questions Flashcards
(92 cards)
Which of the following is the subgroup of economics that studies large-scale economic issues such as unemployment, interest rates, price levels, and national income?
A. Microeconomics
B. Macroeconomics
C. Scarcity
D. Supply and demand
B
A homeowner hires a landscape company to mow the grass because they would like to use that time to do something else. The trade-off of paying someone to do a job to make more valuable use of time is an example of what?
A. Economic systems
B. Supply and demand
C. Opportunity cost
D. Inflation
C
Which kind of market does not involve government interventions or monopolies while trades are made between suppliers and buyers?
A. Free
B. Command
C. Gross
D. Exchange
A
Which is NOT an indicator of economic growth?
A. GDP (Gross Domestic Product)
B. Unemployment
C. Inflation
D. Theory of the Firm
D
In a business cycle, a recession occurs between which cycles?
A. Expansion, peak
B. Peak, contraction
C. Contraction, trough
D. Trough, expansion
C
What is the name of the central bank that controls the value of money in the United States?
A. Commodity Reserve
B. Central Reserve
C. Federal Reserve
D. Bank Reserve
C
Which option does NOT sustain monetary policies?
A. Closed market operations
B. Open market operations
C. Assuring bank reserves
D. Adjusting interest rates
A
What determines the exchange rate in a “floating” or “flexible” exchange?
A. The government
B. Taxes
C. The Federal Reserve
D. The market
D
Which statement is true about inflation and purchasing power?
A. As inflation decreases, purchasing power increases
B. As inflation increases, purchasing power decreases
C. As inflation increases, purchasing power increases
D. As inflation decreases, purchasing power decreases
B
Which statement is true about goods and services?
A. The quantity of goods and services matters more than their value
B. The value of goods and services matters more than their quantity
C. The quality of goods and services matters more than their production
D. The production of goods and services matters more than their quality
B
Which of the following refers to the value of a good set by supply and demand rather than the actual value it represents?
A. Commodity money
B. Fiat money
C. Bank money
D. Reserve money
B
Which of the following is not a characteristic of contractionary monetary policy?
A. Increases the money supply
B. Possibly increases unemployment due to slowdowns in economic growth
C. Decreases consumer spending
D. Decreases loans and/or borrowing
A
Which of the following lists all four phases of the business cycle?
A. Expansion, crest, peak, trough
B. Expansion, contraction, peak, trench
C. Peak, trough, contraction, expansion
D. Peak, rise, trough, decline
C
Frictional unemployment is best described by which of the following?
A. When a person is no longer qualified for a job
B. When a qualified person cannot be matched to a job
C. When a person is laid off because of the business cycle
D. When a person is unemployed for longer than six months
B
How is economic growth measured?
A. By the rise in the inflation of a country
B. By the amount of reserves that a country holds
C. By the amount of exports that a country has
D. By the GDP of a country
D
If a store has a large supply of Widget X and they are not selling many of them, what should they do?
A. Raise the price so that when they do sell one, they will make a large profit
B. Lower the price to hopefully increase demand so they can offload supply
C. Raise the price so that people will think that it is a limited, high value product and buy it
D. Offer the product in a low price bundle with other unrelated products
B
Who is in control in a command economy?
A. The consumer
B. Private businesses
C. The government
D. Manufacturers
C
Which of the following correctly lists the factors of production?
A. Land, labor, material, entrepreneurship
B. Land, labor, capital, equity
C. Land, a building, capital, labor
D. Land, labor, capital, entrepreneurship
D
Which of the following is NOT a purpose of the central bank?
A. Manage interest rates
B. Set the tax rate
C. Backup the commercial banks
D. Set reserve requirements
B
Which of the following is the primary problem with map projection?
A. They are not detailed
B. They do not include physical features
C. They distort areas near the poles
D. They only focus on the Northern Hemisphere
C
Which type of map illustrates the world’s climatological regions?
A. Topographic Map
B. Conformal Projection
C. Isoline Map
D. Thematic Map
D
In which manner is absolute location expressed?
A. The cardinal directions (north, south, east, and west)
B. Through latitudinal and longitudinal coordinates
C. Location nearest to a more well-known location
D. Hemispherical position on the globe
B
Latitudinal lines are used to measure distance in which direction?
A. East to west
B. North to south
C. Between two sets of coordinates
D. In an inexact manner
B
Literacy rates are more likely to be higher in which area?
A. Developing nations
B. Northern Hemisphere Nations
C. Developed Nations
D. Near centers of trade
C