Econ. Q. 3 test
Which type of retirement account is an investment option for ANY young person?
Traditional IRA
All of the following are recommended strategies for beginner investors EXCEPT...
Try to pick winning stocks and beat the market
Felix opens a credit card with no annual fee, so he assumes that using the credit card regularly will be absolutely free for the next two years while he finishes grad school. Why is his assumption incorrect?
Unless he pays the whole bill every month, he will pay interest according to his APR
Which of these actions would most likely decrease a person's net worth for at least the next 6 months?
Use a loan to buy a brand new car
Which of these can be illustrated with a production function?
the effect of an increase in work hours on total output
Which of the following replaces a costly item with a less costly one?
the substitution effect
Which term refers to a changing price that causes a proportional change in total revenue?
unit elastic
401(k)s and IRAs are both...
A type of savings account that generally offers around a 1% rate of return
If your credit card limit is $800 and your outstanding balance is $725, what is the largest amount you can charge on that card in the upcoming month?
$75
Which of these is true of both an individual supply curve and a market supply curve?
A change in quantity supplied takes place only when there is a change in price.
Which statement best describes a Schumer box?
A standardized way of presenting the key terms of your credit card agreement
What is the relationship between income and demand?
An increase in income increases demand.
Which is a likely complement to a tablet computer?
Apps
Which statement is true of both debit AND credit cards?
Both allow you to make purchases in a store or online
Each of the following represents an installment loan EXCEPT...
Credit Card
A demand schedule is best described as _______
Data
Quantity supplied increases when the price
Increases
With micro-investing, you are...
Investing small amounts of money consistently into the market
In retirement, it's common to rely on income from all of the following sources EXCEPT...
Investment Income
Each of the following people has $5000 in debt. Which debt is most worthwhile?
It's impossible to tell, because we don't know how much they each valued the spending, how much it impacted their lives, or how easily they can repay the debt
Which of these is the best description of a normal supply curve?
Its slope goes up when the diagram is read from left to right.
Investors report this as being one of the biggest downfalls of robo-advisors when compared to human managers:
Lower returns
Which of the following statements is TRUE about the state of retirement in the U.S.?
Many people may need to invest to build wealth and to support themselves in retirement
quantityA graph that shows the quantities supplied at each and every possible price in the
Market/Supply Curve
Which of the following is a characteristic of a brokerage account?
No penalties for withdrawing your money
If you buy a $1000 bicycle, which credit card payoff strategy will result in your paying the LEAST total amount?
Pay $250 per month until it's paid off
Which word represents the total cost of the item you're purchasing on credit minus any down payment you make upfront?
Principal
Movement along the supply curve measures a change in
Quantity
a payment to an individual, business, or other group to encourage or protect a certain type of economic activity
Subsidy
refers to the amount of a product offered for sale at all possible prices in a market.
Supply
Which of the following BEST explains how a spare-change app works to invest your money?
The app rounds up purchases you make through your bank account and automatically invests your change
Eli is planning ahead for retirement. They should consider all of the following factors when determining how much they'll need in retirement EXCEPT...
The current balance in their checking account
Which of these best describes the influence of high prices on the behavior of producers?
They are an incentive for producers to produce more.
To determine elasticity, which question would an economist ask?
What portion of the consumer's income is required for the purchase?
All of the following are advantages of a 401(k), EXCEPT...
You can invest your 401(k) into a wider variety of asset types than you can with an IRA
What does it mean when someone says "Good investing is boring"?
You're better off making long-term investments that don't require day-to-day management
In the short run, the amount of capital available for manufacturing is an example of which of these?
a fixed factor of production
Which of these results from the repeal of an item's subsidies?
a leftward shift of that item's supply curve
For which product is demand likely to be the most elastic?
a product with many adequate substitutes
Labor in a factory is an example of which of these?
a variable factor of production
Consider the term marginal utility. Which word is the best synonym for marginal?
additional
Which of these names the way in which producers regard taxes?
as part of the cost of production
Why is the Law of Demand called a "law"?
because it has been demonstrated repeatedly
Prices for common vegetables tend to be elastic. Why?
because other vegetables are available
Why is a demand curve downward sloping?
because quantity demanded increases as price decreases
What is the main cause of a change in quantity demanded?
change in price
When the price of something increases, the quantity demanded _______
decreases
An economist performs a total expenditures test and finds that a change in price and a change in revenue move in opposite directions and concludes that the test shows ________
demand is elastic
When is a firm's rate of hiring likely to be highest?
during a phase of increasing marginal returns
Which of these could a firm accomplish during a short-run production period?
hiring and firing of workers
A change in quantity demanded is represented by ______
movement along the demand curve.
