ECON FINAL

Question 1

the purpose of tax must be for what 2 things

Answer 1

the common defence
generale welfare

Question 2

which amendment gives congress the power to tax

Answer 2

the 16th amendment

Question 3

which type of tax is imposed by the state and is based on a percentage

Answer 3

sales tax

Question 4

income tax are taxes based on what two things

Answer 4

earned income
unearned income

Question 5

what are the 3 taxes you are required to pay

Answer 5

local, state, federal

Question 6

federal taxes must be ____ in a states

Answer 6

the same

Question 7

what are the two requirements for a tax to be constitutional

Answer 7

provide for the common defence
promote the general welfare

Question 8

each states sales tax is based on a ________ of reatil cost

Answer 8

percentage

Question 9

when you buy gas, what type of tax are you paying

Answer 9

exise tax

Question 10

what did the fica act create taxes for

Answer 10

medicare and social security

Question 11

a tax that is designed to take a larger percentage from the wealthy

Answer 11

progressive tax

Question 12

a tax that takes the same dollar amount from every individual

Answer 12

regressive tax

Question 13

a tax that takes the same percentage from every individual

Answer 13

proportional tax

Question 14

a flat tax is an example of what type of tax

Answer 14

proportional

Question 15

what are the 4 factors of production

Answer 15

land, labor, capital, entreprenuership

Question 16

economics is the study of

Answer 16

scarcity

Question 17

3 things that contribute to the ppc

Answer 17

cost, growth, effeciency

Question 18

what does laissez faire mean in a market economy

Answer 18

free from goverment intervention

Question 19

what is the frontier

Answer 19

the line that shows the max output on a ppc

Question 20

what does the entreprenuer do with the other 3 factors of production

Answer 20

puts them together to create a good/ service

Question 21

what type of market does the invisible hand play a role in

Answer 21

market economy

Question 22

in a market economy, if a customer is free to purchase whatever they want they are experinecing

Question 23

if price increases what happens to quantity supplied

Answer 23

increases

Question 24

what is market equilibrium

Answer 24

point where supply and demand curves intersect

Question 25

elasticity is

Answer 25

responsiveness of consumers to changes in the marketplace

Question 26

if the price of a ____ drops, people will chose to buy it over the original

Answer 26

substitute good

Question 27

what does it mean that money is defferable

Answer 27

you can hold onto it and buy when the time is right

Question 28

a ____is when you exchange a good strictly with someone who has want you want

Answer 28

barter system

Question 29

this type of bank may requore you to notify them when you withdrawl

Answer 29

savings and loans bank

Question 30

which type of bank will pay back the highest interest rate

Answer 30

Credit unions

Question 31

the financhial systems allows for the transfer of funds between

Answer 31

savers and investors

Question 32

what 2 types of markets fall under the resaleabilty factor

Answer 32

primary market secondary market

Question 33

if you are saving for short term gains which of the following would be best

Answer 33

MMA

Question 34

advantages of commercial banks

Answer 34

easily accecable atm multiple locations full range of banking services insured by fdic

Question 35

large number of sellers and identical products is what type of market

Answer 35

perfect competition

Question 36

what are the 3 types of imperfect competition

Answer 36

monopolistic comp oligopoly monoploly

Question 37

how do monopolistic/ oligopolies compete without altering their prices

Answer 37

advertizing

Question 38

what is an example of monopolistic comp

Answer 38

nike,adidas

Question 39

which market structure is the price maker

Answer 39

monopoly

Question 40

what are the4 types of monopolies

Answer 40

natural government geographic technological

Question 41

limited control of prices is a characteristic of what structure

Answer 41

monopolistic comp

Question 42

double taxation is a disadvantage of which buisness organization

Answer 42

corperation

Question 43

combination of 2 or more corperations that perform the same service

Answer 43

mergers

Question 44

a semi independent buisness that pays fees to a larger company

Answer 44

buisness franchise

Question 45

sams club and costco are this type of buisness

Answer 45

cooperatives

Question 46

small number of sellers, with difficult entry is which type of structure

Answer 46

oligopoly

Question 47

5 things money can do

Answer 47

func as exchange people decide what to buy deferable transferable citizens can give value to things

Question 48

5 characteristics of money

Answer 48

scare recognizable durable divisble portable

Question 49

bank that specialize in long term financing for homes and small buisnesses

Answer 49

savings and loans bank

Question 50

7 services offered by banks

Answer 50

stored value cards atm cards debit cards direct deposit online banking safe deposit box overdraft privelages

Question 51

a disadvantage of ____ is that most accounts dont earn interest

Answer 51

checking accounts

Question 52

a person who deposits money to ________ must promise that they wont withdrawl for a certain amount of time

Answer 52

certificate of deposit

Question 53

5 pillars of capitalism

Answer 53

private enterprise priv prop rights profit motive competition consumer sovernty

Question 54

3 economic essentials

Answer 54

open opportunity free contract legal equality

Question 55

the prinicple that everyone. has the same economic rights

Answer 55

legal equality

Question 56

the concept that people may decide what agreements they want to enter in to

Answer 56

free contract

Question 57

the concept that anyone can enter the market place

Answer 57

open opportunity

Question 58

side effect of a transaction that affects someone other than the buyer

Answer 58

externality

Question 59

willingness and ability to buy something and the ability to pay for it

Answer 59

supply and demand

Question 60

# law of demand states that as price increases the quantity demanded_______

Answer 60

decreases

Question 61

goods that people demand more of when their income rises

Answer 61

normal goods

Question 62

goods that people demand less of when income rises

Answer 62

inferior goods

Question 63

3 factors of elasticity

Answer 63

neccesities vs luxuries proportion of income substitute goods and services

Question 64

6 factors that affect demand

Answer 64

income market size subvstitute goods complementary goods consumer tastes consumer expectations

Question 65

4 types of cost

Answer 65

fixed ,variable, marginal, total

Question 66

6 factors that affect supply

Answer 66

number of producers technology government action labor productivity input costs product expectations

Question 67

economy that relies on habit and custom and doing what ancestors have done

Answer 67

traditional economy

Question 68

economy that has economic freedom from gov and private ownership

Answer 68

market economy

Question 69

economy that has little to no freedom from the gov and the gov decides whats best for the people

Answer 69

command economy

Question 70

economy that has both command and market economy characteristics

Answer 70

mixed economy

Question 71

what do households provide on the circular flow model

Answer 71

land labor capital entreprenuership

Question 72

what do households receive in the circular flow model

Answer 72

rent, wages, income,interest,profit

Question 73

idea that in a market economy when you buy in self interest, it will in turn beneifit those workers and employers

Answer 73

invisible hand

Question 74

two types of markets that fall under the time factor

Answer 74

capital market money market

Question 75

economics is the study of

Answer 75

scarcity