AnswersSEPHS - SOC240 - Economics FallCumulative Exam

Cumulative Exam — Cumulative exam Answers

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Gross domestic product (GDP) is the value of goods and services produced in a country annually. It can best be described as measuring an economy’s

A
total product.
B
total demand.
C
total input.
D
total output.
22
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Which is the best definition of hyperinflation?

A
a gradual decrease in the price of goods and services
B
a gradual increase in the price of goods and services
C
an exponential decrease in the price of goods and services
D
an exponential increase in the price of goods and services
23

What are the two steps a producer can take to gain an absolute advantage?

A
Produce more goods.
B
Use high-quality resources.
C
Produce more expensive goods.
D
Use fewer resources.
E
Produce high-quality goods.
F
Use local resources.
24

Why is the slow growth that can result from a contractionary policy a positive effect?

A
It can increase loan interest rates.
B
It can decrease available credit.
C
It can increase the money supply.
D
It can decrease inflation.
25

The graph shows the market for graphic T-shirts.

Question illustration
A
As the amount of a product goes up, the price goes up.
B
As the amount of a product goes down, the price goes up.
C
As the interest in a product goes up, the price goes up.
D
As the interest in a product goes down, the price goes up.
26

If expansionary taxation policies are left unchecked, which is the most likely result?

A
reduced profits
B
high inflation
C
reduced production
D
reduced disposable income
27

Which best describes an opportunity cost?

A
accepting an opportunity to do something else when making an economic decision
B
giving up an opportunity to do something else when making an economic decision
C
accepting an opportunity to help accomplish something else when making an economic decision
D
giving up an opportunity to increase prices when making an economic decision
28

In a free market system, price control can include both a floor and a .

Answer not available
29

An extended recessionary period is indicative of

A
a depression.
B
the start of a recovery.
C
a growing economy.
D
the end of a recession.
30

A company that makes mobile phones introduces a new, faster model that has strong consumer interest. However, the old model is still available. What will most likely happen to the price of the old model, and why?

A
The price will fall to encourage consumers to continue to purchase it.
B
The price will rise to encourage the producer to make more old models.
C
The price will fall to discourage the producer from making more old models.
D
The price will rise to encourage consumers to buy both models in equal amounts.
31

What is one example of a closed economy?

A
a barter system that does not rely on money or other currency
B
a restricted system that blocks trade with international partners
C
a trade-based system that encourages the flow of goods and services
D
an old-fashioned system that preserves traditional choices and customs
32

What is one main objective in the study of economics?

A
recognizing the types of services available to everyone
B
recognizing the relationship between producers and consumers
C
recognizing the reasons why consumers supply services
D
recognizing the difference between producers and consumers
33

Economic policy must strike a balance between ideals and

A
freedom.
B
needs.
C
supply and demand.
D
private property.
34

When the government injects money into the economy, consumers may have more disposable income, which may lead to

A
higher unemployment.
B
higher production.
C
lower production.
D
increases in taxes.
35

In a mixed market economy, what is a typical way the government can reduce unemployment?

A
The government can pay for projects to create work.
B
The government can control new factories to provide jobs.
C
The government can create new farm fields to hire workers.
D
The government can raise taxes to encourage employment.
36

Which are affected by the factors of production? Choose three answers.

A
the demand of the item
B
the availability of the item
C
the cost of the item
D
the quality of the item
E
the popularity of the item
37

What is the role of the three questions of economics?

A
to assess product profitability
B
to aid in production decisions
C
to offset a poor economy
D
to determine quality and cost
38

Aggregate supply is best described as the

A
total output of all products and services.
B
point of equilibrium.
C
nation’s real gross national product.
D
excess supply in the market.
39

What is an example of scarcity

A
an abundance of resources
B
limited resources
C
renewable resources
D
a choice of resources
40

Public property is land or goods

A
owned by an individual.
B
owned by the government.
C
used for private businesses.
D
used to gain personal wealth.

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