19.3 Economics Exam ALL CORRECT ANSWERS

What is this political cartoon representing?

Federal deficit

Legislation intended to establish a balanced budget was the

Gramm-Rudman-Hollings Bill.

What is this political cartoon representing?

Growing unemployment

DBQ Based on the map, which of the following groups of states spent $5,000 or more per student?

Iowa, Ohio, and New York

Total cost is the sum of the

fixed and variable costs.

True or false: Goods produced and consumed in homes are included in GDP.

False

Does the table below show a surplus or a shortage?

Shortage

DBQ If you were to graph this supply schedule, the supply curve would

slope upward from left to right.

Compute the GDP for 2014

$1,600

DBQ According to the graph, if men in general were earning approximately $20,000 in 1965, women would have been earning approximately

$12,000

From the graph below, what is the equilibrium price?

$300

The first federal budget surplus in three decades occurred in

1998.

By briefly looking at this graph, when was the housing market in the worst shape possible? In other words, when were sales the lowest?

2010-2011

A person had an income of $20,000 last year and paid $10,000 in tax. This year, the person had an income of $100,000 and paid $30,000 in tax. The person's marginal tax rate is:

25%

Assume that, in the population, 95 million people worked for pay last week, 5 million people did not work for pay but had been seeking a job, 5 million people did not work for pay and had not been seeking a job for the past several months, and 45 million were under age 16. The unemployment rate, given these numbers, is:

5%

What is a "dividend"?

A dividend is a return of a company's profits to its shareholders, typically of a very profitable company.

A business doubled the price of a product in order to increase profits. Which of the following scenarios might have occurred?

A dramatic decline in revenues demonstrated the elasticity of the product.

DBQ Which of the following situations best exemplifies the main point of the passage?

An executive e-mails a meeting agenda to co-workers from home before going to bed.

What is an example of an intermediate good?

All choices are correct

DBQ This passage compares the feelings of Americans toward taxation today to those same feelings around the time of the

American Revolution

What does this equation mean? GDP = C + I + G + Xn

C = consumer spending, I = Investment, G = Government spending, and Xn = the nation's total net exports, calculated as total exports minus total imports.

All of the following can be used to establish more equal pay between men and women EXCEPT the

Fair Labor Standards Act.

Crude oil is an example of a final good.

False

Small companies with less than $1 billion in market capitalization are called large caps.

False

What does the demand curve look like?

It is a downward sloping line that shows in graph form the quantities demanded at each possible price.

DBQ In the late 1990s, the average expenditure per elementary and secondary student was $5,885. Based on the map, which of the following states spent less than the average per student?

North Carolina

Is there a shortage or a surplus below?

Surplus

According to Keynes (Keynesian Economics) the government should decrease taxes in order to give households more disposable income with which they can buy more products. The government should increase government spending in order to "prime the pump" of the economy during a recession.

True

As Inflation increases, the value of each dollar decreases.

True

Being financially responsible is a characteristic of good citizenship.

True

Countries with a higher GDP are considered to be wealthier or have a stronger economy than countries with a lower GDP.

True

Difference between opportunity cost & trade-off---- A trade off describes what you sacrifice to get something else. The opportunity cost is the most desired alternative that you gave up (the next best thing) .

True

The Federal Reserve creates a stable banking system to make sure the economy is prepared in a crisis. It has 12 regional banks.

True

The change in the supply from S1 to S2 could have been caused by technological improvements.

True

The growth of unemployment only considers the percent of people who want job, are looking for a job, cannot find a job.

True

The price of the item, people's income, the prices of related goods, people's tastes, people's expectations, and the number of buyers all affect the demand of a good.

True

This graph shows an increase in demand, NOT a decrease.

True

What are we converting when we add all payments that Americans receive from outside the United States and then subtract all payments made to foreign-owned resources in the U.S?

We are converting GDP into GNP.

All of the following can change the market supply curve EXCEPT

a change in the demand for the product.

DBQ Which of the following choices could cause the movements shown in this graph?

a decrease in the price of cameras

The United States government accumulated huge deficits during the 1980s due to

a doubling of spending on national defense.

A demand schedule shows

a listing of the various quantities demanded of a particular product at all prices that might prevail in the market.

DBQ According to the graph, about what percentage of revenues did the federal government spend in 1990 for the privilege of using borrowed money?

a little less than 15%

DBQ According to the table, most government employees work for

a local government.

DBQ According to the graph, about what portion of the total value of the nation's output between 1980 and 2000?

about a third

DBQ Which of the following choices could cause the movement shown in the graph?

an increase in population

An increase in the price of cameras results in a decrease in the demand for film. The two products are

complements

An increase in the price of milk causes a decrease in the demand for cereal. The two products are

complements

For most products and services, increased price results in

demand for fewer products

The Taxpayer Relief Act of 1997

did little to benefit people without children or capital gains.

Intergovernmental revenues are generally intended for

education and public welfare.

When a customer's need for a product is not urgent, demand tends to be

elastic

The level of profit-maximizing output is reached when marginal cost is

equal to marginal revenue.

Profits will be maximized when marginal revenue

equals marginal cost.

The Fair Labor Standards Act

established a federal minimum wage.

DBQ According to this passage, at the time it was written (1999), the national debt was

failing

DBQ According to this supply curve, if the price of movie videos decreases from $18 to $16, the quantity supplied will

fall from 1000 to 800.

DBQ According to this demand curve, if the price of movie videos increases from $14 to $16, the quantity demanded will

fall from 600 to 400

DBQ Study the graphs. Compared to janitors, the graph for surgeons shows

high demand and low supply.

When employees are getting in each other's way, the firm is operating

in Stage II of production.

Because a modest price increase has little or no effect, the demand for the product is

inelastic

An example of mandatory spending is financing for

interest payments on the federal debt.

The largest category of state spending is

intergovernmental expenditures.

The invisible barrier that hinders women and minorities from advancement up the corporate ladder

is known as the glass ceiling.

Transfer payments from the government to individuals or other levels of government might be used for all of the following EXCEPT

maintenance of the armed forces

All levels of government combined consume about

one-third of the nation's output.

The sequence for the approval of the federal budget is

president to Congress back to president.

DBQ The movement in the graph shows that the quantity demanded of butter decreased because the

price of margarine decreased.

If the Federal Reserve wishes to decrease (tighten) the money supply, it should

raise the discount rate

The "incident of a tax"

refers to those who bear the final burden of taxation.

DBQ Based on the graph, after 1997, the government was

running a budget surplus

Workers who have the skills to operate machines and who require a minimum amount of training are

semiskilled labor.

If the price of a product is below its equilibrium price, what is the result?

shortage

DBQ If you were to graph this demand schedule, the demand curve would

slope downward from left to right.

DBQ Which of the following choices could cause the movement shown in the graph?

taxes increase

Rent payments and property taxes would be counted as

the output of goods and services.

The theory of production deal with the relationship between the factors of production and

the output of goods and services.

A stock or share represent represents a piece of ownership in a company.

true

When a manufacturer of pain medication reduced the price of the medication by 30%, profits declined by almost exactly 30%. Demand for the product is

unit elastic

DBQ In the experiment described in the passage, Noumenon Corporation was trying to determine the price that

would bring in the most money.