Economics Final Exam Review

A local government wants to install turning lanes at a busy intersection. To do this, the government needs to take small pieces of the properties on each side of the intersection to widen the road. This is an example of?

• eminent domain

• confiscation of property

• protection of private property

• taxation without representation

Which direction will the demand curve shift to show an increase in demand?

• Left

• Upward

• Right

• Downward

The price that a company charges for a new TV can do all of which of the following things for the company?

• helps the company allocate its resources most efficiently

• creates incentives to produce more or fewer TVs

• all of the above

• helps the company respond to supply and demand

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

• Import Quota

• Voluntary Import Restraint

• Embargo

• Protective Tariff

A recent sales tax levied on soda and sugary drinks in the city of Philadelphia is an example of what type of tax?

• regressive tax

• flat tax

• progressive tax

• proportional tax

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

• perfect competition

• oligopoly

• monopoly

• monopolistic competition

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

• labor

• entrepreneurship

• natural resource

• capital

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?

• The Fed can lower the discount rate, opening up more money to lenders.

• The Fed can print more money to increase the money supply.

• The Fed can buy government bonds to increase the money supply.

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

You love Hershey candy bars. You decide to eat one and it is fantastic! You decide to eat a second candy bar and it still very good. However, you then eat your sixth candy bar and you are feeling a bit sick and regretting it. What is this whole process called?

• Law of diminishing utility

• Low utility

• Opportunity cost

• High utility

In a few years, you may leave college and seek employment you are unemployed! What type of unemployment does this represent?

• structural unemployment

• seasonal unemployment

• frictional unemployment

• cyclical unemployment