Semester Exam

Question 1

Which kind of decisions involving resources must producers of goods and services make?

Answer 1

Allocating

Question 2

Which of these government policies pursues the economic goal of equity?

Answer 2

Providing Welfare Benefits

Question 3

What is the purpose of a free-market system?

Answer 3

What is the purpose of a free-market system?

Question 4

Why do economists measure the gross domestic product?

Answer 4

To see how much economic activity there is in a particular country

Question 5

How does the assembly line benefit the economy?

Answer 5

How does the assembly line benefit the economy?

Question 6

Which group of players provides all goods and services in the game of economics?

Answer 6

producers

Question 7

Which describes the effect of the purchases that consumers make?

Answer 7

indicate their desires to producers

Question 8

Which is a budget used for?

Answer 8

planning income and expenses

Question 9

Which is a way that the media influences consumer behavior?

Answer 9

product placement

Question 10

Which generates revenue for Google?

Answer 10

sale of advertisements

Question 11

Which is located at the point where the supply and demand curves intersect?

Answer 11

equilibrium price

Question 12

Which gives people access to both high-paying jobs and more living space?

Answer 12

suburbs

Question 13

Which is measured by a calculation of the amount of goods and services the average person can afford to buy?

Answer 13

standard of living

Question 14

Which has led to greater competition among workers looking for jobs?

Answer 14

globalization

Question 15

Which leads to an increase in bargaining power for workers?

Answer 15

existence of unions

Question 16

Which can the Fed accomplish by raising or lowering the required reserve ratio?

Answer 16

increase or decrease the money supply

Question 17

Which describes someone’s expected outcome from investing in the stock market?

Answer 17

making profit from savings

Question 18

Which is a risk of being a stockholder?

Answer 18

may not get an increase in the amount of one’s investment

Question 19

Which is the act of buying and selling money using other types of money?

Answer 19

exchanging currency

Question 20

Which best describes the meaning of “going public”?

Answer 20

when a company begins selling shares of its stock to the public

Question 21

Which describes a sales tax?

Answer 21

percentage charged on the purchase of goods

Question 22

What does a progressive taxation system do?

Answer 22

increases the tax rate as income rises

Question 23

The World Trade Organization was formed in order to accomplish what?

Answer 23

promote free trade

Question 24

Politicians approve pork barrel spending for what purpose?

Answer 24

win political support

Question 25

Which is a public good?

Answer 25

national defense

Question 26

Which of these statements most accurately describes the costs and benefits of using a credit card?

Answer 26

Credit cards are convenient but can result in debt.

Question 27

What do leases contain?

Answer 27

the obligations of renters and landlords

Question 28

What does a good credit history do for consumers?

Answer 28

It makes it easier for them to get loans.

Question 29

Why do economic decisions vary from person to person even under the same circumstances?

Answer 29

Costs and benefits are subjective.

Question 30

When is liability insurance needed?

Answer 30

when you cause an accident that damages another vehicle or hurts someone