Econmics Final Exam
Which of the following is a negative aspect of corporation
Double Taxtion
Which of the following is the largest exspense of located goverment
Election Security
Nancy is a biologist who is working for 5 hours a week at Starbucks until she's can find a job doing what she loves which of the following best describes Nancy
Employed
Which of the following terms refers to the money that a bank is able to long following a deposit
Excess reserves
Which of the following refers to the cost of another nation's currency
Exchange rates
Which type of policy will lead to a trade surplus
Expansiory Monetary Policy
Which of the following appropriately best describes the trade balance for a nation
Exports-Imports
Everything that an individual can do with their unspent money represents the
Financial Sector
Gina is a steel worker who leaves her job because she thinks she can get a job working in a better factory what type of unemployment is Gina experiencing
Frictional Unemployment
What should replace the question expenditure model?
Goverment - G
In order to change behavior and economist would insit that _______ must change
Incentives
Money that is spent by households in the product market is _______ for business
Income
Which of the following is a largest category of revenue for the state government
Income Tax
Which of the following would be considered an Expansiory Fiscal Policy
Increase Spending
which of the following is not an action that can be taken by the federal reserve
Increase goverment spending
Which of the following is a problem with Fiscal policy
It can take too long to come to a solution
Which of the following is definition of market basket
It is a collection of goods and services that a normal household would be likely to purchase
Based on some scenario 2 after the government imposes the new tax what will likely happen on the text size of the economy
It will decrease in size
which of the following is not an adavantage of a sole proprietorship
Limited Liability
And undeveloped economy must have which of the following
Low Econmic Output
Which of the following is used to refer the total demand for goods and services in the economy (overall size of economy)
Markets
Which of the following is an example of discretionary spending by the US government
Military and defense
Which of the following is an attempt of the federal reserve to influence the economy and the trade balance
Monetary policy
Which the following is used to calculate maximum number of times money can be loan throughout an econmy
Money Mutpliyer
A popular model used to illustrate opportunity cost is
The Production possibilities curve
Which global organization attempts to promote growth through the sustainable development goals
The United Nations (UN)
Which of the following is appropriate definition of wealth
The assets of worth on by an individual or business
which of the following is not a major question of econmics
When to Produce
the study of econmics is inmportant because it enables us to make
become better decsion makers
consumption
diagram repsenting various combination of goods and/or services
A market econmy
does not provide for everyones basic needs
in the production possiblites frontier shown in this graph what could cause production to move from point b to point d
increased productivy
A US business buys new computers for its office workers from and us computer manufacture the value of transaction would be included in which category in the graph
invesetment sector
Which of the following is a Charctersitics of traditional economy
it discourages new ideas and new ways of doing things
according to the illustration what is the least comon form of business organzation of in the United States
joint ventures
What factor of production do these images illustrate
land
an advantage of corporation is that
owners have limited liability for debt
Barry Sanders brings $50 into the bank and the reserve requirement is a 20% what is the value of the REQUIRED RESERVE
$10
How much money is created in the following scenario Julian deposits 1500 at a bank with 15% reserve requirement
$1500
If Matthew Stafford deposits $2000 in the bank with a reserve requirement of 10% what will be the total economic impact of the deposit
$18,000
If Mr. Gotberg decides to take $1 to the bank and make it deposit well will be the total economic impact of his deposit if the reserve requirement is at 5%
$19
If Calvin Johnson takes his pay check of $5000 to the bank and the reserve requirement is 50% how much money will the bank have available to loan
$2,500
If Jake has the choice between studing for Econmics for 1 hour working for 1 hour at $6 per hour and working for his mother at $7 per hour and Jake chooses to study what is his opportunity cost
$7
If individuals in Australia are beginning to invest in the United States meaning they need to USD what will happen to the value of the US dollar
Apreciate
What will happen to the value of the US dollar of the federal reserve uses a contractionary policy such as selling bonds
Apreciate
A financial intermediary Responsible for holding savings and loaning funds is known as
Bank
What is one thing that the federal government could do to alleviate the stress from problem presented and scenario one
reduce spending
Which of the following is not an example of M1 money
savings accounts
if you were to graph this demand schedule the demand curve would
slope downward from left to right
opportunity cost
something we would like to have but is not necessary for survival
want
something we would like to have but is not necessary for survival
Good
tangible that is economically useful or that satisfies uneconomic want
what does the movement shown on this graph repsent
the inverse relationship between price and quantity demand
Study the graph suppose this nation starts with producing all millitary goods it then decides to produce a mix of civilian and milltary goods repsented by point B what repsents the cost in milltary goods given up
the vertical distance from point A to point x
Everything that is given up when a decision is made is known as which of the following
trade-off
Who is responsible for setting the reserve requirement
The Federal Reserve
The market basket in the base year was one million dollars and the current year the market basket is worth 1.7 million dollars calculate the rate of inflation
1.7%
View figure 1.1 above it represents the production possibility of gottbergland what is the opportunity cost of increasing coffee production from 6 to 10
4 coffee
View figure 1.1 above it represents the production possibilities of gotbergland What is the opportunity cost of the increasing taco production from 8 to 12
7 tacos
based on the table what is the market demand for burritos at a price of $5
8
Which of the following is considered a resource
A factory worker
Which of the following would cause on appreciation of the US dollar
An increase in the demand for American made products
need
Basic requirement for survival
Which of the following is most likely considered M2 money
Bonds
Look at chart 1.2 which country has the comparatives advantage in the production of tea
Both
Which of the following would be considered M1 money
Cash
Which of the following could be considered a undeveloped nation
Chad
Look at Chart 1.2 which country has absolute advantage in the production of coffee
Colombia
The United States dollar is considered this type of currency because it is controlled exclusively by government policy and has no real value
Commodity Backed Money
______ Is the driving force behind the free enterprise economy
Competition
McDonald's is considered which type of business
Corporation
If the federal reserve notices that unemployment is extremely high what is the one way they can speed up the economy attempt to alleviate the problems
Decrease Discount Rate
The demand for Europeans made goods is increasing what will happen to the value of the US dollar
Depreciate
Which of the following will happen to the value of the euro if The federal reserve decides to increase reserve requirement
Depreciate
If a nation's currency loses value it has
Depreciated
Which group is primary responsible for the federal budget process
President/Congress
Based on scenario 2 which type of tax was put in place
Regressive
The mill of money that the bank is required to keep in their fall is referred to as
Required Reserves
How can the federal reserve use open market operations to increase the money supply
Sell Bonds
Economics
Study of how people try To satisfy their needs through the careful use of scarce resources
Who is the owner of Corporation
The Board of Directors
Which of the following is considered "land" by the economic definition
The river that provides the factory with power
an example of market econmy is
United States
Look at chart 1.2 which nation should specialize in the production of coffee
United states
If the federal reserve enacts an Expansiory policy which the following is most likely to occur
Trade Surplus
How can a nation reach a point on a production possibilities curve that what was once unobtainable
Trading with other nations
They usefulness that a product provides to an individual is referred to as
Utility
Productivity
a measure of the amount of goods and services produced with a given amount
Scarcity
alternative choices made by consumers in marketplaces
which of the following choices could cause the movement shown in this graph
an decrease in the price of Blu-ray players a compliment to blu ray discs
an econmy at its production possiblites frontier is operating
at full potential
which group of people utilmately determines the products that a free enterprise econmy produces
consumers
what form of business organization does thisorganizational chart depcit
corporation
Unemployment That is directly related to swings in the business cycle
cyclical unemployment
For most products and services an increase in price results
demand for less of the product
which of the following choices best describes what this production possiblites frontier is depicting
econmic growth
free enterprise economy
economy in which consumers and privately owned businesses make the majority of the WHAT, HOW, and FOR WHOM decisions
according to this supply curve if the price of t-shirts decreases from $18 to $16 the quanity supplied will
fall from 1000 to 800
Which econmic system can change direction quickly and drastically dur to centralized decsion making
mixed
The united states can be described as having a
modified free enterprise system
