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Unit 2 EPF

Total questions: 23

Worksheet time: 1hrs 27mins

Name
Class
Date
1.

What happens when The Fed raises Reserve Requirement?

a)

Less funds for banks to give out so high interest rates

b)

More funds for banks to give out so high interest rates

c)

Less funds for banks to give out so low interest rates

d)

none of these are right

2.

When federal government jobs increase _____________

a)
taxes decrease
b)
taxes increase
c)
nothing changes
3.

What happens during a recession?

a)

GDP decrease

b)

GDP increase

c)

Unemployment raises

d)

Unemployment decreases

4.

the lowest point when the economy stops falling is __________ ​

a)
peak
b)
point
c)
trough
d)
valley
5.

What is a tariff?

a)

tax on imports

b)

tax on exports

c)

stopping trade with other countries

d)

reason for outsourcing of jobs

6.

What is the government trying to end when it buy bonds and bill back from the smaller banks?

a)

increase money supply

b)

lower interest rates

c)

decrease money supply

d)

increase interest rates

7.

Many people did not like NAFTA due to (a)  

8.

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?

a)

specialize in computers and sell them to country 2

b)

specialize in cars and sell them to country 2

c)

keep producing like they are

d)

Put an embargo on Country 2's computer production

9.

All resources are scarce. What does that lead too?

a)
Unlimited resources for everyone
b)
No need for prioritizing resources
c)
Equal distribution of resources for all
d)

Countries having to trade to get products they need and want

10.

Free trade organizations lead to specializaiton and (a)   prices

11.

What is the federal government role in the economy?

a)
The federal government has no role in the economy
b)
The federal government only focuses on social issues and not the economy
c)

The federal government plays a significant role in the economy by keeping workers safe and economy stable

d)
The federal government's role in the economy is limited to providing financial aid to individuals
12.

OCHA helps with worker ​

(a)  

13.

Embargos and travel restrictions are types of ______ ​ , which are used on_______ ​ countries

a)
sanctions
b)
hostile
c)
tariffs
d)
friendly
e)
3rd world
14.

Why does an economist create a market demand schedule?

a)

to learn what demands the market will make under unusual conditions

b)

to have an idea of how a market would change if conditions in an area changed

c)

to show how various conditions can change the demand for a good

d)

to predict how people will change their buying habits when prices change

15.

If prices rise and income stays the same, what is the effect on demand?

a)

More goods are bought.

b)

Fewer goods are bought.

c)

Demand stays the same.

d)

More is bought of some goods and less of others.

16.

Why is the demand for milk inelastic?

a)

It is considered a necessity, not a luxury.

b)

It is considered a luxury, not a necessity.

c)

There are many substitutes for milk.

d)

Buying milk takes a large portion of income.

17.

Which of these best describes a supply curve?

a)

It always falls from left to right.

b)

It rises if supply is elastic.

c)

It falls if supply decreases.

d)

It always rises from left to right.

18.

Why does a government place price ceilings, such as rent control, on some “essential” goods?

a)

to prevent inflation during boom times

b)

to keep goods from becoming too expensive

c)

to reduce demand for these goods

d)

to keep business people from making large profits

19.

When is a market at equilibrium?

a)

when unsold goods begin to pile up

b)

when quantity demanded equals quantity supplied

c)

when prices equal the cost of production

d)

when suppliers begin to reduce prices

20.

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?

a)

The demand for the magazine will go up.

b)

There will be a surplus of magazines.

c)

There will be a shortage of magazines.

d)

There will be a shortage of 150 magazines.

21.

What happens when the government imposes more taxes on a company?

a)

It will cost them more to produce goods so the supply will go down.

b)

It will cost them less to produce goods so the supply will go up.

c)

It will cost them more to produce goods so the supply will go up.

d)

It will cost them less to produce goods so the supply will go down.

22.

What is the original amount of money invested or lent called?

(a)  

23.

Jim borrowed money and now has to pay it back regularly at a particular rate. What is this called?

a)

Principal

b)

Interest

c)

Maturity

d)

Rate