jeopardy economics exam review 2010 11

Economics JeopardyChapter 1 Chapter 2 Chapter 4

Demand

Econ.

Overview

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Economics

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What is economics all about?a. money c. snuggiesb. choices d. the stock market– 10 points

Which of the following is an example of scarcity, rather than shortage?

a.A popular toy is sold out during the busy holiday season.

b.You have spent your last penny and payday is a week away.

c.A person wants an endless supply of everything but cannot have it.

d.Gasoline was rationed in America during World War II.

– 20 points

Human capital includesa. the salary paid to an accountant.b.a taxi driver’s knowledge of the city

streets.c. the machinery used to weave cloth.d.the equipment used by a doctor to

cure a patient.– 30 points

A company that makes baseball caps is underutilizing its resources. What does this mean?a.The company is running more

efficiently than its competitors.b.The company is paying its employees

less than it should be.c.The company is making caps when it

could be making t-shirts instead.d.The company is producing fewer caps

than it could be.– 40 points

What can cause a production possibilities curve to move to the right?a.Thousands of people move out of the

country.b.A new invention lowers the cost of

production.c.An epidemic kills thousands of young

men and women.d.The population is growing increasingly

old.– 50 points

What is the struggle among various producers for the consumer’s business called?

a. socialism c. incentiveb. competition d. self-regulation– 10 points

Which of the following was a free market philosopher?

a. Karl Marx c. Vladimir Leninb. Adam Smith d. Friedrich Engels– 20 points

In what kind of an economy does the government make all the decisions?

a. socialist c. centrally plannedb. laissez faire d. free enterprise– 30 points

What is the purpose of competition?

a.to act as a regulating force in the marketplace

b.to cause producers to attempt to put each other out of business

c.to cause buyers to have to be careful about spending their money

d.to act as a motivating force behind the free market

– 40 points

What economic goals are most likely to be achieved in a market economy?

a.freedom, security, and equityb.security, equity, efficiencyc. freedom, growth, and efficiencyd.good environment, and a good

government– 50 points

When a consumer is able and willing to buy a good or service, he or she creates which of the following?

a. consumption c. elasticityb. demand d. allocation– 10 points

What is a basic principle of the law of demand?a.The higher the price, the more people

will want the good.b.Everyone has a limited income that

they will spend.c.When a good’s price is lower, people

will buy more of it.d.Services are of interest in the same

way that goods are.– 20 points

A shift in the demand curve means which of the following?

a. a change in demand at every priceb. a rise in pricesc.a decrease in both price and quantity

demandedd. a change in consumer income– 30 points

How is future price expectations related to current demand?

a.If the price is expected to rise, current demand will drop.

b.If the price is expected to fall, current demand will rise.

c.If the price is expected to rise, current demand will rise.

d.Future price is not related to current demand.

– 40 points

You are part-owner of Apple corporation because you

a. own some of the company’s stock.b.have created a corporate charter for

the company.c. have purchased company bonds.d. attend the company’s annual meetings.– 10 points

Which of these tools in an example of monetary policy?

a. reducing income taxesb. buying and selling government securities

(bonds)c. increasing government spendingd. borrowing money through deficit spending– 20 points

Which of the following is a treaty to eliminate all trade barriers between Canada, Mexico, and the United States?

a. APEC c. CARICOMb. MERCOSUR d. NAFTA– 30 points

Which of the following goods has an inelastic demand?

a.Nike shoesb.cigarettesc. Motorola cell phonesd. Toshiba computers– 40 points

When the government deregulates a product or service, what happens to it?

a.The product or service is available to more people.

b. The product or service becomes cheaper.c. Some government regulations over the

industry are eliminated.d. Government control over the industry is

stopped.– 50 points

What type of policy does the Federal Reserve use to counteract an expansion that is causing high interest rates?

a.fiscal policyb.easy money policyc. tight money policyd. policy lags– 10 points

What is one possible short-term effect of an easy money policy?

a.decreasing inflationb.a contracting money supplyc. higher interest ratesd. an increased money supply– 20 points

When the selling price of a good goes up, what is the relationship to the quantity supplied?

a. The cost of production goes down.b.The profit made on each item goes down.c. The producer supplies more of the good.d. There is no relationship between the two.– 30 points

Supply refers to ______________, while demand refers to _________________.

a.consumers, producersb.producers, consumersc. consumers, shoppersd. business owners, entrepreneurs– 40 points

What is an important advantage of a free market?a.It does not change unless the

government directs it.b.Individuals are free to make their own

economic decisions.c. It is easy to regulate.d. It protects the less fortunate.– 50 points