Test Answers on Macroeconomics Flashcards

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

question 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. answer Interest Group question It is in the ______ for the government to put expiration dates on perishable products. answer Public Interest question A warning on a […]

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

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

question What is the major difference between a corporation and other kinds of businesses? answer A corporation has a separate entity apart from that of the owners and workers. question If a general partnership fails, who is responsible for the debts? answer all the partners question The government usually allows conglomerates because they answer do […]

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

Franchise Buying into an entity, brand equity and knowledge Sole proprietorship one person owns the whole company 6% revenue Cooperative shared ownership of a company, not run for profit Corporation own living entity lives on after founder dies Partnership When more then one person shares the liability of a company Monopoly complete control over one […]

question Macroeconomics is mostly focused on: answer the economy as a whole. question The two topics of primary concern in macroeconomics are: answer short-run fluctuations in output and employment and long-run economic growth. question The business cycle depicts: answer short-run fluctuations in output and employment. question The term “recession” describes a situation where: answer output […]

question Economists assume that people are rational in the sense that answer They are all available information as they take actions intended to achieve their goals question Which of the following describes scarcity? answer Unlimited wants exceed the limited resources available question Scarcity is central to the study of economics because it implies that answer […]

question 1. In which of the following countries will the national government have the greatest influence with respect to the nation’s economy? CUBA answer question 2. In a command economy, the __________ either makes most economic decisions itself or at least strongly influences how the decisions are made. answer government question 3. Because of their […]

question A typical production possibilities curve: answer does not specify how much of each product society should produce. question Macroeconomics can best be described as the answer study of the large aggregates of the economy or the economy as a whole question purposeful behavior answer Consumers spend their incomes to get the maximum benefit or […]

question In a command economy —- either makes most economic decisions itself or at least strongly influences how the decisions are made answer Government question In a —- , most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers answer Market-oriented economy […]

question Finland’s opportunity cost of producing 1 unit of ham is answer 2/3 dozen eggs. This is lower than Denmark’s opportunity cost. question When the price of a good or service changes, answer there is a movement along a given supply curve. question Which of the following events would cause a movement upward and to […]

question In a market system scarce goods are allocated through the operation of answer what must be sacrificed in using a resource for its next best use. question Suppose a city block was going to be used for a parking lot. The opportunity cost would be answer greater in New York City because the alternative […]

question The Financial System: answer -Group of institutions in the economy A. Help match: 1. One person’s savings with another person’s investment question Financial Markets: answer -Financial institutions: where savers can directly provide funds to borrowers Examples: Bond Market Stock Market question The Bond Market answer -Sells Bonds: Borrows directly from the public ~Certificate of […]

3 reasons why prices effectively perform the allocation function 1.)Prices favor netierh the producer nor the consumer 2.)Prices are easily understood 3.)Competitive markets find their own prices without interference The federal minimum wage law demonstrates a societal choice for economic equity over efficiency In a market economy, a high price is a signal for producers […]

question In an AD/AS model, the point where the economy has excess capacity is called the: answer Keynesian zone of the AS curve question The graph below refers to a significant increase in individual income taxes, taking them to their highest level in 50 years. Which of the following is likely to result? answer he […]

question Which of the following best denotes the reason for the existence of substantial black markets? answer a command economy question what best characterizes the circular flow of income? answer businesses buy resources from households, and households use their income from the sale of resources to buy goods and services from businesses question what lies […]

question 1. ________________ economists place an emphasis on __________ run economic performance. A. Phillips; short B. Keynesian; long C. Neoclassical; long D. Says; short answer C. Neoclassical; long question 2. The neoclassical perspective on macroeconomics emphasizes that in the long run, the economy seems to rebound back to its _____________ and its ____________________. A. long […]

question Which of the following is considered investment spending in macroeconomics? answer GM builds a new plant to manufacture automobiles. question Private savings is equal to: answer income less consumption. question Use the following to answer questions 3-5: Use this scenario to answer questions 9-12. Scenario: Closed Economy S = I In a closed economy […]

question absolute advantage answer the ability to produce more of a good than all other producers question absolute (or money) prices answer the price of a good measured in units of currency question accounting profit answer the difference between total revenue and total explicit cost question aggregate demand curve answer the negative relationship between all […]