Download File - Holtville FFA The Farmer in All of Us.

Ag Economics Final
demand
move along
shift left or right
inferior goods
future expectations
less demand
more demand
price
complements
income effect
normal goods
substitutes
law of demand
tax benefits
tax-free
401k
IRA
Roth IRA
Mutual Fund
15
25
long
short
Matching:
1. The desire to own something and the ability to pay for it
2. States that consumers buy more of a good when its price decreases
and less when its price increases
3. A change in consumption based on a perceived change in income
4. As the price of one good becomes more expensive people will
consume more of -------- goods.
5. Demand curve is accurate as long as there are no changes except
in -----6. When only prices change you -------- -------- the demand curve.
7. Goods consumers demand more of when their income increases
8. Increases in income causes demand for a good to fall
9. Demand is positively related to our -------- ----------- of a good's
price. If we expect the price of a good to rise, demand will rise
and vice versa.
10. On a demand curve what does a shift to the left mean?
11. On a demand curve what does a shift to the right mean?
12. Two goods that are bought and used together
13. Goods used in place of one another
14. You can contribute to a 401K _________________________
15. ______________ allows more freedom in where to invest your retirement account.
16. ________________ offers on free distributions for everyone over 45.
17. Many employers contribute to their employees'__________ plans
18. Generally the annual contribution limit for 401k is much higher than the IRA limit
19. Both 401k and IRA accounts offer ____________________
20. In a __________________ contributions are made with after tax dollars and withdrawals
are tax free, that is why they a so appealing to young people.
21. You should invest _______ percent of your total income.
22. You should divide your investment money, giving ________ percent to a savings
account, 401K, IRA, and high risk investments like stocks evenly.
23. Once you leave an employer, you should roll over your 401K into your ______________.
24. Always save ______________ term with tax free dollars
Multiple Choice:
25. Which of the following is an example of using physical capital to save time and money?
a. hiring more workers to do a job
b. switching from oil to coal to make production cheaper
c. building extra space in a factory to simplify production
26. Which of the following are factors of production?
a. capital and land
c. technology and productivity
b. scarcity and shortages
d. economics and business decisions
27. Opportunity cost is
a. the most desirable alternative given up as a result of a decision.
b. any alternative we sacrifice when we make a decision.
c. all of the alternatives we sacrifice when we make a decision.
28. Every decision involves trade-offs because
a. everyone’s resources are limited
b. some people have more money than others
c. some decisions are made for business, others for society
29. The line on a production possibilities curve showing the relationship amounts of two
types of goods produced using all resources is called the
a. opportunity cost line
b. production possibilities frontier
c. maximum possible production line.
30. What is the difference between a shortage and scarcity?
a. A shortage can be temporary or long-term, but scarcity always exists.
b. A shortage results from rising prices; scarcity results from falling prices.
31. Economists use the phrase “guns or butter” to describe the fact that
a. a person can spend extra money either on sports equipment or food.
b. a person must decide whether to manufacture guns or butter.
c. a nation must decide whether to produce more or less military or consumer goods.
32. An economy that is using its resources to produce the maximum number of goods and
services is described as
a. trading off
b. efficient.
c. growing.
33. Economics is the study of how people
a. calculate their income taxes
b. choose from limited resources to meet their needs
c. respond to war and drought
d. gain knowledge and skills from study and experience
34. Which of these is a key economic question faced by countries?
a. How big should the army be?
b. How much money should be raised in taxes?
c. How many schools should be built?
d. What goods and services should be produced?
35. In a traditional economy, economic decisions are based largely on
a. custom
b. science
c. socialism
36. Competition and self interest are two important forces in
a. free market economies
b. traditional economies
c. centrally planned economies
d. communist economies
37. Which economic goals are best promoted by the free market?
a. efficiency and freedom
b. efficiency and equity
c. innovation and security
d. freedom and security
38. Which is true of the government in a centrally planned economy?
a. It builds every house in every village.
b. It encourage workers to innovate
c. It makes all important economic decisions
d. It places much emphasis o the production of consumer goods
39. Socialists believe that economic equality is only possible if
a. everyone makes the same amount of money
b. the public controls the economy
c. medical care is free
d. no one has to pay taxes
40. The former Soviet Union was an example of a communist country where
a. individual freedom was allowed
b. free enterprise was encouraged
c. consumers had many choices
d. most economic and political power was controlled by the government
41. The free enterprise system of then United States is best described as a
a. free market economy
b. traditional economy
c. mixed economy with limited government intervention and a great deal of
economic freedom
d. mixed economy with equal amounts of economic freedom and government
intervention
42. Two units of the same type of money must be the same in terms of what they will buy,
that is, they must be
a. divisible.
b. portable.
c. acceptable.
d. uniform.
43. What is the source of fiat money’s value?
a. it represents the value of another item
b. government decree
c. presidential pardon
d. it is equal to the value of the stock market
44. The money supply of the United States is made up of which of the following?
a. M1
b. M1 and parts of M2
c. all the money available in the economy
d. all the money available in the economy plus money that the country could borrow
45. Which of the following is NOT a condition for perfect competition?
a. many buyers and sellers participate
b. identical products are offered
c. market barriers are in place
d. buyers and sellers are well-informed about goods and services
46. How does a perfect market influence output?
a. Each firm adjusts its output so that it just covers all of its costs.
b. Each firm makes its output as large as possible even though some goods are not
sold.
c. Different firms make different amounts of goods, but some make a profit and
others do not.
d. Different firms each strive to make more goods to capture more of the market.
47. A monopoly is
a. a market dominated by a single seller.
b. a license that gives the inventor of a new product the exclusive right to sell it for a
certain amount of time.
c. an industry that runs best when one firm produces all the output.
d. an industry where the government provides all the output.
48. Price discrimination is
a. a factor that causes a producer’s average cost per unit to fall as output rises.
b. the right to sell a good or service within an exclusive market.
c. division of customers into groups based on how much they will pay for a good.
d. the ability of a company to change prices and output like a monopolist.
49. The differences between perfect competition and monopolistic competition arise because
a. in perfect competition the prices are set by the government.
b. in perfect competition the buyer is free to buy from any seller he or she chooses.
c. in monopolistic competition there are more sellers and more buyers.
d. in monopolistic competition competitive firms sell goods that are similar enough
to be substituted for one another.
50. An oligopoly is
a. an agreement among firms to charge one price for the same good.
b. a way to attract customers without lowering price.
c. a market structure in which a few large firms dominate a market.
51. Antitrust laws allow the U.S. government to do all of the following EXCEPT
a. regulate business practices
b. stop firms from forming monopolies
c. prevent firms from selling new experimental products
d. break up existing monopolies
52. The purpose of both deregulation and antitrust laws is to
a. promote competition
b. promote government control
c. promote inefficient commerce
d. prevent monopolies
53. Complete this sentence: In a monopoly market, the market price will be _____ than the
price in a perfectly competitive market.
a. Higher
b. Lower
c. The same
d. None of the above
54. If a firm enjoys economies of scale, it is?
a. For each unit produce, input costs get smaller
b. For each unit produced, input costs get larger
c. For each unit produce, input costs are unchanged
d. None of the above
55. Any establishment formed to carry on commercial enterprises is a
a. partnership.
b. business organization.
c. sole proprietorship.
d. corporation.
56. Sole proprietorships
a. are complicated to establish.
b. make up about 6 percent of all businesses.
c. are the most common form of business in the United States.
d. offer owners little control over operations.
57. What advantage does a partnership have over a sole proprietorship?
a. The responsibility for the business is shared.
b. The business is easy to start up.
c. The partners are not responsible for the business debts.
d. The business is easy to sell.
58. How is a general partnership organized?
a. Every partner shares equally in both responsibility and liability.
b. The doctors, lawyers, or accountants who form a general partnership hire others to
run the partnership.
c. No partner is responsible for the debts of the partnership beyond his or her
investment.
d. Only one partner is responsible for the debts of the partnership.
59. All of the following are advantages of incorporation EXCEPT
a. the responsibility for the business is shared
b. capital is easier to raise than in other business forms
c. corporations face double taxation
d. corporations have more potential for growth
60. A horizontal merger
a. combines two or more firms involved in different stages of producing the same
good or service.
b. combines two or more partnerships into a larger partnership.
c. combines two or more firms competing in the same market with the same good or
service.
d. combines more than three businesses producing unrelated goods.
61. A business franchise
a. attempts to improve the image and working conditions of people in a particular
occupation.
b. operates without the aim of profit.
c. is a semi-independent business tied to a parent company.
d. is not required to pay income taxes.
62. Consumer cooperatives
a. are owned and operated by consumers.
b. provide a service, rather than a good.
c. help members sell their agricultural products.
d. pay no income tax.
TRUE OR FALSE
63. Money is anything that serves as a medium of exchange, a unit of account, and a store of
value.
64. Generally, it is not a good idea to participate in an employer-sponsored retirement
program.
65. When starting an investment program, you should stop participating in your savings
program.
66. Dividend payments on common stock are guaranteed, but the amount is determined by
the board of directors.
67. A mutual fund is a pooled account.
68. You should start saving for retirement now.
69. A dividend is a type of retirement account.
70. A certificate of deposit is an example of a time deposit.