Economics Final Exam Study Sheet
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What is an externality? p65
What is the most effective way for consumers to make their desires known to businesses? p53-54
U.S. Industries like steel, computers, and energy needs to be protected from foreign competition to ensure what?
p452
The lowest point in an economic contraction is called? p310-311
Since bonds are considered among the safest investments, you would expect them to have what characteristic? p277
What are inferior goods? p87
What is the difference between a recession and a depression? p311
The purpose of the production possibilities graph is? p13
Why does the government sometimes give monopoly power to a company by issuing a patent? p159
How are wages for a particular job determined? p220
What is the term for the total value of all goods and services produces in a particular economy? p57
How did economic events during WWII demonstrate the principles of Keynesian Economics? p400
How does a society answer the three economic questions about the production and consumption of goods and
services? p25
Labor unions arose largely in response to what? p229-231
Which of the following is an example of state spending? p376-377
What happens to a market in equilibrium when there is an increase in supply? p123-124
What do sellers do if they expect the price of goods they have for sale increase dramatically in the near future? p119120
What is a basic principle of the Law of Demand? p79
Corporations are defined as “entities” because they… ? p195-196
One example of thinking at the margin is…? p10
What do Social Security taxes pay for? p367
The equilibrium wage for doctors is high because… ? p221-222
How has the distribution of income changed over the last 20 years? p347-348
Which of the following goals is difficult to reach in a pure free market system? p32
What are the uses of money? p243
What happens when you buy a United States Savings Bond? p404-405
When a nation imports more than it exports, which condition is true? p463
How could the Federal Reserve encourage banks to lend out more of their services? p428
When a consumer is able and willing to buy a good or service, he or she creates what condition? p79
What is the name of the smallest amount that can legally be paid to most workers for an hour of work? p130-131
According to the law of supply, the higher the price,… ? p101
Which of the following is an example of a barter system? p243
Why is using coins as money easier than using gold bars? p245
What is the opportunity cost of a decision? p9-10
Which of the following is the best example of a public good? p35
The label on your jeans says they were made in a Latin American country. This is probably because the jeans
manufacturing company wanted to locate it’s plant there for what advantage? p213
What is the function of an economic system? p23
Which of the following is the best example of the law of supply? p101
What is the struggle among various producers for the consumer’s business called? p31
If you lived on a fixed income, how would you be affected by inflation? p342-343