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WorksheetsUnit 2 EPF
Total questions: 23
Worksheet time: 1hrs 27mins
What happens when The Fed raises Reserve Requirement?
Less funds for banks to give out so high interest rates
More funds for banks to give out so high interest rates
Less funds for banks to give out so low interest rates
none of these are right
When federal government jobs increase _____________
What happens during a recession?
GDP decrease
GDP increase
Unemployment raises
Unemployment decreases
the lowest point when the economy stops falling is __________
What is a tariff?
tax on imports
tax on exports
stopping trade with other countries
reason for outsourcing of jobs
What is the government trying to end when it buy bonds and bill back from the smaller banks?
increase money supply
lower interest rates
decrease money supply
increase interest rates
Many people did not like NAFTA due to (a)
Country 1: Makes 6000 computers in an hour and 200 cars in an hour
Country 2 Makes 1000 computers in an hour and 3000 cars in an hour
What should country 1 do with comparative advantages?
specialize in computers and sell them to country 2
specialize in cars and sell them to country 2
keep producing like they are
Put an embargo on Country 2's computer production
All resources are scarce. What does that lead too?
Countries having to trade to get products they need and want
Free trade organizations lead to specializaiton and (a) prices
What is the federal government role in the economy?
The federal government plays a significant role in the economy by keeping workers safe and economy stable
OCHA helps with worker
(a)
Embargos and travel restrictions are types of ______ , which are used on_______ countries
Why does an economist create a market demand schedule?
to learn what demands the market will make under unusual conditions
to have an idea of how a market would change if conditions in an area changed
to show how various conditions can change the demand for a good
to predict how people will change their buying habits when prices change
If prices rise and income stays the same, what is the effect on demand?
More goods are bought.
Fewer goods are bought.
Demand stays the same.
More is bought of some goods and less of others.
Why is the demand for milk inelastic?
It is considered a necessity, not a luxury.
It is considered a luxury, not a necessity.
There are many substitutes for milk.
Buying milk takes a large portion of income.
Which of these best describes a supply curve?
It always falls from left to right.
It rises if supply is elastic.
It falls if supply decreases.
It always rises from left to right.
Why does a government place price ceilings, such as rent control, on some “essential” goods?
to prevent inflation during boom times
to keep goods from becoming too expensive
to reduce demand for these goods
to keep business people from making large profits
When is a market at equilibrium?
when unsold goods begin to pile up
when quantity demanded equals quantity supplied
when prices equal the cost of production
when suppliers begin to reduce prices
Suppose the market for the magazine in the graph above is in equilibrium. Some students insist on raising the cover price by $1 and printing the same quantity. What is likely to happen?
The demand for the magazine will go up.
There will be a surplus of magazines.
There will be a shortage of magazines.
There will be a shortage of 150 magazines.
What happens when the government imposes more taxes on a company?
It will cost them more to produce goods so the supply will go down.
It will cost them less to produce goods so the supply will go up.
It will cost them more to produce goods so the supply will go up.
It will cost them less to produce goods so the supply will go down.
What is the original amount of money invested or lent called?
(a)
Jim borrowed money and now has to pay it back regularly at a particular rate. What is this called?
Principal
Interest
Maturity
Rate
