57. Which of the following best defines fiscal policy?

The use of government spending and tax policies to influence economic conditions

The regulation of interest rates to control inflation

The management of the money supply by the central bank

The establishment of laws and regulations to protect consumers

58. Which of the following describes the concept of fiscal policy being "well-targeted"?

It aims to address specific under-employed resources.

It focuses on broad, general measures that affect the entire economy.

It avoids intervention in any specific economic sector.

It prioritizes long-term projects over immediate needs.

59. Which fiscal policy tool is most likely to have an immediate impact on consumer spending?

Providing direct cash to households

Expanding long-term infrastructure projects

60. What are some reasons why it is difficult to reduce the federal budget deficit?

Voters don’t want higher taxes

Voters don’t want lower spending

62. Which of the following is NOT a way fiscal spending can be mis-targeted?

If it’s an automatic stabilizer

63. What is consumer surplus?

The difference between willingness to pay and the price

The difference between the price paid and the cost to produce

The total amount spent by consumers

The total revenue earned by producers

64. Which of the following is a likely consequence of implementing an effective price ceiling?

An increase in quality products

A decrease in non-price competition

65. Which of the following is true about the deadweight loss created by a price ceiling?

The deadweight loss represents the lost value of transactions that don’t occur due to the established maximum price.

The deadweight loss represents the extra transactions that occur due to a subsidy

The deadweight loss refers to the dead bodies that crop up due to black market transactions for price controlled goods.

The deadweight loss refers to the time producers lose because they overinvest in product quality.

66. Which of the following is TRUE about how a price ceiling impacts a market?

An effective price ceiling increases the quantity demanded.

An effective price ceiling decreases the quantity demanded.

An effective price ceiling increases the quantity supplied.

An effective price ceiling does not impact the quantity supplied.

68. Which of the following best describes a price floor?

A price floor establishes a minimum legal price for a good.

A price floor establishes a maximum legal price for a good.

A price floor establishes a minimum quantity sold for a good.

A price floor establishes a maximum quantity for export.

69. Suppose that the US implements an effective price floor on milk. Which of the following is true about milk purchases in the US?

Consumers will not change their milk consumption.

70. Which of the following reasons helps to explain why government price controls stick around?

Price controls disperse costs widely and generally benefit small, politically connected groups.

Price controls are economically efficient.

Price controls provide widespread benefits with costs concentrated on small, politically popular groups.

Governments never implement price controls.

71. Which of the following is true about price controls AND price ceilings?

Both price ceilings and floors generate deadweight loss.

Both price ceilings and floors improve allocative efficiency.

Both price ceilings and floors increase consumer surplus.

72. Price Ceilings will NOT cause which of the following?

An underground market to develop

73. Which of the following is a price control that will NOT affect the market price?

A price ceiling of $300 on iPhone cases when the market price is $50

A price ceiling of $0.01 on bread when the market price is $5

A price floor on sugar/lb. of $100 when the market price is $0.10

A price floor on bricks of $10 when the market price is $5

74. Which of the following is an example of a PRICE CEILING discussed in the unit?

Milk Price that led to cheese caves

79. In this unit, we learned about Spangler lollipops that moved their factory to Mexico. According to the CEO, why did Spangler do this?

To avoid a price floor on sugar

To avoid environmental regulations

80. Which of the following changes is consistent with the implementation of an effective price floor on tomatoes?

Quantity demanded stays the same, only quantity supplied is affected by the price floor.

81. Which of the following is true about BOTH price floors and price ceilings?

Both price floors and ceilings reduce the total number of voluntary transactions.

Both price floors and ceilings benefit producers at the expense of consumers.

Both price floors and ceilings benefit consumers at the expense of producers.

82. Which of the following policies is most likely to result in a shortage?

A $20 price ceiling on laptop computers

A $1 million price ceiling on diamonds

A $10 price floor on antibacterial hand soap

85. What does deadweight loss in a price ceiling represent?

The decline in quality of a good

The lost profits of inefficient producers

The lost wages of consumers from standing in line

86. What is mostly likely to happen to producer surplus when a $15 price floor is implemented on leather couches (the average price of leather couches is $2000)?

Producer surplus does not change

Producer surplus drastically increases

Producer surplus drastically decreases

89. Why is consumer surplus never negative?

Because transactions are voluntary

Because consumers always pay more than they value the product

Because producers set prices below consumer value

Because consumer surplus is calculated after discounts

90. How can the demand curve be used to understand consumer surplus?

It represents the maximum price consumers are willing to pay for each quantity

It shows the minimum price consumers are willing to pay

It indicates the total quantity sold

It reflects the cost of production

93. Producer surplus is _________.

the difference between price and cost

the total revenue minus total cost

the difference between willingness to pay and the price

95. Which statement is true about voluntary transactions?

They always generate both consumer and producer surplus

They always generate consumer surplus but not producer surplus

They never generate producer surplus

They always result in a loss for consumers

96. Brady values a car at $33,000, and the seller's cost is $28,000. If the seller's lowest price is $30,000 should Gonzalo buy it?

Yes, because his value is higher than the price

No, because the price is too high

Yes, because the seller's cost is low

No, because the seller's price is above his value

97. What is the relationship between willingness to pay and consumer surplus?

Consumer surplus is the difference between willingness to pay and price

Consumer surplus is always equal to willingness to pay

Consumer surplus is always greater than willingness to pay

Consumer surplus is unrelated to willingness to pay

98. Why is consumer surplus never negative in voluntary transactions?

Because consumers only buy when their willingness to pay exceeds the price

Because prices are always set fairly

Because consumers always make perfect decisions

Because sellers always offer discounts

99. How does the demand curve relate to consumer surplus?

It represents the maximum price consumers are willing to pay at each quantity

It has no relation to consumer surplus

It only shows the quantity demanded at each price

It always results in zero consumer surplus

Econ Final Exam Review 2

Authored by Daniel Hamilton

Social Studies

9th - 12th Grade

Used 6+ times

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View
Student View

50 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

50. Most billionaires hold their wealth in:

Stock

Income

Property

Art

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

51. Which of the following is a significant factor contributing to the growth of the US national debt?

Decreasing interest rates

Increasing federal budget surpluses

Persistent budget deficits

Decreasing healthcare costs

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

52. The annual shortfall in government revenues compared to government spending is called what?

Deficit

Debt

Interest

Crowding out

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

53. What is “crowding out” in the context of fiscal policy?

The reduction in private investment due to increased government borrowing and spending

The increase in consumer spending due to government stimulus

The decrease in government spending due to high inflation

The displacement of small businesses by large corporations

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

54. Which of the following is a potential downside of using fiscal policy during an economic downturn?

Increasing unemployment

Crowding out private investment

Reducing inflation

Decreasing consumer confidence

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

55. Which of the following is an example of a supply shock?

An unexpected drop in consumer spending

A natural disaster that disrupts production

An increase in government spending

A sudden change in tax policy

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

56. Fiscal policy is generally more effective in addressing which type of economic issue?

Long-term economic growth

Short-term downturns in aggregate demand

Structural unemployment

Supply-side constraints

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Microsoft

or continue with

Facebook

Apple

Others

By signing up, you agree to our Terms of Service & Privacy Policy

Already have an account?

Similar Resources on Wayground

54 questions

Psych 1- Research & Approaches

Quiz

•

11th - 12th Grade

50 questions

Unit 6- Renaissance, Reformation, Age of Exploration and the

Quiz

•

9th - 12th Grade

50 questions

Flags of the World!

Quiz

•

6th - 12th Grade

46 questions

AP Macro: MPC and the Multiplier

Quiz

•

11th - 12th Grade

53 questions

Honors Civics Chapter 3 Review

Quiz

•

9th - 12th Grade

47 questions

Unit 3 sensation perception

Quiz

•

10th Grade - University

45 questions

Latihan Soal PAS PPKn Kelas 9

Quiz

•

9th Grade

50 questions

World History Semester Exam

Quiz

•

10th Grade

Popular Resources on Wayground

10 questions

How much do you know about our Portrait of an Eagle?

Quiz

•

10th Grade

10 questions

Fast Food Slogans

Quiz

•

6th - 8th Grade

21 questions

Continents and Oceans

Quiz

•

6th Grade

20 questions

Parts of Speech

Quiz

•

5th Grade

16 questions

Subject & Predicate

Quiz

•

5th Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

12 questions

Map Skills

Quiz

•

3rd Grade

22 questions

Continents and Oceans

Quiz

•

5th Grade

Discover more resources for Social Studies

10 questions

Exploring the Age of Exploration: Key Events and Figures

Interactive video

•

6th - 10th Grade

17 questions

1.3 Review

Presentation

•

11th Grade

10 questions

Exploring the 13 Colonies Regions

Interactive video

•

6th - 10th Grade

8 questions

Smith Unit 5 Quick Check #1 Big Business, Monopolies &Technology

Quiz

•

11th Grade

46 questions

Unit 1 Test REVIEW Ancient Greece and Rome

Quiz

•

9th - 12th Grade

10 questions

Exploring Ancient Mesopotamia Through Song

Interactive video

•

6th - 10th Grade

27 questions

Supply & Demand Test Review

Quiz

•

12th Grade

36 questions

Unit 5 Key Terms

Quiz

•

11th Grade - University