Full Test- EOC Economics Review – Flashcards

Sean has lost his job at the New York Stock exchange because the country has fallen into a deep recession. What kind of unemployment is Sean experiencing?

In the business cycle model, a recession is MOST LIKELY

Heather is seeking to start a business. She is seeking to be in control of all aspects of the business. What is a potential risk of the business organization she should set up?

In a circular flow diagram, labor and other factors of production are sold on resource markets. These resources are then used to produce goods and services sold on product markets. How are businesses involved in this flow?

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

Shanna's mortgage company requires insurance coverage. Which type of insurance would she need?

According to the U.S. Census Bureau, 85% of Americans have health insurance. Which generalization might BEST account for why approximately 15% of the population is without health insurance?

The statement "the quantity demanded of a product varies inversely with its price" is a definition of

Of the following taxes, what is the name for the taxes that all homeowners must pay?

The MOST LIKELY incentive for entrepreneurs to start a new business is

According to this graph, what would the approximate equilibrium price be for widgets?

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

The BEST explanation of why there will always be scarcity is because

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

Which statement about the circular flow model is CORRECT?

Which of these correctly completes the chart?

With regards to economic growth, what is the goal of an expansionary fiscal policy?

Which type of insurance is MOST LIKELY classified into categories such as term, whole, and variable?

What should a borrower look for when deciding to borrow money from a financial institution?

What are tariffs?

Which investment should David NOT purchase because he would lose money?

These would change WHAT part of the market?

"Too much money chasing too few goods" is a common way use to describe what economic concept?

All of the following are considered benefits of free trade EXCEPT

If two people are packing and delivering food, what is the most efficient way to do the job?

You spend 45% of your budget on housing, 30% on food, and 25% on entertainment. Based only on this information, which would you expect to have the most inelastic demand?

Land, labor, capital, and entrepreneurship are the

These facts show that Brazil has a

Andre creates a budget for himself. He would like to buy a new video game each month, but doesn't have enough money to do so in his current budget. Which parts of Andre's budget could he increase to have enough money for the new video game each month?

Tariffs, quotas, and subsidies are examples of

Why do markets produce too few public goods for consumption?

Though it might be very beneficial to the population to build a bridge connecting a town to the other side of a river, the townspeople will not be able to create the "demand" needed to get it built. Instead, the decision to have the project started would most likely be made by

In the market clearing price,

A price set below the current market price is a characteristic of a

Morgan is deciding between two loan offers. To determine which loan to choose, she should compare each loan's

When one country can produce a product more cheaply than another country can, this is called

Which of these would BEST represent the effect of an embargo on trade with China?

This map shows the organization that was started out as six countries after World War II but has grown into an economic association of nearly 30 countries. What is the name of this organization?

Which is true if equilibrium is present in a market?

In the graph, what happened to the equilibrium price when the supply curve moved from S1 to S2?

An exchange rate is used to

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?

Imagine that a company decides to try a new form of online marketing and advertising. What is the MOST likely impact this will have on production?

What effect does the threat of inflation have upon GDP?

Evan has many questions about life insurance and annuities. Which of the questions CANNOT be answered using the information given on the chart?

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

Which statement describes an opportunity cost that could result from the government regulating businesses?

Imposing some sort of cost on trade that raises the price of the traded products is MOST LIKELY an example of

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

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

Currently, the foreign exchange rate for all world currencies is

How do supply and demand influence market price?

Even though Australia has great economic freedom, the government requires some products to meet safety and manufacturing standards. This means that overall Australia's economy can BEST be classified as a

Which statement describes economic activity in a recession?

What does contractionary fiscal policy do to economic growth?

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

Ned is a typewriter repairman. As typewriters are being replaced by computers Ned finds less and less work. What kind of unemployment is Ned experiencing?

What generalization about educational attainment and annual earnings can be made according to the graph?

Which factor would be LEAST LIKELY to be included in a measurement of the efficiency of trade between African nations?

Which market structure has the largest number of suppliers?

Which sentence describes how the labor market is like other markets?

A _______ is a health insurance plan that directly employs or contracts with selected, or preapproved, physicians and other medical professionals to provide health care services in exchange for a fixed, prepaid monthly premium.

Firms use marginal analysis to determine prices by

In promoting free trade, the author is seems to be supporting

The union has demanded a cost-of-living adjustment clause in the new contract. What is the purpose of a cost-of-living adjustment?

On a supply and demand graph, if the demand curve shifts to the left, what would be the resulting effect on equilibrium price and quantity?

New e-commerce businesses, including companies like eBay, focus on voluntary exchange. Which generalization BEST describes this type of commerce?

The United States increases its imports from Europe. What will be the effects on relative value of the Dollar and the Euro on the currency exchange market?

In economics, "equilibrium price" is a situation in which

Which statement is the BEST example of a point of view opposed to free trade?

All of these represent

What will New Hampshire Colonial Bank most likely be able to do?

In the mid-2000s problems with corporations such as Enron, Worldcom, and Tyco demonstrated renewed and growing public concern about

Social Security is an example of a ________ tax.

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?

The primary function of banks in the United States is to

Historically, why has the United States restricted trade to Cuba?

What does "load" refer to in terms of mutual funds?

The economy is experiencing negative GDP growth and high unemployment. Which fiscal policy action should the government implement in an attempt to fix this problem?

Which has LEAST LIKELY been the historical goal of the Federal Reserve's monetary policy?

Misha traveled to India and took $200 in U.S. currency. When Misha exchanged the $200 in India, she received about

An opportunity cost is

The graph is a production possibilities chart. Which of these might cause the line to move to the right?

These changes would MOST LIKELY have which impact on the market?

A firm conducted a market analysis and determined that a new worker should be hired. If the firm decided the price of the product will remain the same, what change should occur initially to maximize revenue?

If a government wanted to improve the productivity of its human resources it could

Bart has decided to buy some water balloons rather than get an extra milk at lunch. Choosing among economic alternatives is referred to as

Ken wants to purchase a new smartphone and knows it will cost him about $300. How much will he have to save a month if he wants to purchase the phone in five months?

Aiden is considering types of insurance to cover his newly-purchased home near a river. Aiden should MOST LIKELY research

In 1999, the U.S. announced trade sanctions worth $116.8 million, targeting goods from France, Germany, Italy and Denmark. The sanctions were in retaliation for a ban on U.S. hormone-treated beef by which organization?

Monetary policy is BEST described as

________ is the ability to repay a loan.

The value of the Dollar appreciates versus the Euro. Who will benefit?

How might monetary policy be used to combat inflation fears?

What is this list describing?

When the amount of output produced by a given amount of inputs increases, the MOST LIKELY result is

Of the following groups, who would be the most impacted by inflation?

According to the help wanted ad for a surgeon, how many years of experience will provide the LARGEST signing bonus?

The title of this article contains the term "trade barriers," which could refer to which of these?

Which occupation would be LEAST affected by inflation?

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

GDP (gross domestic product) is supposed to indicate economic health because it is supposed to rise when

What is one way the government CANNOT influence income redistribution?

Which of these is the largest component of part of the U.S. economy

In the business cycle, what always follows immediately after a contraction?

A technology company needs 10 workers experienced in a newly developed programming language. Plenty of applicants express interest in the job; however, only three have the necessary education and experience to complete the work. The remaining unemployed individuals are an example of ___ unemployment.

What effect does poor consumer confidence have upon the nation's economy?

The ___________ lag for fiscal policy is generally ______ than it is for monetary policy.

In 2008, many United States families received a tax rebate check from the Internal Revenue Service (IRS). Why were tax rebate checks distributed?

One way that individuals try to protect themselves agains the possibility of becoming unemployed is by maintaining an emergency fund, usually in a very liquid state, such as a savings account. How is such a fund threatened, if unemployment is accompanied by high inflation?

If the federal government runs an annual budget deficit,

Unemployment insurance, Welfare, Medicare, Medicaid, and Social Security are key components of

If the federal government spends more than it collects in revenue, then

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"?

The Federal Reserve institutes a tight monetary policy in order to reign in inflation. What is a likely consequence of such action?

What was the unintended consequence or outcome of this monetary policy?

The Prime Minister believes that if his idea is followed

A U.S. business buys new computers for its office workers from a U.S. computer manufacturer. The value of transaction would be included in which category of GDP?

How will a contractionary fiscal policy affect a budget deficit?

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

People who work in which of these perform tertiary economic activities?

What is the name of the "central bank" of the United States?

A way to measure the economy's performance is to measure categories of national

Taxes are a form of government revenue. Which of these is a tax source?

A short-term monetary policy action would MOST LIKELY

The process by which the government manages spending and taxes to influence the direction of the economy is

Farming and mining are examples of which type of economic activity?

Overall levels of income, employment, and prices are determined by the spending and production decisions of all of the following EXCEPT

Too much money chasing too few goods" is a common way use to describe what economic concept?

Which of these is primarily responsible for the control of the money supply in the United States?

Early Keynesian theorists developed the balanced budget multiplier, which suggests that an equal increase in government spending and tax revenue will boost aggregate demand by precisely the increase in the amount spent. How MIGHT governments fund programs in keeping with early Keynesian theorists?

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