Economics Final Exam Review

Front

What factor typically causes the value of the nation's currency to fall compared to other countries? Options: low levels of unemployment, low levels of public debt, high levels of export activity, high levels of inflation

Back

high levels of inflation

Front

What factor does NOT determine whether something functions well as a modern currency? Options: if it has a high intrinsic value, it will retain its value over time, it is measured in units that are easy to calculate, it is widely accepted as a payment for goods

Back

if it has a high intrinsic value

Front

How has the increasing use of robotics in manufacturing affected the US economy?

Back

contributed to economic growth but eliminated jobs performed by humans

Front

Popular social media influencer creates a series of videos promoting a new skin care product. What economic impact is this MOST likely to have?

Back

increase in price of theproduce

Front

In what way are championship rings allocated?

Back

merit

Front

The Federal Open Market Committee is responsible for which of the following?
- setting price floors for luxury items
- regulating depository institutions
- releasing the Beige Book
- buying and selling US Treasury securities

Back

buying and selling US Treasury securities

Front

What motivates people to establish new businesses or expand existing ones?

Back

profit incentive

Front

Where is a point located on a production possibilities curve if the economic system is experiencing full employment and efficiency?

Back

On the curve

Front

In the circular flow model, the businesses make ____________ from the product market

Back

Revenue

Front

What is the opportunity cost of Cindy purchasing ice skates for $35?

Back

Something else she could have bought with the money