Test Answers on Macroeconomics Flashcards

inventory A record listing the merchandise on hand at any given point in time is called a(n): receipts income received from the sale of goods and/or services; also, slips of paper documenting a purchase Elements of business operations Expenses, advertising, record keeping and risk sole proprietorships Businesses owned and operated by one individual; the most […]

Mothers Against Drunk Driving (MADD) would be an example of a(n) ______ that tries to persuade government officials to vote for tougher penalties for driving while intoxicated. Interest Group It is in the ______ for the government to put expiration dates on perishable products. Public Interest A warning on a bottle of Benadryl that it […]

1What to produce 2. How to produce 3. How to allocate the products 4. How should production be shared 4 questions of macroeconomics Markets, government, and international trade List the three facets of a modern economy market arrangement that allows buyers and sellers to exchange goods and services 1.households 2.firms List the two decision-makers Households […]

Sole Proprietorship a business owned and run by a single individual Sole Benefactor The owner keeps the profits without having to share them with other owners. Limited Life a firm legally ceases to exist when the owner dies, quits, or sells the business Partnership a business that is jointly owned by two or more people […]

What is the major difference between a corporation and other kinds of businesses? A corporation has a separate entity apart from that of the owners and workers. If a general partnership fails, who is responsible for the debts? all the partners The government usually allows conglomerates because they do not result in decreased competition Mark […]

Markets a group of buyers and sellers with the potential to trade with one another Aggregation the process of combining distinct things into a single whole (general whole) EX: all computers, all laptops Circular Flow a simple model that shows how goods, resources, and dollar payments flow between households and firms Product Market markets in […]

Medium of exchange Any item that sellers accept as payment for goods and services Standard of value A way to measure the relative value of goods and services by comparing their prices Store of value A characteristic of a medium of exchange that allows it , and thus value or wealth, to be stored Commodity […]

Currency is a term that refers to paper money Coins Metallic forms of money, called ______, are produced by the Bureau of the Mint Member A commercial bank that owns stock in the Fed is called a(n)_______ bank. Holdings Bank_____ companies own and control one or more banks Board of Governers The Fed is led […]

barter trading goods/services three uses of $ medium of exchange, store of value, unit of account medium of exchange BUY STUFF, Anything that is used to determine value during the exchange of goods and services store of value KEEPS WORTH: If you do not use all your dollars to buy goods and services today, you […]

money Anything that serves as a medium of exchange, a unit of account, and a store of value medium of exchange Anything that is used to determine value during the exchange of goods and services barter The direct exchange of one set of goods or services for another unit of account A means for comparing […]

which of the following characteristics relate to imperfect competition competition that does not to the definition of perfect competition either because it involves a smaller number of units or only one firm, or products that aren’t identical deregulation occurs when a government eliminates or scales back rules relating to all but one of the following […]

barter __________ occurs when goods are traded directly for other goods. M-2 __________ represents the most commonly used definition of the money supply. the buying and selling of bonds. Open-market operations involve: Federal Reserve System. The banking panic of 1907 and the resulting cash shortage led to the formation of the: creditworthiness Traditionally, banks provide […]

question If you plot temperature on the y axis and time on the x axis, then you have created a answer time series question Trade with other countries answer reduces consumer prices question An architectural drawing is an example of a model because an architectural drawing answer is a stylized (simple) representation of reality question […]

question what does the study of economics begin with answer the idea that people can not have everything they need and want question define need answer necessary for survival question define want answer item we desire but do not need for survival question to look at the world economically, we focus on answer decisions that […]

question Scarcity answer the condition that results from limited resources combined with unlimited wants question Opportunity Cost answer Cost of the next best alternative use of money, time, or resources when one choice is made rather than another question Factors of Production answer resources of land, labor, capital, and entrepreneurship used to produce goods and […]

question Assume two goods are substitutes. Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to answer Decrease and the equilibrium quantity of the other good to decrease. question Refer to Figure 19.2. The total utility of two apples is answer 11 utils question Which […]

question 1. Which question is an example of a microeconomic question? answer B. Will the merger of two airlines likely lead to higher airline ticket prices? question 2. Which is not a factor of production? answer A. Money question 3. A point on the production possibilities curve is: answer A. Attainable and resources are fully […]

question 1. The word that comes from the Greek word for “one who manages a household” is a. market. b. consumer. c. producer. d. economy. answer D question 2. Economics deals primarily with the concept of a. scarcity. b. poverty. c. change. d. power. answer A question 4. In economics, the cost of something is […]

question Mercantilism answer A nation should sell more goods than it purchases. question Salutary Neglect answer A British Policy of avoiding strict enforcement of parliamentary laws meant to keep American colonies obedient to England. question Taxation without Representation answer Americans insist they are not represented but are still taxed. question Boycott answer To abstain from […]

question unlimited liability answer required that an owner is personally and fully responsible for all loss and debts question inventory answer stock of goods held in reserve; includes finished goods waiting to be sold and raw materials to be used in production question limited life answer situation in which a firm legally ceases to exist […]

question 1) The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why, then, do governments restrict imports of some goods? A) Trade can have substantial effects on a country’s distribution of income. B) The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial. C) Import restrictions […]