NEW
Font size
WorksheetsMalcom Econ Final
Total questions: 45
Worksheet time: 23mins
Juliette lost her job as a soda bottler to a robot. What kind of unemployment is this?
frictional
structural
seasonal
Define economics
How people deal with investment alternatives
How people deal with the problem of scarcity
How the government controls the money supply
Does the GDP count finished, new goods that are sold?
yes
no
Does the GDP count raw materials?
yes
no
Does the GDP count illegal economic activity?
yes
no
.Does the GDP count USED goods? (like used cars or things sold at a garage sale?)
yes
no
Who is hurt most by inflation?
Households with debt
Workers in growth industries
People on a fixed income
When investing $$, it is best to choose a VARIETY of assets. This is called
Net asset value
Rate of return
Diversification
Why does a market economy function well?
Because of central planning
Because of the voluntary exchange between buyers and sellers
Because of the stock market
Profit =
Price x quantity
Rent + wages + interest
Total revenue - total cost
Which of these make economic growth happen?
Government increases taxes
Consumers stop buying luxury items
Businesses purchase new equipment for their businesses
What is a benefit of having a high credit score?
You can borrow $ at a higher interest rate
You can borrow $ at a lower interest rate
You don’t have to purchase bonds
Making the BEST use of resources is the primary economic goal. What is this called?
equity
competition
Efficiency
In a market economy, what determines the equilibrium price?
Interaction of supply and demand
Cost of factors of production
Decisions of producers
What is the source of value for US money?
Commodity
Credit
Fiat
In a market economy, profits should motivate businesses to do what?
Act in a socially responsible manner
Produce what consumers demand
Use more expensive resources
What can the Fed do to slow down / put the brakes on inflation?
Increase the money supply
Decrease the money supply
Raise taxes
The US Gross Domestic Product (GDP) is
Always the same as the Gross National Product
The total value of all products within a country’s borders
The $$ amount of all worker salaries in the US
What is a tariff?
Tax paid on luxury items
Tax paid on items imported from other countries
Tax paid on social security
What does the Consumer Price Index (CPI) measure?
Total output
Unemployment
Inflation
One characteristic of our free-enterprise system is:
Private property rights
Government-owned businesses
Central planning
A change in demand can be caused by
An increase in import taxes
Improved technology
Change in the price of related goods
An example of a government transfer payment?
Interest payments
Dividend payments
Social security payments
What are 3 good criteria for choosing financial investments?
Size, taxes, risk
Risk, return, liquidity
Collateral, liquidity, dividends
“Let the people do as they please” or “hands off” is an economic theory called what?
Surplus value
Laissez-faire
Totalitarianism
When the required reserves goes UP, what happens to the bank’s ability to loan out money? (in other words, the bank must keep more of their money in their vault)
The bank can moderate their money
The bank can loan more money
The bank can loan less money
The effects of free trade include:
Less variety of goods
Less efficient production
Higher standard of living
The result of competition is
Lower prices and better quality
Higher prices and few choices
Higher prices and more choices
When tax revenues are greater than government expenditures, we have a
Debt
Maturity
Surplus budget
The term that describes competition in an industry is
Market structure
Tax bracket
Business firm
Supply-side policies are designed to solve the problem of stagflation.
Stagflation is:
High inflation and high unemployment
Low inflation and high unemployment
High inflation and low unemployment
Which theory says that Demand drives the economy and should be the focus of economic policy?
Socialism
Keynesian
Bullnomics
When the government spends LESS than it brings in, what is it called?
Budget recall
Budget deficit
Budget surplus
When the government spends MORE than it brings in, what is it called?
Budget recall
Budget deficit
Budget surplus
Federal revenue comes from
Property tax
Tariffs
Personal Income tax
When the Fed makes decisions about the money supply, what is it called?
Fiscal Policy
Monetary Policy
Central planning
What is it called when the government makes policies to stabilize the economy?
Fiscal policy
Monetary policy
Central planning
When the government pays money to a producer to ease the burden of production, what is it called?
Aggregate supply
Disequilibrium
Subsidy
When price controls are implemented, the minimum price that can be charged is
Price floor
Equilibrium
Price ceiling
When price controls are implemented, the maximum price that can be charged is
Price floor
Equilibrium
Price ceiling
S.C.E.N.T. explains the reasons why _______________ changes
supply
demand
efficiency
P.Y.N.E.R. explains the reasons that _______________ changes
supply
demand
efficiency
The amount of goods that a producer is willing to sell is
supply
demand
equilibrium
The amount of goods that a consumer is willing to buy is
supply
demand
equilibrium
Who really pays the cost of a tariff?
consumers
retailers
Government of the exporting nation
