Economics- Econ Final 1.0

even if Portugal has an absolute advantage over England re. production of wine, England can have a comparative advantage re. wine if:

England has a lower opportunity cost re. producing wine than Portugal.

T/F States need "right to work laws, because, obviously they can't function if their people are not allowed to work.

False

T/F: Reagan faced off against the Air Traffic Controllers, and he is generally considered to have "lost," contributing to the decline unions have experienced the last few decades.

False

T/F: The PATCO (Professional Air Traffic controllers) strike was probably legal

False

T/F: Your instructor argues that Joseph Smith likely influenced and inspired the economic system we have in the U.S. more than any other person, (thus deserving the title 'the father of Modern Econ')

False

T/F: the percentage of American workers who are in unions is about 2.5 times as high for "public sector" workers, as it is for "public sector" workers

False

FICA $$ is taken out of your paycheck (to pay for social security and medicare) what does it stand for?

Federal insurance contributions act

which of the following items would for most people be most inelastic? (aka not very elastic)

Money for rent

economists state that a country or firm (corporation) that enjoys absolute advantage should produce what it's_______ at.

Most best.

Since the 1930's ________ a government agency has attempted to ensure that labor practices in the U.S. are legal and fair.

NLRB

the fed has three major tools at its disposal. what was discussed re. how long those tools take to work?

None of the 3 tools would accomplish much in the first four months

Costco has a reputation for the following except:

Not marking things up more than 23%

people usually boycott by

Not purchasing a good or service

which 11th grade history topic was briefly revisited to illustrate a point about unions?

The triangle fire

the reason economists prefer to see the "ideal" growth rate we discussed in class is because it seems:

sustainable

what did Barbara Brooks mean when she said that she's "hustling backwards"?

that as she earned more, more of the government assistance she was dependent on was taken away.

what can be learned by looking at some per capita GDP numbers from around the world?

that economic activity in the U.S. was about 3 times higher, per capita, than in Mexico, in 2013

Which of the following situations is most true re. tax forms?

the 1040 form has been recently revised to accommodate taxpayers with fairly simple taxes

in hopes of having a stable economy, the federal reserve bank manipulates:

the amount of $ in our economy

which of the following is most true about the chairman of the fed?

the chair of the fed might control the economy more than the president can

if the price of Land O' lakes margarine goes down, which of the following is most likely?

the demand for blue bonnet margarine will fall.

if the price of item A goes down then:

the demand for complements of item A should increase

which of the following is most true re. the fed?

the federal reserve bank has become a bit more transparent in the last ~15 years

the Simpsons but on the bear tax mostly illustrates:

the public's tendency to demand service from gov, while resisting taxes to pay for them

Opportunity cost is the single, next best option was, that had to be given up

the single, next best option was, that had to be given up

In econ the concept of "scarcity" means:

there is not enough to fulfill everyone's desires

which of the following is least true about Costco?

they routinely sacrifice quality, to have a lower price than anyone else

Which of the following best explains one of the reasons some people strongly dislike unions?

they see unions as being anti-business, thus, free market, thus anti-American.

why do economists get so excite about trade?

they view every transaction as something that both sides view as a trade "up"

which of the following are not counted in GDP

tires on your new toyota Rav4

why would the federal reserve bank lower the reserve requirement?

to energize a slow economy

which of the following best describes a proportional tax?

tow individuals, one wealthy, one poor, pay the same percentage of their income

Which group in the "right to work" debate is likely to use the phrase "free riders"?

Union

T/F: In general, if the government loosens (increases) the money supply, people can be expected to buy more houses, trucks, jackets, and pizzas

true

T/F: The Wagner Act of 1935 was considered to be mostly a loss for organized labor.

true

T/F: as the law is written, no family can lose their family farm because of the estate tax

true

T/F: congress got the right to collect taxes in the constitution

true

T/F: currently, the U.S. imports more finished goods than it exports

true

T/F: in 2012, the supreme court, ruled the affordable care act constitutional when chief justice Roberts declared it a type of "tax"

true

from most economists' (financial perspective, who wins when people or nations trade freely?

all parties

The federal discount rate:

allows a qualified bank to borrow directly from the federal reserve bank

polls over the last decade suggest that britons:

are not moving towards the euro

In general, today's interest rates....

are significantly below where they've been most of the last 60 years

T/F: on paper, at least, top marginal federal income tax rates (for individuals) have been as high as 91% or 92% (1944-630 in the United States

true

T/F: while the cost of implementing a value-added tax is estimated at nearly $50 billion per year, that would still be significant savings, compared to our very costly, inefficient current system.

true

what is the CPI most useful for?

understand and measuring inflation

the Norris-laGuardia Act of 1932 declared that:

union members can associate with whoever they choose

a weak dollar would be expected to ____ business at San Diego's world famous (touristy) zoo

be good for

as of late 2021, the highest marginal federal income tax rate (for individuals) is officially:

between 36 and 40 percent

from a legal perspective, what was the argument against unions?

unions are a conspiracy against the way capitalism should work

the following were listed as the most common reasons people get in massive credit card debt, except:

buying too large a TV

we use the term "open market operations" when the federal reserve bank:

buys or sells or buys gov securities

which country, until relatively recently, artificially maintained the value of their currency?

china

why would the federal reserve bank raise interest rate?

concern that the economy is growing at an unsafe rate

what is the biggest part of GDP?

consumer consumption

what is really meant by "butter"?

consumer goods

when it comes to substitutes, if the price of am item goes up, then:

demand for substitutes of that item should increase

According to the U.S. Bureau of Statistics, compared to Union workers, non-union workers generally

earn about $150 less per week

which of the following is the very specialized economics concept that nothing's really free?

even if I receive a meal totally free, it still "costs" me the "oppurtunity" to have something else

which of the following is an argument used to defend the philosophy of progressive taxes?

even if equal tax rates were fair, it's tough getting much money from poor people

why would the federal reserve bank lower interest rates?

expand economy

if the fed's actions result in more money in the hands of us citizens, then we call that _____ policy...but if the fed acts to decrease the amount of money in our economy, we call that _______ policy.

expansionary; contractionary

who complains (rightly or wrongly) most often about being "double taxed"?

firms (companies)

when we discuss how the government chooses to tax us, we're discussing ______ policy:

fiscal

which of the following promises that you'd be able to :do your taxes on a postcard"?

flat tax

which of the following is not a good example of a pair of complements?

frozen yogurt & Ice cream

if, this morning, you bought a 'venti' "Pumpkin Spice Latte" for $6.69 at Starbucks. the economist will say:

"for you--at that time, a 'venti' "pumpkin spice latte" was worth more than $6.69

right now a British pound is worth about:

$1.30

you were told that if your fabulously wealthy parent was to pass away today and leave you a giant estate, under current tax law, you, as a single person, in 2019, would pay no taxes on the first ______

$11,400,000.00

currently, if you had precisely $1.00, you could buy about:

1.88 euro

under the 'fractional reserve' system, U.S banks need to keep roughly _____ of their assets on hand.

10%

The _____ amendment, added in _______, gives congress the right to place an income tax on us.

16th; 1913

In what year was Adam Smith's seminal book published?

1776

which of the following is most true about Janet Yellen?

1st female Sec. of the treasury and chairperson of the fed

which of the following is the best Econ definition of a recession?

2 consecutive quarters of declining real GDP

what changed the world of credit cards so much in the past 15 years?

2009's credit card accountability, responsibility and disclosure act signed by obama

if a group of items that cost $6,000 in 1982-1984, now cost $24,000 that would = a current CPI number of

400; divide 24000 by 6000

which of the following is not true of a (U.S.) national sales tax?

5% would be more than enough

what kind of FICO score can make it hard for you to buy a car, etc?

550

the lecture noted that your textbook says government spending (per capita and adjusted for inflation) is up _____ since 1940!!

800%

"it is not benevolence if the ____, the ______ or the _________ that we can expect our dinner, but from their regard to _____"

Butcher; brewer; baker; their own interest

the Taft-Hartley Act of 1947

Criminalized "closed shops," hurting the unions

what was the ratio we looked at that is supposed to predict "the ability of a country to make future payments on it's debt"?

Debt-to-GDP Ratio

there's been a steady trend of union membership_____ in the U.S., and it's currently_____

Declining; only ~11%

which is most true?

Donald Trump routinely claimed that the fed was against him....even after nominating Jerome Powell

which of the following best describes the history channel program "Cola Wars"?

Coca-cola prospered despite their management, as well as because of their management

Though it didn't instantly make unionizing easy in the U.S., the _____ case of ____ essentially declared that, yes, unions are legal in the U.S.

Commonwealth v. hunt

The subjects of the film "Waging a living" dealt with their situations by all of the following except:

Complaining to the local TV station

The data we compile into a chart, (before we use it to make a supply curve) is called a:

Supply schedule

Which of the following would most likely result in a shortage?

A college town keeping rents low around the campus

tampering--as the term was used in November--is:

A gradual reduction in quantitate easing, because of fears of persistent inflation

Mr. ______ practically developed the popular ______ in his garage.

Abe Kareem; MQ-1 Predator

Adam smiths greatest work-still read n colleges nationwide-bears the title:

An inquiry into the nature and causes of the wealth of nations

when did union membership peak in the United states?

Around 1950, between 30-35%

The California minimum wage began ______ the national version, and has most often been _______

Before; higher

re. property taxes:

Californians pay a lower % than the national average, largely because of prop 13

What is inelasticity?

Demand for a good that consumers will continue to buy despite a price increase

Where, in modern times, are the highest rates of union membership usually found?

Government/ public sector

which of the following best describes Adam Smith's view of economics?

He advocated a 'laissez-faire' type of capitalism, in which the government rarely interfered.

which 2012 republican presidential candidates actually promoted a national sales tax?

Herman cain

which of the following is not a decent example of a pair of substitutes?

Hot dogs & hot dog buns

One of the most striking things about "waging a living" was:

How the people in the film worked 'regular' jobs, and others-who they came into contact through their work- probably were not aware of how much they were struggling financially.

you were told that every society addresses 3 fundamental economic questions. what are those questions?

How to produce for whom to produce what to produce

which of the following is most true regarding right to work laws?

In the 1950s, as the head of a union, Ronald Reagan opposed "right to work" laws

Which of the following is the best description of Adam Smith's "invisible hand"?

Individuals pursuing their own (selfish?) self-interest, can create a healthy market economy.

The documentary showed remarkable correlation between when the U.S. _______ and when the economy was most successful.

Invested the most in educating its citizens

the cost of building a new factory....which of these categories is it counted in, towards GDP?

Investment

if the dollar weakens:

It will cost me more to buy goods made in, say, Germany or England

what is the proper Econ term for so-called "sin-taxes"?

Pigovian taxes

which of the following is most true, re. GDP?

Real GDP calculates economic activity, adjusted to eliminate the effects of inflation

who is the economist who developed the theory of absolute vs. comparative advantage?

Ricardo

who was the professor at the center of this documentary, whose thesis is that the American economy does best when the middle class is most successful.

Robert Reich

a principle lesson of absolute vs. comparative advantage is that ______ can raise the standard of living for virtually everybody

Specialization

T/F: the concept of absolute vs. comparative is interesting and accepted by most economists, and can be demonstrated quantitively (using numbers to prove the point).

True

Labor violence in Colorado in 1914 left women and children dead:

The Ludlow Massacre

publicly , president Obama seemed ti be saying:

The U.S. will probably be using less drone strikes in the future.

which is most true about "quantitate Easing"?

The fed can resort to it if interest rates are too low to lower, when expansion is still needed

Which of the following is most true about the Law of supply and the law of Demand?

The law of demand is relatively intuitive, & was taught early in the semester because it would be cited often.

T/F: when people say " that's a regressive tax" it usually means that they oppose such a tax.

True

Which probably came first, in U.S. history?

Trade unions

T/F: On average, for-profit colleges have higher loan default rates than traditional schools

True

T/F: an economist would probably disagree with the following sentence: "Marion knew Takayama beach break surfboard wasn't worth nearly the $1,200 the surf shop was asking, but they didn't have any choice that day, but to buy it."

True

T/F: in the long run, a firm will almost never supply a product at a price lower than it's cost to produce it.

True

T/F: the New York Yankees moved babe ruth from the mound (pitcher) to the outfield because the opportunity cost of him sitting for 3 out of 4 games was too great

True

the fed was born during the ______ administration, in _____ to reduce the _____ that were regularly crippling the U.S. economy.

Woodrow Wilson; 1913; shocks/panics

probably the most surprising thing about PBS's 'frontline: Secret history of the credit card" was

a company like MasterCard could have raised your rate if you were late paying a different bill

economists often say "there's no such thing as _____"

a free lunch

in California, which of the following items is supposed to be taxed?

a microwave burrito, heated at 7/11

you have a small Mexican company that sells specialty beverages, which you sell mostly to Americans. which of the following do you hope for most re. the success of your business?

a strengthening U.S. dollar

you have a small U.S. company that sells a lot to France which of the following worries you most re. the success of your business?

a strengthening dollar

GDP stands for

gross domestic product

we discussed a crucial choice societies have to make, between producing "_____ or butter"

guns

which of the following was not said to be a goal of the federal reserve bank?

help whichever party has the senate

which of the following is not true about Jimmy Hoffa?

his remains were finally located in late November, in a New Jersey landfill.

a shortage occurs:

if an item is selling at a price lower than the true market-clearing price

which of the following is false, re. "Cola Wars"?

in the 1950s coca-cola began targeting young consumers who weren't yet loyal to Pepsi

which of the following is known or including workers of multiple skill levels?

industrial unions

which of the following is not true about the estate tax?

it has been permanently eliminated

which is most true about the consumer confidence index (CCI)?

it includes how Americans feel about the economy

which is most true about the consumer confidence index (CCI)

it is currently in a 9 month decline, which is bad news for Biden's re-election chances

what is the little qualifier that Legg added every time he talked about the inevitable value of trade?

it must be voluntary

which of the following is not one of the reasons given for a large number of European countries adopting the euro in place of their traditional currency?

it should result in much more business with the United States

we know that unemployment generally drives down the value of the U.S. dollar. what happened with unemployment in the Obama years?

it went from a high of ~10% to ~4.75 when he left office in January of 2017

In which of the following is there an inverse relationship regarding price?

law of demand

the term "strong dollar" implies that:

less U.S. dollars are needed to purchase foreign goods, than previously

which of the following was not given as one of the most common reasons workers want to unionize?

less micro-management

One of the dumber things credit card customers can do (mentioned in the film) is to

let money sit in a savings account, instead of paying off credit card bills with high interest.

all of the following lead to a weak dollar except

low unemployment

if congress wanted to expand the economy, they are likely to try:

lowering income taxes

The topic of labor and unions is generally considered

macroeconomics

we discussed how "marginal utility" usually:

makes a consumer buy more than she needs

what was the other term mentioned for equilibrium?

market-clearing price

which of the following could not accurately be called the "theme" for Roger Weisberg's documentary "waging a Living"?

millions of Americans are working hard, and playing by the rules, but still very poor.

the federal reserve bank has responsibility re. _______ policy?

monetary

which of the following items is not scarce in the 'econ' sense?

nuclear waste

which says "you don't need to be in the union to work here"?

open shop

the advice in the lecture, re. remembering how the fed's actions affect the economy, was to:

pay attention to how U.S. citizens are affected by the actions of the federal reserve bank.

Legg mentioned that our former "virtual principle" Steve Coover, stopped by and shared an example re.

postponing a trip to Europe, because the exchange rate had been so unfavorable for U.S. tourists

which of the following is consistent with the "ability to pay" philosophy of taxation?

progressive income taxes

unhappy union workers are likely to do all of the following, except:

quit the union

which of the following is not one of the concerns Legg gave re. adoption of the euro?

reduced barriers would be expected to increase trade between the participating countries

what type of tax is the approximately $3 sales tax you'll pay on a Death of a telemarketer blu-ray?

regressive tax

what is the unflattering informal term for strikebreakers (used mostly by people who side with labor)?

scabs

according to the lecture, re. the value of the dollar, the media:

seems to always focus on the negative side of a change in the value of the U.S. dollar

If the federal reserve bank wanted to contract the economy, they would

sell the Brooklyn bridge

the 2010 documentary inside job:

showed that Alan Greenspan contributed to the recession of 2008

if congress wanted to expand the economy, they might try any of the following except:

significantly reduce funding for the $1.2 Trillion infrastructure investment and Jobs act of 2021

which of the following is true, re. for-profit colleges?

some have set up their own "accreditation"

which of the following is true, as seen in "Cola Wars'?

some people believe that the new coke experience went exactly as coca-cola planned.

tax cuts always sound great, but one reason that tax cuts are not always celebrated by everyone is:

sometimes a few people get almost all of the $, but everyone is now much more in debt

which of the following is not true about bitcoin?

we read an article that said that bitcoin should rise a lot in the next few months.

which of the following best illustrates the concept of 'marginal utility"?

what one more of something, is worth

which of the following is most true re. a change in the value of our dollar?

whether it goes up or down, both negative and positive things happen in our economy

with regard to labor, what does "yellow dog" refer to?

wording in a contract, common then, saying one can be fired merely for joining a union

if the economy were accurately measured to be growing at about 5.71% in a given year, most economists:

would probably see that as too high, in normal circumstances

whats the risk of filling a 4868 form if you're having trouble completing your tax return on time?

you'll likely owe interest (and maybe a late penalty) if you owe money