Economic Exam Question to Study

1. limited resources What is one cause of scarcity? 2. refer back to the The primary purpose of a conclusion in an informative essay is to thesis. 3. Gross Domestic Product 4. purchasing pow- Which economic indicators are used to measure the global economy? Check all er parity that apply. trade volumes gross domestic product 5. European Union Which organization created a shared economy? 6. income tax 7. Governments are Why do most nations use fiat money today? able to exert control over the value of fiat money. 8. consumers show Demand-pull inflation occurs when an interest in purchasing more goods. 9. any economic Economists use GDP to measure growth or shrinkage. 10. It can be easily liquidated. Total output is a synonym for Corporate taxes are a type of What is true of the M1 category of money? 1/7 11. A country decides Which is an example of comparative advantage? to grow wheat and when another country raises cattle. 12. a restricted sys- What is one example of a closed economy? tem that blocks trade with international partners 13. production cost; It costs Cool Clothes Company $15 to produce one pair of jeans, but they needed opportunity cost to discontinue production of shirts to focus on jeans. The $15 and discontinuation of shirt production are represented by which of the following sets of terms? 14. to punish other countries. Embargoes, quotas, and standards are tools that countries use 15. total output Gross domestic product (GDP) is the value of goods and services produced in a country annually. It can best be described as measuring an economy's 16. petroleum Jacob is considering buying a new car. Which nonrenewable resource should influence the decision? 17. Introduction Read the format of an outline for an informative essay. 1. _____________________ A. Thesis statement 2. Subtopic body sentence A. Evidence B. Evidence 2/7 3. Subtopic body sentence A. Evidence B. Evidence Which item would best fill in the blank space? 18. there is competi- A mixed-market economy is one in which tion and free enterprise. 19. monitoring elec- Which are indicators that economists use to measure how an economy grows? tion results Select all that apply. measuring what the economy produces 20. decreases According to the law of demand, as prices increase, demand 21. March 2013. The graph below shows the value of the US dollar versus the Canadian dollar. According to the graph, the American dollar was the strongest during which month? 22. a gradual expan- Which is the best definition of hyperinflation? sion in the price of goods and services 23. Country A to spe- If Country A is an agricultural country and Country B has many cities and factories, cialize in growing it would make sense for corn while Coun3/7 try B specializes in making cars. 24. by decreasing trade barriers How do trade agreements help the countries involved? 25. the US dollar has If it becomes less expensive to travel overseas from the United States, American declined in value. tourists are benefiting from the fact that 26. develop a plan. President Roslin of Country XYZ knows that a new policy is needed to help solve the problem of rising unemployment in her nation. Her next step is to 27. choosing to grow Look at the following chart. both fruit varieties or only apProducer A's opportunity cost would be ples. 28. increases. The law of supply states that as the price of a good declines, the quantity supplied of that good 29. is developed. The higher a country's gross domestic product (GDP), the more likely it is that the country 30. increases in pro- When the government injects money into the economy, consumers may have more duction. purchasing power, which may result in 31. reduced govern- If expansionary taxation policies are left unchecked, which is the most likely result? ment spending 32. finding customers in other countries. Businesses can use globalization to their advantage by 33. Why is the slow growth that can result from a contractionary policy a positive effect? 4/7 It can decrease inflation. 34. elasticity clearance sales income Which factors influence changes in consumer demand? Check all that apply. 35. government spending. The Fed's aim in responding to a recession is to decrease 36. as needed When does government regulate producers in a mixed-market economy? 37. maximize profits Banks that offer low interest rates to people with good credit at little risk. 38. giving up an op- Which best describes an opportunity cost? portunity to do something else when making an economic decision 39. the amount con- The graph shows the price of a good compared to the quantity demanded. sumed greatly changes with the price. This graph demonstrates how 40. Profit is the fiWhat is the best definition of profit? nancial gain from business activity minus expenses. 41. A low trough is indicative of 5/7 the end of a recession. 42. Supply is less Which occurs during disequilibrium? Check all that apply. than demand. Supply is greater than demand. 43. elastic When artists pass away, the supply of their paintings most likely becomes (blank). 44. Ceilings In a free market system, price controls can include both floors and (blank) 45. $9 The graph shows a point of equilibrium. What is the price at which equilibrium is achieved? 46. the OCC. A regulatory agency that attempts to limit risk in the banking system is 47. kept by banks for A certificate of deposit pays a higher interest rate than a savings account because a longer time pe- the money is riod. 48. changes in employment levels What do the indicators used by economists reveal about the economy? 49. meet a social When it spends money on education, a government is trying to need and improve the economy. 50. eventually increases as pro- The chart shows the marginal cost of producing apple pies. 6/7 duction decreasThis chart demonstrates that the marginal cost es. 7/7