Quizbowl Questions- Econ Challenge

Imposition of quotas and tariffs is an example of government trying to protect domestic industries from ______.

Foreign competition

When one nation can produce more of a good than another nation, then the nation with greater output has what kind of advantage over the other nation?

Absolute

A merger between firms at various stages in a production process is call a ______.

Vertical Merger

As the wage rate per hour increases, what happens to the opportunity cost of leisure?

Increases

The index most commonly used to measure inflation is the _______.

Consumer Price Index

CPI

If inflation is 3% and the nominal interest is 7%, what is the real interest rate?

4%

Members of which group- borrowers or savers- typically benefit from unanticipated inflation?

Borrowers

Money serves three purposes. Typically economists think of money as a medium of exchange, a unit of account, and ______.

Store of value

What economic concept literally implies that "buyers rule?"

Consumer Sovereignty

The idea that government spending causes a reduction in private investment is called _____.

Crowding Out

Price ceilings below the equilibrium price cause ______.

Shortages

The average number of times a dollar is used annually to buy goods and services that make up GDP is called the _____.

Velocity of money

Which is the only interest rate DIRECTLY controlled by the Federal Reserve?

Discount rate

Which former POTUS vetoed the reauthorization of the Second National Bank?

Andrew Jackson

Who said, "I the long run, we are all dead?"

Keynes

John Keynes

John Maynard Keynes

Which economist developed the "curve" that was theoretical base for President Reagan's supply side economic policies?

Laffer

Arthur Laffer

When the price established in the market does not equal the marginal social benefit of a good and the marginal social cost of producing the good, economists generally refer to this as a ________.

Market Failure.

Which curve shows the equilibrium level of output corresponding to each price level where planned spending equals income?

Aggregate Demand Curve

A commonly used measure of the degree of inequality in income distribution is the ______.

Gini Coefficient

Lorenz Curve

Gini Index

How does an increase in supply, all other things remaining constant, change the equilibrium price?

Decrease

How do large federal deficits tend to impact interest rates?

Increase

Whose/What law states that "supply creates its own demand?"

Say's Law

A poverty reduction measure through which people with ow income who work receive a payment from the government or a rebate on their taxes is called the ________.

Earned Income Tax Credit

Negative Income Tax

What type of market structure is characterized by many firms selling differentiated products in an industry in which there is free entry and exit?

Monopolistic Competition

What is the name of the law passed in 1914 in the US aimed to prevent monopolies from forming through mergers?

Clayton Antitrust Act

Who preceded Alan Greenspan as the Chairman of the Federal Reserve System?

Volcker

Paul Volcker

How do increases in the cost of production affect a supply curve?

Decrease supply

Shift to the left

Which energy and technological giant's collapse inspired congressional action on the oversight of accounting firms?

Enron

Who was Karl Marx's co-author on The Communist Manifesto?

Friedrich Engels

Engels

The price of one nation's currency in terms of another is called the ______.

exchange rate

In order to increase output sold, what must a monopoly do to its price?

Lower it

What is the term for GDP that has been adjusted for inflation?

Real GDP

The distribution of wealth is generally more unequal than the distribution of ________.

Income

The percentage of the value of a stock purchase which is required by the Federal Reserve to be paid immediately on purchase and just deferred is called the ______.

Margin requirement

What term refers to the non-monetary benefits a person receives from a job?

Psychic income

The one price at which quantity supplied equals quantity demanded is called the _____.

Equilibrium

Market Clearing Price

How many stocks are represented by the Dow Jones Industrial Average?

30

The part of income not spent on taxes or consumption is called ________.

saving

The wages you could have earned but didn't while you are in college are an example of what economic concept?

Opportunity Cost

How many districts make up the Federal Reserve system?

12

the price for borrowing money is known as the ______.

interest rate

The government agency responsible for safeguarding bank deposits is the _______.

FDIC

Federal Deposit Insurance Corporation

A market structure characterized by a few sellers is called a(n) ______.

Oligopoly

In the Guide to Economic Reasoning, what do people respond to in predictable ways?

Incentives

Name one of the determinants of demand

Consumer Tastes

Number of Buyers

Consumer Incomes

Complementary Goods

Substitutes

Consumer Expectations

The largest single source of the US federal government's tax revenue is the _____.

Personal Income Tax

What economic principle states that a greater quantity of a product will be sold at a lower price than at a higher price, everything else being equal?

Law of Demand

A curve which shows the different combinations of two goods or services that could feasibly be produced given full employment of available resources and a given level of technology is called _____.

PPC

Production Possibilities Curve

When people choose, they incur an _____.

Opportunity Cost

Market equilibrium occurs when, at a particular price, the ________.

Quantity supplied equals quantity demanded

The monetarist, Milton Friedman believes that the main cause of inflation is _____.

too much money

What government price policy will cause a surplus?

Price Floor

If the economy is at full employment of all resources, increases in aggregate demand will cause _____.

Inflation

What is the trade agreement among Canada, the US, and Mexico called?

NAFTA

North American Free Trade Agreement

Non-exclusion, shared consumption, and the free rider problem refer to what type of good?

public

What do we call a market environment in which investors are optimistic about the overall economy and will therefore tend to invest more in securities?

Bull Market

Of wages and salaries, rental income, interest income,and profit, which is the largest?

wages and salaries

Appropriate fiscal policy to stimulate the economy would be _______.

Spending Increase

Tax Decrease

Appropriate Fed open market policy to expand the economy would be ____.

buying securities

Expectations of an increase in a product's price will shift the product's demand to the _____.

right

The difference between economic profit and accounting profit is _____.

implicit cost

Expansionary monetary policy will shift the aggregate demand curve to the _____.

right

In the equation MV=PQ, what does the Q stand for?

Real output

If the Fed wants to signal its intention to stimulate the economy, it will do what to the discount rate?

lower it

Shortages, surpluses, scarcity-- which are markets unable to eliminate?

scarcity

Who gains in a voluntary trade, the buyer or the seller?

Both

On a business's balance sheet, the liabilities and net worth of the business added together are equal to what?

its assets

Households allocate real income in three basic ways. They spend it, they save it, or do what with it?

Pay taxes

Other things being equal, how does the risk of default on a loan effect the interest rate charged for the loan?

Increases it

What does the acronym TANSAAFL stand for?

There ain't know such thing as a free lunch

Compared to the market interest rate, the discount rate is always _____.

Lower

A legal price imposed by the government above the equilibrium price is known as a ______.

price floor

A decrease in price causes what to happen to quantity demanded?

It increases

When most people say a good is inferior they mean it is of low quality, but economists say a good is inferior when the demand for it falls as what happens?

Income rises

If the slope of the consumption schedule is .8, what is the slope of the saving schedule?

.2

A trade deficit exists when what is true?

imports exceed exports

Productivity is measured as the ratio of what twi things?

input and output

As the price of a good rises, what generally happens to the quantity suppliers are willing to offer?

increaes

A limitation on how much of a good can be shipped into a country is called a what?

Quota

A firm should shut down in the short run whenever its price is less than what?

its AVC

If the price of a camera falls, what is the expected effect on the demand for film and film development?

Falls

Decreases

Changes in the money supply, interest rates, or the general availability of credit designed to influence the performance of the economy are examples of what kind of policy?

Monetary

The rate of interest at which banks borrow overnight from other banks is called what?

Federal Funds Rate

If the dollar appreciates in value, what does this do to the cost of US exports to foreigners?

Increases

The act of increasing the amount of an economy's capital is called what?

Investment

The unemployment rate is found by dividing the number of unemployed by what?

Size of the labor force

If the government were pursuing an expansionary fiscal policy, how would it likely change taxes?

Decrease them

When a price is not allowed by law to rise above a certain amount, it is called a price what?

Ceiling

What distinguishes short-run production from long-run production?

In the long run all inputs are variable

There are no fixed costs

Suppose a $1000 deposit is made at a bank which has no excess reserves. If the reserve requirement is 10%, what would this bank's be after this deposit?

$900

What do the letters "WTO" stand for?

World Trade Organization

Are intermediate goods included in the definition of GDP?

No

Who is the author of The World is Flat: A Brief History of the Twenty-First Century?

Thomas Friedman

What term describes an elasticity alternative in which any percentage change in price causes an equal percentage change in quantity?

Unit Elastic

For the last 25 years, which component of GDP has been a negative?

net exports

How much more additional social security retirement tax must an individual pay who makes $200,000 compared with someone who makes $150,000?

None

Including the current chairman, who were the last three chairmen of the Federal Reserve Board of Governors?

Yellen, Bernanke, and Greenspan

As quantity increases, the Average Fixed Cost (AFC) line moves in what direction?

Downward

"Caveat Emptor" is the latin term for what?

Let the buyers beware

What do we call the underlying inflation rate of the economy after volatile energy and food prices are removed?

Core inflation rate