Test 1 Flashcards
Technological Change is a key force in shaping today’s economy, true false
True
The gross domestic product is the dollar value of all goods and services produced by the economy, true false
True
A centrally planned economy encourages investment and innovation, true false
False
Globalization is the exchange of ______ among countries
Money and other financial assets
Workers and jobs
Good Services ideas and people
Communications
Goods services ideas and people
A laissez-faire economy has ____
Rules that promote social equality
Very little government regulation of the economy
Centrally planned economy
A large amount of government regulation
Very little government regulation of the economy
Top down management of an economy by the government generally ______
Causes significant increase in GDP
Leads to low rates of economic growth
Creates incentives and opportunities for businesses to expand
Produces exponential results in economic growth
Leads to low rates of economic growth
Which of the following is not a monetary measure of economic prosperity
Life expectancy
Household consumption
Gross domestic product
Annual household income
Life expectancy
Besides the gross domestic product, another measure of how well an economy is doing is
Presidential popularity polls
Publications and economic journals
Annual household income
Government tax rates
Annual household income
Financial markets do not include, which of the following
Stock markets
Nonprofit organizations
Banks
Government regulatory agencies
Nonprofit organizations
Federal taxes have, which of the following effects on the economy
If taxes are increased, the economy expand due to a balanced budget
If taxes are decreased, businesses will invest the difference back into the economy
There is no definitive agreement on the effect
Lower federal taxes will cause budget surplus
There is no definitive agreement on the effect
For the United States one important benefit of foreign trade is
Access to cheaper goods and services
Less domestic competition
Reality check in the economy
Hires tax revenues from tariffs
Access to cheaper goods and services
An example of a company that uses financial market to raise money is
The Social Security administration
Your local carryout restaurant
A local television news website
Ford motor company
Ford motor company
Which of the following countries have safety nets that offer a better retirement, benefits and more job security than the US safety net?
European countries
Asian countries
South American countries
Our nearest neighbors
European countries
Renewable energy sources provided blank of US energy needs as of 2022
13%
10%
Almost 100%
77%
13%
Most people have mixed feelings about the financial markets because
The stock market always falls in the long run
They provide means for the average person to become wealthy
They are controlled by government regulators
They can experience violent swings
They can experience violent swings
Which of the following is not mentioned in the textbook is one of its three goals
Showing the way in which the possibilities of today’s economy are expanding
Promoting and understanding of markets
Teaching how to successfully invest money in the stock market
Presenting the basic tools of economics
Teaching how to successfully invest money in the stock market
The textbook says that which the following is among the key forces shaping today’s economy
Social networking
The evolution of financial markets
Socialism
Accounting scandals
The evolution of financial markets
Supposed the government decides to eliminate some, but not all of the rules that govern how investment banks conduct their business this would be an example of
Central planning
Economic competition
Deregulation
A laissez-faire policy
Deregulation
Gross domestic product is
Not a useful indicator of prosperity
The only indicator of prosperity that economist use
One of many indicators of prosperity, all of monetary nature
One of many indicators, prosperity, some of which are some of which are not
One of many indicators of prosperity, some of which are monetary, and some of which are not
Which of the following does not explain why there are so many disagreements among the economist
In some cases, the controversy is aggravated by political agendas
In some cases, economist have simply not investigated the issue at hand
In some cases, individuals may stand from policy changes
In some cases there isn’t enough data to answer the question
In some cases, economist have simply not investigated the issue at hand
In a market, buyers and sellers
Are in the same place
Compete with one another
Undermine the proper functioning of the economy
Exchange goods and services for money
Exchange goods and services for money
Which of the following gives the best reasons why the possibilities of choices of today’s economy are expanding?
Because they constraints that affect their economy, change every day
Because people are more enlightened today than in the past
Because worldwide population continues to grow
Because laws continue to change more activities legal
Because the constraints that affect the economy change every day
Who competes with whom in a market?
Sellers compete with other sellers buyers are not part of the competition
Buyers compete with other buyers and sellers compete with other sellers
Buyers and sellers compete with each other
Buyers and sellers compete with the government
Buyers compete with other buyers and sellers compete with other sellers
Which of the following cell significant declines between late 2007 and early 2009
House pricing only
Stock prices, housing prices and the US economy
Stock prices and housing prices only
The US economy only
Stock prices, housing prices and the US economy
Which of the following is not a good indicator of prosperity
Environmental quality
The size of the safety net
Results from surveys of happiness
Life expectancy
The size of the safety net
Individuals in a market economy can be both buyers and sellers true false
True
Buyers and sellers who are geographically close to each other are part of the national market true false
False
The law of supply says that higher prices tend to blank the quantity of goods or services blank, assuming no other changes
Decrease supplied
Increase supplied
Increase demand
Decreased demanded
Increase supplied
The demand schedule is a description of the behavior of blank in the market
Goods or services
Labor
Buyers
Sellers
Buyers
Opportunity cost is defined as the value or benefit of the
Equilibrium price
Least valuable item
Most valuable item
Next best alternative
Next best alternative
The way that economist explain it the worker is a blank in the blank market
Buyer labor
Seller labor
Seller job
Buyer job
Seller labor
If at the market price of $10 per lawn, Maya is willing to mow 15 lawns and at the market price of $15 per lawn. Maya is willing to mow 25 lawns. What does Maya supply curve look like?
It’s slopes down to the right
It slopes up and to the right
It is a vertical line
It is a horizontal line
It’s slopes up into the right
In economics satiation means
Eventually, the marginal value of the good consumed decreases
Quantity demanded and quantity supplied rises
The market prices been attained
Eventually, the marginal value of the consumed increases
Eventually, the marginal value of the good consumed to decreases
What would it mean if a demand curve sloped upward into the right?
Quantity demanded in price both can only decrease
Quantity demanded increases as the price increases
Quantity demanded in price both can only increase
Quantity demanded decreases as the price increases
Quantity demanded increases the price increases
One of the biggest benefits of a market-based economy is
Government regulation
The ability to adapt quickly to change
Consumer protection policies
Central planning
The ability to adapt quickly to change
Buying a used textbook from a fellow student is an example of what type of market
Labor
Local
Global
National
Local
What phrase do economics use to describe the assumption that everything else about a situation stays the same allowing only one variable such as price to change
Caveat emptor
Vini vidi vici
Ceteris paribus
E pluribus unum
Ceteris paribus
When you have to give up one opportunity in order to choose another, the value of the opportunity that is not chosen is called the
Choice equilibrium
Opportunity cost
Opportunity price
Forgone value
Opportunity cost
What typically happens when the market price for haircuts rise
Cutting hair would be less profitable
Some hair salons might hire more stylist
Some salons might close
Some stylist would work fewer hours
Some hair salons might hire more stylists
The demand schedule reports the quantity demanded at
The market equilibrium price
The average of all prices
Many different prices
Zero price
Many different prices
The individual quantity demanded is the amount the blank is willing to blank at a given price
Buyer purchase
Seller purchase
Seller sell
Buyer sell
Buyer purchase
A graph plot price versus quantity when price is five dollars quantity is 100 when price is $20. Quantity is 400 a line is drawn from one point of interception to the other graph is pictured above is most likely.
Demand curve because it’s an upward slope
Demand curve because it’s downward slope
Supply curve because it’s an upward slope
Supply curve it’s a downward slope
Supply curve because it’s an upward slope
The law of demand says that the most cases of the lower the price the lower the quantity demanded true false
False
The loft man suggests that most demand curves will be
Curved
Downward sloping
A straight line
Upward sloping
Downward sloping
Access demand generally causes prices to fall true false
False
Excess supply occurs when suppliers prepared to sell more at a certain price than buyers are prepared to purchase true false
True
Left to themselves most markets will tend towards market equilibrium, true false
True
A demand shift is a change in the amount of sellers want to supply at various prices true false
False
Government action can cause a significant market demand shift, true false
True
For most goods and services and increase and income will cause the demand curve to shift to the left true false
False