Download Final Economics Assignment 1415 An auto assembly line would

Final Economics Assignment 1415
1. An auto assembly line would illustrate what principle of economic production? (could have two
answers, hint-hint)
2. The minimum wage would be which: price ceiling or price floor?
3. What part of the Business Cycle is an economy in when real GDP (real means adjusted for
inflation) is growing, unemployment is low, and inflationary pressures are building?
4. Production costs increase. What bad economic problem will this lead to?
5. You use a $10 bill to buy socks instead of buying notebook paper for school. What is your
opportunity cost?
6. A tax on an imported good is called a _____________.
7. Why do prices act as a signal to sellers in the market?
8. The Fed BUYS government bonds/securities on the open market. This _______________ the
money supply and _____________ aggregate demand.
9. When the government makes a purchase of a ballistic missile from Missiles “R” Us, it has made
the purchase in what part of the Circular Flow model? (Hint: It’s where all purchases are made.)
10. What is the primary purpose of trading blocs such as NAFTA?
11. If you own a pet grooming company, what would be an example of capital investment?
12. Individual businesses and households are the main focus of study in ______economics.
13. Define craft union:
14. In this economic system, of the three studied early in the semester, producers make goods that
consumers are willing to buy:
15. What quasi-governmental entity is primarily responsible for the control of the nation’s money
supply? (Hint: It conducts monetary policy.)
16. What would happen to workers’ wages if there was an increase in worker productivity?
17. Honoria owns a sole proprietorship business. If something goes wrong, she is solely and totally
responsible for it. This is a disadvantage called ________________ liability.
18. If you have your money deposited in a bank insured by the FDIC, what happens to your money if
the bank fails?
19. Two countries trade when they have comparative advantage in production. But what happens
when the opportunity costs of producing the same two products, say shoes and wheat, are
exactly the same for two countries? Do they still trade? You MUST explain why.
20. Higher demand for U.S. exports will typically result in a(n) ____________ in the international
value of the dollar.
21. Define demand:
22. Those who are opposed to raising the minimum wage claim it will cause unemployment to
_________.
23. What is the basic economic problem that ALL nations (and people) face?
24. The efficient use of resources is the MOST important criterion for economic growth. Agree or
disagree? (State which one)
25. As more money is put into an economy (in the form of dollars, rubles, gold, pesos, silver, etc.),
what economic problem always follows?
26. What are some reasons for a shift left or right of the supply curve?
27. If you open a business, you are taking on the role of the ___________________. To run this
business, you need to hire people. These people represent the factor of production
___________?
28. Giving participants in the economy a fair and equal chance to succeed is most connected with
the economic goal of __________________.
29. If an item, such as rocks, is accepted as payment between two people, then rocks act as this
characteristic of money:
30. In the U.S., public goods such as roads, bridges and schools, are paid for by _____ dollars taken
from wage earners.
31. Define technological monopoly:
32. The most important factor affecting how much you spend is how much you ______________.
33. The federal personal income tax is an example of the _________________ tax.
34. One of the advantages of entrepreneurship is the development of _____ products, and making
current products _____________.
35. Go back and review the example models of price floors and price ceilings. A price ceiling is
always _____________ the equilibrium price, and always creates a _______________ in the
market. A price floor is always _______________ the equilibrium price and always creates a
______________ in the market.
36. You go to college to earn a degree in order to get a better-paying job. What type of capital have
you invested in?
37. Define structural unemployment:
38. Go back and review the circular flow of economic activity. What are the two markets and what
are the other two parts of the flow chart?
39. If you own shares of stock in a corporation, in effect you _____ a small slice of that corporation.
40. In which economic system does the government own the means of production?
41. When things aren’t going well in an economy, where in the Production Possibilities Frontier
model does the economy produce?
42. Of the three types of economies, an advantage of this economy is that it adjusts to consumer
demands over time.
43. When aggregate demand exceeds aggregate supply, what bad economic problem will occur?
44. An oil embargo imposed on the United States, like the one in the 1970s, would result in a(n)
____________________ in the price level of gasoline and a(n) _______________ in real GDP.
45. In which market structure of the four studied does a firm have the greatest control over its
product’s price?
46. If the federal government wants to encourage spending by consumers, what would be the BEST
fiscal policy decision?
47. Define collective bargaining:
48. What type of tax is a sales tax on food? (Hint: it especially hurts lower income people.)
49. In the market economy, how are the basic questions of what, how and for whom to produce
answered?
50. Interdependence and price leadership are characteristic of this type of market structure?
51. What is created when the federal government spends less than it takes in through tax revenues?