EOC Economics Flashcards
6 cards from real EOC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 EOC Economics flashcards as text
What is a 'monopoly' in a market economy?
Answer: A market dominated by one seller with no close substitutes
A monopoly exists when a single company or entity is the sole seller of a product or service in a market, giving it significant pricing power.
Which of the following best describes 'fiscal policy'?
Answer: Government use of taxation and spending to influence the economy
Fiscal policy refers to government decisions about taxation and public spending to influence economic conditions such as growth and employment.
What happens to a supply curve when the cost of production increases?
Answer: It shifts to the left
When production costs increase, suppliers are less willing to produce at every price level, shifting the supply curve to the left and reducing supply.
What is the Federal Reserve's primary tool for controlling inflation?
Answer: Setting interest rates
The Federal Reserve controls inflation primarily by raising or lowering the federal funds rate, which influences borrowing costs throughout the economy.
Which economic term describes a situation where resources are used in the most efficient way possible?
Answer: Productive efficiency
Productive efficiency occurs when a good or service is produced at the lowest possible cost, meaning resources are not wasted.
What is the primary purpose of a price ceiling set below the equilibrium price?
Answer: To prevent prices from rising too high
A price ceiling is a government-imposed maximum price intended to keep goods affordable by preventing prices from rising above a set level.