Economics Final Exam Review

Front

Which direction will the demand curve shift to show an increase in demand? Options: Left, Upward, Right, Downward

Back

Right

Front

A tax on an imported good in order to protect domestic markets?

Back

Protective Tariff

Front

What type of market structure does the athletic shoe industry have, given that Nike, New Balance, and Adidas all produce athletic shoes, there are many producers, a lot of similar products, few barriers to entry, and firms have only some control over prices?

Back

monopolistic competition

Front

An oven at a bakery is an example of which factor of production?

Back

capital

Front

During times of economic boom, the Federal Reserve may see it necessary to actually slow the rate of economic growth. What is one way the Fed can do this?

Back

The Fed can raise the discount rate, making it costlier for banks to borrow and lend money.

Front

What is the process called when consuming more of a good leads to a decrease in satisfaction, as illustrated by eating multiple Hershey candy bars?

Back

Law of diminishing utility

Front

What type of unemployment does seeking employment after leaving college represent? Options: structural unemployment, seasonal unemployment, frictional unemployment, cyclical unemployment

Back

frictional unemployment

Front

As prices increase demand...

Back

decreases

Front

Based on the information that the United States can produce t-shirts more efficiently than any other country, but Indonesia can produce t-shirts at a lower opportunity cost, which of the following statements best explains what the U.S. should do with regard to t-shirt production?

Back

The U.S. should stop producing t-shirts because Indonesia has a lower opportunity cost, and therefore a comparative advantage over the U.S. in t-shirt production.

Front

Minimum wage rises to $11.00 per hour. This is an example of what supply shifter?

Back

Change in costs