Full Test Economics EOC – Flashcards

Why would banks offer higher interest rates for savings and checking accounts?

What is the unemployment rate of Coffeeville?

Under which economic system would factors of production MOST LIKELY be owned by the government?

Currently, how are foreign exchange rates established?

A tariff is a form of taxation on foreign products, while a quota is a ______ on imports from foreign countries.

Which of these would have the LEAST impact on the price of a product?

Which of these will have an effect on the GDP of the country?

What is the Federal Reserve's role in helping to control inflation?

Which type of tax would the government use to redistribute money from the highest income earners to the lowest income earners?

How might fiscally responsible individuals use investments to meet financial goals?

The purpose of the founding of the European Union (E.U.) in 1993 was to

In a diagram of the circular flow of economic activity, businesses

The nation of Tupalow is outraged that the Republic of Za has repeatedly violated international human rights laws. As a result, Tupalow has decided not to export goods to or import goods from Za. What is such an action called?

Which of these terms is the BEST synonym for the word "entrepreneur"?

Country X and Country Y are the same size in terms of population, area, and capital stock. If both countries devote all of their efforts to producing widgets, Country X can produce 10 million widgets, while Country Y can produce 5 million. Based on the information given, Country X has

A right shift of the aggregate demand line causes an increase in

What is meant by the statement "money is a medium of exchange"?

How might the purchase decisions of consumers impact a market economy?

In a free enterprise system, what drives individuals to risk their savings in a business venture?

What are two advantages that a market economy has over a mixed economy?

Tariffs and import duties will protect American businesses from unfair competition by countries like China and Japan. This sounds MOST like an argument against

If the price of buying a foreign car in the U.S. rises as the passage suggests, which of these might balance the trade deficit?

Based on the information in the table, which statement about Peru's economy is true?

When makers of a product increase their price, consumers are often unwilling to continue to purchase the product (or at least as much of the product). This is known as

Kris is going to London, England, as an exchange student. To help figure out how much the U.S. dollar is worth compared to the British pound, Kris will keep track of the exchange rate. Which information source would be the BEST place to look for current exchange rate information?

You read that inflation for the foreseeable future expected to average 6% a year. You are trying to accumulate funds to start a business, and so you take your excess earnings and

Many city governments grant operating licenses to a specific cable television company. This license to be the only cable provider is called a(n)

These are all arguments used by someone who would be OPPOSED to

A measure of the amount of output produced by a given amount of inputs in a specific period of time is the definition of

In this situation you can conclude that 1 Euro would trade for

The first type of insurance high school students are likely to pay for themselves is

Before money was invented, how were goods and services exchanged?

The MOST LIKELY result of government programs to address the Great Depression in the United States was that

According to this graph, approximately ____ would be supplied and demanded at the equilibrium price of ___.

What consumer behavior is the Federal Reserve Board trying to encourage when it implements a loose monetary policy?

· Decentralized decision making. · Adjusts to changes in the market place. · Producers and consumers have control of the economy. All of these are characteristics of a ___ economy.

Which investment offers the BEST combination of low risk and high return?

Mr. Simpson has decided to start a new company to produce bobble-head dolls. He has hired a contractor to build his factory and a manager to run the company for him. Mr. Simpson PRIMARILY represents which factor of production?

According to monetarists, to prevent recessions, the government should

As a means of funding government programs, deficit spending

As a means of funding government programs, deficit spending

One factor causing fluctuation in the exchange rate is

Why is frictional unemployment of relatively little concern to economists or government officials?

As the map illustrates, Africa is exceedingly rich in natural resources, chiefly precious metals and oil. A significant part of the continent makes its money on diamonds, gold or oil.

Sarah is concerned about identity theft. She wants to check her overall credit worthiness. Sarah should MOST LIKELY

What type of competition does this firm's promotion BEST reflect?

The federal personal income tax is an example of what kind of tax?

What is the fourth part to property rights?

Marsha can cook 5 cakes or 10 pizzas in an hour. Howard can cook 3 cakes or 12 pizzas in an hour. Which item should each person specialize in?

All of these would cause a shift to the left of the demand curve EXCEPT for

The price of one nation's currency in terms of another nation's currency is called

Which specific tax is considered an excise tax?

Kris applies for the sales position and does well. However, she is laid off in late October due to slow sales. This is an example of what type of unemployment?

Based on the graph, which of these statements is TRUE?

The United States government is LEAST LIKELY involved in the nation's economy as a

Which scenario BEST represents monopolistic competition?

In 1987, the United Nations General Assembly passed a resolution that prohibited countries from buying oil from South Africa in an effort to persuade the nation to end the racist policies of apartheid. This is an example of a(n)

Inflation is defined as a rise in the general level of prices. When inflation occurs, the buying power of the dollar would

What would be reasonable monetary policy during a period of high inflation?

A small company is trying to determine the best use of its resources in producing two different goods. What resource should they develop to investigate these options?

Suppose the Fed makes an open market purchase of $3 million. Assume that the reserve ratio is 10% and the money multiplier equals 10. What is the change in the money supply?

Which is considered a negative side effect of minimum wage?

Unlike balance of trade, balance of payments includes

The graph shows aggregate demand (red line) and aggregate supply (blue curve). At which real income value would you expect the LOWEST levels of unemployment?

Which statement BEST explains why a tariff is considered a trade restriction?

State governments often decide to place a "sin tax" on specific products or goods, like alcohol and tobacco. Which rationale is LEAST LIKELY to encourage governments to adopt a "sin tax"?

What is a main goal of the Federal Reserve in its monetary policy?

If you take out money from a CD before it reaches maturity you must

For which market model is there a very large number of firms (offering the same goods for sale), which helps to lower costs and prices?

The study of how individuals, institutions, and society make optimal choices under the conditions of scarcity is

Which is a monetary policy that would be useful in stopping deflation?

What industry comes the closest to being purely competitive, in that there are plenty of sellers to keep the costs low for the consumers?

· park entry fees · sales tax · individual income tax What do ALL of these have in common?

Which of these would be considered a "Level 4" investment?

The production possibilities curve assumes all of the following EXCEPT

Although it lost most of its value during and after World War II, the currency of Japan is now one of the strongest in the world. Japan's currency is called the

Over 95% of the oil in Saudi Arabia is controlled by the government. This element of Saudi Arabia's economy shows that the oil industry is most likely which economic system?

An unincorporated business owned by a single person, which may or may not have employees, is an example of a(n)

Which statement is FALSE?

You have $1000 in a savings account and the compound interest rate is 5% per year. After 5 years, how much money approximately do you have in the savings account if you left the money to grow?

How does the risk/return ratio of a government bond compare with that of other types of investments?

Assuming that the graph follows the normal laws of economics, the line represents

What was the primary subject of the 1990s treaty between the U.S., Canada, and Mexico?

A corporation is LEAST LIKELY to have which advantage?

Which of these BEST describes a situation in which a country has a "trade deficit"?

Coming into effect in 1994, NAFTA encouraged free trade between the United States and which two other countries?

When there are advances in technology, such as the personal computer, how might business productivity change?

For investments, how are risk and return related?

Katherine is facing a difficult decision between how much time she spends as a cheerleader and how much time she spends studying her economics. Which economic concept describes the problem she is facing?

Which occupation would be LEAST affected by inflation?

Which market structure is BEST indicated by the photograph?

Amy's Coffee has been a fixture in Brownsville for years. Two months ago it dropped the price on all its regular coffees by 15% and experienced a noticeable increase in sales. Which explanation BEST explains the situation that occurred at Amy's Coffee?

Although the members of the Board of Governors of the Federal Reserve System are appointed by the president, the Board does not receive funding from Congress. The seven members serve a 14 year term, and report to the Speaker of the House once a year. This MOST LIKELY results in

Which item is NOT a means to finance government spending?

Which of these is the BEST definition of GDP?

What would be the situation if the price was moved from p2 to p3?

In this type of economic system, the production of goods and services is controlled solely by the concept of supply and demand, businesses are operated for profit, and the government is not involved.

Through open market operations, the Federal Reserve buys and sells government securities to influence the supply of bank reserves. When the Fed wants to increase reserves, it does what?

A receipt showing that an investor has made an interest-bearing loan to a bank is a

How can firms engage in non-price competition?

When a person agrees to a regular, fixed payment of wages over a period of time, he/she agrees to earn a

Which of these actions of the Federal Reserve can slow economic growth?

If the federal government runs an annual budget deficit,

Mr. Green is opening a new bakery. He has purchased an industrial oven which can accommodate twenty loaves of bread at a time. This oven represents which factor of production?

Which economic concept would MOST likely account for a move on the curve from point "A" to point "B"?

When the dollar "falls" compared to other currencies, this means

What is the relationship between credit and debt?

________ is the ability to raise funds or have co-signers for a loan.

Sylvia is seriously injured when a tornado strikes, damaging her home, car, and leaving her unable to work for six months. Which insurance policy is she LEAST LIKELY to use in this situation?

Tina's mother and father pay her car insurance as long as she makes good grades. This is an example of which economic concept?

If the real interest rates increase in the United States but do not change in Europe, the effect that this will have in the currency exchange market between the Dollar and the Euro will be ______.

Because scarcity exists, any strategy for allocating scarce resources must address

When the Federal Reserve sells government securities on the open market, what effect does this action have on the nation's money supply and interest rates?

What economic concept does this graph BEST illustrate?

A company is trying to decide how many workers to hire. They want to maximize profits. What is the maximum number of workers the company can hire to maximize profits while not having marginal costs exceed marginal revenue?

Which quote from the passage represents a specific example of a trade barrier?

The Federal Reserve has kept interest rates very low. Some might argue that this could lead to

Inflation is expected to be high for the foreseeable future, you expect to have stable employment, and you would like to borrow money to buy a house. All else equal, a savvy economics student would

Unanticipated inflation can cause all of the following EXCEPT

Many companies sell different types of cell phones. Some consumers prefer to use a specific brand because of its different kind of features. This is an example of