Civics Final Review Part 5

What is the basic question for all economic systems?

• What goods will be produced

• How goods will be distributed

• Who will produce the goods

Why does the unemployment rate for migrant workers fluctuate throughout the year?

• Farm work is seasonal

• Changes in technology

• Economic downturns

• Policy changes

Which federal agency regulates false advertisement?

• Federal Trade Commission

• Consumer Financial Protection Bureau

• Federal Communications Commission

• Securities and Exchange Commission

What is the effect of inflation?

• Cost of borrowing increases

• Decrease in money value

• Increase in unemployment

• Reduction in exports

What is a type of monetary policy meant to stimulate the economy?

• Buying bonds on the open market

• Increasing taxes

• Reducing government spending

• Raising interest rates

What is the main function of the Federal Reserve system?

• Lends financial resources to banks

• Prints currency

• Manages national debt

• Regulates stock markets

What is the relationship between wants and needs?

• Resources are scarce

• Wants are unlimited

• Needs are basic necessities

• Wants can become needs

What is a trade off?

• Spending less on one thing so that you can spend more on another

• Exchanging goods internationally

• A decrease in economic activity

• A compromise in a negotiation

How does technology affect the production of a good?

• Enables manufacturers to lower cost

• Increases the use of manual labor

• Reduces the quality of products

• Decreases production speed

What happens when the price of a product rises?

• New suppliers will enter the industry

• Demand for the product decreases

• The product is discontinued

• Government intervention increases