Final Review Fall 2021

What kind of market has only one large firm that supplies all of the output?

• Perfect Competition

• Monopoly

• Monopolistic Competition

• Oligopoly

According to the excerpt, world debt can be eliminated by-

• exploring and inspiring the public to make donations to space programs

• manufacturing more electronics for people to purchase for themselves

• returning financial favors that were acquired during the Space Race

• attaining commodity money in order to pay off financial obligations

What is the effect of inflation on the economy?

• Inflation increases trade between countries.

• Universally people stop using paper money.

• The purchasing power of the dollar decreases.

• The purchasing power of the dollar increases.

At the very top sits a Board of Governors. This includes seven governors who are

appointed by the President and confirmed by the Senate. Just below, rests a

network of 12 banks and 24 branches.

The excerpt above describes the –

• process used to pass new regulations

• structure of the Federal Reserve System

• organization of the financial aid center

• strategy to maintain a balance of trade

One function of money is to –

• eliminate greed between classes

• have several denominations

• serve as a medium of exchange

• be printed at the U.S. Mint

Which of the following conclusions can be drawn from the excerpt?

• The executive branch of government is not involved in making economic decisions.

• Leaders of opposing political parties work to protect one another’s legacies.

• The government creates and eliminates guidelines to promote economic growth.

• Federal agencies often times work together as a team to prevent hyperinflation.

Which group oversees the activities of the Federal Reserve?

• Board of Governors

• Federal Open Market Committee

• Securities and Exchange Commission

• Council of Economic Advisors

Which of the following best completes the chart?

• Higher interest rate than a standard checking or savings account.

• More interest is awarded to accounts with smaller balances.

• There is no minimum deposit to activate the account.

• No fees charged if money is withdrawn before the maturity date.

What financial liability does Sarah have after transitioning from renting a home to home ownership?

• She no longer needs to buy home insurance.

• She now pays lower utility bills than before

• She needs to pay a security deposit to the land lord.

• She is directly responsible for property taxes.

If the government increased spending without raising taxes the effect would be that the –

• unemployment would decrease

• budget deficit would decrease

• unemployment would increase

• budget deficit would increase