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41 Cards in this Set

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The social security program began during the administration of ..

Franklin D. Roosevelt


Harry S. Truman


Dwight D. Eisenhower


John F. Kennedy

Franklin D. Roosevelt

Between 1939 and 1944 the US nation output ....

Remained the same


Nearly doubled


Nearly tripled


Nearly quadrupled

Nearly doubled

The worst recession since WWII started in which year?

1957


1973


1981


2007

2007

The decade that had the most stagflation was the....

1940s


1950s


1960s


1970s

1970s

The name of Andrew Carnegie is most closely associated with...

Steel industry


Rubber industry


Meatpacking industry


Chemical industry

Steel industry

Which was a decade of high inflation and high unemployment?

1920s


1950s


1960s


1970s

1970s

The first automobile manufacturer to use a division of labor and to use a moving assembly line was...

Henry Ford


Henry Leland


Henry Olds


Andrew Carnegie

Henry Ford

The US truly became a mass consumption society in...

Early 1900s


1920s


1940s


1960s

1920s

The US economy _______ operates on its production possibility curve.

Always


Sometimes


Never

Sometimes

In the US economy....

There is no need to economize


We rarely have to economize


Only the rich have to economize


Nearly everyone has to economize

Nearly everyone has to economize

The term "the affluent society" was coined by ...

Michael Harrington


John Kenneth Galbraith


Karl Marx


Adam Smith

John Kenneth Galbraith

What is not an example of economic resource?

Land


Money


Capital


Labor

Money

In order for the price mechanism to work, we need. .

To have the government regulate each industry


Many competing firms in each industry


To have only a few firms in each industry


None of the above

Many competing firms in each industry

Hitler ' Germany was an example of a ________ economic system.

Capitalist


Fascist


Communist


Socialist

Fascist

Adam Smith believed that the best way to promote the public interest was to...

Have the government produce most goods and services


Let people pursue their own selfish interest


Wait for individuals to set out to promote the public interest


Get rid of the price mechanism.

Let people pursue their own selfish interest

Which statement is true?

American industry is very competitive



There is no competition in America industry



In order to have competition you need to have many firms in an industry



The electrical and natural gas industries are good examples of competition at work.

In order to have competition you need to have many firms in an industry.

Private ownership of most of the means of production is common to...

Capitalism and communism.


Capitalism and fascism


Capitalism and socialism


Fascism and communism

Capitalism and fascism

The main reason US farmers can produce more than farmers in China is that they ....

Have more land


Have more capital


Have more labor


Are better trained

Have more capital

A person will do more good pursuing his own self interest than if he consciously set out to promote the public good was the view of ...

Karl Marx


John Maynard Keynes


Mikhail Gorbachev


Adam Smith

Adam Smith

In a pure capitalist economy, "what to produce" is determined by ...

Government central planning committees



The price mechanism



The credo:"each according to his ability , to each according to his needs"



All of the choices are true.

Price mechanism

If supply increases and demand remains unchanged, equilibrium quantity will ______ and equilibrium price will _______.

Rise, fall


Fall, fall


Fall,rise


Rise, fall

Rise, fall

As price declibes, quantity demanded goes ______ and quantity supplied goes _______.

Up,up


Down, down


Up, down


Down, up

Up, down

If market price is above equilibrium price,

Quantity demanded is greater than quantity supplied



Quantity supplied is greater than quantity demanded



Quantity supplied is equal to quantity demanded

Quantity supplied is greater than quantity demanded

As price rises, the quantity ______ rises.

Demanded


Supplied


Demanded and supplied.

Supplied

There is a surplus of quantity supplied over quantity demanded when ...

Market price is above equilibrium



Market price equals equilibrium price



Market price is below equilibrium price

Market price is above equilibrium price

The demanded curve slopes...

Upward to the right


Upward to the left


Downward to the right


Downward to the left

Downward to the right

As price rises, quantity demanded ..

Rises


Falls


Remains the same

Falls

Americans generally spend more than _______ of their incomes on services .

One Third


One half


Two thirds


Three quarters

Two thirds

People tend to spend more money the ______ the amount of credit available and the ______ the stock of liquid assets in the hands of consumers.

Higher,higher


Lower,lower


Higher,lower


Lower,higher

Higher, higher

In 2009, C was closest to but under

4 trillion


6 trillion


80 billion


Over 10 trillion

Over 10 trillion

Who holds this view: " .. we are consuming more than we are producing, borrowing more than we are saving and spending more than we are earning."

Murray Widenbaum


Thornton Veblen


Benjamin Franklin


Adam Smith

Murray Weidenbaum

The APS in the US is generally

Below .01


Between .01 and .07


Between .15 and .25


Between .7 and .75

Between .01 and .07

The consumption function is associated with

John Maynard Keynes


Karl Marx


Milton Friedman


Adam Smith

John Maynard Keynes

Each of these bus a category of C except

Durables


Nondurables


Residential construction


Services

Residential construction

Which of these equations is correct?

APC -APS =1


MPC + APS=1


MPC + MPS =1


1+MPC =MPS

MPC + MPS =1

The consumption function ..

Is a relationship between annual consumption and annual disposable income in an economy



Will shift upward if aggregate household wealth declines



Implies that annual consumption in an economy will be zero Is disposable income is zero.


zero.


zero.



Is a flat line with zero slope .

Is a relationship between annual consumption and annual disposable income in an economy

Which statement is true?

The US has a larger national output than any other country in the world



We have had recessions about every three years since WWII.



There were no recessions while Ronald Reagan was president .



None of the statements are true.

The US has a larger national output than any other country in the world

Which statement is true?

Entrepreneurial ability is in short supply in the US



Land labor and capital may be considered passive resources.



The concept of opportunity cost is irrelevant when there is scarcity.



None of these statements are true.

Land labor and capital may be considered passive resources.

Which statement is true?

The economic problem is limited to poverty.



Scarcity is no longer an economic problem in the US



If we all had more money there would be less scarcity.



None if these statements are true.

None if these statements are true.

In the graph shown above if marker price were $6, there would be a

Surplus


Shortage


Surplus and shortage


Neither

Surplus

In the graph shown above at a price of $4.50

Surplus


Shortage


Both


Neither

Neither