EOC
Sample Exchange Rate 1 U.S. Dollar = 0.50 Euro 1 Mexican Peso = 0.10 U.S. Dollar In this situation you can conclude that 1 Euro would trade for A) 20 Mexican Pesos. B) 10 Mexican Pesos. C) 5 Mexican Pesos. D) 1 Mexican Peso.
A) 20 Mexican Pesos.
Which economic concept would MOST likely account for a move on the curve from point "A" to point "B"? A) Choice B) Growth C) Scarcity D) Unemployment
A) Choice
Mike and David signed a loan agreement together to borrow money for a boat. If David leaves town and cannot be found, what happens to the loan? A) Mike must pay the full monthly payment. B) Mike must continue paying his half of the monthly payment. C) Mike and the lender must renegotiate the terms of the loan. D) Mike does not have to pay anymore because David has the boat.
A) Mike must pay the full monthly payment.
Which occupation would be LEAST affected by inflation? A) a doctor in private practice B) an owner of a shipping company C) an owner of a small hardware store D) a retired teacher living on his pension
A) a doctor in private practice
Which action would be a change in the government's fiscal policy? A) an increase in taxes B) a decrease in unemployment C) a decrease in collected revenues D) an increase in the price of goods
A) an increase in taxes
Help Wanted Sales Position: Self-Motivated individual needed to sell new homes being built in the Lakefront area. Salary based on commission and experience. Kris applies for the sales position and does well. However, she is laid off in late October due to slow sales. This is an example of what type of unemployment? A) cyclical B) frictional C) organizational D) structural
A) cyclical
Jean and her friend run a lemonade stand over the summer. They make $1,000. Jean says that they should put away 20% of their income to buy supplies for next year's lemonade stand. According to Jean, how much money should Jean and her friend save to spend on next year's supplies? A)$200 B)$300 C)$400 D)$500
A)$200
Which of these is something whose construction MOST LIKELY would be determined by the government? A)An airport B)A golf club C)A shopping mall D)An office building
A)An airport
________ is the ability to repay a loan. A)Capacity B)Capital C)Character D)Collateral
A)Capacity
Currently, how are foreign exchange rates established? A)Foreign exchange rates are unregulated. B)Governments set the foreign exchange rates. C)The World Bank establishes foreign exchange rates. D)The World Trade Organization establishes foreign exchange rates.
A)Foreign exchange rates are unregulated.
How might a minimum wage law impact the supply and demand of workers? A)It might result in a surplus of supply. B)It might result in a shortage of supply. C)It might result in lower wages for workers. D)It might result in a lower unemployment rate.
A)It might result in a surplus of supply.
Imagine that a company decides to try a new form of online marketing and advertising. What is the MOST likely impact this will have on production? A)It will have no impact on production. B)It will cause the quantity of output in production to increase. C)It will cause the quantity of output in production to decrease. D)It will cause technology, labor, and capital in production to increase.
A)It will have no impact on production.
Suppose that in France 40 labor hours are required to produce a liter of wine. In Italy, 30 labor hours are required to produce a liter of wine. These figures indicate that A)Italy has an absolute advantage in wine production. B)France has an absolute advantage in wine production. C)Italy has a comparative advantage in wine production. D)France has a comparative advantage in wine production.
A)Italy has an absolute advantage in wine production.
United States Combating Use of Standards as Trade Barriers by Benjamin H. Wu, accessed from usinfo.state.gov/xarchives Since standards and technical regulations affect over 80 percent of global commodity trade, domestic source restrictions by foreign governments, in the form of standards as trade barriers, are a concern and have prompted the Department of Commerce to take recent action. The Department of Commerce is committed to ensuring that standards are fair and responsive to market and technology needs, and that we partner with industry to combat standards as trade barriers to American goods and services. Why does the author feel standards are such a vital issue? A) Standards affect over 80 percent of global commodity trade. B) U.S. standards limit U.S. companies from participating in the Chinese software industry. C) Standards should be raised, increasing U.S. trade barriers to combat inferior foreign goods. D) U.S. exports to China have exceeded imports from China, and higher standards have a negative affect.
A)Standards affect over 80 percent of global commodity trade.
WhWhen the dollar "falls" compared to other currencies, which group benefits the most? A)Those who export products overseas. B)Those who import products from overseas. C)Those who have large cash savings on hand. D)Those who speculate and trade in currencies.
A)Those who export products overseas.
This graph shows that there was an increase in the unemployment rate in the U.S. in the years between 1990 and 1993. This increase most likely corresponds to A)an economic recession in the U.S. B)increased defense costs for the Cold War. C)the economic prosperity which existed during the Clinton administration. D)the decline in the size of the military following our withdrawal from Vietnam.
A)an economic recession in the U.S.
Despite a severely low amount of natural resources, Japan has a thriving economy. This is largely due to the freedom Japan's economy has had to explore and develop new technology. Such freedom is found in which type of economic system? A) Command B) Market C) Socialist D) Traditional
B) Market
Illinois has a 3% state income tax on all earned income. Georgia has a tax rate starting at 1% to 6% on all earned income. What type of tax does Georgia have? A) Excise B) Progressive C) Proportional D) Regressive
B) Progressive
All of these are ways a society can improve its productivity EXCEPT A) Education. B) Regulation. C) Technology. D) Trade.
B) Regulation.
Which action by the Federal Reserve would help to slow down rising inflation? A) Buy Bonds B) Sell Bonds C) Raise Taxes D) Lower Interest Rates
B) Sell Bonds
What is the name of the "central bank" of the United States? A) Bank of the U.S. B) The Federal Reserve C) U.S. Congressional Bank D) The Federal Bank of America
B) The Federal Reserve
Inflation is expected to be high for the foreseeable future, you expect to have stable employment, and you would like to borrow money to buy a house. All else equal, a savvy economics student would A) borrow the money regardless, because the inflation rate would have no impact on the value of future loan repayments. B) borrow the money, knowing that the payments would be made with increasingly cheaper dollars. C) avoid borrowing because he cannot determine how much his monthly payment would be. D) avoid borrowing because he would have to pay back the loan in more expensive dollars.
B) borrow the money, knowing that the payments would be made with increasingly cheaper dollars.
The Federal Reserve System controls the size of the A) tax supply. B) money supply. C) demand supply. D) production supply.
B) money supply.
"Protectionist" trade policies are designed to A) increase imports. B) protect domestic industry. C) reduce tariffs on foreign products. D) increase government transfer payments.
B) protect domestic industry.
A period during which real GDP declines for two quarters in a row, or six consecutive months, is MOST LIKELY a A) peak. B) recession. C) recovery. D) trough.
B) recession.
When a society invests in education, how is it improving its productivity? A)By investing in the future. B)By investing in human capital. C)By investing in capital goods. D)By investing in entrepreneurship.
B)By investing in human capital.
Which two countries are economically interdependent and would make the MOST effective trading partners? A)Country B and Country D B)Country A and Country C C)Country A and Country E D)Country C and Country D
B)Country A and Country C
In 1999, the U.S. announced trade sanctions worth $116.8 million, targeting goods from France, Germany, Italy and Denmark. The sanctions were in retaliation for a ban on U.S. hormone-treated beef by which organization? A)ASEAN B)EU C)NAFTA D)WTO
B)EU
Board of Governors => ? => 12 Regional Federal Reserve banks => Numerous Member Banks Which of these correctly completes the chart? A)Federal Reserve Chairman B)Federal Open Market Committee C)President of the United States D)Senate and House of Representatives
B)Federal Open Market Committee
How does a monetary policy of low interest rates affect consumers? A)It promotes deflation. B)It lowers savings rates. C)It lowers spending rates. D)It lowers the cost of imports.
B)It lowers savings rates.
Organizational skills Ability to prioritize tasks Flexibility Written communication skills ????? This table lists skills that are needed to work effectively alone. Which skill BEST replaces the question mark? A)Sensitivity B)Self-discipline C)Delegate tasks D)Ability to negotiate
B)Self-discipline
What is the relationship between quantity supplied and price? A)They are not related. B)They are directly related. C)They are inversely related. D)They are related through demand.
B)They are directly related.
What would MOST LIKELY happen if the Federal Reserve System lowered interest rates? A)Trade would increase over the long run. B)Unemployment would be reduced in the short run. C)The demand for goods would decrease in the short run. D)The price of goods would remain stable over the long run.
B)Unemployment would be reduced in the short run.
In this production possibilities graph, what MIGHT cause the line (frontier) to move to the left? A)increased demand for basketballs B)a shortage of needed raw materials C)an increase in the number of workers D)increased efficiency because of new whoopee cushion technology
B)a shortage of needed raw materials
Which is the curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price? A)supply curve B)demand curve C)consumption curve D)production possibilities curve
B)demand curve
In 1994, Canada signed a treaty known as NAFTA, the North American Free Trade Agreement. Which of these actions would MOST likely be addressed by NAFTA? A)establishing an embargo on sugar cane imported from Cuba B)eliminating tariffs on cars imported from the United States. C)creating a quota on all agricultural goods imported from Mexico D)ending any trade barrier between Canada and members of the European Union
B)eliminating tariffs on cars imported from the United States.
The nation of Tupalow is outraged that the Republic of Za has repeatedly violated international human rights laws. As a result, Tupalow has decided not to export goods to or import goods from Za. What is such an action called? A)tariff B)embargo C)trade treaty D)unfavorable balance of trade
B)embargo
Which result would you expect from a U.S. import quota on automobiles? A)lower automobile prices for U.S. customers B)higher automobile prices for U.S. customers C)fewer domestic jobs in the automobile industry D)more foreign automobiles flowing into the U.S.
B)higher automobile prices for U.S. customers
According to the diagram showing the circular flow of goods and resources, where do businesses sell the goods and services they produce? A)in the factor market B)in the product market C)in the capital market D)in individual households
B)in the product market
Ben is choosing between two savings accounts. Both accounts pay 3% interest. Account X pays compound interest. Account Y pays simple interest. Ben should choose account X because A)the interest would be tax free. B)it would pay interest on interest. C)the interest rate would decrease over time. D)the interest rate would increase over time.
B)it would pay interest on interest.
-speeding ticket -littering fine -library fine -detention All of these are examples of A)productive resources. B)negative incentives. C)positive incentives D)opportunity costs.
B)negative incentives.
If a product is sold at the price indicated and supplied in the quantity indicated by the intersection of the supply and demand curves in the graph, there should be A)an increase in price. B)no shortage and no surplus. C)a shortage until the price is raised. D)a change in the expected future price.
B)no shortage and no surplus.
Which market structure is BEST indicated by the photograph? A)monopoly B)oligopoly C)pure competition D)modified competition
B)oligopoly
Janet Yellen, Chairwoman of the Federal Reserve, announces that the outlook on the economy is slowing as consumer confidence is waning. She announces that Federal Reserve will be implementing monetary policies to encourage economic growth. What effect does poor consumer confidence have upon the nation's economy? A)spending slows and causes the GDP to expand B)spending slows and causes the GDP to contract C)spending increases and causes the GDP to expand D)spending increases and causes the GDP to contract
B)spending slows and causes the GDP to contract
If the real interest rates increase in the United States but do not change in Europe, the effect that this will have in the currency exchange market between the Dollar and the Euro will be ______. A)the Euro will depreciate in relative value. B)the Dollar will appreciate in relative value. C)the Dollar will depreciate in relative value. D)the relative value of the Euro will not change.
B)the Dollar will appreciate in relative value.
Most teenagers desire the newest and most up-to-date smartphone on the market. When the new phone comes onto the market, the new phone's price is significantly higher and the price of the older version of the same phone will drop noticeably. What is the incentive to purchase a new, but older, version of the smartphone? A)the new features of the new version B)the lower price of the older version C)the higher price of the older version D)there is no incentive within the market
B)the lower price of the older version
The Consumer Price Index (CPI) is best used to determine A)the Dow Jones Index. B)the rate of inflation. C)the unemployment rate. D)currency exchange rates.
B)the rate of inflation.
According to the information, one U.K. pound is worth approximately A)one U.S. dollar. B)two U.S. dollars. C)four U.S. dollars. D)one-half of one U.S. dollar.
B)two U.S. dollars.
What industry comes the closest to being purely competitive, in that there are plenty of sellers to keep the costs low for the consumers? A)cars B)wheat C)blue jeans D)electricity
B)wheat
According to this graph, what would the approximate equilibrium price be for widgets? A) $0.85 B) $1.50 C) $2.50 D) $4.70
C) $2.50
What kind of economic system does South Africa have? A) Capitalism B) Command C) Mixed D) Traditional
C) Mixed
Mutual funds pool deposits from investors to purchase securities. What is true about mutual funds? A) Mutual funds cannot be bought in retirement accounts. B) Investors do not have to pay taxes on gains from mutual funds. C) Mutual funds are typically less safe than Certificates of Deposit. D) You can invest in mutual funds only when you pass your 18th birthday.
C) Mutual funds are typically less safe than Certificates of Deposit.
Which of these ULTIMATELY controls the money supply in the United States? A) private banks B) The U.S. Congress C) The Federal Reserve D) private credit unions
C) The Federal Reserve
Why do entrepreneurs risk failure to go into business? A) There is no failure in the market. B) The risk to go bankrupt is too great. C) The risk to succeed at a profit is worth it. D) Entrepreneurs do not risk failure, only success.
C) The risk to succeed at a profit is worth it.
Why would banks offer higher interest rates for savings and checking accounts? A) To encourage people to spend money in the economy. B) To discourage people to spend money in the economy. C) To encourage people to put money in savings and checking accounts. D) To discourage people to put money in savings and checking accounts.
C) To encourage people to put money in savings and checking accounts.
Which situation is the MOST LIKELY result of a price ceiling being set below the equilibrium price? A) decreased demand B) a surplus in the market C) a shortage in the market D) a higher equilibrium price
C) a shortage in the market
A Weak Dollar by The Columbus Dispatch, September 7, 1999 If the price of buying a car starts rising in the United States, consumers may need to look no further than the dollar's recent slide against major foreign currencies. On the other hand, economically depressed Midwestern farmers may find it easier to sell surplus grain overseas if a weak dollar makes it cheaper for foreigners to buy U.S. goods. The dollar spent much of last week on the skids, flirting with its lowest level of the year against the Japanese yen...It also has lost ground to the Euro. According to the passage, one benefit of a weak dollar might be A) increased car sales. B) decreased car sales. C) increased surplus grain sales. D) decreased surplus grain sales.
C) increased surplus grain sales.
What calculation will help you figure out your debt payments-to-income ratio? A) monthly net income × monthly debt payments B) monthly debt payments + total credit payments C) monthly debt payments ÷ monthly net income D) monthly net income + total credit payments
C) monthly debt payments ÷ monthly net income
How will a contractionary fiscal policy affect a budget deficit? A) not affect it B) grow the deficit C) shrink the deficit D) change monetary policy
C) shrink the deficit
Which of these is MOST LIKELY to occur after the government increases taxes? A)Annual deficits increase. B)The national debt increases. C)Consumer spending decreases. D)Government programs decrease.
C)Consumer spending decreases.
− Income increases − Price of complementary products decreases These changes would MOST LIKELY have which impact on the market? A)Supply would increase B)Supply would decrease C)Demand would increase D)Demand would decrease
C)Demand would increase
Which of these is likely the MOST important financial consideration a person should make when deciding to borrow money from a financial institution? A)Amount of the loan B)Fees attached to the loan C)Interest rates on the loan D)Length of time for the loan
C)Interest rates on the loan
How does it help the economy that banks offer incentives (like interest payments, deposit insurance, etc.) to get customers to deposit money with them? A)It ensures that the bank's shareholders will make profits. B)It makes the financial services industry more competitive. C)It helps prevent people from keeping their cash out of circulation. D)It allows for a wider range of investment opportunities for consumers
C)It helps prevent people from keeping their cash out of circulation.
Principle Imports and Exports of Peru Imports Exports Machinery Gold Plastics Copper Electronics Textiles Steel Petroleum Based on the information in the table, which statement about Peru's economy is true? A)Peru imports and exports mainly natural resources. B)Peru imports and exports mainly capital resources. C)Peru imports mainly capital resources and exports mainly natural resources. D)Peru imports mainly natural resources and exports mainly capital resources.
C)Peru imports mainly capital resources and exports mainly natural resources.
Which choice gives a reason that property rights must be protected in a market economy? A)The right to property is not guaranteed in command economies. B)In a chaotic market consumers might lose track of whose property belongs to whom. C)Producers must be ensured that they will be able to sell their products and keep their revenues. D)If buyers have a right to the property of sellers, then they will be more likely to engage in free trade.
C)Producers must be ensured that they will be able to sell their products and keep their revenues.
Kathy, Sue, and Christina own a bakery. Each day all three women spend hours baking cakes, decorating cakes, and packaging cakes. Which economic concept would help them become more efficient? A)Scarcity B)Productivity C)Specialization D)Interdependence
C)Specialization
What is the primary way in which insurance allows you to be covered for a loss, even if you haven't had it for very long? A)You get money from them. B)You pay more money later. C)You share the risk with others. D)Insurance helps you to avoid things.
C)You share the risk with others.
If someone is interested in pursuing a career with a relatively high earnings potential, which would be the best choice? A)a career that has a relatively low supply of workers B)a career that has a relatively high demand for workers C)a career that has a relatively low supply and high demand for workers D)a career that is well established with plentiful workers who would be mentors
C)a career that has a relatively low supply and high demand for workers
To promote competition...in order to secure lower prices and higher quality services for American telecommunications consumers and encourage the rapid deployment of new telecommunications technologies. -Telecommunications Act of 1996 The Telecommunications Act of 1996 is MOST LIKELY an example of A)regulation. B)divestiture. C)deregulation. D)market failure.
C)deregulation.
Unlike balance of trade, balance of payments includes A)imports. B)exports. C)foreign investments. D)foreign exchange reserves.
C)foreign investments.
According to monetarists, to prevent recessions, the Federal Reserve should A)increase taxation. B)decrease the money supply. C)increase the money supply. D)decrease government spending.
C)increase the money supply
The market tends to underproduce public goods because A)public goods tend to have very few benefits. B)public goods always have external costs (negative externalities). C)joint consumption allows those who do not pay for the good to still benefit from the good. D)the consumption of a public good by one persons prevents its consumption by another person.
C)joint consumption allows those who do not pay for the good to still benefit from the good.
The European Union has positively affected the economies of Europe by A)refusing to allow countries to trade with each other. B)allowing England to become the richest European country. C)lowering or eliminating barriers that slow down trade between countries. D)making taxes on imported goods higher and promoting economic independence.
C)lowering or eliminating barriers that slow down trade between countries.
A volcano erupts in Hawaii that destroys or severely damages many of the pineapple orchards located there. What will be the effect on price and quantity of pineapples sold? A)price will fall and quantity will fall B)price will fall and quantity will rise C)price will rise and quantity will fall D)price will rise and quantity will also rise
C)price will rise and quantity will fall
When a government funds programs at levels greater than the revenue it is receiving, A)the national debt decreases. B)the income tax rates increase. C)the budget includes deficit spending. D)congress must submit a new budget for review.
C)the budget includes deficit spending.
In a free enterprise system, what drives individuals to risk their savings in a business venture? A)the idea of failure B)the desire to pay taxes C)the potential for profit D)the increase in stock prices
C)the potential for profit
What would be the situation if the price was moved from p2 to p1? A)the price would be too low B)the price would be dropped C)there would be a surplus of widgets D)there would be a shortage of widgets
C)there would be a surplus of widgets
Which of these is the BEST example of how the free enterprise system of the United States promotes individual initiative? A) Men must register for selective service. B) A citizen may be called to serve on a jury. C) The legislative branch levies an income tax. D) Authors can have original works copyrighted.
D) Authors can have original works copyrighted.
Mr. Simpson deposits his money in a savings account at the Springfield Bank. Would he earn more money with simple interest or with compound interest? A) Simple interest earns more because simple interest always has a higher rate. B) He would earn the same amount, as these are different terms for the same thing. C) Simple interest earns more because the interest is determined annually on the original amount. D) Compound interest earns more because the amount on which interest is paid increases over time.
D) Compound interest earns more because the amount on which interest is paid increases over time.
Which statement about the circular flow model is CORRECT? A) Businesses earn income from both the factor and product markets. B) Households earn income from both the factor and product markets. C) Households earn income from the product market, and businesses earn revenue from the factor market. D) Households earn income from the factor market and businesses earn revenue from the product market.
D) Households earn income from the factor market and businesses earn revenue from the product market.
I. Two countries produce the same goods for the same opportunity cost II. Two countries produce different goods for different opportunity costs III. Two countries are isolated by geography and politics IV. Two countries have the same identical markets What fact or facts support a situation where trade is disadvantageous? A) II only B) IV only C) III and IV only D) I, III, and IV only
D) I, III, and IV only
Shawn just graduated from college. Why might Shawn benefit from rapid inflation in the economy? A) Purchasing a home will be easier. B) There will be more goods to purchase. C) Businesses are more likely to hire during times of inflation. D) Student loan repayments will not cost as much in real dollars.
D) Student loan repayments will not cost as much in real dollars.
After graduation Lynn plans to tour Brazil before going to college. The value of the money Lynn spends in Brazil will be included in the A) balance of trade. B) balance of exports. C) balance of imports. D) balance of payments.
D) balance of payments.
Help Wanted Ads Established company seeking full-time residential house cleaner. We will train. Must be honest and dependable. Call (123) 456-7890. Suburban medical facility seeking surgeon. Board Certified required. $1,000 signing bonus for every year of experience, up to $15,000. Send resume to 123 Medical Drive, Suburbia, GA. Temporary lifeguard needed to fill summer holiday shifts at outdoor swimming pool. Must have CPR and lifeguard certification. Apply in person to Bridgefront, 123 Bridgefront, Anytown, GA. Aircraft manufacturer seeking engineers with advanced degree in physics and no less than 15 years experience. Many positions available. Send resume to 123 Aircraft Blvd., Anytown, GA. According to the passage, which of the help-wanted positions is an example of unskilled labor? A) surgeon B) engineer C) lifeguard D) house cleaner
D) house cleaner
A left shift of the aggregate supply line causes an increase in A) deflation. B) employment. C) GDP and employment. D) inflation and unemployment.
D) inflation and unemployment.
Aggregate demand in the U.S. is influenced by both A) inflation and debt. B) monetary policy and debt. C) inflation and fiscal policy. D) monetary policy and fiscal policy.
D) monetary policy and fiscal policy.
If the price for widgets was set at $4 A) buyers would purchase all of the available widgets. B) producers would discover that the price was too low. C) buyers would purchase more widgets than are available. D) producers would discover that the price should be lowered.
D) producers would discover that the price should be lowered.
Which relationship BEST illustrates a comparison of absolute advantage and comparative advantage? A)A country with an absolute advantage will always have a comparative advantage in producing products. B)A country with a comparative advantage can produce a greater output of a products than a country with an absolute advantage. C)A country with an absolute advantage can produce a product at a lower opportunity cost than a country with a comparative advantage in producing all products. D)A country with a comparative advantage can produce a product at a lower opportunity cost, even if another country has an absolute advantage in the production of all goods.
D)A country with a comparative advantage can produce a product at a lower opportunity cost, even if another country has an absolute advantage in the production of all goods.
For a market system, which best answers the question, "What goods and services will be produced?" A)Any good for which consumers are willing to pay a high enough price B)Only those goods whose long-term profits are greater than average profits C)Any good whose production is characterized by the lowest cost of technology D)Any good that returns its producers sufficient revenue to cover its total costs
D)Any good that returns its producers sufficient revenue to cover its total costs
The United States Congress passes a law requiring that all businesses, regardless of size, pay 100% of employees' healthcare costs. What is a likely result of this action? A)Businesses will hire more workers. B)Congress will collect more tax revenue. C)Big Businesses will earn greater profits. D)Businesses may be forced to raise their prices.
D)Businesses may be forced to raise their prices.
Which of these is an example of how the U.S. Constitution protects the free enterprise system? A)Congress is given the power to borrow money. B)Congress is given the authority to collect taxes. C)Congress is given the authority to raise and support armies. D)Congress is given the authority to grant patents and copyrights.
D)Congress is given the authority to grant patents and copyrights.
Why is private ownership an important source of economic prosperity? A)It eliminates the opportunity cost of using a resource. B)It allows owners to do anything they want with their property. C)It makes it possible for owners to ignore the desires of others without having to bear the cost. D)It provides owners with a strong incentive to develop and use assets in ways that others value highly.
D)It provides owners with a strong incentive to develop and use assets in ways that others value highly.
Which of these is the BEST definition of GDP? A)a description of the quality of life in a nation B)average value of production of intermediate goods C)a collection of all government assets that could earn money D)market value of all goods and services produced in a country
D)market value of all goods and services produced in a country
Willard is driving down a toll road. Instead of stopping to pay the $0.50 toll, he drives past the toll collectors. 2 weeks later, he receives a fine of $500 for refusing to pay a toll on a toll road. Which term BEST describes the $500 fine Willard was charged? A)positive incentive B)entrepreneurship C)freedom of choice D)negative incentive
D)negative incentive
Which type of cost occurs when an individual pays for a piano lesson instead of going to a movie? A)fixed cost B)marginal cost C)residual cost D)opportunity cost
D)opportunity cost
An unincorporated business owned by a single person, which may or may not have employees, is an example of a(n) A)partnership. B)corporation. C)entrepreneurship. D)sole proprietorship.
D)sole proprietorship.
If there was an sudden change in exchange rates that resulted in fewer U.S. Dollars being required to buy a Euro, you could expect A)Europeans to buy more American products. B)the dollar to depreciate quicker than the Euro. C)gold and silver would shift from Europe to the U.S. D)the dollar to appreciate when compared to the Euro.
D)the dollar to appreciate when compared to the Euro.
What would be the situation if the price was moved from p3 to p2? A)the price would be lowered B)the price would be too high C)there would be a shortage of widgets D)there would be no supply of widgets left over
D)there would be no supply of widgets left over
One reason that government regulation of natural monopolies is essential is A)to ensure that competition continues to flourish. B)to create more opportunities for corporate investment. C)to allow more customer input into methods of production. D)to prevent the monopoly from raising prices uncontrollably.
D)to prevent the monopoly from raising prices uncontrollably.
-Decentralized decision making. -Adjusts to changes in the market place. -Producers and consumers have control of the economy. All of these are characteristics of a ___ economy. A)command B)market C)socialist D)traditional
Market
