Econ Final

On the paystub shown above, what is Sylvia's take-home pay this pay period?

$619.88

Which trade deal would benefit both countries?

1 phone for 4 sandwiches

In 2018, about what percentage of purchases by people 25 to 34 were made using cash?

18 percent

Which of the following production combinations is efficient?

9,000 boats, 4,000 trucks

Using the letters on the graph, identify a point that is unattainable.

A

Which country has the absolute advantage in this situation?

A

Which statement is an example of complementary goods affecting demand?

After a fashion model shared her diet secrets, yogurt sales went up.

If my FICO score is low, this indicates

All of the above

Which of the following is an example of producer expectation affecting supply?

As gas prices rise, a frozen food maker reduces its long-distance shipments.

Fiscal policy is actions taken by ______________ to stabilize the economy.

Congress and the President

In what way has globalization positively impacted consumers around the world?

Consumers have access to a wide variety of goods sold at lower prices.

Using the letters on the graph, identify a point that is inefficient.

D

Why doesn't the electric company ever offer sale prices?

Electricity is a necessity, so demand is inelastic.

A progressive tax takes a larger percentage of income from high-income groups than from low-income groups. A proportional tax takes the same percentage of income from all income groups. Which tax shown on this paystub is a progressive tax?

FED TAX

One reason why GDP per capita may not be an accurate measure of a country's economic health is

GDP per capita does not accurately measure all of the spending that takes place in a country.

The dollar value of all final goods and services produced within a country in one year is

Gross Domestic Product (GDP)

Xavier receives a 2-percent increase in wages this year. The inflation rate is 4 percent. Which of the following is most likely to happen to Xavier's financial situation?

He will have more income to spend and less purchasing power.

On the paystub shown above, what does the deduction for FICA MED TAX pay for?

Health care coverage for senior citizens

Which factor most likely explains India's change in GDP shown in the graph above?

India expanded international trade

On curve S2, when price changes from $4.00 to $1.50, how does quantity supplied change?

It decreases by 500.

Identify which scenario best reflects the idea of laissez faire.

Martha produces designer clothes and sells them on the open market at a high price.

In this market, sellers come and go easily, as their product is standardized (no real difference) such as vegetables.

Perfect competition

Which of these is the largest entitlement program?

Social Security.

In the graph above, what happened to the equilibrium price and quantity when the supply curve moved from S1 to S2?

The equilibrium price decreased and equilibrium quantity increased.

Which best explains why a product once manufactured in the United States is no longer made here and is now imported from other countries?

The opportunity cost of making the product in the United States has increased

Which statement best explains why demand for gasoline is inelastic?

There is no widely available substitute fuel for cars.

Which of the following is true of people with poor credit histories?

They will be charged higher rates of interest on loans than people with good credit histories.

Which would most likely result if the United States Congress were to place a tariff on imports of aluminum?

United States consumers would pay higher prices for goods made with aluminum.

Which of the following is NOT one of the big three economic questions?

What goods and services should be traded?

Which of the following would most likely cause a shift from D1 to D2?

a decrease in the price of a substitute

Which of the following might be a barrier to entry for a lumber company?

a government restriction on logging

What is a market demand curve?

a graph showing how much of a product a market is willing and able to buy

Who of the following will most likely benefit from unanticipated inflation?

a homeowner with a traditional 30-year loan

Suppose the government sets a maximum price on gasoline at price P2. What has this created, and what will it lead to in the market?

a price ceiling, a shortage

Which of the following choices would cause the change shown in the graph above?

an increase in the number of consumers

Businesses and industries often make many decisions that produce externalities. What is an externality?

an unintended consequence that impacts a third party (can be good or bad)

Car manufacturers who use robots to do certain jobs on the assembly line are trying to increase supply by

applying new technology.

Equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers

are equal

On a market demand and supply curve, the point of market equilibrium always happens

at the point where the demand and supply curves intersect.

The producer with the lower opportunity cost has the

comparative advantage

Because Idaho specializes in the production of potatoes, and Washington specializes in the production of apples, these two states could engage in trade that is beneficial to both states. This economic concept is known as

comparative advantage.

What phase of the business cycle is represented by the letter "E" of the illustration above?

contraction

Jermaine works for Costmart, a large business that recently expanded across the country by selling shares of the business to investors. This is a

corporation

Joe has to decide whether to spend his birthday money on clothes or electronics. He decides to make a list of the positives and negatives of each. What economic concept is he employing?

cost-benefit analysis

Miranda can't find a job since the economy is in a recession. What type of unemployment is she experiencing?

cyclical

Real GDP per capita is calculated by

dividing GDP by a country's total population.

In 2021, when businesses reopened following the Covid-related business shutdowns of 2020, which phase of the business cycle occurred?

expansion

When producers supply more, equilibrium price will

fall

The difference between fixed costs and variable costs is that

fixed costs remain the same; variable costs depend on how much is produced

Aliyah wants to open an ice cream store, but doesn't think she can compete with other stores that have established products. She decides to instead license a TCBY store. This is a

franchise

A person who does not pay for a service but benefits from it is called a(n)

free rider

A person who quits his job as a construction worker and starts to look for a job as an electrician is dealing with__________ unemployment.

frictional

Which of the following would macroeconomics study?

general rise in prices

George can dust a room in 20 minutes and mop a room in 30 minutes. Ben can dust a room in 25 minutes and mop a room in 25 minutes. Who has absolute advantage in dusting?

george

In a command economy, factors of production are owned by

government

The tools of fiscal policy are

government spending and taxes.

A modified free enterprise

has some government involvement in the economy

Other than wages, what are two issues commonly addressed by collective bargaining between labor unions and employers?

health care benefits and work place rules

What does elasticity of demand measure?

how responsive consumer demand is to price changes

The rise in general price levels over time is called

inflation

A merger happens when one company

joins another company to form a single firm.

Into what four categories do economists divide the factors of production?

land, labor, capital, and entrepreneurship

When you are hungry, you receive the most satisfaction from the first apple and less satisfaction from each additional apple. What explains this?

law of diminishing marginal utility

How would the Federal Reserve use expansionary monetary policy to reduce unemployment?

lower interest rates

With capitalism, the allocation of goods and resources is determined by

market forces

Which of the following activities would count towards a country's GDP?

money spent on college tuition

Clothing retailers like Vineyard Vines and GAP sell similar products (clothes), but can charge different prices because they have the opportunity to customize them.

monopolistic competition

A market structure in which only one seller sells a product for which there are no close substitutes.

monopoly

Mutual Funds are considered safer investments than individual stock purchases because they're

more diversified investments than individual stocks.

Lower prices generally

motivate consumers to buy.

A monopoly in which the costs of production are lowest when only one firm provides output is called a __________ monopoly.

natural

A local organization, Children with Futures, has a hard time retaining talented employees because they focus on supporting local children instead of increasing profits. This is a

non profit

Companies like Kellogg's, General Mills, Coca Cola, and Pepsi are found in this market.

oligopoly

What concept does the saying "There is no such thing as a free lunch" reference?

opportunity cost

Chantal makes excellent homemade candles. Laura, a business major, encourages Chantal to go into business selling her candles. They go into business together. This is a

partnership

A surplus happens when

prices are too high relative to consumer demand

On a market demand and supply curve, the vertical axis shows _______ and the horizontal axis shows ______.

prices, quantity

Which of the following motivates entrepreneurs to take a risk?

profits

The goal of protectionist trade policies is to

protect domestic industries.

How does supply change from curve S1 to curve S2?

quantity supplied increases by 100 at every price

The job of the Federal Reserve is to

regulate banks and make sure people have faith in the U.S. financial system.

Evaluate the comparative advantage for each product. Country A should produce __________, which has an opportunity cost of __________.

sandwiches, 4 phones

Which of the following is an example of a price floor?

setting a minimum wage.

If a government set a limit on the price of baseball bats, this type of action would be called

setting a price ceiling.

Free enterprise helps to ensure that everyone is free to

start businesses

Changes in technology are most associated with __________ unemployment?

structural

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

substitutes

Public goods are funded by

taxes collected by the government

Which would cause the change shown in the graph above?

taxes for producers increase

A monopoly that exists because a firm controls an invention is called a __________ monopoly.

technological

Marginal cost is

the additional costs of an additional unit of output

The concept that buyers and sellers will behave in ways that satisfy their own self interests is known as

the invisible hand

One helpful guideline for investing is

the longer you have to invest, the more risk you can take.

Two countries are currently trading with each other. The countries agree to remove all trade restrictions on products traded between them. Which of the following is most likely to decrease?

the prices of imported goods

Instead of studying for your Econ exam, you decide to go to the movies. Which best describes the opportunity cost of your decision?

the time you could have been studying for your exam

Supply is defined as

the willingness and ability of producers to offer goods and services for sale.

When would the Federal Reserve want to use contractionary monetary policy?

to fight inflation

The percentage of people in the labor force who want a job but are currently not working makes up the

unemployment rate.

Which is an example of a negative externality?

waste materials from a factory pollute a nearby river

Which group had a median household income of about $57,000 in 1990?

white