Econ Pretest 22/29

Who introduced the concept of laissez-faire?

Adam Smith

Kelvin wants to make a budget for his trip to Japan, and he needs to calculate how many yen he can buy. The table shows the exchange rates for US dollars with respect to other countries' currencies. At the current exchange rate, how many yen can Kelvin buy with $200?

D

Tim feels cheated because an automobile dealer misled him by first advertising a car at a reduced price. When Tim said he wanted to purchase the car, the dealer told him that the price is no longer available and tried to convince him to buy the car at the higher price. Which agency is responsible for compelling the dealer to run corrected advertisements?

Federal Trade Commission

Which are two features of a bond?

Has a coupon rate and has a maturity date.

Which feature is characteristic of a market economy?

Motivation of self interest.

People keep spending additional units of a particular resource on a want until their marginal benefit is_______ their marginal cost.

Not affected by.

What are two reasons to save instead of invest?

Safety an liquidity.

The United States and France both produce sweaters and caps. Suppose that a US worker can produce 50 caps per hour or 1 sweater per hour and a French worker can produce 40 caps per hour and 2 sweaters per hour. Based on this scenario, which statement is true?

The United States has a comparative advantage producing caps.

The North Korean government prevents individuals from setting up businesses in the country what effect does this have on the economy

The economy is slow

Nick won a $1,000 lottery prize. He can't decide what he should spend the money on. For some time now, he has been planning to buy a gaming console, a bicycle, and a watch. But he also needs to save money for an overseas trip in the future. He can give up the bicycle and the watch, but he really wants that gaming console. On the other hand, he also wants to experience a foreign culture. In the end, he decides to save the whole amount for the trip. Which item is the opportunity cost of Nick's trip?

The gaming console

Ben has $10 to spend on dinner. He can have a pizza delivered, drive to a burger place, or go to the grocery store to get ingredients for a fresh salad. In the end, he goes with the salad. If each meal would have cost him the same amount, what is Ben's incentive for choosing salad?

To eat a healthier meal.

Linda owns a successful clothing store. She wants to expand her business by starting another store. But she cannot do so because the government allows a person to own only one store. Which type of economy does this scenario describe?

communist economy

Flipping

fixing up a property to sell it for a profit

Discount brokerage

has lower commissions is usually online

limited partner

investing in a business without running it

Portfolio Manager

makes investments on behalf of investors

Mia and Jack are two chocolate producers. Mia packs her chocolates in attractive boxes and charges slightly more than Jack does. Despite her slightly higher prices, consumers are more attracted to Mia's chocolates. What market structure does this situation represent?

monopolistic competition

Elena works for a company that handles product testing for a company based in Germany. This work is an example of which companies use to reduce product demand production costs tariffs by contracting some business activities to other businesses.

outsourcing and production cost

Which of the following are the responsibility of OSHA?

provide consultation to small businesses and protect the health of workers

a full-service brokerage firm

provides advice

Closing Price

the amount a stock ended at for the day

Marginal Cost (MC)

the cost added by producing one additional unit of a product or service.

Maturity Date

the date the bond expires and the principal is due

marginal revenue

the increase in revenue that results from the sale of one additional unit of output.