Unit 2 Unit Test, Unit 1 Quiz 3, Unit 1 Quiz 2, Unit 1 Quiz 1, Unit 1 Unit Test, eco, Unit 2 Quiz 1, Unit 2 Quiz 2, Unit 2 Quiz 3, Unit 3 Quiz 2, Unit 3 Quiz 3, Unit 3 Quiz 1, Unit 4 Quiz 1, Unit 4 Quiz 3, Unit 4 Unit Test, Unit 3 Unit Test, Unit 5 Q...
In October 2010, the amount of money held by individuals and companies was $987.1 billion; checkable deposits owed by individuals and companies were $567.3 billion; money market funds were $1.045 trillion; savings deposits were $562.3 billion; time deposits were $324.2 billion. What was the M1 amount in October 2010?
$1.55 trillion
The Bureau of Economic Analysis and the U.S. Department of Commerce reported the following information: government expenditures $1.83 trillion consumption expenditures $6.80 trillion imports $1.47 trillion income tax collected $7.88 trillion investments $2.03 trillion exports $1.09 trillion What is the gross domestic product?
$10.28 trillion ((Exports - Imports) + Government expenditures + Consumption expenditures + Investments)
Which of the following was the price of MCD at the start of the trading day?
$113.72 113.29(0.0038) + 113.29
The U.S. government debt in 2015 was about ___.
$14 trillion
Which amount would be the real domestic output if supply shifted the equilibrium point to 115?
$16 trillion
Choose the best answers using the chart. Calculate the CPI for the current year.
$168.92
What was the price of BAC at the start of the trading day? 17.42 down, 1.11% change, 17.42(0.0111)+17.42
$17.62
Which of these is the equilibrium price for T-shirts?
$20.00
In October 2010, the amount of money held by individuals and companies was $756.7 billion; checkable deposits owed by individuals and companies were $502.2 billion; money market funds were $1.895 trillion; savings deposits were $277.7 billion; time deposits were $329.1 billion. What was the M2 amount in October 2010?
$3.76 trillion
Janna's Floral Shop has fixed costs of $17,000. This year her variable costs increased from $25,400 to $31,700. What is her current total cost?
$48,700
An investor sells 150 shares of Amazon (AMZN) stock at $35.00 and pays a $7 commission. What is the total amount of money received by the investor?
$5,243 150(35) - 7
Choose the best answer using the chart. What was California's GDP in 2010 in millions?
$5,810.2
Choose the best answers using the chart. What is the total of the current year CPI market basket?
$50.00
Luther owns a tutoring business. In 2017, he decides he needs an economic profit of $70,000 in order to open a new location in 2018. Consider the following information about his business during 2017: He spent $5,000 on new computer software for mathematics. He spent $15,000 in wages. He made $80,000 in total revenue. He spent $3,000 paying bills. He paid $2,000 interest on a loan. What is Luther's economic profit?
$55,000
Which graph shows the effect on oil markets as a result of anti-government riots in the oil-rich country of Tunisia?
/←/
Which graph shows the effect on the air travel market in Dallas if a new low-cost airline goes bankrupt?
/←/
Which scenario would one most likely see in a traditional economic system?
A farmer grows a one-acre farm to produce all the vegetables his family will need over the course of a growing season.
___ is an example of money.
A jar of coins
Which scenario best explains scarcity?
A man has $20 but wants to take his girlfriend to a fancy steak restaurant, where he needs $70.
Quantity _____ is the amount of a service or good that consumers are able and willing to purchase at a specific time.
demanded
The loss of capital due to wear and tear is ______.
depreciation
The loss of capital to normal wear and tear is the _____.
depreciation
Which items are NOT substitute goods?
desk and couch
Businesses have a legal responsibility to make certain accommodations for ____ customers.
disabled
When Congress creates an act that affects fiscal policy, it is considered a(n) ________________ fiscal policy.
discretionary
Dividing your money among multiple investments is the principle of ___.
diversification
Smart investors use _____ to spread their money among multiple investments.
diversification
A company may pay a(n) ______ out of earnings to stockholders.
dividend
Which of these is NOT a part of the income generated from the household's control over the four factors of production?
dividend
A(n) ____ payment is a percentage of the full purchase price and is meant to prove a buyer's intent.
down
A relatively new form of money that is growing in popularity is _____.
e-cash
An electronic version of paper money that is becoming more popular is called ____________.
e-cash
A(n) ___ occurs when a business increases its facilities and workforce by the same percentage and output increases by a larger margin while costs decrease.
economy of scale
A(n) ______ deposit is often taken to protect a rental agency or individual from damage caused by a renter.
security
A(n) ______ might be used to prevent unhealthy products from entering a country.
embargo
Which answer is NOT characteristic of a command economic system?
encouragement of the pursuit of wealth
Which of these is NOT a characteristic of a command economic system?
encouragement of the pursuit of wealth
Which answer does NOT belong to the NICEJAG acronym?
end production
A legal ______ is a group or organization recognized by the government as such.
entity
The _____ price is the point where quantity demanded and quantity supplied are equal.
equilibrium
The worth or value of a home to an owner after subtracting any home loan is the ________.
equity
A medium of _______ is something accepted in return for a good or service.
exchange
An economy going from the trough to the peak is said to be in a state of ___.
expansion
An economy going from the trough to the peak is said to be in a state of _______.
expansion
A(n) _____ fiscal policy encourages economic growth through tax cuts, a decrease in industrial regulation, increased government spending, or a combination of factors.
expansionary
An example of ___ is increasing government spending.
expansionary fiscal policy
A business anticipating a cold winter by manufacturing snow shovels in July is an example of _____ affecting a change in supply.
expectations
Choose the best answer using the circular flow model. In the circular flow model, households send ___ to the product market.
expenditures
Explicit costs are measured by ____.
expenditures paid for with money
A(n) ______ cost, such as labor or machinery, is easily identifiable.
explicit
The wages paid to employees are an example of a(n) _____ cost.
explicit
A free market economy allows citizens to control the _______ of production.
factors
The trend of marginal utility is to increase as consumption increases.
false
The Free Application for Federal Student Aid is the best way to pursue _______ aid for college expenses.
federal
The money that is established by law to be money is called ___.
fiat money
A rental car company buys 30 new automobiles. The automobiles are examples of ___ goods.
final
You buy a brand-new television. The television is an example of a(n) ___ good.
final
A good ______ advisor can help you wisely manage your investments.
financial
The mortgage and interest payments can fluctuate as interest rates change in a ___ loan.
flexible-rate
A minimum price for a good or service set by the government is a price _____.
floor
What is the purpose of interest?
for the lender to make money in exchange for giving money to those who need it
If a homeowner can no longer pay the home loan, the lender will likely _____ on the property.
foreclose
The taking over of a home by a lender once a homeowner can no longer pay for his or her home loan is a(n) ______.
foreclosure
Which of the following is NOT an obligation of the federal government to the economy?
foreign trade
Which is NOT a component of the free enterprise system?
freedom from all government involvement
An employee who leaves a job to be closer to home experiences ______ unemployment.
frictional
Which of the following is required before a country can match potential GDP?
full employment
A(n) ___ is an example of a commodity.
gallon of milk
Homebuyers show they are serious by ____ before shopping for a home.
getting pre-approved for a loan
The idea of ___ is that both the buyer and seller will do what is right in order to maintain a trading relationship.
self-interest
A deli buys 40 pounds of salami for its famous grinder sandwiches. The salami is an example of ___ goods.
intermediate
If the Fed wanted to slow down inflation, it would ___.
sell securities in the open market
A means of payment is a way of ___.
settling a debt
Labor is the only variable when making a(n) _______ production decision.
short-term
When demand is greater than supply, a market experiences a(n) ______.
shortage
One ideal of the American Dream is to own a(n) _____ home not connected to any other building.
single-family
A ship-building company buys 50 tons of lumber to build classic-style ships. The lumber is an example of ___ goods.
intermediate
When interest rates go down, bond fund prices go up because ___.
investors will pay more for older bonds with higher interest rates
The Clayton Antitrust Act differed from the 1890 law in that ___.
it ended harmful monopolies and created the Federal Trade Commission
The importance of the Sherman Antitrust Act of 1890 is that ___.
it established that the government has a right to regulate the economy
President Andrew Jackson wanted to get rid of the Bank of the United States because ___.
it was not answerable to the public and had become too powerful
In a short-term decision, which of these is not a fixed cost?
labor
Which of these is NOT a characteristic of a market economic system?
lack of private ownership of resources
Choose the best answers using the circular flow model. Households provide the resource market with ___.
land, labor, capital, and entrepreneurship
Who is most likely to benefit from an economy of scale?
larger companies such as Home Depot or Target
When did the US government begin its involvement in the economy?
late 1800s
The National Football League enjoys a ___.
legal monopoly
Which factor most impacts a person's future earning potential?
level of education
Every state requires drivers to have ____ insurance.
liability
Luther owns a tutoring business. In 2017, he decides he needs an economic profit of $70,000 in order to open a new location in 2018. Consider the following information about his business during 2017: He spent $5,000 on new computer software for mathematics. He spent $15,000 in wages. He made $80,000 in total revenue. He spent $3,000 paying bills. He paid $2,000 interest on a loan. Which expense is an implicit expense?
loan interest
Developing a new and improved aircraft is an example of a(n) _____ business decision.
long-term
Only the ________ costs associated with the factors of production are variable.
long-term
Investors who take too little risk might _____.
lose purchasing power and miss out on the power of compound interest
The importance of the Constitutional right to private property lies mainly in the ability to ___.
make profit in the sale or operation of private property
The importance of the right to private property is the ability to ___.
make profit in the sale or operation of private property
The ______ utility typically decreases as the buyer consumes one more additional good or service.
marginal
The additional cost required to produce one more product is ___.
marginal cost
Identify the point where the supply and demand curves intersect.
market equilibrium
In nonrestricted economies, ____ almost always eliminate shortages and surpluses.
market forces
Consumers and sellers create a ___ where goods and services are exchanged.
marketplace
A loan or CD must be repaid when it reaches ______ after a certain period of time.
maturity
A(n) ____ of payment is a way in which to settle a debt.
means
Deemed to have social value, _____ goods and services are provided by the government for citizens to consume.
merit
The government controls some but not all industries in a(n) _________ economic system.
mixed
The absence of any competition within a particular market of a good or service is a(n) ___________.
monopoly
A loan in which the property purchased secures the money borrowed is a(n) ______.
mortgage
A(n) ______ loan is one in which the property purchased secures the loan.
mortgage
This type of investment was created to help investors pool money and benefit from professional money managers.
mutual funds
The gross ______ product is a measure of the total value of final services and goods produced in a year by citizens of a country.
national
Which answer is NOT a factor that can change demand?
natural and man-made disasters
In order for a country's economic condition to be considered a recession, the economy and GDP must be in decline for ___.
six months
Total _______ is another term for aggregate demand.
spending
This type of loan charges the same rate and payments for the life of the loan.
standard fixed-rate
Traditional ____ loans have the same rate and payments for the life of the loan.
standard fixed-rate
A(n) ___ is an increase of circulated money that is meant to stimulate economic growth.
stimulus
The price of a(n) ____ represents investors' collective expectations of a company's future growth and profits.
stock
A marketplace where stocks are bought and sold is a(n) ______.
stock exchange
The ability of money to hold its worth is a measure of its _________ of value.
store
Government mismanagement of the economy is the cause of _____ inflation.
structural
Which theory of inflation suggests the government has mismanaged the economy?
structural theory
A(n) ______ good can be used in place of another good.
substitute
A change of price of one good that affects demand for a similar good is the _____ effect.
substitution
Aggregate ______ is the economic term for total production.
supply
The ______ is the amount of a service or good that producers are willing and able to sell at a specific time.
supply
A budget ______ is the economic condition that exists when the government takes in more taxes than they expend.
surplus
Foreign countries convinced the United States to form a stronger federal government by ___.
taking advantage of the young republic
A protective ______ is used in an attempt to protect a country's businesses.
tariff
A(n) ________ is a tax on goods imported from other countries.
tariff
Choose the best answer using the circular flow model. In the circular flow model, businesses send ___ to the government.
taxes
Which of these is NOT a part of the CPI market basket?
taxes
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
Concepts of the market economic system stem from which movement?
the Enlightenment
Which event led to a more centralized banking system in the new United States?
the Revolutionary War
A lack of property rights contributed to the economic demise of ___.
the Soviet Union
The creators of the mixed economic system were from ______.
the United Kingdom
The inventors of the mixed economic system, chief among whom was R.H. Tawney,came from ___.
the United Kingdom
At which point does the total product curve reach decreasing marginal returns?
the addition of the 5th worker
At which point does the total product curve reach negative marginal returns?
the addition of the 8th worker
The concept of a "double coincidence of wants" is the instrumental part of ___.
the barter system
The concept of a double coincidence of wants is the instrumental part of ___.
the barter system
Fluctuations of expansion and recession are part of ___.
the business cycle
Fluctuations through a series of economic expansions and contractions is part of ___.
the business cycle
What is the main driving force that determines whether a company will outsource work?
the cheapest labor and resource prices
Who makes the fundamental economic decisions that drive a market (capitalist) economy?
the consumers
A protective tariff is designed to protect ____.
the country's businesses or industries
Which of these are the long-term effects of the total elimination of the gold standard?
the economy as a whole fluctuating much more unpredictably
The consumer price index is meant to measure prices of goods and services due to ____.
the effect inflation has on prices in comparison to a base year
President Richard Nixon severed all connections between the dollar and ___.
the gold standard
Those suffering from the 1873 depression pushed for ___.
the reissue of greenback dollars from the Civil War
Which answer is NOT a component of the free enterprise system?
the right to make consumers pay
An absolute advantage is based solely upon ___.
the total number of items produced
According to Okun's Law, real GDP will drop 2% when ___.
the unemployment rate increases 1%
Economically, the government divides its earning marks into quarters, or every ___.
three months
A(n) ________ deposit pays higher interest but restricts when funds may be withdrawn.
time
Quantity demanded or supplied is measured in units of ______.
time
What is the biggest responsibility that consumers have?
to educate themselves on the products they are interested in, including their benefits and potential costs or problems
When one company can offer a product at a lower price than other companies due to some advantage, it is said that it can create a ___.
natural monopoly
Which of these was a main philosophical idea of the Progressives in the early 1900s?
to regulate industries such as railroad, banks, and other potential trusts
When a shopper makes a rational choice, he or she may ___.
pick the item that represents the greatest value
When a shopper makes a rational choice, he or she ___.
picks the item that represents the greatest value
The Federal Open Market Committee sets economic ______ that runs the economy.
policy
Embargoes are normally used for ___ reasons.
political and health
The amount borrowed in a loan and that is used to calculate interest payments is the ___________.
principal
"...nor shall ________ property be taken for public use, without just compensation."
private
A(n) ______ company does not have or allow trading of its ownership by stockholders.
private
Which of these is the purpose of the circular flow model?
to show the flow of money throughout the economy
A _______ government holds near complete control over the lives of its citizens.
totalitarian
A(n) ________ economic system is characterized as agricultural and lacking in technology.
traditional
In a(n) __________ economy, transactions are typically done through barter rather than currency.
traditional
Stagflation is a condition with a large increase in ___.
unemployment and inflation
The extent to which consumers gain happiness or benefit from their purchase is its _____.
utility
The extent to which consumers receive happiness or benefit from a purchase is called ___.
utility
A function of money is to serve as a store of ______.
value
A comparative advantage is based upon ____.
what is produced at the lowest opportunity cost
Which of the following would NOT be an example of money?
your first credit card
Aggregate demand and supply are designed to explain ___.
fluctuations within the business cycle
Which decision is NOT one made with an economic perspective?
A young man buys an old car without thinking about the costs associated with fixing the vehicle, and the fact that it will probably only last for months.
___ cost is the total of all expenditures a business makes including the depreciation of any capital.
Accounting
Which philosopher is most associated with a free-market economy based on self-interest?
Adam Smith
Which philosopher is most associated with the market economy?
Adam Smith
What country or region best exemplifies a traditional economy?
Amazon Rainforest of South America
Which of the following would be a final good?
An airline purchases ten airplanes from a manufacturer.
Which statement expresses the true relationship highlighted by the Phillips Curve?
As unemployment increases, inflation decreases.
President Andrew Jackson destroyed the ______ of the United States.
Bank
The ___ is an organization that works to protect consumers.
Better Business Bureau
What country owns a large portion of U.S. debt?
China
________ originated in the ideas of Marx and Engels that taught that all citizens should have the same wealth and social standing.
Communism
The _______ was a pamphlet of communist economic thought.
Communist Manifesto
______ insurance protects against all kinds of damage, including "acts of God."
Comprehensive
Fiscal policy is the responsibility of ___.
Congress and the President
Which answer was NOT a weakness of the Articles of Confederation
Congress could not negotiate treaties with foreign countries.
Which difficulty faces producers if they reduce the size or portion of a product?
Consumers will be less likely to buy the product because they will derive less utility from the product.
______ expenditures measure spending done by consumers to purchase clothing, food, household goods, and appliances.
Consumption
The _______ War and the subsequent agricultural surplus contributed to the recession of 1857.
Crimean
Which nation is NOT part of the North American Free Trade Agreement (NAFTA)?
Cuba
______ attempted to explain how capitalism could end in a worker-operated government without social classes.
Das Kapital
Who offered the quantity inflation theory to explain the cause of inflation as being due to too much money in circulation?
David Hume
Which answer is NOT a good strategy for paying off debt?
Declare bankruptcy.
Which was one of the first three departments of the early American government?
Department of State
_____ insurance is designed to help workers who are not physically able to work.
Disability
Which retailer would be seen as part of the CPI bias known as the outlet substitution effect?
Dollar Tree® (discount variety store)
The ____ Industrial Average is an index tracking 30 of the most influential American companies.
Dow Jones
At which price point will Barry's have the most revenue?
E
_______ profit is total cost subtracted from total revenue.
Economic
The ______ movement influenced the foundational ideas of the market economic system.
Enlightenment
_____ might lead a business to reduce prices on a certain smartphone because the manufacturer is likely to soon introduce a new model.
Expectations
The federal government has insured ___ loans since they were created as part of a New Deal program.
FHA
The ____ requires the three major credit tracking agencies to provide you, upon request, with a free credit report every 12 months.
Fair Credit Reporting Act
_____ student loans do not have to be repaid until after a student finishes attending college.
Federal
The Fed sets policy at the ___ meetings.
Federal Open Market Committee's
The _____ System was created during the Woodrow Wilson administration.
Federal Reserve
Which government agency deals most directly with consumers and their rights and protection?
Federal Trade Commission
_____ money must be accepted as such by law.
Fiat
In which amendment can one find the "Takings Clause"?
Fifth Amendment
The Takings Clause is a part of the ___.
Fifth Amendment
_____ goods and services are consumed rather than used to create other goods.
Final
Filling out the ____ is the best way to pursue federal loans, grants, and work-study.
Free Application for Federal Student Aid
Which of the following would be factored into the U.S. GDP?
German grocery store Aldi® located in Fort Worth, Texas
Members of the Fed's Board of ______ serve 14-year terms.
Governors
With support from the _______ Party, R.H. Tawney pushed Great Britain toward a mixed economic system.
Labour
______ insurance is typically used to care for a policyholder's family in case of death.
Life
_____ is a government program providing medical care and benefits for citizens of all ages who cannot otherwise afford such care.
Medicaid
______ is a program financed through a payroll tax to provide medical care to retired people.
Medicare
In which part of the world can one find the first evidence of banking-like institutions?
Mesopotamia
Choose the best answer using the table. Who has the absolute advantage in selling salads?
Mike
_____ policy is what controls money in circulation.
Monetary
_______ funds were created to pool investors' money and encourage small, periodic investments.
Mutual
The Federal Reserve bank responsible for beginning all Fed policy is based out of ___.
New York
__ profit is the minimum profit matching what could be gained by doing something else.
Normal
______ profit is the least amount of profit that matches what could be gained by doing something else.
Normal
Congress and the President are responsible for passing a federal budget before ___ of each year.
October 1st
______ is the moving of services or production to another country in order to save money.
Offshoring
___ states that real GDP will decline 2% for every 1% increase in unemployment.
Okun's Law
_____ cost is what is given up when a business decides on a specific action plan.
Opportunity
______ cost is what is given up when a company decides to commit capital to a certain course of action.
Opportunity
Which answer is NOT a reason stocks generally appreciate in value over time?
Over time, most investors hold on to stocks, creating scarcity and driving up prices.
____ loans are undesirable because they involve very high interest rates and fees.
Paycheck
_____ competition in a free enterprise system creates the best environment for consumers' freedom and security.
Perfect
The depression of 1893 was directly responsible for the growing popularity of the ___ Party.
Populist
The depression of 1893 was directly responsible for the growing popularity of the ______ Party.
Populist
___ almost always lead to market shortages.
Price ceilings
___ almost always lead to a surplus of goods and services.
Price floors
_______ is the average of total products produced divided by the number of workers.
Productivity
_______ is the primary motivating factor in a market economic system.
Profit
The _____ movement was instrumental in the creation of the Federal Reserve System.
Progressive
TESTING REPLACE CHECK
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TESTING REPLACE WORD
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Which President was responsible for eliminating all connection between the dollar and gold?
Richard M. Nixon
Who was the major obstacle to the spread of banking in Europe during the 1500s?
Roman Catholic Church
Which country's collapse greatly altered U.S. military spending?
Russia
A government old-age pension, ______ is paid for in equal measure by the employer and the employee.
Social Security
Choose the best answer using the table. Which nation has the comparative advantage when it comes to producing diamonds?
South Africa
______ is a dangerous economic condition whereby inflation and unemployment rise at the same time.
Stagflation
Dividing the total products produced by the number of workers is the way to compute ______.
productivity
The pursuit of ________ is legitimate because entrepreneurs assume the risk of a business and need to provide for themselves and their families.
profit
The French word for a member of the working class is _________.
proletariat
Which answer is NOT a good way to help a charity?
provide a loan
______ typically increase in value over time due to employee labor, new trade opportunities, new ideas, and technological advancements.
Stocks
____ goods are goods that can be used in place of another.
Substitute
Choose the best answer using the table. Who has the comparative advantage in selling pastries?
Susan
_______ life insurance will only pay a benefit if the insured person dies within a certain time period.
Term
What was the impact of the gold and silver the Spanish and Portuguese discovered in the Americas during the 1500s?
The amount of gold and silver devalued the worth of the world supply of the materials.
Why would the founding of this country run contrary to the idea of a large government?
The colonies felt oppressed by the size and demands of the British government.
According the chart, which of the following would NOT happen if the Fed were to buy securities?
The dollar gains strength against foreign currency.
Which of these is the effect on the equilibrium price according to the graph?
The equilibrium price has decreased.
What was Thomas Jefferson's argument against the creation of a national bank?
The government did not have the constitutional authority to do so.
In general, which of these happens to equilibrium price if supply increases?
The price moves lower.
Why is stagflation such a serious problem?
The solution to fix each element of stagflation makes the other worse
Which statement would be an example of a public work?
The state of Texas builds a new highway connecting Austin and Fredericksburg.
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.
The Takings Clause allows the government to practice eminent domain, or the taking away of property if the government ___.
provides fair payment for the property
A(n) ____ good is something provided by the government that may be used by many citizens at the same time without reducing the benefit.
public
A(n) ______ is a government construction project for public use or benefit.
public work
A(n) ______ traded company issues shares of ownership through stock offerings.
publicly
What a currency can buy in relation to another currency is its _____ power.
purchasing
David Hume's ______ theory states that too much money in circulation leads to inflation.
quantity
Why were some of the states 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.
Economically, the government divides its earning marks into ______, each of which lasts three months.
quarters
In a market or free enterprise economy, competition ensures ___.
reasonable prices and consumer choice
A country's GDP economic peak is followed by ____.
recession
Which period of the business cycle follows the peak?
recession
The power of creating monetary policy is the power to ___.
regulate how much money is in circulation in order to influence the economy
During the 2008 financial crisis, the Fed reduced _____ requirements and lowered the discount rate to encourage growth.
reserve
Choose the best answer using the circular flow model. In the circular flow model, the resource market sends ___ to the government.
resources
Choose the best answers using the circular flow model. The resource market provides the government with ___.
resources
The amount of ______ available will always be fixed.
resources
What is the importance of Karl Marx and Friedrich Engels?
They preached the idea that capitalism was inherently flawed and that society will only improve when the workers take control of the economy.
________ product is the entire amount of a product produced during a certain time period.
Total
Every commercial bank must be sanctioned by the U.S. Department of the ______.
Treasury
Which answer is NOT an example of a merit good or service?
Twin Pines Mall
Which of these is the likely effect of deflation?
Unemployment increases as profits decrease because shoppers wait for even lower prices.
Who was responsible for the creation of the Federal Reserve System?
Woodrow Wilson
Which of these would NOT add to the GNP of the United States?
a German-based grocery store in Champan, Illinois
Credit refers to ___.
a consumer's record of going into and getting out of debt in a faithful and punctual way
Credit refers to ________________.
a consumer's record of going into and getting out of debt in a faithful and punctual way
Which scenario does the graph represent?
a grocery store's reduction of ice cream inventories as winter approaches
Which of the following would NOT be an inferior good?
a leather couch
A company that can offer a product at a much lower price due to some advantage holds ___.
a natural monopoly
What is a startup?
a new business created by an entrepreneur
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
Which agency is responsible for putting together business cycle information, particularly when business economies peak and plummet?
a private company outside of the government
Which factor was NOT a cause of the Great Depression?
a protest against U.S. dealings in Southeast Asia
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
In 1962, President John F. Kennedy made a speech in which he spelled out the rights that a consumer has when purchasing something. Which one of these rights was NOT included in Mr. Kennedy's speech?
right to redress
Which of these would NOT add to the GDP of the United States?
an American-based investment firm in Switzerland
Which role do credit and debit cards play when they are used to make a purchase?
an identification card to approve transfers
Which shift does the chart show?
an increase in demand
It is important to evaluate _____ before committing to an investment.
risk
Which government move would be an example of automatic fiscal policy?
an increase in welfare spending because more people qualify for benefits
Amenities, various contracts, and month-to-month arrangements are advantages of renting a(n) _______.
apartment
Which answer is NOT an example of a deduction or exemption?
auto repair expenses
What segment of U.S. society represents a challenge to the Social Security system?
baby boomer generation
A(n) _____ budget exists when government revenues and expenses are the same.
balanced
During a(n) _____, the borrower gives up any valuable property in order to pay off his or her lenders.
bankruptcy
One major cause of the 2008 financial crisis was that ___.
banks made risky loans and inflated housing prices
Transactions in a traditional economy are typically done with ___.
barter or trade
The quality change effect is a _____ that can impact the consumer price index.
bias
Goods are sold for illegally high prices in _____ markets outside of government supervision.
black
A(n) _____ must give up valuable assets to help pay debts when declaring bankruptcy.
borrower
Most investors use a ____ to handle investment transactions, track investments, and receive statements on a regular basis.
brokerage
The federal _____ is an annual document created by Congress detailing government taxes and spending.
budget
The national ______ has grown from $45 billion to over $5,000 billion since 1948.
budget
Which answer is NOT an economic tool of the Federal Reserve?
budget line-item veto
If the Fed wanted to risk inflation by encouraging growth, it would ___.
buy securities in the open market
Which of the following would most likely be subject to a sin tax?
candy
All the equipment used to make a new business product is part of a company's _______.
capital
One benefit of banks is that individuals create large pools of ________.
capital
Karl Marx and Friedrich Engels believed that ________ was(were) wrong and that workers should control the economy.
capitalism
A maximum price for a good or service is a price _____ set by the government.
ceiling
A(n) _________ is not money, but merely authorizes banks to transfer money.
check
A(n) ____ allows bank customers to keep track of their balances as they make transactions.
check register
A(n) ______ account allows customers to pay with paper "tickets" or electronic transfers drawn directly from the account.
checking
Consumers have the right to __________ what to buy in a market economy.
choose
Which of the following would be considered currency?
coins
Which country or region best exemplifies a traditional economy?
rural Africa
A(n) _____ account is a place to hold money while earning minimal interest.
savings
Which of the following would be an example of a thrift institution?
savings bank
Which of the following is likely to shift the supply curve right?
scientists find a way to make solar panels more efficient at no extra cost
The federal government was weakened under the Articles of Confederation, so the Congress did not have the power to ___.
collect taxes and regulate commerce
There is little chance to gain wealth or succeed in a ____ economic system.
command
The conducting of business is called ______.
commerce
In order to operate, a _______ bank must be authorized by the Comptroller of the Currency of the U.S. Department of the Treasury.
commercial
A _____ is a charge for financial advice or a transaction.
commission
A(n) _____ is a charge for a financial transaction or advice.
commission
A(n) ______ is interchangeable with other goods of the same kind.
commodity
When there is a lack of ______, businesses are more likely to take advantage of consumers.
competition
The purpose of the production possibilities frontier (PPF) is to ___.
consider the best way to maximize resources and create a comparative advantage
Which answer is NOT a stage of the business cycle?
consolidation
The key to the market economy is that basic economic decisions are ultimately made by ___.
consumers
The _____ theory blames a rise in inflation on a rise in wage rates and the price of natural resources.
cost-push
Which theory suggests inflation is driven by an increase in both wage rate and price of available resources?
cost-push theory
The concept of purchasing power is used to compare prices between ___.
country currencies
What was NOT a part of Hamilton's economic plan?
creation of a new set of bank notes
It is required that you have good _______ in order to purchase a home.
credit
Making payments on time will boost one's ____ score.
credit
Your _____ history will determine if you are able to purchase some big-ticket items.
credit
A(n) ______ serves as a means of identification for purchases.
credit card
A(n) _____ serves a particular group only.
credit union
Paper money and coins are ________.
currency
A recipe for fixing a budget deficit is for the government to __________.
cut expenditures
A worker leaving a rural job as crop prices decline during an economic downturn is an example of ___ unemployment.
cyclical
Ben and Jerry's lays off 500 workers during a recession, creating _____ unemployment.
cyclical
Which would be an example of contractionary fiscal policy?
decrease in government spending
A decrease in prices and increase in unemployment due to reduced spending is ______.
deflation
A carpenter who loses work during the winter every year experiences _____ unemployment.
seasonal
A bond issued and backed by the government is called a government ______.
security
According to the law of ______, the demand for a product will increase when prices decrease.
demand
Which answer is a characteristic of a market economic system?
all of these
Which of the following is a function that money serves?
all of these
Seeking a financial advisor is an especially good idea for _____ investors.
passive
Choose if the statement concerns Economic perspective or if it concerns Scarcity. 1. Scarcity 2. Economic perspective 3. Scarcity
1. A rise in the price of groceries results in consumers spending less on entertainment. 2. A woman reviews her budget, debt, and spending habits when considering whether to purchase a home. 3. Many parents are unable to find and purchase a popular toy at Christmastime.
Select True or False. 1. According to the law of demand, as prices rise, so will demand. 2. Goods in joint supply are produced from the same resources. 3. Conspicuous consumption involves only purchasing what is necessary. 4. Change in quantity demanded is based solely on changes in price. 5. According to the law of supply, as prices decrease, the quantity of a product decreases. 6. According to the law of supply, as prices rise, so will supply.
1. False 2. True 3. False 4. True 5. True 6. True
Match the statements with the accounts, exchanges, and indexes. 1. The stock performance of hundreds of America's largest companies are tracked by this index. 2. This basket of stocks or other investments may be traded in real time just like a stock. 3. Employers can match employee contributions to retirement savings. 4. This electronic stock exchange is home to many large technology company stocks. 5. Earnings from this account are not subject to tax if withdrawn after age 59 ½. 6. This stock exchange specializes in agricultural financial investments. 7. This account allows individuals with income to make tax-deferred investments for retirement. 8. The world's largest stock exchange is in America's largest city. 9. This index tracks 30 of the most important U.S. companies.
1. Standard & Poor's 500 Index 2. exchange-traded fund (ETF) 3. 401(k) savings plan 4. NASDAQ 5. Roth individual retirement account 6. Chicago Mercantile Exchange 7. individual retirement account (IRA) 8. New York Stock Exchange 9. Dow Jones Industrial Average
Match the U.S. Presidents with the statements. 1. This Antifederalist feared that there was inherent danger in a large government. 2. When the Great Depression began, he was President of the United States. 3. He expanded the government's power to empower labor unions, protect consumers, and fight trusts. 4. As a Federalist, he argued for a larger government. 5. This President and his New Deal programs were most responsible for the growth of public works in U.S. history.
1. Thomas Jefferson 2. Herbert Hoover 3. Theodore Roosevelt 4. Alexander Hamilton 5. Franklin Roosevelt
Match the descriptions with the types of residences. 1. apartment-like dwelling of which homeowners can own individual units 2. a home not connected to any other buildings that embodies the ideal of the American Dream 3. an economical residence made of lesser-quality materials susceptible to storms 4. a residence that has a small backyard and front porch and shares walls with other homes
1. condominium 2. single-family home 3. manufactured home 4. townhome
Match the types of unemployment with the statements. 1. loss of jobs congruent with the business cycle and its fluctuations 2. the result of natural turnover of workers entering and leaving the work force or changing jobs for reasons other than being fired or laid off 3. Changes in technology or competition make some jobs obsolete or require employees to have new skills to do the job. 4. unemployment rate when the economy is at full employment 5. the result of losing work associated with a particular time of the year
1. cyclical unemployment 2. frictional unemployment 3. structural unemployment 4. natural unemployment rate 5. seasonal unemployment
Match the definitions with the terms. 1. measures the amount of a good that consumers are willing and able to purchase at a specific time 2. a condition that exists whenever demand exceeds supply 3. government intervention that typically results in a surplus of services and goods 4. government intervention that typically results in a shortage in the market 5. the amount of a service to consumers that producers are willing and able to provide 6. the condition present when supply exceeds demand in a market
1. demand 2. shortage 3. price floor 4. price ceiling 5. supply 6. surplus
Match the historical events with the statements. 1. Space inside safes was rented to others in order to protect gold. 2. Insurance and securities companies were allowed to offer banking services 3. Chinese merchants stored money in one place and used it in another. 4. If a bank closed, American depositors' money was guaranteed.
1. emergence of artisant bankers 2. intro of the Gramm-Leach-Bliley Act 3. invention of "flying money" 4. creation of the FDIC
Match the definitions with the terms. 1. Consumers buy and producers sell this amount at the equilibrium price. 2. Supply is greater than demand whenever this market condition exists. 3. The marginal utility tends to decrease as consumption increases. 4. The state of a market when quantity demanded is equal to the quantity supplied. 5. This price is the point of balance between quantity demanded and quantity supplied. 6. This is a consumer's total benefit received from the consumption of a good or service.
1. equilibrium quantity 2. surplus 3. diminishing marginal utility 4. market equilibrium 5. equilibrium price 6. total utility
Match the descriptions with the methods of financing college. 1. allows members to receive aid for college through the Montgomery G.I. Bill 2. enables college expenses to reduce one's tax burden dollar for dollar 3. money for education that must be repaid after one graduates or otherwise leaves school 4. direct aid based on eligibility that does not have to be repaid
1. military aid 2. education tax credits 3. federal loans 4. grant
Match the statements with the words. 1. This type of savings account offers a higher interest rate but requires a higher balance. 2. This term describes waiting for a later, greater reward by resisting the temptation to receive an immediate reward. 3. This agreement is reached by a buyer and seller to exchange services and goods. 4. This compares two sets of records to ensure accuracy. 5. If a loan is not repaid, a lender may claim this promised item of value. 6. Banks periodically send out this record of activity within one's account.
1. money market 2. delayed gratification 3. transaction 4. reconciliation 5. security 6. statement
Match the definitions with the terms. 1. unsecured debt 2. economic perspective 3. secured debt 4. scarcity
1. money owed that imposes a higher interest rate because repayment is not guaranteed 2. weighs the costs and benefits of each measure before making an economic decision 3. money owed that is guaranteed by the thing it is used to purchase 4. a problem created by unlimited wants and limited resources
Match the scenarios with the biases that can affect the CPI. Answers may be used more than once. 1. going online to a discount website to purchase old CDs 2. recognizing the difference between a 2001 cell phone and a 2009 smartphone 3. replacing a DVD player with a device that can stream videos 4. switching from a soft drink to tap water 5. going to an outlet store for a new suit
1. outlet substitution effect 2. quality change effect 3. new goods effect 4. commodity substitution effect 5. outlet substitution effect
Match the statements with the business structures. 1. The work, risk, losses, and profits are divided between multiple owners. 2. Small businesses are the likely beneficiaries of this business structure that protects the owner from personal liability. 3. The owner has freedom, but also has trouble getting loans and is subjected to personal liability. 4. Stockholders who own the company are not directly liable for company actions.
1. partnership 2. limited liability company (LLC) 3. sole proprietorship 4. corporation
Match the descriptions with the loan types. 1. offered by independent businesses as an advance on the customer's wages 2. assists in the creation of a small business or to help in the advancement of that business 3. offered to individuals to meet personal or household needs 4. used to purchase private residences
1. paycheck loan 2. commercial loan 3. consumer loan 4. home loan
Match the statements with the economic functions of government. 1. The government takes measures to ensure the economy benefits as many Americans as possible. 2. The government protects consumers and protects a competitive capitalist system. 3. The government provides goods and services that may be used by many at the same time without reducing the benefit. 4. The government collects money from citizens in the form of taxes and gives it to others in need in the form of various programs.
1. promotes economic stability 2. regulates economic activity 3. provides public goods 4. redistributes income
Match the statements with the concepts. 1. This represents investors' expectations concerning the future profits and growth prospects of a publicly traded business. 2. These short-term loans charge very high fees and interest rates. 3. Every state requires drivers to have this insurance. 4. This affects one's future earning potential more than anything else. 5. This is a measure of the value of a house to a homeowner after subtracting any loan balance. 6. Safe stock companies often make these regular payments to shareholders.
1. stock price 2. paycheck loans 3. liability insurance 4. level of education 5. equity 6. dividends
Match the statements with the words. 1. This event exposed the need for and led to a more centralized banking system in the United States. 2. This organization enjoys the benefit of operating as a legal monopoly. 3. The government made its first move to regulate the economy. 4. This is another name for a new business. 5. This organization provided an obstacle to banking during the Middle Ages. 6. This goes into effect every October 1st. 7. These include credit unions and savings and loans associations.
1. the Revolutionary War 2. National Football League 3. Sherman Antitrust Act of 1890 4. startup 5. the Roman Catholic Church 6. the federal budget 7. thrift institutions
Match the definitions with the terms. 1. overspeculation 2. peak 3. inflation 4. depression 5. depositor
1. the term used for the overvaluing of property or land 2. the point at which a country's GDP and economy reach top efficiency and are immediately followed by a downturn 3. a rise in prices due to the loss of value of money 4. a recession that is very long and severe 5. a person who places money in a bank
What is the marginal utility of the 3rd snow cone?
15
Alberto owns a sporting goods store that specializes in soccer equipment. By trying different prices throughout the year, he has been able to construct this demand curve for soccer balls. How many soccer balls can Alberto expect to sell in a week at $25 each?
18
Choose the best answers using the graph. How many thousands of boxes of Fruity Munch cereal will be supplied at $5 per box?
3
Which of these is the equilibrium quantity for T-shirts?
6
What is the total utility for 5 snow cones?
75
Which answer is NOT true about John Maynard Keynes?
He argued that governments should always seek to have a balanced budget.
______ is the income the lender receives from loaning money.
Interest
Which of the following would happen if the Fed were to sell securities?
Interest rates increase.
What is the purpose of interest?
It allows the lender to make money in exchange for giving money to those who need it.
What was the importance of the Supreme Court case Kelo v. New London (2005)?
It gave the government more power in practicing eminent domain.
What was the significance of the Supreme Court case Kelo v. New London (2005)?
It gave the government more power in practicing eminent domain.
Which is NOT true of the Federal Reserve System?
It is responsible for the formulation of fiscal policy.
How is taxable income figured?
It is the total personal income subjected to taxes minus deductions.
Which of these differentiates a credit union from other financial institutions?
It only serves a certain group of people.
Choose the best answers using the graph. How much will demand decline if the price rises from $2 to $4 per box?
It will decline from 9,000 to 5,000 boxes per week.
____ believed the best way to reverse an economic downturn was to increase government spending.
John Maynard Keynes
According to the ______ principle, citizens should pay taxes relative to their ability to bear the burden.
ability-to-pay
Choose the best answer using the graph. About how many smartphones can China manufacture if they build 550 cargo ships?
about 15 million
Choose the best answer using the graph. How many air-conditioning units can Germany produce if it builds 6,000 railroad engines?
about 60,000
A(n) _____ advantage is held by the economy that produces the highest total number of items.
absolute
An agreed-upon scale of worth for goods is a unit of ______.
account
This is what remains after all accounting costs have been paid.
accounting profit
At which point does the total product curve reach negative marginal returns?
adding 6th the worker
Which answer is a long-term decision for an automobile company?
adding an assembly line to build a new model of automobile
What is the major obstacle for Americans to own their own businesses?
age
The amount of an employee's income before any deductions are made is the _____.
gross wages
Which portion of U.S. government spending took up the largest percentage of the 2016 budget?
healthcare
What aspect of government spending recently increased greatly in the spring of 2010?
healthcare spending
Which purchase requires good credit?
house
Though necessary, ____ has/have the negative impact of removing money from a country.
imports
If there are no private property rights, people have no ________ to invest or work.
incentive
A normal good is defined by its relation to _____.
income
As ______ increases, demand for normal goods also increases.
income
Cutting back on money spent on a hobby because of increasing medical bills is an example of _____ affecting a change in demand.
income
The ______ effect impacts decisions a consumer makes when deciding what to purchase.
income
The personal _____ tax is levied by the government on wages.
income
Marginal cost is a measure of the extent of the costs associated with ___.
increased production
Which answer does NOT belong to the TRIBE acronym?
independent analysis
The performance of a segment of a market or even an entire market may be tracked by a(n) _____.
index
This type of account allows an individual who earns income to make tax-deferred investments for retirement.
individual retirement account
Demand for a(n) ____ good will fall as income increases.
inferior
The Fed's move to put more money into circulation in response to the 1969 recession led to ______ during the 1970s and 1980s.
inflation
Luther owns a tutoring business. In 2017, he decides he needs an economic profit of $70,000 in order to open a new location in 2018. Consider the following information about his business during 2017: He spent $5,000 on new computer software for mathematics. He spent $15,000 in wages. He made $80,000 in total revenue. He spent $3,000 paying bills. He paid $2,000 interest on a loan. Can Luther open a new location for his tutoring business?
no
An increase in demand for a good related to an increase in income is characteristic of a(n) _____ good.
normal
Improved transportation and communications have made ____ profitable for many businesses.
offshoring
A(n) _______ occurs when there are few competitors and high barriers to entry within an industry.
oligopoly
Which factor is NOT used to calculate a credit score?
one's type of employment
Choosing between spending money on a new suit or a vacation is an example of ___.
opportunity cost
Which of these represents things you miss out on when you decide to spend your money on something else?
opportunity cost
The things you miss out on when you decide to spend your money on something else are considered ___.
opportunity costs
Which of the following is NOT factored into the computation for GDP?
overseas investment profit
The free enterprise system is based primarily upon the right of Americans to ___.
own their own business
The free enterprise system is based primarily upon Americans' right to ___.
own their own businesses
Multiple people share the profit, loss, risk, and work of ownership in a(n) _____ business structure.
partnership
