Econ Final Review

Which of these is the best way to improve your "Credit Score"?

• Opening 10 new credit cards.
• Paying your bills on time.
• Ignoring your debt.

In which economic system does the government make all the decisions?

• Market Economy
• Traditional Economy
• Command Economy

Inflation is defined as:

• A general rise in prices.
• A decrease in the money supply.
• When the stock market crashes.

What is a "Tariff"?

• A tax on imported goods.
• A limit on how many goods can come in.
• A gift to another country.

The Law of Demand says that when the price of a good goes UP:

• People buy more of it.
• People buy less of it.
• The quality gets better.

A "Premium" is:

• The amount you pay every month for insurance.
• The reward you get for not crashing.
• A type of gasoline.

What is the basic problem of economics where we have unlimited wants but limited resources?

• Inflation
• Scarcity
• Trade-offs

To fight high inflation, the Federal Reserve (the Fed) would usually:

• Lower interest rates.
• Raise interest rates.
• Print more money.

An "Embargo" is:

• A total ban on trade with a specific country.
• A tax on exports.
• A subsidy for farmers.

A "Rational Decision" is made when:

• The marginal benefit is greater than the marginal cost.
• The cost is higher than the benefit.
• You have no other choice.