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Econ 248 Final Review (Questions & Answers) Rated 100% Correct!!
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Econ 248 Final Review (Questions & Answers) Rated 100% Correct!!
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Name: Score:76 Multiple choice questions
Term 1 of 76
Expansionary fiscal policy is so named because it:
price and quantity demanded are inversely related
leftward shift in the economy's aggregate demand curve.
is designed to expand real GDP
intentional changes in taxes and government expenditures made by Congress to stabilize
the economy.
Term 2 of 76
Which of the following is a fundamental characteristic of the market system?
Government has the legal right to force people to do things; private firms do not.
A $10 billion increase in government spending
Large-denominated time deposits
Property rights
Term 3 of 76
Economic profits and losses:
are essential to the reallocation of resources from less desired to more desired goods.
a comparison of marginal benefits and marginal costs in decision making
MC=MC, where the max potential consumer surplus and producer surplus is generated
the social science concerned with how individuals, institutions, and society make optimal
choices under conditions of scarcity
,Term 4 of 76
The demand for most products varies directly with changes in consumer incomes. Such products
are known as:
Property rights
normal goods
increasing government spending by $4 billion.
Federal Reserve Notes
Term 5 of 76
The paper money used in the United States is:
correcting market failures
rent-seeking behavior
Social Security
Federal Reserve Notes
Term 6 of 76
The competitive market system:
a comparison of marginal benefits and marginal costs in decision making
the need to make choices because economic wants exceed economic means
all production involves the use of scarce resources and thus the sacrifice of alternative
goods
encourages innovation because successful innovators are rewarded with economic profits.
, Term 7 of 76
The M2 definition of money comprises:
1. Noncheckable savings deposits
2. Currency (coins and paper money) in circulation
3. Small-denominated (under $100,000) time deposits
4.Checkable deposits
5. Money market deposit accounts
6. Money market mutual fund balances held by individuals
encourages innovation because successful innovators are rewarded with economic profits.
the social science concerned with how individuals, institutions, and society make optimal
choices under conditions of scarcity
government should not interfere with the operation of the economy.
Term 8 of 76
The process by which economists test hypotheses against facts to develop theories, principles,
and models is called:
correcting market failures
income effect
the scientific method
rent-seeking behavior
Term 9 of 76
The economic perspective entails:
government should not interfere with the operation of the economy.
a comparison of marginal benefits and marginal costs in decision making
is a particular set of institutional arrangements and a coordinating mechanism used to
respond to the economizing problem.
are essential to the reallocation of resources from less desired to more desired goods.
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