FREE ECONOMICS AND STUDY GAMES ABOUT SEMESTER

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FREE ECONOMICS AND STUDY GAMES ABOUT SEMESTER

EXAM- ECON EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -88 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Law of demand

Answer:

As the price of a product increases, quantity demanded falls. As the price of a product decreases, quantity demanded increases.

Question 2: Example of a good with an inelastic supply

Answer:

Fruit or food.

Question 3: Effect of technology on the economy

Answer:

Stronger and more efficient.

Question 4: Opportunity cost

Answer:

The most desirable alternative given up as the result of a decision.

Question 5: Why were command economic systems used for many years by Communist

governments?

Answer:

Create a society in which everyone is equal.

Question 6: Differentiation

Answer:

Making a product different from other similar products.

Question 7: Examples of a durable good

Answer:

A used car.

Question 8: Savings bonds

Answer:

A low-denomination bond issued by the United States Government.

Question 9: Functions of a natural monopoly

Answer:

Single firms supply all the output.

Question 10: Speculation

Answer:

The practice of making high-risk investments with borrowed money in hopes of getting big return.

Question 11: Examples of a barter system

Answer:

Pay for their money back by doing work around the house.

Question 12: Primary market

Answer:

A market for selling financial assets that can be redeemed only by the original holder.

Question 13: Diversification (in the financial market)

Answer:

The strategy of spreading out investments to reduce risk.

Question 14: What are conditions for perfect competition?

Answer:

Wide variety of products in a condition.

Question 15: Bull market

Answer:

A steady rise in the stock market over a period of time.

Question 16: Services

Answer:

Labor that requires specialized skills and education.

Question 17: Natural monopoly

Answer:

A market that runs most efficiently when a large firm supplies all of the output.

Question 18: Trade-off

Answer:

The alternative we sacrifice when we make a decision.

Question 19: Know what type of natural monopoly the U.S. government permits?

Answer:

Many companies selling similar but no identical products.

Question 20: Efficiency

Answer:

Serve each individual or entity.

Question 21: GDP (Gross Domestic Product)

Answer:

The market value of all the final goods and services produced within a country at a given time period.

Question 22: What percentage of businesses are sole proprietorship?

Answer:

75%

Question 23: Goods

Answer:

Satisfy human wants.

Question 24: Market system

Answer:

An economic system in which property resources are privately owned and markets and prices are used to direct and coordinate economic activities.

Question 25: Money market

Answer:

Network of corporations, financial institutions, investors and government that deal with the flow of short-term capital.

Question 26: Know an example of a shortage

Answer:

Limited amounts of food, because the truck are carrying it are on strike.

Question 27: Economics of scale

Answer:

Factors that cause a producer's average cost per unit to fall as output rises.

Question 28: Investment

Answer:

The use of of assets to earn income or profit.