VirtualSC Economics CP Practice Exam

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• Which of the following were the first types of unions formed in the United States?
• What type of unemployment occurred when the government closed military bases in the 1990s?
• Why is the Law of Demand referred to as a "law" in economics?
• What is typically the outcome of a binding price ceiling?
• Which best defines a monopoly?
• A tariff is primarily used to achieve which of the following outcomes?
• Why is the labor market essential to wage determination?
• What is the measure of the value of one currency against another currency?
• What is the role of entrepreneurship in economic growth?
• Every student who wants financial aid must?
• What is the primary role of government in a market economy?
• What does cost-push inflation result from?
• What kind of fund collects and invests income for later payments to eligible recipients?
• Which is an example of a public good?
• What does consumer sovereignty mean in a market economy?
• What does supply refer to in economics?
• A person who owns a share of stock is known as?
• What is typically a limiting factor for how much money banks can loan out?
• What does the statement "THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE" indicate about money?
• What is the impact of subsidies on the market?
• Which of the following best defines public goods?
• What type of analysis is most useful for a business when assessing whether an action is worth the cost?
• Which of the following is NOT an example of a capitalist economy?
• What can be a result of built-in inflation?
• What does the concept of opportunity cost refer to?
• Equilibrium in a market is achieved when?
• The role of consumers in shaping the production of goods is best exemplified by?
• What have some states done to protect workers from adverse economic events such as layoffs and illnesses?
• Which best describes the influence of high prices on the behavior of producers?
• What is the law of supply?
• What is considered a direct cause of structural unemployment?
• In the early 1800s, currency in the United States was issued by
• During the Civil War, Congress enacted the National Currency Act, which
• What does gross national product (GNP) measure?
• Most banks are established
• Which of the following is an advantage of a 401(k) plan?
• What is the main goal of monetary policy?
• Which term describes an economy where the government makes all the economic decisions?
• How do trade deficits correct themselves?
• What does stagflation refer to?
• What does unemployment refer to?
• In a free market, what primarily determines the price of goods and services?
• What best explains why a nation's GDP is an indication of its citizens' overall well-being?
• What is the primary purpose of a production possibilities curve?
• Which term refers to GDP that is adjusted for inflation?
• Which statement describes a disadvantage of a command economy?
• What does an increase in a nation's total output over time signify?
• What is the significance of competition in a market economy?
• What effect does a shortage typically have on prices?
• Which of the following factors is NOT a determinant of demand?
• The Federal Income Tax system is characterized as?
• What conditions stop the economy from growing and turn an expansion into a contraction?
• Which of the following is true about inflation?
• How do interest rates impact the economy?
• What does consumer behavior of waiting in long lines for a new product illustrate?
• Which statement is true about government revenue sources?
• How did business cycles change after World War II?
• How is the unemployment rate defined?
• Which of the following were a direct result of union activity?
• Policies that make production more efficient are favored by _____________
• How does new money enter into circulation in the United States?
• What does aggregate demand represent in an economy?
• When President Trump speaks of imposing tariffs on foreign steel, what does he mean?
• Which of these was run by the states but later taken over by the federal government?
• What is equilibrium in a market?
• Economic equity means that it is illegal to discriminate on the basis of age, sex, race, religion, or?
• What are the three primary tools used by the Fed to conduct monetary policy?
• What does “liability” mean in economics?
• In investing, a bear market refers to ____________.
• Which of the following illustrates why the wage gap between women and men is discriminatory?
• Which of these interest rates is set by individual banks?
• What does it mean when we say that the dollar floats?
• Which type of monetary policy typically lowers interest rates to stimulate the economy?
• Approximately what percent of all U.S. banks are members of the Fed?
• Which is not a type of business organization?
• Which type of unemployment is caused by changes in the economy that eliminate jobs?
• When did the United States adopt the gold standard?
• What does the concept of trade-offs imply in economics?
• How is the term “globalization” best defined?
• In the term oligopoly, the prefix "olig-" signifies what?
• How are the effects of the U.S. inflation rates felt around the world?
• What is the common currency used by most nations of the EU?
• Which of the following is largely responsible for the growth of a free enterprise system?
• How does elastic demand differ from inelastic demand?
• What is the relationship between personal savings and economic growth?
• How is the principle of "There's No Such Thing As A Free Lunch" illustrated in a socialist economy?
• What is a key characteristic of oligopolistic markets?
• Which market structure is defined by a single producer?
• What is the main focus of microeconomics?
• What economic concept defines the trade-off between inflation and unemployment?
• In what way does consumer sovereignty benefit the economy?
• All of the following are good ways to save money short term except?
• What does monetary policy involve?
• Why is the Federal Open Market Committee considered the Fed's primary monetary policy-making body?
• What is the primary purpose of economic models?
• What is the main cause of a change in quantity demanded?
• Which agency is responsible for manufacturing U.S. paper money?
• What is the primary goal of government subsidies in economic terms?
• What typically happens to prices when demand exceeds supply?
• President Reagan tried to reduce government spending by _____________
• Which statement describes why the people in a nation with a command economy might resist a shift to a free market economy?
• Which of the following is an example of fiat money?
• An economic and travel area consisting of 28 European nations is known as the ________________.
• During the Great Depression, union promoters ____________.
• What is fiscal stimulus aimed at?
• What does fiscal policy often involve?
• Which of these does a Lorenz curve compare?
• Why would the sale of a secondhand car not be included in a calculation of GDP?
• What do member banks of the Fed do with customer deposits?
• Which of the following can describe a characteristic of credit cards?
• Which of these states a difference between personal income (PI) and disposable personal income (DPI)?
• During which decade were government assistance programs most effective at reducing the poverty rate?
• Fiscal policy can be enacted by which level of government?
• A nation's wealth is best determined by which factor?
• Consumers in a free enterprise economy ultimately determine ___________ to produce.
• How does the circular flow model function in an economy?
• What kind of economy offers uniformity in wages regardless of individual productivity?
• In economic terms, what does increased GDP generally indicate?
• What factor primarily influences economic expansion in relation to savings?
• What economic indicator is primarily used to track the health of a nation's economy?
• What is the measure used to represent economic growth over time?
• When expenditures exceed revenues, what budget situation occurs?
• Which statement is the best explanation of the market theory wage determination?
• Which economic system is characterized by private ownership and voluntary exchange?
• What key function does the labor market serve?
• Which type of tax structure is progressive?
• What likely happens to the supply of a good if production costs decrease?
• Which term best describes the situation when there are too many producers of a product in the market?
• What could be considered a liability for a business?
• What is the result of efficiently using scarce resources?
• The four factors of production are land, labor, capital, and?
• According to Keynesian economics, which sector can counteract a decline in business spending?
• What effect do low interest rates generally have on spending?
• What does a production possibilities frontier (PPF) illustrate?
• A strategy of holding different kinds of investments to minimize risk is known as?
• What is the purpose of the consumer price index (CPI)?
• What typically happens to demand when consumers' incomes rise?
• Which of the following describes a move away from capitalism?
• Which statement best describes command economies?
• What is a characteristic of perfect competition?
• Supply-side policy mainly targets which group through stimulation?
• A coupon rate is?
• Which of the following is NOT considered a factor of production?
• The market structure called perfect competition is best described as ____________
• The paradox of value highlights which relationship?
• What is meant by the term “market failure” in economics?
• __________ protect consumers against harm from products on the market.
• Which of the following is a term for a labor-dispute tactic used by neither unions nor management?
• What does GDP stand for?
• What does a trough indicate?
• What is inflation?
• What is the relationship between the money supply and interest rates?
• What defines demand in economic terms?
• You can easily carry money in a pocket or purse. This reflects what characteristic of money?
• In economic terms, what does elasticity refer to?
• What is fiscal policy concerned with?
• What is meant by aggregate supply?
• Which of these groups is most vulnerable to poverty?
• Which of the following statements is true about exchange rates?
• What is likely to be a direct consequence of fiscal stimulus?
• According to the law of demand, what happens when the price of a good decreases?
• What is a primary purpose of imposing a tariff on imported goods?
• If the United States can produce more oil than Japan, the United States is said to have a ______________ over Japan.
• Which of the following do economists use to classify markets?
• Which of the following best expresses the idea that higher education often results in higher earnings?
• Which of these is an accurate statement about mixed economies today?
• What is the relationship between income and demand?
• One of these characteristics of a capitalist free enterprise economy is?
• Which financial product is associated with potentially high interest payments?
• The government does not try to eliminate all monopolies. Why?
• Which of the following is NOT a cause of inflation?
• Which of the following types of unemployment occurs when individuals are temporarily out of work while transitioning between jobs?
• Which 19-country common market is focused on Eastern and Southern Africa?
• Comparative advantage allows a country to produce goods at what type of cost?
• Why did Sweden move from socialism to a more mixed economy in the 1980s?
• Money borrowed that is guaranteed only by a promise to repay it is known as?
• Which of the following best describes 'inflation'?
• What does the law of diminishing marginal utility state?
• Which of the following is included in the unemployment rate?
• Local government typically funds which of the following services?
• Which economic sector is not determined by measuring specific sources of income?
• A trend line is ____________
• Which of the following is the most responsible for increases in the federal minimum wage?
• What is the primary function of the Federal Reserve System?
• What role do prices play in a market economy?
• The price for an insurance policy is known as a?
• Which of the following is commonly believed about sales tax?
• What does DDA stand for in banking terms?
• Which of these ensures that the U.S. government does not own the Fed?
• Which of these would economists count as a member of a household, but not part of a family?
• What is the purpose of economic indicators?
• Which of the following best describes inflation?
• What provides the most comprehensive measure of a nation's wealth?
• Which policy can be used to combat high inflation?
• What are externalities?
• How does an oligopoly differ from perfect competition?
• Which term describes the financial difference between a country's exports and imports?
• What is aggregate demand's role during an economic downturn?
• What led to many of the struggles in Russia during the 1990's after the fall of the USSR?
• What are the primary causes of inflation?
• Which of these are the two most significant causes of income inequality?
• What is demand-pull inflation?
• Which option best describes the term "opportunity cost"?
• What does the term “currency exchange” refer to?
• What is the primary purpose of price mechanisms in a market economy?
• A general rise in the level of prices over time is known as?
• Which of the following identifies the incidence of the individual income tax?
• Which of the following replaces a costly item with a less costly one?
• What is the significance of prices in resource allocation?
• Which of the following is a characteristic of a market economy?
• Junk bonds usually have low ratings because ____________.
• Which of the following is a disadvantage of a market economy?
• Many nations in Eastern Europe transitioned from ____________ to ___________ during the 1990's.
• What can be concluded about economies that experience persistent high unemployment?
• Markets in the free enterprise system are seldom regulated by?
• Who did Karl Marx believe would be the beneficiaries of socialism?
• Which concept refers to the necessity of a trade-off in order to receive something of greater value?
• What does opportunity cost measure?
• The study of economics primarily focuses on which concept?
• What is the role of the Federal Reserve?
• What level of government is most closely associated with zoning restrictions?
• How effective are wage-price controls in managing inflation?
• You pick up a $1 bill. What are you holding?
• What is a potential effect of an increase in sales tax?
• Which of the following tactics is used only by management?
• How can oligopoly be defined in economic terms?
• The economic system of the United States is considered a?
• What is the basic economic problem that every society faces?
• What is the best meaning of the cartoon?
• Which of the following best explains the function of money as a medium of exchange?
• What economic issue might fiscal policy aim to address?
• Which of the following is a form of instability that reverses economic growth?
• Understanding trade-offs is important for what reason in economics?
• Which scenario best illustrates the concept of trade-offs?
• Which component is most affected by changes in the unemployment rate?
• What is one method for measuring the effectiveness of government fiscal policy?
• When the price of something increases, the quantity demanded ___________
• What does a trade surplus indicate about a country’s economy?
• What is the major difference between perfect competition and monopolistic competition?