Economics Response Questions

 

  1. TANSTAAFL stands for: There ain’t no such thing as a free lunch
  2. .On the production possibilities curve, as you increase the output of one product, you ______ the output of another product. Decrease
  3. These are real costs that are measurable in terms of the real value that is forgone when a choice is made: opportunity costs
  4. What are the 4 factors of production: land, labor, capital, and entrepreneurial
  5. What factor of production would a machine be in? capital
  6. Capitalism is an economic system that favors what 2 things: private ownership and individual rights.
  7. What are the 2 effects of competition: lower prices and better quality products
  8. This is the difference between the costs of 2 alternatives or the difference between 2 benefits: margin
  9. This is an economic analysis that analyzes facts or data to establish scientific generalizations about economic behavior: positive economics
  10. This is the study of the economy as a whole and focuses on aggregate behaviors of producers and consumer: macroeconomics
  11. Will a free market occur if there isn’t willingness of individuals and organizations to freely exchange their goods/services?: No
  12. What are the 3 types of market systems: traditional, planning/command, and market principle
  13. Decision making of a product is based on what to produce, how to produce it, and what? :who will receive the benefits.
  14. This system is one in which a group makes economic decisions as a whole, such as a government: planned/command system.
  15. This is a system used in Europe during the 16th-18th century, and is characterized by central planning, strong government, and heavy reliance on exports: Mercantilism
  16. If governments chose to not interfere with economic policy, they are practicing which technique: laissez-faire.
  17. When do governments tend to get involved in economic policy? When the benefit of the whole group is at stake.
  18. This is any situation in which resources, goods/services are exchanged: market
  19. What are the axes and slope of the supply curve? X- quantity supplied, y-price, slope up
  20. Finish this sentence: As price increases, demand _________? Decreases.
  21. Finish this sentence: As price increases, supply __________? Increases
  22. This is the price at which the quantity supplied and the quantity demanded are the same: equilibrium price.
  23. Producers seek what? Profit maximization
  24. This refers to the relationship of the change in price to the change in quantity demanded: elasticity
  25. Is a price elastic, if after calculations, the number comes out to be .9? No, it has to be greater than 1
  26.  This is a governmental grant of the exclusive right to make, use, or sell an invention for a specified period of time? patent
  27. These are market types in which they operate with strict price controls and universal service requirements set by the government: regulated monopolies
  28. This is a situation in which demand exceeds the supply of the market: shortage.
  29. Give an example of an oligopolistic industry: auto industry
  30. This is a word that describes that consumers are the driving force of a market: consumer sovereignty
  31. What are the principle interests of macroeconomics: output, prices, and employment
  32. These are actual expenditures for resources used in production. : explicit costs
  33. The number of units produced is the ?: total product
  34. How could a company increase productivity? Better working conditions, better pay, health care, stocks, vacation time, etc.
  35. What goals does the Humphrey Hawkins Act of 1978 require the government to do? Pursue goals of output, full employment, and price stability
  36. These are indications of the direction the economy will take in the future: leading economic indicators.
  37. What is an interest rate: a percentage that is multiplied to the amount borrowed or saved.
  38. What is the GDP equation? :GDP = C + I + G + X
  39. This is a type of inflation that is caused by a rise in the costs of factor of production: cost-push inflation
  40. This agency implements monetary policies in the US: Federal Reserve System/
  41. What economic problem does the Tragedy of the Commons illustrate? Inefficient use of collectively owned resources.
  42. Approximately what % of the world’s nations are classified as developed economies? 20 %
  43. Not having enough resources to satisfy the wants of all people is called ? scarcity
  44. What is the time period over which real GDP must decline for a recession to be identified? Six months
  45. What happened to the Athenian government when it debased its new coins? People wanted to spend only the new coins
  46. Marginal analysis is concerned with what type of costs and benefits? Incremental
  47. Rent is the economic term for payments for what type of resource? Natural resource
  48. What is a primary characteristic of a purely competitive market? There are many buyers and sellers.
  49. If the production possibilities curve shifts left, what does this reflect? An increase in productivity
  50. What is the economic term that refers to the ease at which an asset can be converted to an economy’s medium of exchange? Liquidity
  51. What type of tax is the Federal tax collected on the sale of a gallon of gas at a gas station? Excise tax (an internal tax levied on the manufacture, sale, or consumption of a commodity)
  52. What organization conducts the actual trades of US Government Securities ordered by the Federal Open Market Committee? Federal reserve Bank of New York.
  53. What term refers to a payment not made in exchange for a good or service? Transfer payment
  54. Which type of good is excludable and rival? A private good
  55. What is the real interest rate? The nominal interest rate – inflation rate
  56. What spending component makes up the largest percentage of the market basket of goods and services used to determine the Consumer Price Index? Housing
  57. What monetary policy tool is most used by the Federal Reserve? Buying or selling securities
  58. What 2 groups in a market economy are connected through financial intermediaries? Savers and borrowers
  59. What group contends that the generalization and assumption that economists apply to modern economies do not apply to ancient economies? Primitivists
  60. During the period of the Roman Empire, what region was the largest source of Roma grain imports? Egypt
  61. What term refers to depositors’ balances in bank accounts that can be accessed by writing checks? Demand deposits
  62. What did John Keynes cite as an example of a fiscal policy stimulus in the ancient Egyptian economy? Building pyramids
  63. The demand for what is referred to as a derived demand? Factors of production
  64. What refers to the relationship between an economy’s total output demanded and the price level? Aggregate demand

 

 

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