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WorksheetsEconomics Final
Total questions: 144
Worksheet time: 2hrs 56mins
Which of the following is NOT a function of money?
Store of value
Unit of account
Medium of exchange
Exchange of debt
This type of money does not have any intrinsic value and does not represent an asset in a vault.
Commodity money
Representative money
Fiat money
This type of money is considered legal tender and gets its value from the people's faith in the government.
Commodity money
Representative money
Fiat money
Where did the name 'greenback' come from?
Reference to the animal used for barter in earlier trade
The color of ink used on the back side of one of the earliest currencies in the U.S.
A term for the football team from Green Bay
A person who is new to trade
What is a fiat currency?
Currency backed by a gold standard
A currency used to purchase a car
A currency backed by a physical commodity
A currency that is declared a currency by the government, although not backed by a physical commodity
This program was set up to assure the public that the funds they deposited in member banks would be insured by the federal government if the bank failed. The original amount secured was $2,500.
National Industrial Recovery Act (NIRA)
Agricultural Adjustment Act (AAA)
Federal Deposit Insurance Corporation (FDIC)
Social Security Act
Based on the Required Reserves that Reserve Ratio must be
5%
10%
20%
19%
none of the above
Which of the following is not an entity of the Federal Reserve System?
Federal Reserve Banks
The FDIC
The Board of Governors
The Federal Open Market Committee
A share of value of a company which can be bought, sold, or traded as an investment
Stocks
401K Plans
S & P 500
The NASDAQ Composite
the largest exchange in the U.S., located in the New York City
NASDAQ
AMEX
S & P 500
NYSE
An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S & P 500 is designed to be a leading indicator of the U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe
NYSE
The James and Tuttle 500
AMEX
S & P 500
A market capitalization weighted index of the more than 3,000 common equities listed on the Nasdaq stock exchange. The types of securities in the index include American depositary receipts, common stocks, real estates investment trusts (REITs) and tracking stocks. The index includes all NASDAQ listed stocks that are not derivatives, preferred shares, funds, exchange-traded funds (ETFs) or Debentures.
DJIA
NYSE
The NASDAQ Composite
AMEX
DJIA
A market capitalization weighted index of the more than 3,000 common
equities listed on the Nasdaq stock exchange. The types of securities in the
index include American depositary receipts, common stocks, real estates
investment trusts (REITs) and tracking stocks. The index includes all NASDAQ
listed stocks that are not derivatives, preferred shares, funds,
exchange-traded funds (ETFs) or Debentures.
An index of 500 stocks chosen for market size, liquidity and industry
grouping, among other factors. The S & P 500 is designed to be a leading
indicator of the U.S. equities and is meant to reflect the risk/return
characteristics of the large cap universe
Shares in a company whose earnings are expected to grow at an above-average rate relative to the market
The Dow jones Industrial Average is a price weighted index of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DIJA was invented by Charles Dow back in 1896.
Which economic system is based off of "laissez-faire economics"?
Communism
Socialism
Capitalism
Factory
Entrepreneurship
Capital
Labor
production
How are trade-offs and opportunity costs different?
The opportunity cost is the most desirable trade-off.
A trade-off is the most expensive opportunity cost.
A trade-off can be put on a decision-making grid, but an opportunity cost cannot.
It's more important to be aware of the trade-off when deciding something.
Butter and oil are considered:
immaterial goods
free goods
durable goods
non-durable goods
-Silent Partner provides capital
-Silent Partner enjoys limited input
-No separation between owner and business
-Unlimited personal liability
-Governed by Board of Directors
-CEO, COO, CFO
-Stocks sold to raise capital
-Unlimited Personal Liability
-No separation between owners and business
-Silent Partner provides capital
-Silent Partner enjoys limited personal liability
Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.
Sole Proprietorship
Partnership
Corporation
Limited liability company
Advantages of this business include: easier to get money from the bank to start, share skills and share risks.
Sole Proprietorship
Partnership
Corporation
Limited liability company
a business combination merging more than three businesses that produce unrelated products of services
merger
horizontal merger
conglomerate
multinational corporation
A ____ combines firms that operate at different stages in the production of a good.
conglomerate
vertical merger
horizontal merger
cooperative
A legal entity formed to carry out a "non-for-profit" mission is a
cooperative
nonprofit organization
conglomerate
franchise
The biggest advantage of a "corporation" business structure is
expensive startup costs
low monetary rewards
different tax treatment
limited liability for the stockholders
What business structure is the easiest to start?
partnership
sole proprietorship
partnership
corporation
Which market structure has only one seller and they control the overall market and options for consumers.
monopoly
perfect competition
the purge
oligopoly
Which of these markets usually offers the lowest prices for consumers?
oligopoly
monopoly
command economy
perfect competition
In a cash flow statement depreciation is deducted from profit because it is a non cash expense
False
True
A cash flow is useful for
Informing the business about its profits
Helping the business see where cash shortages may occur
Seeing the flow of cash from the business to the bank
Choosing the best method of finance to expand the business
What is the business consolidation that occurs between firms that operate in the same industry?
Non-profit Organization
Conglomerates
Horizontal Merger
Vertical Mergers
What is a private business organization that is owned and controlled by the people who use its products, supplies or services.
a Together Project
Joint Venture
Cooperative
An Agreement to Work Together
A ______________ is a type of business formed for the purpose of some positive or altruistic task or outcome.
corporation
sole partnership
non-profit
The type of business owned by stockholders and run by a Board of Directors is a
sole proprietorship
multinational vertical merger
corporation
A multinational corporation only has one facility.
TRUE
FALSE
What is a multinational corporation?
corporations that operate in more than country but are based in one country
corporations that operate in one country only
corporations that have global income of more than $1 billion
corporations that only operate in countries outside of the country they are based in
This describes the combining of companies involved in different steps of the production process.
vertical merger
horizontal merger
reserved merger
general merger
What are Identical Products?
Any factor that makes it difficult for a new firm to enter a market
A market structure that does not meet the conditions of perfect competition
Products that are different in every way
No differences between the products sold by different suppliers
How do produces create informed buyers?
Products that are different in every way
Any factor that makes it difficult for a new firm to enter a market
The market provides the buyer with full information about the product’s features and price
No differences between the products sold by different suppliers
The law of demand states?
As price decreases quantity demanded increases
As price decreases quantity demanded decreases
As price increases quantity demanded increases
As price increases quantity demanded remains unchanged
A change in the quantity demanded occurs when?
consumers decide to purchase a greater or lesser quantity of a product due to A CHANGE IN PRICE!!!!
consumers decide to purchase a greater or lesser quantity of a product due to a change in incomes
consumers decide to purchase a greater or lesser quantity of a product due to a change in tastes
consumers decide to purchase a greater or lesser quantity of a product due to a change in expectations
The cause of a change in the quantity demanded is?
A change in taste
A change in habits
A change in diapers
A change in price
Graphically, a change in the quantity demanded is represented by?
Shift of the entire demand curve to the left
Shift of the entire demand curve to the right
From one point to another point along the same demand curve
From X to Y axis on the same supply curve
Peanut butter and jelly are what types of goods
substitutes
complements
yummy
yucky
2 products that you use together are?
substitutes
complements
ying and yangs
coke and pepsi
items that you can use to replace another product are
substitutes
complements
merit goods
private goods
Which of the following measures the responsiveness of producers to a price change?
Marginal cost
Elasticity of supply
Equilibrium
If the cost of inputs increases
quantity demanded decreases
demand decreases
quantity supplied decreases
supply decreases
Advertising
Changes consumer expecatations
lowers the cost of inputs
changes producer expectations
changes consumer taste and preferences
If the number of producers in a market increases
quantity demanded increases
demand increases
quantity supplied increases
supply increases
If the number of producers in a market increases
quantity demanded increases
demand increases
quantity supplied increases
supply increases
If technology makes things easier to produce then supply will
increase
decrease
stay the same
move along the supply curve
If a producer expects the price to increase
supply will increase in the short run
supply will decrease in the long run
demand will decrease in the short run
supply will decrease in the short run
