Economics Final

Which of the following is THE basic economic problem?
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Which of the following is THE basic economic problem?
explaining how people deal with scarcity
When a nation's total output increases over time, the nation is experiencing ____.
economic growth
Which of the following descriptions best explains the meaning of opportunity cost?​
the cost of choosing one alternative over another
A nation's wealth is determined by its ____.
accumulation of all tangible products
Consumers waiting in long lines for a new product is an example of ____.
scarcity
Paradox of value refers to the ____.
high value of a nonessential item and the low value of an essential item
The efficient use of scarce resources leads to an increase in ____.
productivity
The most comprehensive measure of a nation's wealth is provided by its ____.
gross domestic product
When a business needs to decide whether a certain action is worth the cost, the most helpful analysis would be a(n) ____.
cost-benefit analysis
Which of the following statements best describes the purpose of the production possibilities curve?
it identifies all possible combinations of goods and services an economy can produce
The market structure called perfect competition is best described as ____.theoretical and a goalWhat is the main cause of a change in quantity demanded?change in priceWhat is the major difference between perfect competition and monopolistic competition?product differentiationWhat is the relationship between income and demand?An increase in income increases demand.When the price of something increases, the quantity demanded ____.decreasesWhich is an example of a public good?The armyWhich market structure is defined by a single producer?monopolyWhich of the following do economists use to classify markets?number of firms, size of firms, type of productWhich of the following replaces a costly item with a less costly one?the substitution effectWhich of these best describes the influence of high prices on the behavior of producers?They are an incentive for producers to produce more.Why is the Law of Demand called a "law"?because it has been demonstrated repeatedlyAccording to Keynesian economics, which sector of the economy could offset a decline in business spending?governmentEquilibrium is reached when what occurs?quantity demanded equals quantity suppliedFiscal policy may involve ____.taxing corporationsIn the economic term oligopoly, the root "olig-" probably means ___."few"It is generally believed that a sales taxhurts the poorThe Federal Income Tax system isEfficientWhich of the following groups does supply-side policy target through stimulation?Producers​"The most important source of state government revenue." "Primarily transferred from federal government to state governments." "The most important source of local government revenue." All of these statements are true ofintergovernmental revenueElementary schools, police departments, and electrical service are typically paid for bylocal governmentPolicies that make production more efficient are favored by ____.both supply-siders and demand-sidersPresident Reagan tried to reduce government spending by ____.lowering taxesThe government does not try to eliminate all monopolies. Why?Not all monopolies (such as natural monopolies) are bad.What level of government is most closely associated with zoning restrictions?localWhich of the following best identifies the incidence of individual income tax?workersApproximately what percent of all US banks are members of the Fed?40%During the Civil War, Congress enacted the National Currency Act, whichcreated a National Banking System, raised money for the Union, and created a national currencyHow does new money enter into circulation in the United States?It is distributed by banks, which get it from the Fed.In the early 1800s, currency in the United States was issued bybanksMost banks are establishedas corporationsPrinted on a Federal Reserve note is this statement: "THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE." This reflects money's function asa medium of exchange​The United States went on the gold standard in _____ and then went off the gold standard in _____.1900, 1933What are the Fed's three main tools for conducting monetary policy?the reserve requirement, open market operations, and the discount rateWhat do Fed member banks do with customer deposits?They keep a portion as legal reserves and loan out a portion at interestWhich agency manufactures US paper money?the US Bureau of Engraving and PrintingWhich of the following can cost you money in large interest payments?a credit cardWhich of the following is a DDA?a checking accountWhich of the following of fiat money?federal reserve noteWhich of these best describes the effectiveness of wage-price controls on inflation?They tend to be unsuccessfulWhich of these describes a general connection between the money supply and interest rates?A contraction of the money supply is associated with higher interest ratesWhich of these ensures that the US government does not own the Fed?Private national banks are required to purchase shares in the FedWhich of these interest rates is set by individual banks?the prime rateWhy is the Federal Open Market Committee considered the Fed's primary monetary policy-making body?it has the power to raise and lower interest ratesYou can easily carry money in a pocket or purse. This reflects what characteristic of money?portabilityYou pick up a $1 bill. What are you holding?currency, a Federal Reserve note, fiat moneyOne of the characteristics of a capitalist free enterprise economy isvoluntary exchangeThe economic system of the United States is considered afree market capitalist economyWhat kind of economy offers uniformity in wages regardless of individual productivity?command and socialist economiesWhich of the following is a disadvantage of a market economy?It sustains a high degree of uncertainty and doesn't provide for everyone's needsWhich of the following were a direct result of union activity?a higher rate of pay for overtime hours workedWhich statement describes a disadvantage of a command economy?Numerous consumer inconveniences are present____ protect consumers against harm from products on the market.government regulationsA general rise in the level of prices over time is known asinflationConsumers in a free enterprise economy ultimately determine ____ to produce.whatDuring the Great Depression, union promoters ____.renewed their efforts because hard times united workersEconomic equity means that is illegal to discriminate on the basis of age, sex, race, religion, ordisability​How is the principle of "There's No Such Thing As A Free Lunch" illustrated in a socialist economy?Socialist economies tend to offer extensive government services but have high tax ratesMarkets in the free enterprise system are seldom regulated bythe governmentThe four factors of production are land, labor, capital, andentrepreneursWhat have some states done to protect workers from adverse economic events such as layoffs and illnesses?They set up unemployment programsWhich of the following best expresses the idea that higher education often results in higher earnings?signaling theoryWhich of the following describes a move away from capitalism?the nationalization of major industries in Hugo Chavez's VenezuelaWhich of the following illustrates why the wage gap between women and men is discriminatory?glass ceilingWhich of the following is a term for a labor-dispute tactic used by neither unions nor management?seizureWhich of the following is largely responsible for the growth of a free enterprise system?profit motiveWhich of the following is most responsible for increases in the federal minimum wage?inflationWhich of the following tactics is used only by management?lockoutWhich of the following were the first types of unions formed in the United States?craft unions and industrial unionsWhich of these is an accurate statement about mixed economies today?there are more mixed economies in the world than any other kindWhich statement is the best explanation of the market theory of wage determination?a worker's pay rate is set by supply of and demand for that worker's skillsWho did Karl Marx believe would be the beneficiaries of socialism?workersWhy did Sweden move from socialism to a more mixed economy in the 1980s?Its citizens objected to the nation's high rate of taxationWhich best explains why a nation's GDP is an indication of its citizens' overall well-being?It gauges the number of voluntary economic transactions occurring in that nationWhat conditions stop the economy from growing and turn an expansion into a contraction?external shocksWhat type of unemployment occurred when the government closed military bases in the 1990s?structuralWhich of these are the two most significant causes of income inequality?differences in wealth and differences in educationa trend line is ____.a hypothetical graph line​During which decade were government assistance programs most effective at reducing the poverty rate?the 1960sHow are the effects of US inflation rates felt around the world?US inflation makes US exports more expensive overseas.How did business cycles change after World War II?Recessions became shorter and periods of expansion became longerWhat does a trough indicate?The GDP has stopped declining and has begun to increase.Which economic sector is not determined by measuring specific sources of income?the net foreign sectorWhich of the following is a form of instability that reverses economic growth?recessionWhich of the following is included in the unemployment rate?the jobless who made an effort to find a job during the past monthWhich of the following is not a cause of inflation?demand-pushWhich of the following is true about inflation?inflation tempts some people to speculate in an attempt to take advantage of rising pricesWhich of these foes a Lorenz curve compare?equal income distribution and actual income distributionWhich of these groups is most vulnerable to poverty?childrenWhich of these states a difference between personal income (PI) and disposable personal income (DPI)?PI is measures before taxes are taken; DPI is measured after taxes are taken.Which of these would economists count as a member of a household, but not part of a family?a single person with relatives who live elsewhereWhich of these was run by the states but later taken over by the federal government?Supplemental Security Income (SSI)Why would the sale of a secondhand car not be included in a calculation of GDP?the car does not represent new productionWhat lead to many of the struggles in Russia during the 1990s after the fall of the USSR?the transition from a socialist command economy to a free market capitalist economy19-country common market for eastern and southern AfricaCOMESAWhat is the measure of the value of one currency against another currency?exchange rateWhich of the following is true about exchange rates?they are floating and flexibleMany of the nations of Eastern Europe that were located behind the Iron Curtain made the transition from ____ to ____ during the 1990s.Communism to CapitalismAn Economic and Travel area made up of 28 European nations (soon to be 27) is known as the ____?European unionWhat is the common currency used by most of the nations of the EU?EuroWhich of the following is not an example of a capitalist economy?North KoreaWhich statement describes why the people in a nation with a command economy might resist a shift to a free market economy?The political leaders would not want to have to share power with voters and business owners when they have total control in a command economyIf the United States can produce more oil than Japan the United States is said to have a ____ over Japan.an absolute advantageWhat does it mean when we say that the dollar floats?the value of the dollar changes on a daily basis based on economic factorsWhat year did the dollar begin to float?1971How do trade-deficits correct themselves?the floating exchange rate of the dollarWhen President Trump speaks of imposing tariffs on foreign steel what does he mean?increasing taxes on steel imports into the United States.What kind of fund collects and invests income for later payments to eligible recipients?pension fundJunk bonds usually have low ratings because ____.they are high risk investmentsIn investing a bear market refers to ____.a stock market that is expected to decrease in the near futureWhich is not a type of business organization?stockholderA person who owns a share of stock is known asa stockholderMoney borrowed that is guaranteed only by a promise to repay it is known as a ____.unsecured loanThe price for an insurance policy is known as a ____.premiumA strategy of holding different kinds of investments to minimize risk is known as ____.portfolio diversificationWhich of the following is an advantage of a 401(k) plan?Employers can match the contributions of their employeesAll of the following are good ways to save money short term except a(n) ____.mutual fundA coupon rate isthe rate of return on a bondEvery student who wants financial aid mustcomplete the FAFSA application formWhich type of financial organization is a nonprofit service cooperative?credit unionWhat does a person who takes out a loan pay in addition to paying down the principal?interest