Economics

Bank failures during the Great Depression led to the creation of the

Federal Deposit Insurance Corporation

In terms of purpose, which of the following do municipal governing boards most closely resemble

General Assembly

Which of the following best explains the upward slope of the supply curve?

High prices motivate suppliers to produce more

Which of the following statements correctly describes the federal income tax?

People with lower incomes pay a smaller percentage of their income as taxes

What happens when the same amount of input, used in the same amount of time, produces a greater amount of output?

Productivity goes up

Which of the following is one of the steps to making a budget?

Record everything that you earn and it's source

How do corporations finance their start-up and operation?

Sales of stock

An example of mandatory spending by the federal government is the money is used

Social Security benefit checks

A business that donates money and products to a local charity is showing?

Social responsibility

The primary motive in business is to

increase profits

Private property rights promote capitalism by

providing incentives to make, save, and spend money

The Fed increases the money supply when it buys bonds because it

puts cash in investor's hands

The Gross Domestic Product examines the

quantity of goods and services produced

Members of an unincorporated community may request annexation by an adjacent municipality in order to

receive municipal services

One advantage of a sole proprietorship is that the owner

receives all the profits

When labor unions and business managers disagree, they may ask an arbitrator to

record their contract discussions listen to both sides and to make a decision.

Which is an example of how to produce?

regulating the amount of pollution factories can produce

What forces people to make economic choices?

scarcity of resources

Articles of partnership describe how business partner will

share profits and losses

Long term financial goals

sometimes conflict with short-term spending

Which of the following is a drawback of having credit?

spending more than you can afford by using easily available credit.

The government sector of the United States receives most of its revenues from

taxes on individuals and businesses

Which of the following requires legislative action by the NC general Assembly

taxing citizens

According to rational economic decision making, we should accept an option when

the benefits outweigh the costs

An example of macroeconomics

the central bank of the United States decides to lower the interest rates on loans

Which of the following represents marginal cost?

the cost of producing one additional unit

Which example illustrates how changes in complements can influence demand?

the demand or pencils increases when the price of lamps increases

In what part of the world does the U.S have the smallest degree of defensive cooperation?

the middle east

For which of the following reasons do market style economies tend to produce more wealth than command economies

the opportunity for individuals to profit from their own efforts

Why are money and factors/goods moving in opposite directions?

they are means of exchange for one another

Nations experience economic growth when their

total output of goods and services increases

Which feature of capitalism is at work when buyers and sellers freely and willingly engage in market transactions?

voluntary exchange

When would most consumers prefer to borrow money?

when the Fed buys bond

Another benefit to investing in stocks is that

you own a part of the company in which you invest

Which sales strategy demonstrates an understanding of the principle of diminishing marginal utility?

consumers who purchase an item at full price may purchase another one at half price.

A company makes the decision to drop a particular product from its line. Such a decision was MOST likely prompted by a

cost-benefit analysis showing it was no longer profitable to make that product

Which of the following defines global interdependence?

countries that rely on one another for their goods and services

Which of the following is an example of microeconomics?

economics of an individual

On average, income tends to increase as

educational level increases

Reductions in the loan discount rate will

encourage economic growth

Since 1992, the rate of change from year to year has

fluctuated

Specialization helps improve productivity because it allows businesses to

focus on what they do best

Which sector of the economy sells products to and buys products from the United States?

foreign

Demand is likely to be inelastic

have very few or no substitutes

The economy grows

in alternating periods of growth

What is an advantage of free global trade?

incentives of world peace

Your ____ is the money you earn from all sources and your ___ are the money you choose to spend.

incomes/expenses

Which of the following is a way to prevent impulse buying?

Make a list of the things you need and stick to it

Which of the following is a characteristic of a market economy?

people have the freedom to choose from a variety of products

Supply shifts to the right, demand doesn't change.

price has decreased because supply has increased

What does the phase "the market cleared" mean?

price reached equilibrium

If the fixed costs of producing dresses are 1,000 and the variable costs are $500, then the total cost is

$1500

IN which of the following government types are the people most free

A republic

Demand for a product tends to increase when?

Consumers expect a shortage

How might damage to oil refineries demonstrate the economic interdependence of the U.S. businesses?

Depend on oil will see disruptions in the productivity

What presents the greatest near term challenge to america's global economic dominance?

Developing economies such as india and china

What example illustrates how changes in substitutes can influence demand?

The demand for ford cars increases when the prices of general motors increase

Which of the following statements best answers the question posed by the man in the cartoon?

When demand increases, price increases.

Which sector of the economy buys the greatest percentage of final goods as measured by the Gross Domestic Product?

consumers

Which factor is most likely to cause the supply of a product to decrease?

a new environmental regulation

equilibrium price

at intersection of Po and Qo

which of the following requires workers to belong to a union before they can be hired?

closed shops

One purpose of saving money is to-

collect enough money for a major purchase

To keep track of inflation, the government uses the

consumer price index

Which of the following is believed to be a benefit of global trade?

increased global production and wealth

From which source do local governments receive the greatest amount of money

intergovernmental revenues

Which of the following is a human resource?

knowledge

Which of the following does the Fed regulate?

large commercial banks in the United States

Which level of government is responsible for fire protection

local

One of the main purposes of the United Nations is to

maintain international peace

The federal reserve system's board of governors is independent of the president and congress so that it may

make decisions without out political pressure

The extra revenue that results from selling one more unit or the output is the

marginal revenue

What is financial capital?

money needed to start and operate a business

What could explain supply moving to the right

more efficient means of manufacturing

Which of the following causes a change in demand?

number of consumers

Workers organize labor unions in order to

obtain better pay and working conditions

The loss of years of income resulting from the decision to go to college is the

opportunity cost

When people buy stock in a business, they become

part owners of the company

A demand curve shifts to the left when?

people are willing to buy fewer items at all possible prices