Economics Final Review

GDP, CPI, unemployment rate and national debt are all what?

• Signs the economy is peaking

• Signs the economy is in contraction

• Economic indicators used to determine the state and direction of the economy

• Elements of monetary policy

Which of the following are responsible for making fiscal policy decisions?

• The president and Congress

• The Federal Reserve System

• The National Council of Economic Advisor

• The Commerce Department

When regions and nations specialize and trade, the result is

• An increase in the variety of goods, but a decrease in supply of goods

• An increase in the supply of goods, but a decrease in variety of goods

• An increase in both the supply and variety of goods

• A decrease in both the supply and variety of goods

The cost you pay for insurance coverage is called your

• Policy

• Deductible

• Coverage Limit

• Premium

Which of the following represents a transfer payment?

• The bank transfers $10 in quarterly interest to your savings account.

• Your employer transfers $100 each month from your wages to a non-taxable medical spending account.

• The government sends your grandfather his $3,500 Social Security check.

• You transfer $1,000 from your checking account to your savings account.

Which of the following results when federal government expenditures are less than the federal government’s total receipts?

• A trade surplus

• A federal budget deficit

• A negative balance of payments

• A federal budget surplus

When the U.S. dollar appreciates, U.S. consumers can

• Afford to buy fewer foreign products

• Afford to buy more foreign products

• Have to pay higher tariffs

• Impose more quotas

Tyler and Camille both live in Oklahoma. A new-car dealer in Oklahoma bought a new car from the manufacturer for $17,000 and sold it to Tyler for $20,000. Later that year, Tyler sold the car to Camille for $15,000. By how much did these transactions contribute to U.S. GDP for the year?

• $17,000

• $35,000

• $52,000

• $20,000

If the government’s fiscal policy is designed to end a recession, which action would Congress be MOST likely to take?

• Lower income taxes

• Raise income taxes

• Reduce government spending

• Raise the discount rate

The United States charges a tax of thirty cents on every dollar’s worth of foreign tennis shoes entering the country. Which type of trade barrier is this?

• Quota

• Non-tariff barrier

• It is not a trade barrier

• Tariff