Economics Study Guide 2                                                                   Name _________________________

  1. How has technology affected today’s job market?

 

  1. What is the relationship between a person’s level of education and their income?

 

  1. Describe a person who would have a good chance of getting a high paying job.

 

  1. What can consumers do if their rights are violated?
  2. Why would workers form a labor union?

 

  1. What is a labor strike?
  2. Name at least 3 government agencies or institutions that regulate parts of our economy.
  3. What are three functions of the Federal Reserve?

 

  1. What is the reserve requirement?
  2. What is the discount rate?
  3. What is interest?
  4. How do banks make a profit?
  5. What is a deposit?
  6. What is a monopoly?
  7. Name three ways that the Fed can stimulate the economy.

 

  1. What does the Fed do to the money supply if it wants to slow the economy down?

 

  1. What problem can occur if there is too much money in circulation?
  2. Who borrows money from the Fed?
  3. In which type of business can you buy stock?
  4. What does it mean for and investor to have “limited liability”?

 

  1. How does the government raise money?
  2. Give three examples of public goods and services.

 

  1. Give three examples of private financial institutions that pay interest on deposits and make loans.

 

  1. What are three reasons that nations trade with each other?

 

  1. Name three goods or services produced in Virginia.

 

  1. Name three goods or services that are imported from other countries.

 

  1. How can technology lower the cost of producing goods or services?

 

  1. Why is competition between businesses good for consumers?

 

  1. What do we call the laws that outlaw monopolies?
  2. Which amendment allows for an income tax?
  3. What happens to the tax rate if government spending increases?
  4. What effect does increased spending have on the economy?