Economics Concepts Final Review Flashcard

Front

Which of the following best describes the law of demand? As the price of a good increases, the quantity demanded increases., As the price of a good decreases, the quantity demanded increases., As the price of a good increases, the quantity demanded remains constant., As the price of a good decreases, the quantity demanded decreases.

Back

As the price of a good decreases, the quantity demanded increases.

Front

In a perfectly competitive market, which of the following is true? Firms are price makers. There are significant barriers to entry. Products are differentiated. Firms are price takers.

Back

Firms are price takers.

Front

Which of the following is a tool of monetary policy? Government spending, Taxation, Open market operations, Subsidies

Back

Open market operations

Front

If the government increases its spending, what is the likely short-term effect on aggregate demand?

Back

Aggregate demand will increase.

Front

Which of the following is considered a lagging economic indicator? Stock market returns, Unemployment rate, New housing starts, Consumer confidence index

Back

Unemployment rate

Front

What happens to the supply curve when there is a technological advancement in production?

Back

The supply curve shifts to the right.

Front

Which market structure is characterized by a single seller?

Back

Monopoly

Front

What is the primary goal of contractionary fiscal policy?

Back

To decrease inflation

Front

Which of the following is a characteristic of an oligopoly? Many small firms, No barriers to entry, Few large firms, Homogeneous products

Back

Few large firms

Front

If the central bank wants to decrease the money supply, which action might it take? Options: Lower the reserve requirement, Buy government securities, Decrease taxes

Back

Raise the discount rate