Econ Exam

In a free market system, price controls can include both floors and

ceilings

President Roosevelt's New Deal created programs that were

based on the principles of the Great Society.

What is one way that technology can improve the production of goods?

Automation can create goods more cheaply and easily.

How do trade agreements help the countries involved?

by decreasing trade barriers

John Maynard Keynes developed new economic theories in response to the

Great Depression of the 1930s.

Which of these practices describe how producers in oligopolies generally try to create competition? Check all that apply.

by keeping prices low by advertising by cultivating brand loyalty

Who was Adam Smith?

He was a philosopher who promoted the idea of free enterprise.

Why is the slow growth that can result from a contractionary policy a positive effect?

It can decrease inflation.

Which best describes what happens to a corporation after its owners retire?

It transfers to new owners.

The graph below shows the value of the US dollar versus the Canadian dollar. According to the graph, the American dollar was the strongest during which month?

March 2013.

What are the two steps a producer can take to gain an absolute advantage?

Produce more goods. Use fewer resources.

Producer A's opportunity cost would be

Producer A's opportunity cost would be

What is the best definition of profit?

Profit is the financial gain from business activity minus expenses.

Which occurs during disequilibrium? Check all that apply.

Supply and demand meet. Supply and demand set prices. Supply and demand set production.

How does a socialist government with a command economy manage its economy?

The government controls factories and other forms of production.

What is one example of a closed economy?

a restricted system that blocks trade with international partners

Economists use changes in GDP to measure

any economic growth or shrinkage.

Businesses can use globalization to their advantage by

creating trade barriers to other countries.

According to the law of demand, as prices increase, quantity demanded

decreases.

The law of supply states that as the price of a good declines, the quantity supplied of that good

decreases.

The Fed may respond to a recession by

decreasing intrest rates

When artists pass away, the supply of their paintings most likely becomes .

elastic

The factors of production include the number of

employees needed to manufacture a good.

Which best describes an opportunity cost?

giving up an opportunity to do something else when making an economic decision

If expansionary taxation policies are left unchecked, which is the most likely result?

high inflation

Corporate taxes are a type of

income tax.

People who oppose labor unions believe that unions

keep more qualified workers from being hired

What is an example of scarcity

limited resources

When the government injects money into the economy, consumers may have less purchasing power, which may lead to

lower production.

Which are indicators that economists use to measure how an economy grows? Select all that apply.

measuring how much the conomy produces, tudying the economy of another country, and tracking the unemplyment rate

When it spends money on education, a government is trying to

meet a social need and improve the economy.

Economic policy must strike a balance between ideals and

needs

The Department of Education reaches its goals by

overseeing individual districts and schools directly.

Jacob is considering buying a new car. Which nonrenewable resource should influence the decision?

petroleum

It costs Cool Clothes Company $15 to produce one pair of jeans, but they needed to discontinue production of shirts to focus on jeans. For this company, the $15 is the _______, and discontinuation of shirt production is considered their __________.

production cost; opportunity cost

What is one main objective in the study of economics?

recognizing the relationship between producers and consumers

In a competitive market, a computer store offers customers a warranty to help pay for any future damages. This is an example of

reducing the risk for consumers.

A cooperative enables members to pool their products for a better

sale price

Economists can use new technology to

study data and patterns.

Which are affected by the factors of production? Check all that apply.

the demand of the item the cost of the item the quality of the item

The graph shows the marginal cost of producing soccer cleats for Sabrina's Soccer. At which level of production does the company make the most profit?

the first pair of cleats

Demand-pull inflation occurs when

the price of goods rises suddenly and extremely fast.

The graph shows the price of a good compared to the quantity demanded. This graph demonstrates how

the quantity demanded changes greatly with the price.

A mixed-market economy is one in which

there are strict limits on economic choice.

What is the role of the three questions of economics?

to aid in production decisions

Embargoes, quotas, and standards are tools that countries use

to restrict imports.

Gross Domestic Product (GDP) is the value of goods and services produced in a country annually. It can best be described as measuring an economy's

total output

Aggregate supply is best described as the

total output of all products and services.

Which economic indicators are used to measure the global economy? Check all that apply.

trade volumes labor market data gross domestic product trade deficits and surpluses

What new laws did the New York Factory Investigating Commission request? Check all that apply.

use of central air-conditioning systems increased sanitation standards fire alarms and sprinkler systems