Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Down With Dobie > Econ Leveled Exam 2: Medium > Flashcards

Econ Leveled Exam 2: Medium Flashcards

1
Q

An Inquiry into the Nature and Causes of the Wealth of Nations was published CLOSEST in time to the

A

American Revolution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The primary focus of economics is analyzing

A

choices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the goal of Pareto efficiency?

A

Ensure no resources are wasted.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The basic assumptions of economics do NOT include
A. rationality
B. externalities
C. trade-offs
D. gains from trade
E. scarcity

A

B. externalities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Which of the following questions would a macroeconomist ask?
A. How should an individual spend their time?
B. Should the government tax the gas industry?
C. Would a price floor harm consumer surplus?
D. What is the demand for money?
E. What is the demand for potatoes

A

D. What is the demand for money
(since this concerns the national economy and its aggregate demand)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

A demand curve is graphically represented as a(n)

A

line sloping down to the right

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What impact does implementing self-service gas pumps have on the gasoline market?

A

Supply shifts right.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

In a perfectly competitive market, which of the following changes would result in an increase to equilibrium price and quantity?

A

a decrease in the price of a complementary good

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

In a scenario where a decrease in income leads to an increase in college enrollments, a college education would be considered a(n)

A

inferior good

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What will be true of a producer with an absolute advantage in the production of both goods represented on a Production Possibility Frontier?

A

Their line is above and to the right of the other line at all points.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When a producer produces more of a product, they notice that the profit for each additional product goes down. This situation is an example of the law of

A

diminishing returns

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

If a supplier can influence prices in a market, it is said that they have

A

market power

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The cost to produce one more of a good is known as the

A

marginal cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

A movement to the left along a demand curve is

A

caused by an increase in price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Which of the following goods is a collective good?

A

satellite radio

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Shri’s bakery sells 200 loaves of bread for $3 a day, spending $250 on ingredients, and $150 on operating costs. She could make $100 working for another bakery. What is Shri’s economic profit?

A

$100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

A group of suppliers who collude to keep prices high is known as a(n)

A

cartel

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

The most common form of imperfect competition is

A

monopolistic competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

A monopoly should reduce production if

A

MC > MR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Which of the following goods is rival?
A. national defense
B. public roads
C. websites
D. streaming services
E. satellite radio

A

public roads

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How does the United States Environmental Protection Agency (EPA) regulate sulfur dioxide emissions?

A

auctioning rights to emit sulfur dioxide

22
Q

Which of the following methods is NOT a way entrepreneurs earn economic profits?
A. innovating pre-existing products
B. creating new products or services
C. breaking pre-existing barriers to entry
D. establishing legal monopolies
E. investing in the stock market

A

investing in the stock market

23
Q

When the outcome of a market does not provide a socially desirable outcome, it is known as a(n)

A

market failure

24
Q

Which prominent tech monopoly did the 1984 Sherman Anti-Trust Act split up?

A

AT&T

25
Q

Which of the following expenditures is not considered part of consumer spending when calculating GDP?
A. insurance
B. furniture
C. new houses
D. legal services
E. education

A

new houses

26
Q

The time period between a peak and a trough in a business cycle is known as a(n)

A

recession

27
Q

According to Okun’s law, if the rate of cyclical unemployment was 3%, frictional was 2%, and structural was 4%, what is the output gap?

A

6%

28
Q

Inflation is LEAST likely to do which of the following?
A. make market prices less relevant
B. decrease the quantity of savings
C. distort relative prices
D. cause uncertainty in investment
E. reduce the value of money

A

C. distort relative prices

29
Q

If Joey did not work nor seek work in the past month, Joey is considered to be

A

not in the labor force

30
Q

An economy’s market basket was valued at $80 in a base year. Inflation has increased that cost to $100 in the current year. What is the CPI of the current year?

A

125

31
Q

Between 1900 and the late 1950s, the United States

A

was a net exporter

32
Q

By how much does the Boskin Commission say CPI overstates inflation per year?

A

1.3%

33
Q

What rate do interest banks charge each other on loans of excess reserves?

A

federal funds rate

34
Q

On the Federal Open Market Committee (FOMC), one member is always the president of the federal reserve bank of

A

New York

35
Q

Who confirms appointments tot he Federal Reserve Board of Governors?

A

the Senate

36
Q

Which of the following advantages is only available to those saving in a mutual fund?

A

access to professional assistance from money managers

37
Q

If velocity of money and money supply remains constant, what would be the effect of an increase in the price level?

A

real GDP decreases

38
Q

Which of the following events would lead to an increase in aggregate demand?

A

increased government purchases

39
Q

Why are credit cards not counted as money?

A

Credit cards do not make the payment directly.

40
Q

Which of the following stores of value is the LEAST liquid?

A

real estate

41
Q

Both “economy” and “ecology” are derived from the Greek word for

A

household

42
Q

Shared burdens such as atmospheric damages fall into the category of

A

public bads

43
Q

A public good that is a smaller part of a larger public good is

A

nested

44
Q

Which of the following countries estimated the LOWEST social cost of carbon?

A

Poland and Ukraine

45
Q

Which location had an eruption in 1991 that suggested that atmospheric particles can change atmospheric conditions for several years?

A

Mt. Pinatubo, Luzon, the Philippines

46
Q

Approximately what percent of GHG in the United States emissions come from agriculture?

A

10%

47
Q

Which organization was created as a response to smog in Los Angeles?

A

CARB

48
Q

The United States Clean Air Act Amendments of 1990 regulated the release of

A

sulfur dioxide

49
Q

The logic for a Global Environmental Organization originates from the end of

A

World War II

50
Q

The last round of negotiations to incorporate the General Articles on Tariffs and Trade into the World Trade Organization was the

A

Uruguay Round (1986-93)

Down With Dobie (21 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions