Economics Sp24 Semester Exam Review

The statement "the quantity demanded of a product varies inversely with its price" is a definition of 

• the law of demand. 
• the law of competition. 
• the invisible hand. 
• laissez-faire. 

The graph is a production possibilities chart. Which of these would be MOST likely to cause the line to move to the right? 

• improved technology in whoopee cushion production
• shortage of required resources 
• an increase in prices 
• higher labor costs 

According to this diagram showing the circular flow of goods and resources, where do individuals spend the income they earn? 

• in the product market 
• in the capital market 
• in individual households 
• in the factor market 

Columbia Tires and Pacific Tires together control 75% of the tire market in the country. This is an example of what type of market structure? 

• oligopoly
• perfect competition 
• monopolistic competition 
• monopoly 

Jorge and Fred have a product they would like to sell. They decide to share the risks and profits by forming an unincorporated business. The business organization Jorge and Fred have MOST LIKELY formed is a(n) 

• partnership. 
• corporation. 
• entrepreneurship. 
• sole proprietorship. 

Morgan is deciding between two loan offers. To determine which loan to choose, she should compare each loan's 

• annual percentage rate.
• average prime rate. 
• beacon score. 
• credit rating. 

In 2002, Canada, Mexico, and Japan were the largest trading partners of the United States. The respective order was MOST LIKELY due to 

• NAFTA. 
• ASEAN. 
• OPEC. 
• EU. 

The price of one nation's currency in terms of another nation's currency is called 

• the exchange rate. 
• fiscal policy. 
• monetary policy. 
• the discount rate. 

Which of these is MOST LIKELY to occur after the government increases taxes? 

• Consumer spending decreases. 
• Annual deficits increase. 
• The national debt increases. 
• Government programs decrease. 

Workers concentrating their efforts on a limited number of tasks, thereby increasing productivity is called 

• specialization. 
• entrepreneurship. 
• sequestration. 
• homogenization.