Personal Finance midterms

How can property rights be diminished? when the property rights are not well defined
Which of the following occurs during inflation? the purchasing power of money decreases
If a programmer injures his wrist from using his computer in an unsafe position he should contact the ___________________________., Occupational Safety and Health Administration
Which would you use to determine a Producer Price Index market basket? raw materials, intermediate goods, final goods
In a competitive environment a consumer has a choice in ___________________________, service, and price., quality
When the actual inflation rate is lower than the expected inflation rate this is ___________________________., bad for borrowers and good for lenders
Suppose five banana companies agree on a set price for bananas. What is another name for this band of companies? cartel
A decrease in the price level can cause interest rates to decrease. This leads to ___________________________ investments and a(n) ___________________________ in the amount that consumers spend. more; increase
Which of the following is included in the gross domestic product? dental visits
The aggregate demand curve could shift because of changes to any of the following factors EXCEPT for which one? neutral expectations for the economy
The Federal Reserve has responsibility for all of the following EXCEPT ___________________________. appointing the chairman of the Federal Reserve
How is the Federal Deposit Insurance Corporation funded? by the income received from premium payments of insured banks and investments in U.S. Treasury Bonds.
Suppose the federal government wants to control high levels of inflation. What type of fiscal policy should it pursue? a contractionary fiscal policy
Historically when has growth in the national debt been highest in the United States? during wartime
Which of the following is an example of monopsony? One professional basketball player is renowned for his athletic abilities and skills.
All of the following could cause a decrease in the national debt EXCEPT for which one? an increase in government borrowing
Jessica and Akiko are making origami figures for a school fundraiser. Jessica can make three origami flowers or one origami crane in one hour. Akiko can make two origami flowers or two origami cranes in one hour. Which of the following about comparative advantage is correct? Jessica has a comparative advantage in making both origami flowers and cranes.
Typically it is more expensive for foreigners to buy U.S. goods when the U.S. dollar ___________________________. appreciates
Free trade agreements (FTAs) support free trade investment, and which of the following?, environmental protection
City parks are maintained by ___________________________. local governments
International trade and globalization are ___________________________. notions that have been around for centuries
Why might a business choose to ship its goods via maritime transportation instead of air transportation? It is shipping a massive quantity of goods.
In the U.S. economy _______________________________________., a. prices signal the value of goods and services b. people decide how to use their property within the limits of the law c. buyers and sellers make voluntary exchanges d. All of the above*
Economics is the study of ____________________________________. a. how individuals make choices b. how societies make choices c. how choices are made under the condition of scarcity d. All of the above*
John went to the movies on Saturday night. His next best alternative was staying home. The value that John gave up by not staying home is called _______________________________________. the opportunity cost
A “Do Not Touch” sign on a wet park bench actually results in more people touching the bench. This is an example of a(n) _______________________. unintended consequence
Work efforts plus employees’ talents and skills are _______________. c. human resources
A production function shows output that can be produced from _______________. . natural, human, and capital resources
Businesses buy resources from a ____________ market and sell goods and services in a _________ market. Households buy these goods and services in a __________ market. factor, product, consumer
Complete control of the business and keeping all the profits are advantages of a ____________; raising capital by selling shares and limited liability are advantages of a _________________. . sole proprietorship, corporation
In a market economy ___________________ results in more choices, improved quality, and lower prices., . competition
Janet runs a lemonade stand. Her expenses are 10 cents a cup and she charges $1.00 per cup. If Janet sells 50 cups of lemonade in one week, $45.00 represents her _______________., profits
A local grocery store is selling milk for $4.00 per gallon. If the store lowers the price to $2.00 per gallon we can expect _________________, all else being equal., quantity of milk demanded to increase
Which factor will NOT change the demand for a product? _______________ change in price
Suppose that gloves and mittens are substitutes. If the price of gloves increases the demand for mittens ______________., increases
Steel is a factor of production for cars. If the price of steel increases then the supply of cars will ______________., decrease
Suppose that the price of rye bread increases by 5%. As a result the quantity demanded of rye bread decreases by 10%. Rye bread is a(n) _________________., elastic good
A _____________ exists when the private sector does not provide necessary goods and services because it is not profitable to supply them., market failure
The government provides goods and services when the benefits to society outweigh the costs. These goods include ______________. a. public education, which decreases crime b. highways that allow efficient trade and travel c. police protection that provides safety and enforces property rights d. All of the above*
Property rights ___________________. provide incentives for people to exchange goods and services
Which of the following is NOT true? Consumers are harmed by perfectly competitive markets (compared to a monopoly), because they charge higher prices
When neighbors benefit from your home improvements it is an example of a(n) ___________________; but factory pollution that harms the health of nearby residents is a(n) _________________., positive externality, negative externality
Pharmaceutical companies know the side effects of their medications but potential patients initially do not. This is an example of ______________., asymmetric information
A progressive tax means high-income individuals pay __________ percentage of their incomes in taxes as/than low-income individuals. a higher

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