econ final!!

What is the thing you have to give up to do something else?

Opportunity cost

Why might some historians consider Adam Smith one of the most influential people in history...?

He introduced a way of thinking about economic ideas (advocated for capitalism).

Why might some historians consider Adam Smith one of the most influential people in history?

He introduced a way of thinking about economic ideas.

Why are economies most efficient when they have full employment?

No productive resources are left unused.

Supply depends on the willingness and ability of..?

Producers to produce.

People's wants are unlimited. This fact means which of the following is always present?

Scarcity

Which of these terms is most closely related to tradeoffs...?

Scarcity.

Outsourcing is the practice of...?

Setting up factories in other countries.

How is a bond different from a stock?

Bond is a loan you give to an organization while stock is partial ownership.

Which of these items is a measure of productivity?

Bushels of corn per acre.

Which of these might best signal furniture makers to cut back production...?

A drop in the price consumers are willing to pay.

Which of the following is not a market?

A high school classroom

Which method of distribution is most commonly used by online bookstores?

Ability to pay

What is the law of unintended consequences?

Actions often have unforeseen effects.

Shira is trying to decide between getting a debit card, a prepaid debit card, or a credit card. Which statement is true?

All 3 cards are completely different.

To obtain a loan, lenders will look at your...?

All of the above. (income, credit history, and debt)

Which event in Florida and California would most likely shift the supply curve for orange juice to the left?

An early frost accompanied by ice storms. (left means less on supply only)

Which represents the BEST time to start saving for your retirement

As soon as you get your first full time job.

Which represents the BEST time to start saving for your retirement?

As soon as you get your first full time job.

The Jungle by Upton Sinclair Public interest in this and other books led to the passage of laws to protect...?

Consumers.

Who tracks all of your credit information?

Credit reporting agencies (Equifax, Experian, and TransUnion)

Which of the following statements about Exchange Traded Funds (ETFs) is TRUE?

ETF prices can change throughout the day as they are exchanged on the market.

Which type of identity theft is MOST prevalent for people age 19 and under?

Employment or tax-related fraud.

Business investment is most likely to increase during which phase of the business cycle?

Expansion.

Jo returns a library book without finishing it so they won't have to pay a late fee. What is the opportunity cost?

Finishing the book

The difference between real and nominal GDP is that real GDP is adjusted for...?

Inflation.

Which statement is the best example of thinking at the margin?

John has six shirts and is trying to decide to buy a seventh.

What are the factors of production?

Land, labor, and capital.

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

Loan payment on a new car.

Lower APR (Annual Percentage Rate) means ___ monthly payments?

Lower.

The law of demand states that as quantity demanded decreases..?

Price increases.

Venture capitalists invest in new businesses in exchange for...?

Ownership shares.

What are the two most important factors in calculating your credit score?

Payment history, and total debt.

Ocean waves can be used to generate energy. Ocean waves considered with a type of resource?

Perpetual

What is the purpose of the Equal Credit Opportunity Act?

Prohibits credit discrimination.

What would the government do in a model free enterprise system?

Protect property rights and enforce contracts.

An excellent credit score will help with which aspect of car financing?

Qualifying for a low interest rate.

Why are trade offs necessary?

Resources are limited.

Which of the following is an effective strategy for personal saving?

Save certain percentages of each paycheck & deposit it directly into savings.

Which form of business organization is most common..?

Sole proprietorship.

Which of these is the best example of diminishing marginal utility?

Someone who has one bicycle will have less use for another.

What is the relationship between risk and return?

The higher the possible return, the higher the risk.

In a circular flow model, which of these is a factor payment?

The hourly wage a store pays to a clerk.

Why would credit card companies prefer that their cardholders make the minimum monthly payment every month?

This enables the credit card company to make more money.

What is the economic purpose of market regulation...?

To influence the economic behavior of individuals and firms.

What are the three reporting credit bureaus...?

TransUnion, Experian, Equifax.

Which of the following is NOT an example of a pay deduction?

United States Tax

When do you start paying income taxes?

When you make more than the minimum income requirement.

What is an insurance premium?

Your monthly payment to your insurer.

Economists assume people choose something when its expected costs are less than...

its anticipated benefits.

FDIC (Federal Deposit Insurance Corporation) Insurance is

protection for bank customers' deposits up to $250,000, if the bank fails.

The three fundamental economic questions are:

what to produce, how to produce, and for whom.