Semester Exam Flashcards
Which kind of decisions involving resources must producers of goods and services make?
Allocating
Which of these government policies pursues the economic goal of equity?
Providing Welfare Benefits
What is the purpose of a free-market system?
What is the purpose of a free-market system?
Why do economists measure the gross domestic product?
To see how much economic activity there is in a particular country
How does the assembly line benefit the economy?
How does the assembly line benefit the economy?
Which group of players provides all goods and services in the game of economics?
producers
Which describes the effect of the purchases that consumers make?
indicate their desires to producers
Which is a budget used for?
planning income and expenses
Which is a way that the media influences consumer behavior?
product placement
Which generates revenue for Google?
sale of advertisements
Which is located at the point where the supply and demand curves intersect?
equilibrium price
Which gives people access to both high-paying jobs and more living space?
suburbs
Which is measured by a calculation of the amount of goods and services the average person can afford to buy?
standard of living
Which has led to greater competition among workers looking for jobs?
globalization
Which leads to an increase in bargaining power for workers?
existence of unions
Which can the Fed accomplish by raising or lowering the required reserve ratio?
increase or decrease the money supply
Which describes someone’s expected outcome from investing in the stock market?
making profit from savings
Which is a risk of being a stockholder?
may not get an increase in the amount of one’s investment
Which is the act of buying and selling money using other types of money?
exchanging currency
Which best describes the meaning of “going public”?
when a company begins selling shares of its stock to the public
Which describes a sales tax?
percentage charged on the purchase of goods
What does a progressive taxation system do?
increases the tax rate as income rises
The World Trade Organization was formed in order to accomplish what?
promote free trade
Politicians approve pork barrel spending for what purpose?
win political support
Which is a public good?
national defense
Which of these statements most accurately describes the costs and benefits of using a credit card?
Credit cards are convenient but can result in debt.
What do leases contain?
the obligations of renters and landlords
What does a good credit history do for consumers?
It makes it easier for them to get loans.
Why do economic decisions vary from person to person even under the same circumstances?
Costs and benefits are subjective.
When is liability insurance needed?
when you cause an accident that damages another vehicle or hurts someone
