Economics Final Exam Fun Part 1

Jimmy has several options for the weekend. His parents are having a cookout, but he also has been invited to a movie. He just got a text that his friends are gaming online this weekend too. He doesn't really want to see the movie, but doesn't want to disappoint his parents and loves hamburgers. His friends are depending on him, so he decides he will join them for online gaming. What is his opportunity cost?

• The movie and the cookout

• The movie

• The cookout

• The time he spent deciding

The Dodd-Frank Act was created to

• Insure deposits up to $250,000

• Protect people from unsafe lending practices

• Outlaw payday loan companies nationwide

• Protect people from discrimination in the housing market

FICA taxes include

• State and Federal Income Tax

• Medicare and Social Security

• Medicare, Social Security, Federal Income Tax

• Medicare, Social Security, State Income Tax, and Federal Income Tax

If the Federal Reserve (the Fed) wanted to combat inflation, it should

• Sell bonds, increase the reserve ratio, and increase the discount rate

• Buy bonds, decrease the reserve ratio, and decrease the discount rate

• Sell bonds, decrease the reserve ratio, and increase the discount rate

• Buy bonds, increase the reserve ration, and decrease the discount rate

A market structure that has low barriers to entry, many sellers, and identical products is

• an oligopoly

• a monopoly

• monopolistic competition

• perfect competition

In general, if the US were to put trade barriers in place

• people would enjoy access to more goods and services.

• people would face higher prices for some goods and services.

• domestic industries would go out of business.

• domestic industries would sue the federal government as they did in the 1960s.

If the US was suffering from a recession, and the government wanted to help fix the problem, it could

• raise taxes and increase its spending.

• raise taxes and decrease its spending.

• lower taxes and increase its spending.

• lower taxes and decrease its spending.

If the government establishes a price floor at PF, the result will be

• the market will return to equilibrium naturally over time.

• there will be an ongoing shortage.

• the market will switch from consumer goods to capital goods.

• there will be an ongoing surplus

Which of the following would create the change that is seen in the graph?

• Consumer income rises

• New technological advances impact the market

• The price of complementary goods declines

• Crops are destroyed

Which of the following measures inflation?

• Gross Domestic Product (GDP)

• Consumer Price Index (CPI)

• Unemployment Rate (UR)

• Dingonomics Indicator (DI)