Econ Final Exam Correct Questions
And Answers
Dividend Correct Answers that part of the earnings of a corporation that is distributed to
its shareholders
Monetary Policy Correct Answers Government policy that attempts to manage the
economy by controlling the money supply and thus interest rates.
Traditional Economy Correct Answers An economy in which production is based on
customs and traditions and economic roles are typically passed down from one
generation to the next.
Bond Correct Answers a certificate of debt (usually interest-bearing or discounted) that
is issued by a government or corporation in order to raise money
Corporation Correct Answers A business owned by stockholders who share in its profits
but are not personally responsible for its debts.
Fiscal Policy Correct Answers The federal government efforts to keep the economy
stable by increasing or decreasing taxes or government spending
Regressive Tax Correct Answers A tax whereby people with lower incomes pay a
higher fraction of their income than people with higher incomes.
S.E.C Correct Answers an independent federal agency that oversees the exchange of
securities to protect investors
Law of Supply Correct Answers the principle that suppliers will normally offer more for
sale at higher prices and less at lower prices
D.J.I.A Correct Answers Dow Jones Industrial Average; stock market economy indicator
Substitute Goods Correct Answers goods that can be used in place of other goods
(Colgate/Crest, Toyota/Honda)
Business Cycle Correct Answers recurring fluctuations in economic activity consisting of
recession and recovery and growth and decline
Scarcity Correct Answers the condition that results from society not having enough
resources to produce all the things people would like to have
, Crash of 1929 Correct Answers October 29; fell 23% over black monday and tuesday;
borrowed funds to buy stocks was the cause of the crash- potential to borrow 78% of
the price; took 25 years to recover
Investment Correct Answers spending on capital equipment, inventories, and structures,
including household purchases of new housing
Peak Correct Answers of a period of maximal use or demand or activity
Barriers of Trade Correct Answers things that restrict the free exchange of goods and
services between countries. They include tariffs, quotas, rivers, mountains, and oceans
Deficit Correct Answers the property of being an amount by which something is less
than expected or required
Quota Correct Answers a limitation on imports
Oligopoly Correct Answers (economics) a market in which control over the supply of a
commodity is in the hands of a small number of producers and each one can influence
prices and affect competitors
3 tools of Federal Reserve Correct Answers money supply, interest rates, reserve
requirements
Proportional Tax Correct Answers a tax for which the percentage of income paid in
taxes remains the same for all income levels
Monopoly Correct Answers (economics) a market in which there are many buyers but
only one seller
Social Security Correct Answers An act passed in 1935 gave government-payed
pensions to American citizens over the age 65 as well as provided help for the
unemployed, the disabled, and the needy.
National Debt Correct Answers the debt of the national government (as distinguished
from the debts of individuals and businesses and political subdivisions)
Volume Correct Answers a publication that is one of a set of several similar publications
Tariff Correct Answers a government tax on imports or exports
Embargo Correct Answers (n.) an order forbidding the trade in or movement of
commercial goods; any restraint or hindrance; (v.) to forbid to enter or leave port; to
forbid trade with
And Answers
Dividend Correct Answers that part of the earnings of a corporation that is distributed to
its shareholders
Monetary Policy Correct Answers Government policy that attempts to manage the
economy by controlling the money supply and thus interest rates.
Traditional Economy Correct Answers An economy in which production is based on
customs and traditions and economic roles are typically passed down from one
generation to the next.
Bond Correct Answers a certificate of debt (usually interest-bearing or discounted) that
is issued by a government or corporation in order to raise money
Corporation Correct Answers A business owned by stockholders who share in its profits
but are not personally responsible for its debts.
Fiscal Policy Correct Answers The federal government efforts to keep the economy
stable by increasing or decreasing taxes or government spending
Regressive Tax Correct Answers A tax whereby people with lower incomes pay a
higher fraction of their income than people with higher incomes.
S.E.C Correct Answers an independent federal agency that oversees the exchange of
securities to protect investors
Law of Supply Correct Answers the principle that suppliers will normally offer more for
sale at higher prices and less at lower prices
D.J.I.A Correct Answers Dow Jones Industrial Average; stock market economy indicator
Substitute Goods Correct Answers goods that can be used in place of other goods
(Colgate/Crest, Toyota/Honda)
Business Cycle Correct Answers recurring fluctuations in economic activity consisting of
recession and recovery and growth and decline
Scarcity Correct Answers the condition that results from society not having enough
resources to produce all the things people would like to have
, Crash of 1929 Correct Answers October 29; fell 23% over black monday and tuesday;
borrowed funds to buy stocks was the cause of the crash- potential to borrow 78% of
the price; took 25 years to recover
Investment Correct Answers spending on capital equipment, inventories, and structures,
including household purchases of new housing
Peak Correct Answers of a period of maximal use or demand or activity
Barriers of Trade Correct Answers things that restrict the free exchange of goods and
services between countries. They include tariffs, quotas, rivers, mountains, and oceans
Deficit Correct Answers the property of being an amount by which something is less
than expected or required
Quota Correct Answers a limitation on imports
Oligopoly Correct Answers (economics) a market in which control over the supply of a
commodity is in the hands of a small number of producers and each one can influence
prices and affect competitors
3 tools of Federal Reserve Correct Answers money supply, interest rates, reserve
requirements
Proportional Tax Correct Answers a tax for which the percentage of income paid in
taxes remains the same for all income levels
Monopoly Correct Answers (economics) a market in which there are many buyers but
only one seller
Social Security Correct Answers An act passed in 1935 gave government-payed
pensions to American citizens over the age 65 as well as provided help for the
unemployed, the disabled, and the needy.
National Debt Correct Answers the debt of the national government (as distinguished
from the debts of individuals and businesses and political subdivisions)
Volume Correct Answers a publication that is one of a set of several similar publications
Tariff Correct Answers a government tax on imports or exports
Embargo Correct Answers (n.) an order forbidding the trade in or movement of
commercial goods; any restraint or hindrance; (v.) to forbid to enter or leave port; to
forbid trade with
