Economics Final Exam

What should a government do to ensure that money continues to flow through an economy at an appropriate level?

• Implement monetary policies

• Decrease taxes

• Reduce government spending

• Encourage imports

The movement from Point A to Point B represents a(n)

• increase in the price.

• decrease in the quantity supplied.

• shift in the supply curve.

• Both Orange and Blue are correct.

Which of the following would not shift the supply curve for iPhones?

• an increase in the price of iPhones

• a decrease in the number of sellers of iPhone

Which phrase could be used to describe a PPC shifting outward?

• Resources wasted or idle

• New technologies

• Inefficient use of resources

• A decrease in demand for a product

Which body of governance is in charge of monetary policy?

• The Federal Reserve

• The US Congress

• President and Vice President

• Local Government and Municipalities

What ways/actions of fiscal policy can be taken to influence the economy?

• Increasing government spending and decreasing taxes

• Decreasing discount rates for banks

• Maintaining the money supply

• Implementing high reserve requirements

Which of the following is a way/action of monetary policy that can be taken to influence the economy?

• Increasing government spending

• Adjusting interest rates

• Implementing tax cuts

• Regulating trade policies

Which option is not a way which the Federal Reserve manages the money supply?

• Open Market

• Increasing Government Spending

How are the Federal Reserve Chairs selected and for how long?

• Voted in by Top 500 Corporations, for life.

• Appointed by the President for 12 years

• Appointed by the Treasury Secretary for 14 years

• Appointed by the President, Senate approval for 4 years

How does the Reserve requirement impact the supply of money in the economy?

• The higher the reserve requirement the more money to loan.

• No impact

• The lower the reserve requirement the more money to loan.

• The lower the reserve requirement the less money to loan.