Economics Final Review

Front

The Federal Reserve System conducts its business directly with

Back

the government and banks

Front

Monetary policies the Federal Reserve can adopt include all of the following EXCEPT: raising the discount rate, buying government bonds, lowering the reserve requirement, raising personal income tax rates.

Back

raising personal income tax rates

Front

Which of the following is primarily responsible for the control of the money supply? Options: the Federal Reserve System, the Federal Deposit Insurance Corporation, the United States Treasury, the Comptroller of the Currency

Back

the Federal Reserve System

Front

a tariff can BEST be described as which of the following: a law that sets a limit on the amount of a good that can be imported, a limit on the amount of imports, government payments to domestic producers to help them compete in world markets, a tax on an imported good

Back

a tax on an imported good

Front

All of the following are important factors in determining Credit Worthiness EXCEPT: marital status of the borrower, collateral available to back the loan, income capacity to repay the loan, repayment of previous loans.

Back

marital status of the borrower

Front

Which type of insurance would be MOST beneficial for a postman who was struck in the arm by a passing car but suffered no broken bones or permanent damage? Options: life, auto, disability, health

Back

health

Front

The fundamental problem of economics is

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the scarcity of factors of production relative to the unlimited wants of humans

Front

Which of the following is an example of an investment in human capital? a business trains a new employee, a state puts in a new highway, a country builds new bridges, a company builds a new factory

Back

a business trains a new employee

Front

In a command economy, providing public goods and services is an example of how a command economy pursues the broad social and economic goal of:

Back

equity

Front

The payments for land, labor, capital, and entrepreneurial ability respectively are

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rent, wages, interest, and profit