Which major role is fulfilled by financial institutions? Options: conducting monetary policy, regulating financial markets, providing financial services to the government, reducing risk by investing in a variety of assets

reducing risk by investing in a variety of assets

Which statement is accurate about corporations in the United States? Options: Corporations are exempt from local sales taxes, Corporations have limited personal liability, Corporations have a single owner, Corporations are exempt from government regulation

Corporations have limited personal liability

A market structure based on pure competition benefits consumers because

there is more incentive to innovate than there would be with a monopoly.

If the US economy is in a recession, which fiscal policy might stimulate the economy? Options: the government can decrease income tax rates, the government can decrease its expenditures, the Federal Reserve can lower the federal funds rate, the Federal Reserve can lower the required reserve ratio

the government can decrease income tax rates

What should a national government do to speed recovery from a recession?

use expansionary fiscal policies, including decreasing taxes

When moving from a peak to a trough in the business cycle, an economy is likely to experience:

a decrease in inflation and an increase in unemployment

What result would most likely occur if a price ceiling of $3.00 per gallon was placed on gasoline at a point when it is selling for $3.60 per gallon?

A shortage of gasoline will happen in the market.

Which statement best reflects the economic viewpoint of John Maynard Keynes? Options: Private investment is the only factor for growing the economy, The government should use fiscal policies to stabilize the economy, Application of deregulatory policies is stabilizing for the economy, The government should take a laissez-faire approach for growing the economy

The government should use fiscal policies to stabilize the economy

Which of these is a major advantage of a market economy? Options: It can change direction rapidly as needed when markets change, There is a high degree of individual freedom, There is efficient government control of production and distribution, People are likely to be offered goods and services they cannot afford

There is a high degree of individual freedom

Consumers have power because they drive decisions about what to produce.

they drive decisions about what to produce

Which of the following statements best describes the purpose of the production possibilities curve? Options: It identifies all possible combinations of goods and services an economy can produce, It predicts the future production of a nation, It shows which products are most profitable, It identifies trends in production

It identifies all possible combinations of goods and services an economy can produce

Why is a demand curve downward sloping?

because quantity demanded increases as price decreases

Which of these results happen as a result of an increase in input costs? Options: a decrease in the price of that item, a leftward shift of that item’s supply curve, a rightward shift of that item’s supply curve, an increase in reliance upon government regulation

a leftward shift of that item’s supply curve

According to Adam Smith, competition is the "lifeblood" of a market economy because it

encourages more efficient use of resources & lower prices

Price ceilings, like rent control, most typically result in

shortage, where demand exceeds supply

Which company is best suited to be a natural monopoly? Options: Information technology company b/c of rapid change in industry, Sweater company b/c of highly competitive nature of the industry, Stock brokerage company b/c of the high human capital required, Local water company b/c of high initial fixed cost to provide the service

Local water company b/c of high initial fixed cost to provide the service

Which of these would most likely be hurt by unexpected inflation? retired people living on fixed incomes, union workers earning incomes with cost-of-living adjustments, borrowers who are paying fixed-interest mortgage loans, financial institutions lending money at adjustable-interest rates

retired people living on fixed incomes

Which statement best explains how natural monopolies can benefit society? Options: They lower prices by increasing competition, They increase the number of substitutes for a specific good, They meet demand where a large capital investment is required, They reduce the need for government regulation of an industry.

They meet demand where a large capital investment is required

In the short run, a firm will shut down under which condition? Total revenue is less than total cost, Marginal revenue is less than marginal cost, Total revenue is less than total variable cost, Average revenue is less than average fixed cost

Total revenue is less than total variable cost

Which condition increases the effectiveness of an expansionary monetary policy? Options: Consumer spending is less sensitive to changes in interest rates, Interest rates are less sensitive to changes in the money supply, Low interest rates don’t entice borrowers to take out loans, Investment demand is sensitive to changes in interest rates.

Investment demand is sensitive to changes in interest rates.

Which action will increase the money supply in the United States? Options: Congress cuts personal income taxes, Congress decreases federal spending, The Federal Reserve raises the target federal funds rate, The Federal Reserve lowers the target federal funds rate

The Federal Reserve lowers the target federal funds rate

Which statement best describes a positive externality? Options: A positive externality is a sign of a healthy market economy, A good that generates a positive externality benefits only the people who pay for it, A good that generates a positive externality results in greater benefits to society, A positive externality generates unintended consequences for a society

A good that generates a positive externality results in greater benefits to society

Which statement best reflects Adam Smith’s concept of the roles of competition and self-interest in the marketplace? Options: They lead to the creation of monopolies, They stimulate innovation & economic growth, They increase the aggregate demand for goods, They lead to higher production costs

They stimulate innovation & economic growth

HONORS ECONOMICS EOY REVIEW

Flashcard

•

Social Studies

•

12th Grade

•

Practice Problem

•

Hard

Wayground Content

FREE Resource

Student preview

50 questions

Show all answers

FLASHCARD QUESTION

Front

How can a firm engage in nonprice competition? Options: by reducing its variable cost of production, by raising the profit margins on its products, by extending free after-sale services to its customers, by lobbying the government to eliminate patents and licenses

Back

by extending free after-sale services to its customers

FLASHCARD QUESTION

Front

Where monopolistic competition exists, why would a firm differentiate its product from those of its rivals?

Back

to make the demand for its product more inelastic

FLASHCARD QUESTION

Front

Assume that the price for widgets is determined by market supply and demand. If each individual widget producer takes the market price as given and sells as many widgets as possible at that price, what would be the market structure for widgets?

Back

Perfect Competition

FLASHCARD QUESTION

Front

How do Federal Reserve purchases of U.S. Treasury bonds on the open market affect the money supply and interest rates in the United States?

Back

The money supply increases and interest rates decrease.

FLASHCARD QUESTION

Front

Why does the Federal Reserve implement monetary policy?

Back

to maintain stable prices and full employment

FLASHCARD QUESTION

Front

Firms buy labor from households in the _______ market; households buy goods and services from firms in the ________ market.

Back

factor; product

FLASHCARD QUESTION

Front

How do financial intermediaries play an important role in encouraging economic growth?

Back

channeling funds from savers to investors

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Similar Resources on Wayground

50 questions

300 TỪ HSK 3

Flashcard

•

University

43 questions

ACCOUNTING FOR REVENUE AND EXPENSES

Flashcard

•

University

46 questions

Hiragana Basics for Grade 12

Flashcard

•

12th Grade

45 questions

Legal Terminology Flashcards

Flashcard

•

12th Grade

49 questions

03_ObliCon

Flashcard

•

12th Grade

37 questions

Ôn tập Alkane, Alkene, Alkyne - Đề 1

Flashcard

•

11th Grade

40 questions

bioquimica primer parcial 2h

Flashcard

•

12th Grade

51 questions

Mercato Immobiliare

Flashcard

•

12th Grade

Popular Resources on Wayground

8 questions

Spartan Way - Classroom Responsible

Quiz

•

9th - 12th Grade

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

14 questions

Boundaries & Healthy Relationships

Lesson

•

6th - 8th Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

3 questions

Integrity and Your Health

Lesson

•

6th - 8th Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

9 questions

FOREST Perception

Lesson

•

20 questions

Main Idea and Details

Quiz

•

5th Grade

Discover more resources for Social Studies

38 questions

Unit 6 Key Terms

Quiz

•

11th Grade - University

10 questions

Boss Battle- Quizziz

Quiz

•

12th Grade

55 questions

Unit 12: World War I

Quiz

•

8th - 12th Grade

35 questions

Early Cold War Review

Quiz

•

9th - 12th Grade

20 questions

Legislative Branch review - Congress

Quiz

•

12th Grade

18 questions

USHC 6 1920s to Mass Advertising

Quiz

•

9th - 12th Grade

5 questions

10.2 Regional Development DOL

Quiz

•

9th - 12th Grade

23 questions

USHC 6 FDR and The New Deal Programs

Quiz

•

9th - 12th Grade