Economics Final

When buyers will purchase exactly as much as sellers are willing to sell, what is the condition that has been reached?

• equilibrium

• supply and demand

• surplus

• excess demand

The struggle among sellers to attract consumers by offering the best products at the lowest prices is known as _ and best found in the _ economic system.

• competition; free enterprise

• voluntary exchange; socialist

• property rights; communist

• profit motive; free enterprise

What is the form you have to fill out to apply for college financial aid from the federal government?

• Government College Aid Form (GCAF)

• Federal Student Loan Application (FSLA)

• The Common Application (TCA)

• Free Application for Federal Student Aid (FAFSA)

Income Taxes

Social Security tax

Medicare tax

FICA

The taxes listed above are examples of

• national taxes

• regressive taxes

• state taxes

• local taxes

It is generally better for a person to buy a home that one can afford than to rent an apartment because they will

• have fixed insurance needs.

• avoid bankruptcy.

• lave a lower debt to credit ratio.

• build equity.

Easy and inexpensive to establish

More than one person contributes assets

The government does not dictate how they conduct business

Which type of business has these advantages?

• corporations

• monopolies

• partnerships

• sole proprietorships

How will the quantity demanded of gasoline be impacted by the price of gasoline?

• Price for gasoline remains constant as the demand increases.

• Demand for gasoline decreases as the price decreases.

• As the price of gasoline decreases, the quantity demanded increases.

• As the price of gasoline decreases, the quantity demanded decreases.

Under flexible exchange rates, trade deficits tend to correct themselves automatically through

• government subsidies

• price floors

• supply and demand

• price ceilings

In this type of economy, the people decide the supply, demand, and price.  

• Market 

• Traditional

• Command 

• Mixed

The amount of money a business makes after its expenses are paid

• profit

• supply

• demand

• scarcity