EOC Economics Flashcards
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What concept demonstrates the idea of minimum wage?
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Price floor
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Why was the barter system replaced by the use of money?
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Money allows values to be calculated
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Which factor of production is being used when a person prepares a design to complete a project?
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Labor
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In which circumstance would a shoe store reduce its prices?
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Surplus
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In starting a business, what would be most helpful in getting information about the community?
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Population count, Income levels, and # of similar businesses
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What characteristic is found in a market economy?
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Private ownership
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What incentives do state and local governments use to encourage new business in the area?
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Tax breaks
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Which person or group would be protected from high rate of inflation?
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A person paying off a fixed loan
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How has the United Nations promoted global economic cooperation?
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By creating the World Bank
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What is the most likely outcome of the anti-trust regulations on business in the U.S.?
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Competition is preserved (No competition with monopoly)
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What is the U.S. Governments main role in the operation of the national economy?
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To set standards and regulations
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What would be a likely response of a company operating with a production surplus?
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Decrease the supply and lower prices (As demand drops, so does production)
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What is the main result of the interaction of economic sectors in the circular flow of the economy?
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Prices are set
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What is the impact of consumers in the U.S. if the import tax on foreign cars increases?
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Consumers would pay more for foreign cars
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What is the definition of a balanced budget?
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Revenues are equal to spending
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What is the measure of a nation's economic wealth?
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Gross Domestic Product
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What is occuring when the GDP is increasing?
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Businesses are producing more goods and services
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what activity is occurring at point B? (Peak)
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Peak Production
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What principle best represents federal unemployment benefits?
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Economic Security
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If a recession occurred?
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Consumer demand would decrease
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Which of the following is an example of a developed country?
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Surplus of goods to trade in the World Market
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How does the Federal Reserve System influence the U.S. economy?
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By requiring banks to keep a certain percentage of deposits on hand
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Which concept is demonstrated when Colombia takes its surplus coffee to Canada where coffee is not grown?
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Competitive advantage
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A person who opens a booth at a flea market to sell crafts. What factor of production is this?
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Entrepreneur
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An agreement by a group of nations who refuse to trade with another nation is what type of action?
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Embargo
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What guarentees the safety of consumer money if a bank is robbed?
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Money is insured by the FDIC (Federal Deposit Insurance Company)
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What economic system is pricing and competition most controlled by the government?
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Command economy
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A customer wants to purchase 2 products, but only has money for 1. What term refers to the product not purchased?
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Opportunity Cost
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Which economis system is most effective in promoting competive pricing?
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Market
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Why is the U.S. dollar one of the most widely used sources of currency by foreign nations?
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Stable value
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How should the point curcled on the graph be labled?
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Equillibrum Pricing
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How do banks create money?
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By offering financial services to businesses
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Why does the slow down follow a peek?
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Continued increase in supply often exceeds demand
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What is the effect of protective tariffs?
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U.S. goods become more competitive
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In a drought, what would happen to the supply curve of an agricultural product?
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Move to the left
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What is the primary reason for investing in human capital?
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Increase employee productivity
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What economic policy would a supporter of laissez-faire economics support?
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Free Enterprise
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What would most likely happen if 2 soft drink companies merge?
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Monopolistic practices would occur
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Which would be the best role of government in a mixed economy?
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Consumer protection regulation
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What are the 4 factors of production?
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1.Labor 2.Natural Resources 3.Capital 4.Enterpreneur
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Which economic indicator is most helpful to an entrepreneur?
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Producer price index
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Which type of business would limited liability typically provide legal protection?
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Corporation
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Which is an economic indicator of free trade?
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Lower prices for consumers
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If an automobile manufacturing plant is built in a community what is most likely to occur?
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People in the community will have more earning power
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How will legislation raising taxes on imported computers, printers, and copiers affect the sales of those made domestically?
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Sales on domestic products will increase
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Why are checks and currency considered money, but credit cards are not?
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Checks and currency are stores of value and means of payment
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What is the result of specialization of labor?
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Efficient use of resources
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Which type of acculturation is the most effective in explaining why America has a more diversified mainstream culture today than 100yrs ago?
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A salad
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A company in which stockholders liability is limited to a network of production facilities in 40 countries would be an example of what type of business?
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A multi-national corporation
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Producers make less goods and services available when?
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Consumer demand is low
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Which would be an example of capital goods?
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A stove (Cook food in to sell in restaurant)
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Which action would cause more harm to the U.S. economy during a period of high inflation?
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Increasing the supply
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Which would increase production in an industrial plant?
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Automation/Robotics/Technology
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Which term describes a bank account in which money can be withdrawn with a written order?
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Checking account
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What is a similarity of mixed and market economies?
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Competition
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Which economic system does not need money?
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Traditional
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Identify points A, B, C, D
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A-Expansion B-Peak C-Contraction D-Trough
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Which plan would encourage economic growth and encourage people to invest in new homes?
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Lower intrest rates or tax deduction for intrest payments on a mortgage
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What was eliminated by the US, Mexico and Canada as a result of NAFTA?
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A protective tariff/Import tax deduction for intrest payments on a mortgage
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Why would an investor buy a CD rather than open a savings account?
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Intrest rates is higher CD=Certificate of deposit
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How does division of labor help manufactures?
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Large quanitys of goods are produced
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Which point indicates the supply curve?
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Supply curve is point B
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As citizens migrate to an area which factor of production is increased?
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Labor
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What is an example of a legal monopoly in the U.S.?
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Public Utilities
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If a deadly disease infects cattle in the U.S. which would happen first?
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Increase in prices
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If workers are added and output remains unchanged or declines, this would be the principle of?
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Diminishing returns (Spending more, but not getting more work)
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What has caused the demand for human capital to decline?
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Increase in Automation/Robotics/Technology
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Greater employee productivity results in?
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Greatest profits for the company
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What identifies the Government policy of deficient spending?
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Revenues are less than the amount being spent
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Which federal agency would be the most involved in preventing a merger?
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Federal Trade Comission (FTC)
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What would most likely happen if wages increase in the Factor Market?
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Prices go up in the prduct market
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What is the largest motivation factor for business investment?
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Profit
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Which would most likely occur if 2 corporations merge?
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Producers would have a greater impact on prices of goods and services
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Which is the likely effect of the government de-regulation of the airline industry?
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Ticket prices may go down
