Eco Test Questions – Flashcards
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Paradox of value
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The situation in which some necessitates have little value whole some no necessities have a much higher value
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Capital goods
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Manufactured goods needed to produce other goods and services
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Alternative choices of action
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To arrive at an economic decision, a decision making grid may be used to evaluate
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Assembly line production
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Division of labor is a characteristic of
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Become better decision makers
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The study of economics is important because it enables us to
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Commodity money
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Money that has an alternative use as an economic good
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Becomes to plentiful
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Money loses it values when it
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Protect the savings of the american people
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The FDIC was established to...
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Is made up of 12 district banks and member banks
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The Federal Reserve
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Lower interest rates
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In the short run, an increase in the money supply results in
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Federal Open Market Committee
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Which groups on the federal reserve organization chart decides whether to raise or lower interest rates
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Laffer Curve
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A hypothetical relationship between federal income tax rates and tax revenues is that..
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If consumers save less and spend more
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Aggregate demand will increase
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Lead to a downward spiral of the economy
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According to John Maynard Keynes theory of the multiplier accelerator effect, a decline in investment spending will.....
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Advocates reduced government involvement in business
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Unlike demand side economics, supply side economics
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1946 to 1964
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Baby boomers are people who were born in the United States during the years
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Make major economic decisions
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The role of government in a command economy is to
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The Inuit
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An example of a market economy is
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Entrepreneurs
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Who plays one of the most important roles in the free enterprise system by starting new business?
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The inactive parter has limited liability for the business debts
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Unlike a general partnership, in a limited partnership
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Securities and exchange Commission
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This regulates the sale of stock in a corporation
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Vertical Merger
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A merger of a corporation involved in different steps of manufacturing or marketing is know as a...
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Provide goods and services to members
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Nonprofit organizations may
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Promote the welfare of its member businesses and the community
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The local chamber of commerce works to
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A decrease in quantity demanded
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For most products and services, an increase in price results in
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Complements
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An increase in the price of milk causes a decrease in the demand for cereal. The two products are..
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Create consumer demand
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Advertising, fashion trends and new product introductions serve to
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Inelastic
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If a modest price increase has little or no effect, the demand for the product is
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A dramatic decline in revenues demonstrated the unit elasticity of the product
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A business doubled the price of a product in order to increase profits. Which of the following scenarios might have occurred?
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Established a federal minimum wage
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The fair labor standards act
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Clayton antitrust act
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The first federal legislation to exempt unions from the antitrust laws was the..
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Semiskilled labor
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Workers who have the skills to operate machines and who require a minimum amount of training are..
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Market theory of wage determination
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The theory that wages are based on the supply and demand for a workers skills is the ..
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Fair labor standards act
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Which of the following set the minimum wage and prohibited oppressive child labor?
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The fixed and variable costs
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Total cost is the sum of
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Equal to marginal revenue
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The level of profit maximizing output is reached when marginal costs is..
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Competitive markets find their own prices without interference
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Which of the following is a reason why prices effectively perform the allocation function?
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Producers to supply more and consumers to buy less
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In a market economy, a high price is a signal for..
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The quantity supplied is greater than the quantity demanded
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At a given price, surplus occurs when..
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A societal choice for economic equity over efficiency
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The federal minimum wage law demonstrates
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Runs itself
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A competitive market economy
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A large number of buyers and sellers
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Perfect competitive is characterized by
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Technological monopoly
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A monopoly that is based on the ownership or control of a manufacturing method,process or other scientific advance is a
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A firm welding economic and political power
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A decrease in competition within an industry often results in..
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Outlawed restraints and monopolies that hindered trade
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The Sherman antitrust act
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Regulate industries in which a monopoly is in the public interest
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One reason the government is involved in the U.S economy is to..
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Education and public welfare
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Intergovernmental revenues are generally intended for..
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Simplifies the tax process
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The flat tax
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Added to GDP all payments received by Americans outside the U.S and subtract payments made to foreign owned business in the U.S
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To determine Gross National Product
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Negative income tax
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This is a proposed market based anti poverty program designed to encourage people to work and to reduce administrative costs currently used to run welfare programs
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Ten years
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The census is taken every
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1946 and 1964
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Baby bombers are those people born between
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The 40 percent of the population with the lowest income controls
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Less than 2 percent of the nations wealth
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Life insurance company
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A non back financial institution set up to provide financial protection for survivors of the insured is a ...
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Are usually tax exempt
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Junk bonds
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Stocks are usually priced about right
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The efficient market hypothesis argues that
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Put option
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Investors who sign a contract guaranteeing them the option of selling shares of stock at a specified price in the future have agreed to a
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Extended expansions alternating with brief recessions
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The business cycle since world war 2 has been characterized by...
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Cyclical unemployment
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Unemployment that is directly related to swings in the business cycle is..
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All sectors of the economy
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According to the demand pull theory, inflation is caused by..
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Hyperinflation
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Inflation in excess of 500 percent per year is called..
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Producer price index
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A statistical series used to measure price changes for a representative sample of frequently used items is called the..
