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Economic Principals And Concepts > Final > Flashcards

Final Flashcards

1
Q

The federal reserve has the power to issue money, but does not influence interest rates true false

A

False

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2
Q

The federal reserve is under the ultimate direction Congress of the United States because Congress can cut the budget of federal reserve if the federal reserve board of governors does not follow the instructions of Congress true false

A

False

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3
Q

When the federal reserve asks as a lender of last resort, it is making sure that banks have the money they need to continue to operate true false

A

True

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4
Q

The federal reserves most use policy tool is open market operations with which it can control, short-term interest rates true false

A

True

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5
Q

Generally, if the inflation rate is too high, the federal reserve will want to raise the federal funds rate true false

A

True

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6
Q

The feds control over interest rates, quantitative, easing, and direct lending to financial institutions are some of the tools of
Margin control
Physical Policy
Monetary policy
Discount policy

A

Monetary policy

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7
Q

The feds march requirements control
How much money people can borrow when they buy stock
The interest rates banks are allowed to pay on demand deposit accounts
The amount of reserve banks must keep in cash or in their accounts with the federal reserve
The federal funds rate

A

How much money people can borrow when they buy stock

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8
Q

When financial institutions borrowed from the federal reserve, this is called

A

Using the discount window

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9
Q

Which of the following would increase the money available for bank to lend

A

A decrease in the federal funds rate

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10
Q

Which one of the following is among the federal reserves tools to control short-term interest rates?

A

Open market operations

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11
Q

Which of the following is not one of three purposes served by money

A

Providing remains for regulators to track economic activity

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12
Q

Which of the following is not one of the main goals of monetary policy?

A

Balancing the federal budget

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13
Q

The target federal funds rate is set by the

A

Federal open market committee

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14
Q

If the federal reserve raises the federal funds rate which of the following will not seem to happen as a result

A

Businesses will find it easier to obtain funds to expand

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15
Q

If the federal reserve raises the federal funds rate which of the following will tend to happen as a result

A

Did the man curve for products bought with a credit card will shift to the left

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16
Q

To produce financial stability the federal reserve would want to

A

Raise the money supply and cut interest rate during recession to stimulate spending

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17
Q

Money can be used by goods and services and is accepted internist payment. This is the blank use of money.

A

Medium of exchange

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18
Q

Money enables us to make comparisons of value among goods and services. This is the blank use of money.

A

Standard value

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19
Q

An element of trust is built the money because

A

People must trust that it will still have value when they want to spend it in the future

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20
Q

In the United States and a virtually every other country, the printing of money is

A

Strictly a government monopoly

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21
Q

If a major crash of the financial system began, the federal reserve would

A

Provide money to banks in order to reassure investors and prevent banks from going bankrupt

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22
Q

Having government issued money, makes it easier for policy makers to

A

Guide and control control the economy

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23
Q

Monetary stimulus requires about blank for its full effect to be felt

A

12 to 18 months

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24
Q

The federal reserve is

A

A system of 12 regional banks located all around the country

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25
Q

A tariff is a tax levy on imports by country true false

A

True

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26
Q

If imports are greater than exports, we say that the country is running a trade deficit true false

A

True

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27
Q

The expansion of global traders, especially benefited in individuals who skills are relatively common in the worldwide economy true false

A

False

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28
Q

Which of the following is not among the natural barriers to trade?

A

Tariffs and quotas

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29
Q

Contributors to an expanded global trade in recent years of included all of the following except

A

A client in the differences in comparative advantages across nations

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30
Q

Which of the following will not occur when a tariff is imposed on an imported product

A

The demand for import will shift to the left

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31
Q

When a tariff is removed from an imported product, which of the following will occur

A

The price paid by consumers will fall

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32
Q

Which of the following statements about quotes is true

A

Quotes increase the price above market equilibrium

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33
Q

If the United States were to stop importing flowers from other nations, and instead insisted that it grow all of its own flowers, the effect of this would be

A

Draw resources necessary to grow flowers away from the rest of the economy

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34
Q

A nation has a comparative advantage in producing a good if

A

It is either a greater productivity advantage or a smaller productivity disadvantage

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35
Q

The theory of comparative advantage implies, which of the following

A

Workers in an industry in which the United States does not have a comparative advantage will be heard of the United States reduces barriers to trade

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36
Q

All other things being equal globalization

A

Benefits people who skills are relatively scare some world, markets, and hurt those who skills are relatively common

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37
Q

Using tariffs quotes or other barriers to trade to protect domestic jobs is called

A

Protectionism

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38
Q

Protectionism is best to find as

A

Using tariffs quotes or other barriers to trade to protect domestic jobs

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39
Q

Which of the following best defines the exchange rate

A

Read it which one currency can be exchanged for another

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40
Q

Protecting a countries infant industries

A

Seems to hurt the economy and practice because consumers of that industry products were denied access to low-cost or higher quality imports

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41
Q

If a countries currency is pegged to another currency, this means

A

The government of that country is managing the exchange rate so that it stays the same

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42
Q

Which of the following statements about comparative advantage is false

A

Expanding international trade, Herz nations economy causes the nations currency to depreciate

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43
Q

Which of the following statements about trade deficits as false?

A

A trade deficit makes it less likely that foreigners will make investments in a country

44
Q

Sewing exports to foreign purchases, borrowing money from foreign investors selling assets to foreign investors and allowing foreign companies to build factories in the United States are allways to

A

Pay for Imports

45
Q

The labor force is the part of the adult population that is either working or actively looking for a job true false

A

True

46
Q

For full-time workers with a bachelors advanced degree average pay peaks when workers are 55 to 64 years old true false

A

True

47
Q

Reducing the minimum wage will make it more difficult for low skilled workers to find jobs true false

A

False

48
Q

Globalization has had a positive effect on private sector, labor union membership rates true false

A

False

49
Q

If the labor force increases in size, which of the following would occur all else equal

A

The equilibrium wage would fall

50
Q

If a labor force increases in size all else equal, which of the following would not occur

A

The labor demand curve would shift to the right

51
Q

As the wage rate rises, firms will respond by

A

Hiring fewer workers because thr labor demands curve slopes downward

52
Q

Affirm will hire workers until the

A

Marginal revenue from hiring an additional worker falls below the marginal cost

53
Q

The labor pool effect of globalization, as which of the following effects

A

The supply of labor for many kinds of work in increases, pushing the equilibrium wage down

54
Q

Which of the following statements about education and wage rates is true

A

Well, people with high school degrees have had almost no increase in real wages in 30 years. Those with advance degrees have had significant increases and pay.

55
Q

Which of the following statements about education and the unemployment rate is true?

A

The unemployment rate tends to be higher for people less education

56
Q

Which of the following is not among the economic costs of a college education?

A

Cost of room and board

57
Q

Which of the following is true about states that have passed right to work laws

A

Employees in those states cannot become compelled to join a union

58
Q

An additional worker will add to the profit of a business, and therefore be more likely to be hired if the

A

Wage is less than the marginal revenue

59
Q

Which of the following statements about the long-term labor supplies false

A

Immigration provides an insignificant proportion of the overall growth of the workforce

60
Q

Which of the following statements about unionization is true

A

Work stoppage is due to strikes if become less common and shorter in the last 50 years

61
Q

Which of the following is typically result of government licensing requirements?

A

Competition in the licensed occupation is reduced

62
Q

If the labor pool effect of globalization is equal in strength of the market expansion effect, then globalization will lead to blank in wages and blank, and the number of workers hired

A

No change; An increase

63
Q

Which of the following does not help explain why patient should rise with age

A

Reasoning, abilities, mental speed, and memory improve as people age

64
Q

The long-term supply of labor

A

Depends on location as some regions are more attractive to workers

65
Q

The percentage of US citizens living below the poverty line is higher today than it was for most of the 1970s true false

A

True

66
Q

A quintile sometimes used to measure wealth inequality represents 1/4 of households true false

A

False

67
Q

An increase in the returns to a college education is increased inequality of income true false

A

True

68
Q

Increasing foreign rate is reduced income and equality because the market expansion effect increases the work opportunities and wages of low skilled workers true false

A

False

69
Q

Adjusting for inflation, the real minimum wage is fallen over the last 40 years true false

A

True

70
Q

Progressive income tax structures tend to make after tax incomes less equal true false

A

False

71
Q

Which of the following is not a reason for increasing income inequality

A

I declined the nominal dollar value of the minimum wage over several decades

72
Q

And a superstore economy companies try to find only the very best talent. What effect is this had on labor markets

A

There is a widening gap income between people who are competent, and people who are the very best

73
Q

Which of the following statements about the minimum wage is true?

A

Adjusting for inflation, the real minimum wage has fallen in the last 40 years

74
Q

The 8020 ratio is found by dividing the

A

Income at the 80th percentile by the income at the 20th percentile

75
Q

Which of the following statements about the poverty lines is true

A

The poverty line is adjusted upward for inflation every year

76
Q

Which of the following is among the arguments against using government intervention of reducing income inequality

A

Allowing big rewards to go to the most successful performers, helped motivate, creativity, innovation, and hard work

77
Q

Which of the following is among the arguments and favor of using government intervention to reduce income inequality

A

Large income differences eventually lead to political strife, and will undermine support for a market account

78
Q

Government intervention of reducing common quality might reduce growth rates because of rent seeking behavior. This means that.

A

Groups who are not among the neediest might put pressure on government officials to obtain transfers of wealth

79
Q

The effective tax rate is the

A

Share of income a household pays in taxes

80
Q

An income tax is progressive if

A

Higher income households pay a larger share of their income in taxes than lower income households

81
Q

An income tax is regressive if

A

Low income households pay a larger share their income in taxes, then higher income household

82
Q

A sales tax is usually considered to be a

A

Regressive tax

83
Q

The top Quint tile of income earners would be those whose income is

A

In the highest 20% of earners

84
Q

Arguments that income inequality, statistics are incomplete or misleading are made by

A

Both of those in favor of those against government intervention to reduce inequality

85
Q

The equal employment, opportunity, commission, EEOC, enforces laws, forbidden employment, discrimination, based on all of the following, except

A

Education level

86
Q

In addition to discrimination, there may be other reasons earnings may differ by gender or race. These other reasons include each of the following, except.

A

A differences in benefits in non-cash compensation

87
Q

According to the lifecycle model, people tend to borrow while young, pay off debt and build wealth and their middle age and live off savings during the retirement true false

A

True

88
Q

The amount of money paid to a retiree from a defined contribution. Plan depends on how well investments perform true false

A

True

89
Q

A 401(k) plan is a type of defined benefit plan true false

A

False

90
Q

Social Security requires workers to contribute to an account that is held by their name at the treasury and invest in government and highly rated private sector bonds true or false

A

False

91
Q

The lifecycle theory of retirement puts people in the position of projecting how many resources they will need to pay for all expenses when they are old, a problem called the retirement property problem true false

A

False

92
Q

How was the 401(k) plan taxed

A

A 401(k) plan is tax when workers withdraw money from the account to pay for retirement expenses

93
Q

Economist talk about a four-legged stool of retirement income, which includes all the following sources of income, except

A

Finding provided by charitable organizations

94
Q

Which of the following statements about Social Security is true

A

Social Security transfers income from current workers to current retirees

95
Q

Which of the following statements about Social Security is false

A

Employers do not make any contribution to Social Security for employees unless the employee is the government government agency or government contractor

96
Q

What is expected to happen to old age dependency ratios in the United States?

A

As the population of ages, the old age dependency ratio was expected to rise

97
Q

People who are the most at risk for health problems are the most likely to sign up for health insurance health insurance premiums rise to cover the increase cost of these people where upon those less at risk drop their health insurance coverage worsening the problem. This problem is called the

A

Adverse selection problem

98
Q

The retirement poverty problem is that

A

Many workers are too poor to save for retirement

99
Q

All of the following of contributed arising medical care costs except

A

Increasing occurrences of expensive communicable disease

100
Q

Social Security taxes are currently invested in

A

US treasury bonds

101
Q

The Social Security payroll tax is blank on the employee and blank on the employer levy on all earned income up to a cap, which is adjusted for inflation each year

A

6.2% 6.2%

102
Q

The old age dependency ratio was found by

A

Dividing the number of older people, by the number of people of working age

103
Q

Which of the following goes away in which the Social Security benefits could be cut?

A

A higher retirement age

104
Q

The healthcare of low income children, their parents and individuals with disabilities is covered through

A

Medicaid

105
Q

The primary and secondary sources of income on average for US adults age 65 and over are

A

Social Security and earnings from work, respectively

106
Q

In the absence of government or employer sponsored health insurance, which of the following would be true about health expenses for the elderly

A

It would not be financially worthwhile for the elderly to purchase insurance to cover medical expenses

107
Q

According to the lifecycle of retirement in the absence of the government or employer, sponsored health coverage, workers in the middle age would

A

Saving enormous amount of money to pay for healthcare expenses, in old age

Economic Principals And Concepts (3 decks)

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