PFL & Eco Unit #1 Exam Review (2024 Version)

Veronica has been wearing a popular perfume for several years, and recently the price increased by $10. How will the price likely affect the quantity demanded and supplied?

• Supply will decrease, and demand will increase

• Supply will increase, and demand will decrease

• Supply will increase, and demand will stay the same

• Supply will stay the same, and demand will increase

The price of airline flights increased recently. Some economists suggest that the price increased because there has been an increase in the number of business travelers. If the economists are correct, it must be the case that:

• Demand decreased

• Demand increased

• Supply decreased

• Supply increased

Looking at the graph below, the equilibrium quantity is _____ and the equilibrium price is _____

• 175 bags and $0.60

• 185 bags and $0.40

• 210 bags and $0.50

• 350 bags and $0.80

Looking at the graph below, a surplus of 30 bags of chocolate covered peanuts exists if the price is _____ per bag.

• $0.60

• $0.70

• $0.80

• $0.90

When the demand for Halloween candy decreases after October 31st, what will happen to the price of the leftover candy?

• It will increase

• It will decrease

• No change

• It will double because candy is now rare

Income taxes are which type of tax?

• Progressive

• Proportional

Which of the following taxes are collected by state and local governments, but not by the federal government?

• Income tax

• Sales tax

• Social Security tax

• Medicare tax

Which one of the following is both a source of government revenue and government spending?

• Income taxes

• Social Security

• Tariffs

• Cryptocurrency

Contractionary fiscal policies address inflation and are intended to —

• Decrease the amount of money in circulation

• Increase the level of economic investment

• Increase the amount of money in circulation

• Decrease the level of economic investment

Federal Insurance Contributions Act (FICA) includes which of the following taxes?

• Food Stamp and unemployment benefits

• Medicare and Social Security

• Private medical insurance

• Cryptocurrency