Final Exam

Question 0

Private sector

Answer 0

The part of the economy that involves the transactions of individuals and buissnesses

Question 1

Public sector

Answer 1

The part of the economy that involves the transactions of the government

Question 2

Role of profit in a market economy

Answer 2

Provides incentive

Question 3

Non-price factors that effect demand curve cause it to shift

Answer 3

Shift to the right

Question 4

Non-price factors that effect supply curve cause it to

Answer 4

Decrease supply as price increases

Question 5

Advantage of sole proprietorship

Answer 5

Get all profits, total control, easy to start, be the boss

Question 6

Disadvantage of corporation

Answer 6

Double taxation, too big and bureaucratic

Question 7

Describe role of securities and exchange commission

Answer 7

An agency of the government that tracks illegal activities in the stock market

Question 8

List four market structures

Answer 8

Perfect competition-corn, monopolistic competition-miss me jeans, oligopoly-mcdonalds and monopoly-Texas rangers

Question 9

Comparitive advantage

Answer 9

The ability of a nation to produce at a lower opprobrium it’s cost

Question 10

Absolute advantage

Answer 10

The ability to produce more of a given product using a given amount of resources

Question 11

4 types of unemployment

Answer 11

Seasonal-shut down for a season, structural-skills don’t match, cylinical-rises during economic downturns and Dallas when economy recovers, frictional-take time to get job

Question 12

Recession

Answer 12

Prolonged economic retraction when GNP Is declining an unemployment is rising

Question 13

Three options for unions to settle disputes

Answer 13

Strike-halt in production
Mediation-using a neutral mediator
Arbitration-using a third party to review case

Question 14

Collective bargaining

Answer 14

Union and company reps meet to negotiate a new labor contract

Question 15

Voluntary compliance

Answer 15

Know and understand your tax responsibility

Question 16

M1

Answer 16

Finds easily accessible or in circulation

Question 17

M2

Answer 17

M1 plus money market accounts and savings

Question 18

M3

Answer 18

M1 plus M2 pulse large time deposits

Question 19

National debt

Answer 19

Owed to creditors

Question 20

National deficit

Answer 20

Government spending exceeding revenues

Question 21

Laffer Curve

Answer 21

Relationship between tax rate set by government and total tax revenue government collects

Question 22

Two ways to balance the budget are to:

Answer 22

Increase taxes or decrease government spending

Question 23

Who is responsible for fiscal policy

Answer 23

OMB, president, congress

Question 24

The major source if federal revenue is

Answer 24

Individual income tax

Question 25

High FICO score

Answer 25

The person will probably repay borrowed funds

Question 26

Credit bureau

Answer 26

Company that collects info and tracks the bill paying habits