NEW
Font size
Worksheets4.06 Econ Review
Total questions: 25
Worksheet time: 50mins
If unemployment increases to record levels (more people do not have job), the economy is in...
a peak
contraction
expansion
a summit
An example of a natural monopoly product is...
a car
a banana
gasoline
electricity service
Imagine that this graph represents the equilibrium price for strawberries. What will happen if the price is set at the level of point B?
shortage of strawberries
surplus of strawberries
price will rise to meet equilibrium
price will fall to meet equilibrium
Which of the following is NOT a reason that the government creates laws to regulate business practices?
to raise tax revenue
to stabilize prices
to keep unemployment low
to promote economic growth
The federal reserve meets in...
New York City
Boston
Chicago
Washington, D.C.
What part of the Federal Reserve has the most impact on the money supply?
Federal Open Market Committee
Federal Reserve Regional Bank
Board of Governors
Member Banks
When the price for an item is set above the equilibrium price, what is most likely to happen?
a surplus
a shortage
economic loss
economic growth
American consumers benefit from Federal Reserve oversight because they...
want prices to stay low
often borrow more money than they can pay back
prefer to pay fewer taxes
trust banks to keep their money safe
Credit unions differ from member banks because they...
are exempt from government oversight
are not regulated
do not have stock in Federal Reserve Banks
serve customers all over the nation
If the economy is operating at point B, the U.S. Congress is most likely to enact...
expansionary fiscal policy
contractionary fiscal policy
expansionary monetary policy
contractionary monetary policy
How does the U.S. government promote economic growth?
decreasing taxes and spending
decreasing taxes and increasing spending
increasing taxes and spending
increasing taxes and decreasing spending
How are national debt and deficit related?
the national debt is made up of deficits
the national debt is the sum of state deficits
a deficit is the sum of national debts
a deficit is money owed to state by the federal government
Which of the following could happen as a result of decreased federal spending?
advances in NASA's space program
fewer social programs
increased national debt
increased government regulation
Which of the following is NOT a result of the federal government spending more than it earns?
budget deficits
increased national debt
increased taxes
budget surpluses
Which of these is necessary to balance the annual budget?
revenue greater than spending
revenue less than spending
revenue equal to spending
no national debt
Which of the following terms means "laws that control businesses?"
monetary policy
fiscal policy
regulations
price stability
GDP stands for...
Gross Domestic Product
Gross Daily Profit
Government Deregulation Policy
Growth Dividend Pricing
What phase is the economy in if GDP and inflation are increasing and unemployment is decreasing?
expansion
contraction
peak
trough
Each full business cycle usually takes around...
10-20 years
90-100 years
6-8 months
3-5 years
What do economists call a period where both inflation and unemployment are high?
stagflation
peak
contraction
expansion
The minimum wage is an example of...
price control
stagflation
surplus
equilibrium price
Members of the Federal Reserves Board of Governors get their jobs by...
election
presidential appointment
being the CEO of a member banks
The total money available in the national economy is called...
money supply
surplus
GDP
budget
Which of these is NOT a tool of monetary policy?
discount rate
reserve requirement
open market operations
raising taxes
Inflation is rising and the sale of new cars is down nationwide. How would the Federal Reserve change the reserve requirement to address this problem?
increase the reserve requirement
decrease the reserve requirement
changing the reserve requirement would not impact this situation
