Economics Final Review Vocab Quizs

What is a conglomerate?

• A type of investment fund that specializes in real estate.

• A large corporation made up of different companies in various industries.

• A small business that operates in a single market.

• A government agency that regulates trade.

What are normal goods?

• Goods that are always in demand regardless of income.

• Goods for which demand decreases as income increases.

• Goods for which demand increases as income increases.

• Goods that are considered luxury items.

What happens when the Fed lowers interest rates?

• Borrowing and spending increase.

• Inflation decreases significantly.

• Unemployment rates rise.

• Consumer confidence drops.

What is GDP per capita?

• GDP divided by the population, measuring average income.

• Total economic output of a country.

• The total income of the richest citizens.

• A measure of a country's total wealth.

Which market structure has the most competition?

• Monopolistic competition

• Oligopoly

• Perfect competition

• Monopoly

What are negative externalities?

• Costs imposed on third parties not involved in a transaction.

• Benefits received by third parties not involved in a transaction.

• Costs incurred by the parties involved in a transaction.

• Increased profits for businesses involved in a transaction.

Who is the current Chairperson of the Federal Reserve?

• Jerome Powell

• Janet Yellen

• Ben Bernanke

• Alan Greenspan

What is collusion?

• When firms work together to set prices or output.

• A legal agreement between companies to share resources.

• A strategy to increase competition among firms.

• A method for firms to independently set their prices.

What is monetary policy?

• The control of the money supply and interest rates by the Federal Reserve.

• A strategy to increase government spending and reduce taxes.

• A method to regulate foreign exchange rates and trade balances.

• A framework for setting fiscal budgets and managing public debt.

What is efficiency in production?

• Producing the maximum possible output from available resources.

• Minimizing costs while maintaining quality.

• Increasing the number of workers to boost output.

• Using the latest technology regardless of cost.