of human capital?
the knowledge a mechanic has about fixing cars
the machinery used to build cars
the salary paid to a plant supervisor
the equipment used by a dentist to fix teeth
6
Which of the following is NOT a way in which fiscal policies would reduce inflation?
An increase in taxes
A reduction in government spending
An increase in government spending
A mixture of raising taxes and reducing government spending
7
When the price of a product is lower, people will demand/buy more of it. This describes:
Gross Domestic Product
The Law of Demand
Equilibrium
The Law of Supply
8
When the Federal Reserve makes decisions about the control of the money supply their decisions are referred to as:
Market policy
Monetary policy
Fiscal policy
Investment policy
9
If your credit score is _________, your interest rate will be __________.
Credit scores to not impact interest rates
low , low
high , low
high , high
10
The interest rate that the Fed charges banks to borrow money from them is known as:
Reserve requirement ratio
Discount rate
Equilibrium price
Annual Percentage Rate
11
Increased investment in technology within a country would most likely cause:
No change
The PPC to shift inward
Movement along the curve
The PPC to shift outward
12
If the Federal Reserve wants to INCREASE the money supply, it can do all of the following EXCEPT:
Reduce the discount rate
Reduce the reserve requirement
Sell government bonds
Purchase government bonds
13
Economics is BEST defined as the study of how:
Choices are made due to the scarcity of resources
Various societies have dealt with unemployment and inflation
Capitalism has survived in today's world
Modern businesses have grown and prospered.
14
A type of fiscal policy that includes a reduction in taxes and/or increased government spending:
Expansionary
Contractionary
15
The point at which both quantity demanded and quantity supplied are equal on a graph is known as:
Supply
Equilibrium
Demand
Quantity
16
Which of the following motivates entrepreneurs to take risks?
A steady increase in GDP
A low unemployment rate
The potential to make a profit
A good credit score
17
A PRICE FLOOR typically leads to a:
Equilibrium
Surplus
Production Possibilities
Shortage
18
Trade-offs exist and choices must be made because:
society has only a limited amount of productive resources
not all production is efficient
human wants and needs are limited at a particular point in time
buyers and sellers must often negotiate prices
19
What is the opportunity cost of increasing the production of dolls from 200 to 300?
350 fire trucks
200 fire trucks
150 fire trucks
100 fire trucks
20
The amount that is being taken out of your paycheck in taxes/deductions is known as:
Net Pay
Withholdings
Gross Pay
Premiums
21
The physical effort of people to produce goods and services describes which factor of production?
Entrepreneurship
Capital
Labor
Land
22
What conclusion can you draw by looking at the graph below?
People who work at "high stress" jobs earn more than those with normal jobs
People with college degrees get fewer job offers
There is no discernable connection between education level and income
People with college degrees earn more than people with only a HS diploma
23
Freedom of choice and competition are commonly found in which type of economic system?
Command
Socialist
Traditional
Market
24
When the government uses taxes and spending to address economic problems, it is practicing:
trickle-down economics
fiscal policy
free enterprise
monetary policy
25
Which of the following would be an example of complementary goods?
DVDs, VHS tapes
Bar soap, body wash
Hot dogs, hot dog buns
Flashlights, candles
26
The fact that people have unlimited wants but limited resources is known as:
Opportunity Cost
Surplus
Scarcity
Incentives
27
A type of unemployment that occurs when there is a downturn in the economy:
Natural
Frictional
Cyclical
Structural
28
When choosing a credit card, you should consider all of the following EXCEPT:
Annual Percentage Rate
Credit limit
Penalties and fees
If you can put a design on the card
29
An office building is an example of:
Entrepreneurship
Land
Capital
Labor
30
Which of the following lists the three basic economic questions that must be answered?
When to produce, How to produce, For whom to produce
What to produce, How to produce, Why to produce
What to produce, How to produce, For whom to produce
What to produce, When to produce, For whom to produce
31
Which of the following is NOT a problem caused by monopolies?
Poor customer service
More competition
Fewer new products
Low quality
32
What is the Federal Reserve?
The nation's economic advisors
The nation's primary producer of coins
The nation's central banking system
The nation's budget committee
33
Which of the following market structures is made up of
one firm
that dominates the market and supplies all the output?
Monopoly
Monopolistic competition
Perfect competition
Oligopoly
34
The economic system in which the government owns and controls the factors of production:
Traditional
Command
Market
Mixed
35
Which of the following examples would be included in the calculation for Gross Domestic Product?
The purchase of a home built 10 years ago
The purchase of new Nike Jordans as a Christmas gift
Contributions to a charity organization
Social Security payment to a retired military officer
36
What is the most important factor a bank will consider when deciding to give someone a loan?
Credit score
Age
Occupation
Gender
37
A type of unemployment that occurs when an individual voluntarily leaves one job to find another job:
Frictional
Natural
Structural
Cyclical
38
Which of the following market structures includes
many
businesses that sell the
same
products?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
39
Which one of the individuals below would be considered unemployed?
A person who stayed home to raise children but now starts looking for a job
A person who works 2 part-time jobs, but wants full-time
A person who is qualified to teach but is driving a bus instead
A person who quits work to care for aging parents
40
What form would you use to determine if you need to pay additional income taxes to the IRS or if you're getting a refund
Gross pay form
1040 form
W-4 form
I-9 form
41
What is the consumer price index used for?
track changes in the stock market
track changes in the level of wholesale prices in the economy
monitor changes in the level of real GDP
monitor changes in the cost of living
42
The next best use of time, money, and/or resources is called:
A rational decision
equilibrium price
opportunity cost
production possibility
43
Which of the following is NOT an indicator rused by economists to measure the overall health of the economy?
Gross Domestic Product
Unemployment Rate
Consumer Price Index
The PPF
44
What is the opportunity cost for this person of moving from point a to point b?
$5 of income per week
$20 of income per week
$10 of income per week
$10 per hour of studying per week
45
The decrease in the price of hotdogs results in a decrease in the demand for hamburgers. These two products are:
Intermediate goods
Substitute goods
Complementary goods
Final goods
46
Which of the following is NOT a tool that the Federal Reserve can use to change the supply of money?
Taxation rate
Reserve requirement ratio
Discount rate
Open-market operations
47
What is a benefit that
corporations
have that other business structures do not have?
They obtain loans from banks.
The do not have to share control of the business with other individuals
They can sell stock of the company to the general public
They have 100% of the liability/risk if the business fails
48
Which graph shows an increase in price for suppliers?
Graph C
Graph A
Graph B
Graph D
49
What is the purpose of a production possibilities curve?
Enable a country to mobilize its resources in times of war
Make it possible to increase an economy's input resources
To demostrate maximimum efficeny of producing a partiular good or service
Encourage worker productivity
50
According to the graph, how many cookies will Grace buy if the price is $1.00 per cookie?
4
3
2
5
51
Which of the following people would be considered an entrepreneur?
Tommy volunteered at a soup kitchen
Bob got a job working as a cashier at Burger King
Dora opened a plant nursery that specialized in small trees and bushes
Jerome cut the grass and his mother gave him $10
52
A PRICE CEILING is a government imposed:
A price ceiling is not government imposed
Maximum amount that can be legally charged for an item
Regulation on safety standards
Minimum amount that can be charged for an item
