Brainscape's Knowledge GenomeTM

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


See full index

econ burk > Final exam > Flashcards

Final exam Flashcards

1
Q

 What is the production possibilities frontier? 1

A

The production possibilities frontier is the line that shows the
maximum possible output for that economy.

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

What is the principle of Adam Smith’s invisible hand? 2

A

The interaction of buyers and sellers, motivated by
self-interest and regulated by competition, all
happens without a central plan.

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

What is a shortage?

A

occur when
producers will not or cannot
offer goods or services at
current prices

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

What is scarcity? 1

A

occurs when there
are limited quantities of
resources to meet unlimited
needs or desires

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

Why is it good to issue patents? 7

A

licenses that give the
inventor of a new product the exclusive right to sell it
for a certain period of time.

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

How does the Federal Reserve function? 16

A

its overseen by the
seven-member Board of Governors of the Federal
Reserve. (appointed by the President) Actions taken
by the Federal Reserve are called monetary policy.consists of 12 Federal
Reserve Districts, with one Federal Reserve Bank
per district. The Federal Reserve Banks monitor and
report on economic activity in their districts.

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

How does the Federal Reserve slow down or speed up the economy? 16

A

they adjust the money supply with tools
1. adjusting the required reserve ratio
2. discount rate
3. open market operations

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

What investments are best in different economic times? 11

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

What is liquidity? 10

A

the ability to
be used as, or easily
converted into, cash.

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

What are the risks of different classifications of bonds? 11

A

1Savings Bonds - safest
2Treasury Bonds, Bills, and Notes
3Municipal Bonds
4Corporate Bonds
5Junk Bonds - riskiest

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

How do markets change when equilibrium changes? 6

A

If the market price or quantity supplied is anywhere but
at the equilibrium price, the market is in a state called
disequilibrium.Interactions between buyers and sellers will
always push the market back towards
equilibrium.

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

Who benefits from an increase in inflation? 13

A

collectors

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

What tax do you need to pay if you receive money or other assets from someone’s will when they pass
away? 14

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

What event and industry really started the organization of labor unions? 9

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

What effects do government spending have on demand, prices, supply, and unemployment? 14

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

What are effects of increases or decreases in unemployment? 13

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

How can a future standard of living be increased? 2

A
18
Q

How does a circular flow model of a market economy work? 2

A
19
Q

What are the differences in the 4 market structures? 7

A
20
Q

What is minimum wage? 6

A
21
Q

What is equilibrium wage? 9

A
22
Q

If demand for a product increases, what will be the effect on price and quantity? 6

A
23
Q

What events would cause your credit score to increase?

A
24
Q

Be able to perform a money exchange using a table. 17 p. 458-9

A
25
Q

What are advantages of strong currencies? 17

A
26
Q

What is a trade deficit? 17

A
27
Q

How are unemployment statistics used by the government? 13

A
28
Q

How much debt does the U.S. have? 15

A
29
Q

Understand the differences in the 4 kinds of economies. 2

A
30
Q

What is NAFTA about? 17

A
31
Q

What takes place in a bull and in a bear market? 11

A
32
Q

What is the learning effect? 9

A
33
Q

What is the screening effect? 9

A
34
Q

What should you do with your money if the economy is about to going to be deflationary? 13

A
35
Q

What happens at the equilibrium point? 6

A
36
Q

What is hyperinflation? 13

A
37
Q

What is diversification (in finance)? 11

A
38
Q

 What are the risks of different types of investments? 11

A
39
Q

What kind of bonds provide the highest return? 11

A
40
Q

When the government has to borrow money because of a deficit situation, what effects will this have on
other areas such as interest rates, the value of the dollar, and inflation? 13

A
41
Q

Know how to calculate how much taxes are due using a table. 14

A
42
Q

Understand differences in points on the production possibilities curve. 1

A

econ burk (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions