Economics Final
suppose that an economy has an adult population of 100 people a labor force of 80 people and eight people are unemployed. what is the country's unemployment rate?
10 percent
The Dow Jones Index is made up of
30 stocks of large companies
What is the difference between capital goods and consumer goods?
A capital good that is needed to produce other goods and services, while a consumer good is a good intended directly for consumers. A capital good can be a consumer good, because a consumer may need it for a task. Ex: an oven to cook their food.
Adam Smith, John Maynard Keynes, Milton Friedman: This person is credited with the concept of division of labor
Adam Smith
Adam Smith, John Maynard Keynes, Milton Friedman: wrote the famous lengthy book "An inquiry into the nature ans causes of the wealth of nations in 1776
Adam Smith
If were Alive today would say the doctrine of "Laissez- Faire= let it be," is the best, meaning that everyone should stay out and let the invisible hand of free market capitalism fix the economy over time
Adam Smith
What is most likely to happen when consumers increase their purchases of goods and services?
Businesses will increase production, and workers will receive more income
The GDP equation used to come up with GDP for a time period is
C+I+G+ (X-M)
Human resource, capital resource, natural resource, entrepreneurship resource, or not a resource A Cash register in a department store
Capital resource
The most basic measure of the money supply in the United States consists of which of the following?
Checking account deposits, paper currency, and coins
Inflation of consumer goods and prices is typically measured by the
Consumer Price Index
What does CPI stand for?
Consumer Price Index
What is cost-benefit analysis
Cost benefit analysis is determining the cost of a decision and the benefits it will bring.
Which of the following fiscal policy combinations would a government most likely follow to stimulate economic activity when the economy is in a severe recession?
Decreasing taxes and increasing spending
T/F: A sector is a diversified group of companies
False
The _____________ acts as the central banking system of the United States and oversees the monetary policy
Federal Reserve
Human resource, capital resource, natural resource, entrepreneurship resource, or not a resource Lumber Jack
Human
Adam Smith, John Maynard Keynes, Milton Friedman: If alive today, would probably be a democrat based on his views that the government and fiscal policy are the ways to fix the economy. He caused the govt to implement the fiscal policy
John Maynard Keynes
Adam Smith, John Maynard Keynes, Milton Friedman: This person's economic views are known as the Keynesian Economics
John Maynard Keynes
Adam Smith, John Maynard Keynes, Milton Friedman: If Alive today, would say the federal reserve and monetary policy are the way to fix the economy
Milton Friedman
Adam Smith, John Maynard Keynes, Milton Friedman: The most contemporary (modern day economist) (died in 2006)
Milton Friedman
Human resource, capital resource, natural resource, entrepreneurship resource, or not a resource Trees in a Forest
Natural
What does PACED stand for in Decision-Making
Problem Alternatives Criteria Evaluate the alternatives through Criteria D- make a Decision
A _____________ sets a limit on the quantity of a good that can be imported into a country in a given period of time
Quota
Which of the following is not a stock index
SEC
Jennifer recieves a 2 % increase in wages this year. The inflation rate is 4% Which of the following is most likely to happen to Jennifer's financial situation
She will have more income to spend and less purchasing power.
federal program of disability and retirement benefits that covers most working people
Social Security
An increase in the rate of inflation will result in a decrease in which of the following?
The purchasing power of money
What does TINSTAAFL stand for
There is no such thing as a free lunch
T/F: Current Events can have an affect on the stock market
True
T/F: Not all companies publicly trade stocks
True
T/F: Publicly held companies are required to announce their earnings to the public each quarter
True
worth that can be expressed in dollars and cents
Value
A person's risk tolerance is based on a number of factors including financial stability, amount of time before the invested funds are needed for other purposes and
age of investor
To arrive at an economic decision, a decision-making grid may be used to evaluate
alternative choices of action
The measure of a company's risk in relation to the market is called its
beta
A ____________ is an IOU that a company or government sells when it borrows oneys
bond
Which of the following is a policy tool of the Federal Reserve
buying or selling government securities
Human resource, capital resource, natural resource, entrepreneurship resource, or not a resource A carpenter's hammer
capital
Human resource, capital resource, natural resource, entrepreneurship resource, or not a resource An ore-hauling truck in a mineral mine
capital
Human resource, capital resource, natural resource, entrepreneurship resource, or not a resource an office computer
capital
tools and equipment used in production
capital
tools, equipment, machinery, and factories used in the production of goods and services
capital
Manufactured goods needed to produce other goods and services are called
capital goods
economic system in which a central authority makes most of the WHAT, HOW, and FOR WHOM decisions
capitalism
economic system in which private citizens own the factors of production
command economy
Interest earned on interest occurs with
compounding
legal entity having all the rights of an individual
corporation
Will GDP increase or decrease: Business start ups and new factories have decreased as they wait on results of the tax reform overhaul
decrease
Jenny's investments include cash, stocks, mutual funds and bonds. This is an example of ______________
diversification
Jeremy invested all of his money in airline stocks. Chris advised him to invest in companies in several different industries. Chris' advice is for Jeremy to ___________________ his portfolio
diversify
If a company has a good year, it may decide to pay _____________________ to its shareholders.
dividends
Which of the following has been most important in reducing poverty over time?
economic growth
7 Economic and Social goals
economic growth economic freedom economic efficiency economic equity economic security full employment price stability
Actions in one part of the country or world that have a economic impact on what happens elsewhere are examples of
economic interdependence
organized way in which a society provides for the wants and needs of its people
economic system
organized way in which society provides for the wants and needs of its people
economic system
study of how people try to satisfy their needs through the careful use of scarce resources
economics
Human resource, capital resource, natural resource, entrepreneurship resource, or not a resource The efforts of an entrepreneur at a startup company
entrepreneurship
increased competition, higher profits, more and better paying jobs, and healthy tax revenues are all benefits of successful
entrepreneurship
If a dividend has been announced but not yet paid, the stock is said to have gone
ex-dividend
land, labor, capital and entrepreneurs are the
factors of productions
T/F: The national debt and a national deficit are the same thing
false
Government taxing and spending to fix the economy is known as using:
fiscal policy
Macroeconomic Policy that is based on government taxations and government expenditure is called
fiscal policy
does not increase even if prices go up
fixed income
It might be useful to think of macroeconomics as a study of ________________ and microeconomics as the study of ___________________
forest, trees
tangible item that is economically useful or that satisfies an economic want
good
The national debt is an accumulation of all the years of deficits minus any surpluses which was mainly caused by
having to pay for wars, welfare, and recessions
Some investors place a greater focus on high earnings than on safety. They prefer _______________ stocks
high beta
Human resource, capital resource, natural resource, entrepreneurship resource, or not a resource An ore-hauling truck driver
human
Human resource, capital resource, natural resource, entrepreneurship resource, or not a resource a carpenter
human
equation for profit or loss
income- expenses= profit/loss
Will GDP increase or decrease: Car imports decrease due to news that Volkswagen had falsified certification
increase
Will GDP increase or decrease: The government has increased military spending since Trump has been in office in order to fight the war on terrorism
increase
Will GDP increase or decrease: Consumer spending in November was up over Oct due to Black Friday
increase
IPO means
initial public offering
What happens to most money deposited in checking accounts at a commercial bank?
it is loaned to other bank customers
people with all their efforts, abilities, and skills
labor
Joey, a conservative investor with a low risk tolerance, is most likely to invest in
large cap companies
In general, the __________ risk you are willing to take the __________ the possible return on your investment
less, less
To society, the economic cost of unemployment is the
loss in output that would have nee produced at full employment
Hurricane Harvey will likely have the most impact on which of these industries
lumbers
Money can be used to assist in a transaction between buyers and sellers, thus it is a
medium of exchange
economic system that has some combination of traditional, command, and market economies
mixed economy
When a country's currency appreciates relative to another, that country's exports are now:
more expensive abroad
An increase in the amount of education and training an individual receives may result in
more job opportunities earning a higher income
corporation with manufacturing or service operations in different countries
multinational
item that lasts for less than three years when used on a regular basis
nondurable good
Human resource, capital resource, natural resource, entrepreneurship resource, or not a resource 100 shares of stock in a computer software company
not a resource
Human resource, capital resource, natural resource, entrepreneurship resource, or not a resource A $100 bill in a cash register
not a resource
Human resource, capital resource, natural resource, entrepreneurship resource, or not a resource A video game
not a resource
cost of the next-best alternative use of money time, or resources when one choice is made rather than another
opportunity cost
next best alternative use of money, time, or resources when one choice is made rather than another
opportunity cost
When you research a company, you should compare the company with
other companies in the same industry
To help you decide if the Case COmputer Company is a good investment, you should compare it to
other computer companies
The situation in which some necessities have little value while some non-necessities have a much higher value known as
paradox value
Pepsico is a __________ company that sells ___________ like chips, soft drinks and juices
parent, products
In Adam Smith's view of capitalism
people, acting in their own self-interest, unwittingly do good for others
feature of capitalism that allows people to own and control their possessions
private property rights
voluntary association of people formed to help promote or sell their products
producer cooperative
extent to which individuals or organizations are better off at the end of a specific period than they were at the beginning
profit
incentive that encourages people and organizations to improve their material well-being
profit motive
investing means _________________________
putting your money to work waning even more money
When an individual's tax rate decreases as the taxable income increases it is known as
regressive tax
condition of not having enough resources to produce all the things people want
scarcity
A unit of ownership in a publicly traded company is called a
share
_________________ are part owners in a public corporation
shareholders
quality of life based on the ownership of the necessities and luxuries that make life easier
standard of living
Entrepreneurs are considered the driving force in an economy because they
start new business
Suppose the federal government initially has a balanced budget. Which of the following changes in government tax revenues and expenditures over time will definitely lead to an increase in the national debt
tax decrease expenditures increase
An example of a market economy is
the United States
The benefit of mutual funds is that
they are managed by professionals and they help to diversify your portfolio
The_______________ for Walmart is WMT
ticker symbol
The role of government in a command economy is
to make major economic decisions
In stock quotes, volume means
total number of shares traded
alternative choices made by consumers in the marketplace
trade-offs
Which of the following is NOT a characteristic of money in a market economy?
unlimited supply
when corporations involved in different steps of manufacturing or marketing merge, it is known as a
vertical merger
act of buyers and sellers freely and willingly engaging in market transactions
voluntary exchange
Common stock ownership gives investors
voting rights in shareholders meetings
something we would like to have but is not necessary for survival
want
sum of those economic products that are tangible, scarce, useful, and transferable
wealth
If more people want to buy a stock than want to sell it, then that stock price __________________
will go up
The money supply expands when
your bank lends you $1,000 for college expenses
