Economics Final Exam Review

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questions related to this week's final

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DOUGLAS JANTZEN

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Economics Final Exam Review


Froggy Jumps Economics Final Exam ReviewOnline version questions related to this week's final by DOUGLAS JANTZEN 1 Any substance that occurs naturally in nature is considered which factor of production? a Labor b Capital c Land 2 Which of these is a trade-off when you purchase a used car instead of a new car? a new car smell b a car with miles on it already c an older model car 3 Which of these is NOT an assumption of a production possibilities graph? a It always compares two products b Resources such as labor and technology are fixed c Efficiency can never be achieved 4 What is the marginal cost when decide to watch 2 episodes of a show on Netflix rather than just one? a the enjoyment of the second episode b the time it took to watch the second episode c both answers are correct 5 Which of these is true about scarcity? a it only affects poor nations b it can be ended through a better use of resources c it affects all societies no matter how rich or poor 6 Demand curves tend to move in which direction? a up and to the right b down and to the right c straight across 7 What will happen to the demand for printers if the cost of ink increases? a Demand will increase b Demand will decrease c Demand will not be affected 8 Golf clubs and golf balls are examples of a complementary goods b substitute goods c inferior goods 9 If the price of gum increased from $1.10 to $1.15, which would probably be true? a An elastic change in demand would occur b An inelastic change would occur c Supply would drop 10 What happens to the demand for a product when its substitute decreases in price? a The demand for it would decrease b The demand for it would increase c The demand for it would stay the same 11 Which of these economic systems is the least likely to offer economic freedom? a commany economy b mixed economy c market economy 12 A large benefit of this economic system is full employment, but a drawback is a lack of incentive a command economy b markey economy c traditional economy 13 Any point beyond the curve on a Production Possibilities Curve is referred to as a the frontier b inefficient c unattainable 14 This economic goal is defined as one that seeks to provide citizens with guarantees of food on shelves, affordable healthcare, unemployment benefits, etc. a economic security b economic growth c economic freedom 15 If eggs will increase in price next month, how will that affect the current demand curve for eggs? a The demand curve will shift to the right (consumer expectations) b The demand curve will shift to the left (producer expectations) c The demand curve will see movement, but no shift because it hasn't happened yet 16 If a business owner raises prices and demand drops by an elasticity of .7, was it a good decision? a Yes, because it was an inelastic change b Yes, because it was an elastic change c No, because demand dropped 17 If demand for cars increases, but car manufacturers can't meet demand, what will we see? a surplus of cars b equilibrium c shortage of cars 18 Unlike the Law of Demand, how are price and quantity linked with the Law of Supply? a When prices rise, supply falls b When prices rise, supply rises c When prices drop, supply stays the same. 19 Market equilibrium occurs in which of these situations? a 10 apples are for sale and 10 apples are sold b 25 apples are for sale and 20 are sold c 50 apples are for sale and 75 are requested 20 Which of these is the safest investments? a AAA rated government bonds b mutual funds c stocks 21 The market cap of a company is a measure of a company's size and is calculated by taking its current share price and multiplying it by what? a however many shares there are available (shares outstanding) b the company's closing price from the previous day c the average ROI the company has achieved in the past year 22 Mutual funds are a good investment strategy for many people because a they help to diversify a person's investment portfolio b they reduce the risk of an investor by spreading money into a collection of stocks c both of these are reasons to invest in mutual funds 23 Which of the following statements about FICO scores is true? a Every credit card user starts with a perfect FICO score b FICO scores are given to both credit card users and debit card users c FICO scores are an indicator of a person's ability to use credit cards well 24 The statement balance on a credit card is a the minimum amount a person owes each month b the total amount a person owes at the end of a billing cycle c the total that a person charges between when they get their bill and when it's due 25 Income taxes in America are a proportional b progressive c regressive 26 Which of these programs is NOT funded by FICA (Federal Insurance Contributions Act)? a Social Security b Medicare c Food Stamps 27 How is taxable income determined? a total income minus deductions b total income plus deductions c total income plus everything withheld 28 Which of these is true of general partnerships? a at least 2 or more people share total liability and debts b only 1 partner faces liability, other partners don't c it's the hardest business organization to start 29 Corporations face each of these disadvantages EXCEPT a double taxation b hard to start c hard to raise capital (funding) 30 Which of these business organizations is the easiest to start and allows for total freedom in decision making for one person? a franchise b sole-proprietorship c corporation

Economics Final Exam Review

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Economics Final Exam ReviewOnline version

by DOUGLAS JANTZEN

Any substance that occurs naturally in nature is considered which factor of production?

Which of these is a trade-off when you purchase a used car instead of a new car?

Which of these is NOT an assumption of a production possibilities graph?

What is the marginal cost when decide to watch 2 episodes of a show on Netflix rather than just one?

Which of these is true about scarcity?

Demand curves tend to move in which direction?

What will happen to the demand for printers if the cost of ink increases?

Golf clubs and golf balls are examples of

If the price of gum increased from $1.10 to $1.15, which would probably be true?

What happens to the demand for a product when its substitute decreases in price?

Which of these economic systems is the least likely to offer economic freedom?

A large benefit of this economic system is full employment, but a drawback is a lack of incentive

Any point beyond the curve on a Production Possibilities Curve is referred to as

This economic goal is defined as one that seeks to provide citizens with guarantees of food on shelves, affordable healthcare, unemployment benefits, etc.

If eggs will increase in price next month, how will that affect the current demand curve for eggs?

If a business owner raises prices and demand drops by an elasticity of .7, was it a good decision?

If demand for cars increases, but car manufacturers can't meet demand, what will we see?

Unlike the Law of Demand, how are price and quantity linked with the Law of Supply?

Market equilibrium occurs in which of these situations?

Which of these is the safest investments?

The market cap of a company is a measure of a company's size and is calculated by taking its current share price and multiplying it by what?

Mutual funds are a good investment strategy for many people because

Which of the following statements about FICO scores is true?

The statement balance on a credit card is

Income taxes in America are

Which of these programs is NOT funded by FICA (Federal Insurance Contributions Act)?

How is taxable income determined?

Which of these is true of general partnerships?

Corporations face each of these disadvantages EXCEPT

Which of these business organizations is the easiest to start and allows for total freedom in decision making for one person?