Economics Flashcard

Front

Which would a laissez-faire economist most likely favor? Options: government support of basic industries, high protective tariffs on imports, minimal government regulation of the marketplace, unemployment insurance and workers’ compensation programs

Back

minimal government regulation of the marketplace

Front

A nation's gross national product functions primarily as

Back

an indicator of economic activity

Front

Poor weather conditions in coffee-producing countries often lead to rises in coffee prices in the United States. This best illustrates the idea of

Back

supply and demand

Front

A decision of the United States Government to spend money for defense rather than on social programs illustrates the economic principle of

Back

opportunity cost

Front

Which action would most likely lead to a lowering of the inflation rate? Options: increasing consumer demand by cutting taxes and increasing the money supply, increasing production while limiting the growth of the money supply, cutting the production of goods and services, increasing government spending for social welfare programs

Back

increasing production while limiting the growth of the money supply

Front

Which action taken by a country would indicate it is following a policy of economic nationalism? Options: removing from subsidies, raising tariff rates, decreasing exports, liberalizing its immigration laws

Back

raising tariff rates

Front

The main purpose of any economic system is to:

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produce and distribute goods and services

Front

One advantage to a country of the decline in the value of its currency abroad is that the decline tends to:

Back

increase the country's exports and decrease its imports

Front

What is economics?

Back

The study of how goods and services are produced and consumed.

Front

Which factor is a common characteristic of a subsistence economy?

Back

a barely adequate supply of food