ECONOMICS-UNIT 1 QUIZ 3 & practice test
In a traditional economic system, which scenario would one most likely see?
A farmer grows a one-acre farm to produce all the vegetables his family will need over the course of a growing season.
a person who places money in a bank
depositor
a recession that is very long and severe
depression
An economy going from the trough to the peak is said to be in a state of ___.
expansion
_______ is the statistic that shows the total value of all goods produced within a country regardless of national affiliation.
gdp
___________ is the total value of all goods produced within a particular country regardless of what country the business is from.
gnp
A country's economy and GDP must be in decline for this long in order for its economic condition to be considered a recession.
six months
The market (consumer) decides what is made, sold, and bought.
market economy
In order for a country's economic condition to be considered a recession, the economy and GDP must be in decline for ___.
six months
In 1837, President Andrew Jackson caused a depression for Martin Van Buren during his fight with ___.
the Bank of the United States
Which war and the subsequent agricultural surplus helped cause the 1857 depression?
the Crimean War
Which movement influenced the concepts of the market economic system?
the Enlightenment
Fluctuations through a series of economic expansions and contractions is part of ___.
the business cycle
During the 1873 depression, the people in debt were in favor of ___.
the reissue of greenback dollars from the Civil War
Those suffering from the 1873 depression pushed for ___.
the reissue of greenback dollars from the Civil War
All of the following are economic powers of the U.S. government under the U.S. Constitution EXCEPT ___.
the senate passes all bills dealing with revenue
In the area of economics, the government divides its earning marks into quarters, or every ___ months.
three
Economically, the government divides its earning marks into quarters, or every ___.
three months
In 1837, President Andrew Jackson contributed to a depression that followed after Martin Van Buren took office because of his fight ___.
to close the Bank of the United States
The biggest responsibility that consumers have is ___.
to educate themselves on the products they are interested in, including their benefits and potential costs or problems
The ________ is reached when a country's economy (GDP) is at its highest output; after that, the economy enters a recession.
peak
the point at which a country's GDP and economy reach top efficiency and are immediately followed by a downturn
peak
The National Bureau of Economic Research is an independent, ______ organization not found within the government that observes and tracks the actions of the business cycle.
private
A period when a country's economy (GDP) is at its lowest output is a _______________.
trough
To which factor does the arrow on the business cycle chart point?
trough
Which scenario does NOT express a decision made with an economic perspective?
A young man makes an impulse buy and purchases two CDs he heard about from a friend.
The Articles of _____ was the first constitution of the United States that gave more power to the states and left the federal government weak.
Confederation
One of the first three departments of the early American government was the ___.
Department of State
Which was one of the first three departments of the early American government?
Department of State
_______ is a period when the economy and GDP begin to improve and grow. It is characterized by lower unemployment, an increase in consumption and investment, and banks willing to loan money.
Expansion
Which government agency ensures that businesses operate legally so that the consumer will not be misled or harmed?
Federal Trade Commission
The depression of 1893 was directly responsible for the growing popularity of the ___ Party.
Populist
The collapse of ___ greatly altered U.S. military spending.
Russia
What was Thomas Jefferson's argument against the creation of a national bank?
The government did not have the constitutional authority to do so.
Why might the states be upset at the federal government paying off their debts?
The states did not want to be answerable to the federal government and therefore be put in a weaker position.
decision made based on maximum benefit and value
rational choice
A slowdown in the economy characterized by rising unemployment, a lack of consumption and investment, and banks being slow to lend money is called _______.
recession
Which scenario would NOT affect the GNP of the United States?
a German-based grocery store in Champaign, Illinois
Which of these would NOT add to the GNP of the United States?
a German-based grocery store in Champan, Illinois
Where can you find the agency responsible for putting together business cycle information—in particular, when the cycle peaks and plummets?
a private company not found within the government
A country's economic peak is followed by ___.
a recession
The lowest period for a country's GDP is called ___.
a trough
One of the major causes of the economic downturn of 1819 was ___.
a wave of overspeculation in the Western frontier territories
Which scenario would NOT affect the GDP of the United States?
an American-based investment firm in Australia
Which of these would NOT add to the GDP of the United States?
an American-based investment firm in Switzerland
One major cause of the 2008 financial crisis was that ___.
banks made risky loans and inflated housing prices
trading one item to receive another item
barter system
Fluctuations between economic contractions and expansions are known as the ______________.
business cycle
___ held a large portion of U.S. debt in 2010.
china
problem that occurs due to limited resources and unlimited wants
scarcity
all economic decisions are made by the government with little or no input by the people.
command economy
knowing as much as you can before buying
consumer responsibility
Hamilton's economic plan included all of the following parts EXCEPT ___.
creation of a national bank
What was NOT a part of Hamilton's economic plan?
creation of a new set of bank notes
consumer's record of debt payment and fulfillment of financial obligations
credit
money owed by an individual, company, or government
debt
wrote Wealth of Nations on the advantages of a market economy (capitalism)
adam smith
The future of the U.S. Social Security system is in jeopardy because of a large number of ___ and a declining birth rate.
aging baby boomers
Which of the answers took up the largest percentage of U.S. spending in the 2016 budget?
healthcare
In 2010, ___ was increased greatly.
healthcare spending
A loss of value of money that causes a rise in prices is ______.
inflation
a rise in prices due to the loss of value of money
inflation
the charge a lender places on borrowed money
interest
the term used for the overvaluing of property or land
overspeculation
