question

the situation in which some necessities of little value while some non-necessities have a much higher value is know as

answer

paradox of value

question

Manufactured goods needed to produce other goods and services are called

answer

Capital goods

question

To arrive at an economic decision, a decision-making grid must be used to evaluate

answer

Alternative choices of action

question

Division of labor is a characteristic of

answer

Assembly-line production

question

The study of economics is important because it enables us to

answer

Become better decision-makers

question

The dollar value of all final goods and services at the most comprehensive measure of a country's total production output is

answer

Gross domestic product

question

A popular model used to illustrate the concept of opportunity cost is

answer

The production possibilities frontier

question

An economic at its production possibilities frontier is operating

answer

At full potential

question

The money used to buy the tools and equipment needed for production is known as

answer

Financial capital

question

Actions in one part of the country or world that have an economic impact on what happens elsewhere are examples of

answer

Economic interdependence

question

The purpose of government in a command economy is to

answer

Make major economic decisions

question

An example of market economy is

answer

The United States

question

Which of the following is not considered an economic and social goal

answer

Entrepreneurship

question

Which group of people ultimately determines the products they free enterprise economy produces

answer

Consumers

question

United States can best be described as having a

answer

Modified private enterprise system

question

All of the following are characteristics of a command economy except

answer

Public services are available little or no cost

question

A market economy

answer

Does not provide for everyone's basic needs

question

The minimum-wage is an example of a federal law that supports

answer

Economic equity

question

The concept of voluntary exchange means

answer

People freely and willingly engage in market transactions

question

The governments role and a mixed economy is that it is the

answer

Regulator charged with preserving competition

question

Unlike a general partnership

answer

The inactive partner has limited liability for the business's that

question

This regulates the sale of stock in a corporation

answer

Securities and exchange commission

question

A merger of corporations involved in different steps of manufacturing or marketing is known as a

answer

Vertical merger

question

Nonprofit organizations may

answer

Provide goods and services to members

question

The local Chamber of Commerce works to

answer

Promote the welfare of its members and the community

question

In a general partnership,

answer

Partners usually draw up legal papers called articles of partnership

question

And advantage of a corporation is that

answer

Owners have limited liability for debt

question

All of the following are examples of the government playing a direct role in the economy except

answer

Public utility regulation

question

Which of the following is not a nonprofit organization

answer

Multinational

question

And it's a direct role as an economic organization, American government

answer

Owns and manages public utilities

question

For most people and services, increased price results in

answer

Demand for fewer products

question

And increase in the price of milk causes a decrease and the demand for cereal. The two products are

answer

Complements

question

Advertising, fashion trends, and new product introductions serve to

answer

Create consumer demand

question

Because a modest price increase has little or no effect, the demand for the product is

answer

Inelastic

question

A business doubled the price of a product in order to increase profits. Which of the following scenarios might have occurred?

answer

A dramatic decline in revenues demonstrated the elasticity of the product

question

A demands schedule shows

answer

A listing of the various quantities demanded of a particular product that all prices that might prevail in the market

question

Consumers willingness to replace a costly item with a less costly item is an example of

answer

The substitution effect

question

An increase in the price of cameras results in the decrease in the demand for film. The two products are

answer

Complements

question

When a customer's needs for a product is not urgent, demand tends to be

answer

Elastic

question

The manufacturer of pain medication reduced the price of the medication by 30%, profits decline or almost exactly 30%. Demand for the product is

answer

Unit elastic

question

All the following can change the market supply curve except

answer

A change in the demand for the product

question

The supply of a product normally decreases if

answer

Taxes on the product increase

question

When employees are getting in each others way, the firm is operating

answer

In stage II of production

question

Total cost is the sum of the

answer

Fixed and variable costs

question

The level of profit maximizing output is reached when marginal cost is

answer

Equal to marginal revenue

question

When producers offer fewer products for sale at each and every price

answer

The supply curve has shifted to the right

question

The theory of production deals with the relationship between the factors of production and

answer

The output of goods and services

question

Rent payments and property taxes will be counted as

answer

Fixed costs

question

Many businesses are engaging in e-commerce because

answer

Fixed costs are minimal

question

Profits will be maximized when marginal revenue

answer

Equals marginal cost

question

The fair labor standards act

answer

Established a federal minimum-wage

question

The first federal legislation to exempt unions from the antitrust laws was the

answer

Clayton antitrust laws

question

Workers who have the skills to operate machines and who require a minimum amount of training are

answer

Semiskilled labor

question

This theory that wages are based on the supply and demand for a worker skill is the

answer

traditional theory of wages

question

All of the following can be used to establish more equal pay between men and women except

answer

Fair Labor standards act

question

The national labor relations act

answer

Established the right of unions to collective-bargaining

question

One labor and management ask a third-party to collect information about a dispute and present nonbinding recommendations they are using

answer

Fact-finding

question

Workers with knowledge-based education and managerial skills are

answer

Professional labor

question

Who which of the following statements about minimum wages not accurate

answer

When expressed as a percentage of the average manufacturing wage, the minimum-wage reached it's peak in 1988

question

The invisible barrier that hinders women and minorities from advancing up the corporate ladder

answer

Is known as the glass ceiling

question

The incident of a tax can more effectively be shifted from the supplier to the consumer if

answer

The demand curve is inelastic

question

The authority to levy a federal income tax comes from

answer

The 16th amendment

question

Intergovernmental revenues are generally intended for

answer

Education and public welfare

question

The alternative minimum tax

answer

Requires people to pay a minimum tax of 20%

question

The flat tax

answer

Simplifies the tax process

question

The "Incident of tax"

answer

Refers to those who bear the final burden of taxation

question

And earns $10,000 annually and pays a tax of $1000. Jerome earns $60,000 during the same period and paste taxes of $20,000. The tax they both payed was a

answer

Progressive tax

question

FICA includes taxes to pay for

answer

Social Security and Medicare

question

The taxpayer relief act of 1997

answer

Did little to benefit people without children or capital gains

question

The flat tax

answer

Departs from the ability to pay principle of taxation

question

All levels of government combine consume about

answer

1/3 of the nations output

question

An example of mandatory spending is financing for

answer

Interest payments on the federal debt

question

The largest category of spending for most local governments is

answer

Elementary and secondary education

question

United States government accumulated huge deficits during the 1980s due to

answer

A doubling of spending on national defense

question

The "pay-as-you-go "provision was a feature of the

answer

Budget enforcement act

question

Transfer payments from the government to individuals or other levels of government might be used for all the following except

answer

Maintenance of the Armed Forces

question

The sequence for the approval of the federal budget is

answer

President to Congress back to president

question

The largest category of state spending is

answer

Intergovernmental expenditures

question

The first federal budget surplus in three decades occurred in

answer

1998

question

Legislation intended to establish a balanced budget was the

answer

Gramm-Rudman-Hollings Bill

question

Money that has an alternative use as an economic good is

answer

Commodity money

question

Money loses its value when it

answer

Becomes too plentiful

question

When a bank is about to collapse,

answer

The FDIC may secretly seize the bank

question

The FDIC was established to

answer

Protect the savings of the American people

question

When Congress reformed the thrift industry in 1889, all of the following occurred except

answer

Remaining S&Ls were merged with commercial banks

question

The problem with continental dollars was that

answer

So much was printed they became nearly worthless

question

In order for money to have value, and must have all the following characteristics except

answer

Plentiful availability

question

Local banks and 1800s the print too much money were called

answer

Wildcat banks

question

The Federal Reserve system FRS was established in

answer

1913

question

As a result of the financial institution crisis of the 1980s, S&Ls are now insured by the

answer

FDIC

question

And non-bank financial intermediary that primarily makes loans to construction companies for building homes is the

answer

Real estate investment trust

question

The par value of a bond is

answer

The total amount borrowed

question

Junk bonds

answer

Are exceptionally risky

question

The efficient market hypothesis EMH argues that

answer

Stocks are always priced about right

question

Investors to sign a contract guaranteeing them the option of selling shares of stock at a specified price in the future have agreed to a

answer

Put option

question

The largest borrowers are

answer

Governments and businesses

question

Bonds

answer

Pay a fixed interest rate over a specified period of time

question

Municipal pool bonds, or munis,

answer

Are usually a safe investment

question

Most stocks in the United States are traded on the

answer

Over-the-counter market

question

A stock transaction that is made immediately at the market price is made in the

answer

Spot market

Economics final questions and answers Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards