Final Exam SG

Question 1

The economy of China is in transition. What does that mean

Answer 1

The economy is moving from central planning toward a market based system

Question 2

When a buyer is not willing to spend a lot of time and energy researching the market?

Answer 2

When the savings to be made are small

Question 3

What does it mean when a person is underemployed?

Answer 3

The person has a job but they are overqualified for it

Question 4

Which of these statements is a fundamental part of supply-side economics

Answer 4

The government should reduce taxes to promote economic growth by increasing aggregate supply

Question 5

All of the following are accurate statements about the special economic zones established in China EXCEPT…

Answer 5

The economic zones established in the interior regions have been far more successful than those established in coastal cities

Question 6

Which of the following is NOT characteristic of a centrally planned economy?

Answer 6

Each collective or factory sets its own goals

Question 7

What is a basic principle of the law of demand

Answer 7

When a good’s price is lower, people will buy more for it

Question 8

Which of the following jobs are expected to grow significantly

Answer 8

Computer-related jobs

Question 9

An example of expansionary fiscal policy would be…

Answer 9

Cutting taxes

Question 10

Which of the following is correct? The unemployment rate is…

Answer 10

(Labor force - employed) /labor force x 100

Question 11

Which of the following is one way the federal reserve bank servers the government?

Answer 11

Selling the government securities

Question 12

All of the following are associated with moving from a centrally planned economy to a market economies bony EXCEPT…

Answer 12

An increase in the role the government plays in the day-to-day operation of a business

Question 13

What is the purpose of competition?

Answer 13

To act as a regulating force in the market place

Question 14

Which of the following goods would be likely to be bought in the same quantity even if it doubled in price?

Answer 14

Pencils

Question 15

The equilibrium wage for doctors is high because the…

Answer 15

Supply of doctors is relatively low and the demand is relatively high

Question 16

An example of an automatic stabilizer is…

Answer 16

Taxes

Question 17

You are returning from a European vacation and decide to buy some chocolates in the duty-free shop at London Heathrow airport. What does “duty free” mean?

Answer 17

You pay no customs duty in the chocolates

Question 18

A large telephone company has hired lobbyists to try to persuade lawmakers to reduce governmental regulation over the telecommunications industry. Why might the company so this?

Answer 18

Some regulations are costly to implement and cut into profits

Question 19

Cartels are difficult to operate for which of the following reasons?

Answer 19

They work only if nemeses keep to their agreed output

Question 20

A knitting factory worker who loses her job because the company has relocated the plant to another country is an example of…

Answer 20

Structural unemployment

Question 21

What type of policy does the Fed use to counteract a contradiction?

Answer 21

Easy money policy

Question 22

What two methods can a less developed country use to finance its economic development?

Answer 22

Internal financing and foreign investment

Question 23

Suppose there is a family in which all the boys are expected to become farmers when they are adults, just as their fathers and grandfathers did. In which kind of economy did they participate?

Answer 23

Traditional economy

Question 24

The price of a slice of pizza has just increased by $1 from an earlier, low price. Based on Ashley’s demand curve in Figure 4.4, which of the following statements is true?

Answer 24

Ashley will buy two fewer slices of pizza

Question 25

You realize that many students who come to early morning hockey practice do not get up early enough to eat breakfast. You borrow $500 from your parents to state a bagel delivery service to the hockey rink in the Walt mornings. You are acting as...

Answer 25

And entrepreneur

Question 26

Supporters of supply-side economics believe that...

Answer 26

Taxes have a strong negative influence on economic output

Question 27

The currency in Great Britain is the pound, and the price of a particular British car is 12,000 pounds. On Monday, the exchange rate is 0.67 pounds per dollar. On Friday, the exchange is 0.58 pounds per dollar. What will happen to the price of the British car in the United States on Friday?

Answer 27

The price will rise

Question 28

The government of a country must make a decision between spending money on a hospital or spending the same amount in border security. What kind of decision is this?

Answer 28

Guns or Butter

Question 29

Ceteris paribus, or "all other things held constant," is an assumption that has which of the following effects on a demand schedule?

Answer 29

It take only prices into account

Question 30

Good wireless and Better wireless merge to form Best Wireless. The federal government watches this merger carefully for evidence of a...

Answer 30

Monopoly

Question 31

The sales tax on a $20.00 hammer us 7% or $1.40. Why is this tag a bigger burden for Josh, who has a $15,000 income, than for Aaron, who has a $150,000 income?

Answer 31

The tax represents a larger proportion of Josh's income

Question 32

When the exchange rates are allowed to be determined by supply and demons, they are called which of the following?

Answer 32

Flexible

Question 33

The United States places a limit on one # of cars that can be bought unit the country for sale. This is an example of

Answer 33

An import quota

Question 34

Purpose of a production possibilities graph is to

Answer 34

Show alternative ways to use an economy's resources

Question 35

A new runway has opened up at the airport and the flight path goes directly over your apartment. the noise of airplanes is a

Answer 35

Negative externality

Question 36

Difference between operating budget and capital

Answer 36

Operating budget is day-to-day expenses. A capital budget is focused on investments

Question 37

What are the money or other valuables that belong to corporation or partnership called

Answer 37

Assets

Question 38

The purchase and supply of goods and services takes place in the...

Answer 38

Product market

Question 39

Which of the situations is most likely to cause the Fed to introduce a tight money supply

Answer 39

The economy is expanding quickly and inflation is a concern

Question 40

GDP expressed in a constant or unchanging prices is called

Answer 40

Real GDP

Question 41

Cording to figure 6.2 in the market price of $1.50 would be

Answer 41

Equilibrium price

Question 42

Brain drain occurs when

Answer 42

An engineer leaves her LDC at work in a developed nation

Question 43

Congress just passed several bills outlining federal budget what is the next step in the budget process

Answer 43

President signs the budget into law vetoes it and sends it back to Congress

Question 44

Just and Margaret qualify for section 8 housing programs what kind of benefit are they receiving

Answer 44

In-kind budget

Question 45

What is a factory building an example of

Answer 45

Physical capital

Question 46

All the following are constitutional limits on the power to tax except that

Answer 46

Exports must not be taxed

Question 47

In a publicly held corporation

Answer 47

A large number of stockholders can buy and sell stock

Question 48

Which of the following is a private organization of the times to influence public officials to act or vote in ways that will benefit group members

Answer 48

Interest groups

Question 49

What country is the largest exported of services

Answer 49

United States

Question 50

What happens to charge an excessive price for its products

Answer 50

Consumers will substitute a rivals product