Apex Econ unit 5 and 7 (not 6 sorry lol)
Why might a letter-writing campaign get a company to change its business practices?
. The company might fear that the letter-writing campaign will become a boycott if it doesn't respond
Which of these fees is the biggest problem for customers who need to use their credit card to take money from an ATM?
. Cash advance fee
What is a bank customer's share of the profits made on loans?
. Savings account interest
What are you paying for when you lease a car?
. The decrease in the car's value
Sort the statements below into the correct order in which the federal budget is prepared.
1. The Office of Management and Budget (OMB) and the president prepare a proposed budget. 2. Congress decides on the overall level of spending and taxation and passes specific spending bills. 3. The president signs various spending bills into law.
Sort the statements below into the correct order in which the federal budget is prepared
1. The president gives a proposed budget to Congress. 2. Congress decides on the details of the budget. 3. The president signs spending bills into law.
Sort the statements below into the correct order in which the federal budget is prepared.
1. The president writes a preliminary budget proposal. 2. Congress decides on the details of the budget. 3. The president signs spending bills into law.
What does production limitation involve?
A cartel setting a maximum output for the good that all members sell
Consumer-protection regulations are beneficial because they lead to what?
A decrease in injuries and death
What does price fixing involve?
A group of companies agreeing on a particular price to charge for their products
What does predatory pricing involve?
A large company charging below its production cost in order to eliminate competition
Which of these is an example of a labor law?
A minimum-wage requirement
Which of these is an example of a land-use law?
A residential zoning ordinance
Which of these is an example of a trade restriction?
A tariff on imported cars
What is a regressive tax?
A tax that charges more to those with lower incomes
A. Property tax B. Personal income tax C. Capital gains tax
A. 1 percent charged on the value of all residential houses B. 15 percent charged on all wages C. 5 percent charged on profits from selling stocks
A. Sales tax B. Excise tax C. Property tax
A. 7 percent charged on the purchase of all non-necessary goods B. $2 tax charged on each pack of cigarettes C. 1 percent charged on the value of all residential houses
A. Sales tax B. Excise tax C. Capital gains tax
A. 9 percent charged on all purchases of non-necessities B. $1 tax charged on each gallon of gas purchased C. 5 percent charged on profits from selling stocks
A. Trade restriction B. Labor law C. Banking regulation
A. Charging a 70 percent tariff on imported steel B. Requiring unions to give 60 days notice before going on strike C. Requiring that money laundering be reported
A. Provide labor B. Create goods and services C. Protect competition
A. Consumers B. Producers C. Governments
A. Merit good B. Public good C. Individual good
A. Education B. School buildings C. Textbooks
A. Land-use law B. Labor law C. Banking regulation
A. Limitation of two houses per acre in the residential section of a town B. Restriction of underage workers to 20 hours per week C. Requiring that 15 percent of assets be kept on hand in a vault
A. Price ceiling B. Trade restriction C. Labor law
A. Limiting the price of a gallon of gas to $2 B. Charging a 50 percent tariff on imported cotton C. Requiring that all workers be paid at least $5.15 per hour
A. Health care B. Infrastructure projects C. Stock investments
A. Merit good B. Public good C. Individual good
A. Retirement programs B. Infrastructure projects C. Stock investments
A. Merit good B. Public good C. Individual good
A. Consumer B. Producer C. Government
A. Provide labor and investment B. Provide individual goods C. Provide public goods
A. Consumers B. Producers C. Governments
A. Providing investment capital B. Paying wages C. Collecting taxes
A. Taxation B. Antitrust laws C. Censorship
A. To collect revenue B. To protect competition C. To control the population
A. Tariffs B. Anti-fraud laws C. Environmental-protection laws
A. To protect domestic industry B. To guarantee free choice C. To safeguard natural resources
A. Subsidies B. Labor laws C. Antitrust laws
A. To protect domestic industry B. To protect workers C. To protect competition
What speeds up the flow of investment and wages in the circular flow of the free-market system?
Antitrust laws
How can consumers get the government to pass laws preventing companies from engaging in offensive behaviors?
By lobbying
Which of these isnot necessary for the enforcement of consumer-protection regulations?
Censorship
Taxes differ from tariffs because taxes are what?
Collected on domestic economic activity
Tariffs differ from taxes because tariffs are what?
Collected on imported goods
Parental freedom is limited by laws requiring what?
Compulsory education
How can recent government spending be best described?
Constantly increasing
Consumer-protection regulations are beneficial because they increase what?
Consumer confidence
Why do economic decisions vary from person to person even under the same circumstances?
Costs and benefits are subjective.
Which of these most accurately describes the costs and benefits of using a credit card?
Credit cards are convenient but can result in debt
Government regulation of the free market is required in order to do what?
Ensure competition and protect consumers
Consumer-protection regulations donot involve what?
Government censorship
The 20th century has shown a trend toward greater what?
Government spending
What is the annual percentage rate (APR) on a credit card?
The amount of interest charged on unpaid balances
Why do government regulations lead to higher prices for consumers?
The costs of compliance are passed on to the consumer
Environmental-protection laws limit what?
The exploitation of natural resources
What is the justification of the progressive taxation method?
The idea that taxation should be based on the ability-to-pay principle
Why might a company respond to a letter-writing campaign launched by a group of concerned consumers?
The letters contain a veiled threat that economic pressure could follow.
What do leases contain?
The obligations of renters and landlords
What does an amortization table show?
The principle and interest being paid on a loan
The free-market system cannot exist without government regulation for what reason?
The profit motive undermines competition unless competition is protected.
Which of the following is true about tariffs?
They are paid on international trade only.
Which of these states one of the opportunity costs of attending college?
Time spent on schoolwork takes away from the chance to earn money at a job.
Why does the government need to collect taxes?
To ensure competition and protect consumers
Why is taxation necessary?
To provide money for government programs
What is the purpose of freezing someone's assets?
To reduce crime
Politicians approve pork barrel spending for what purpose?
To win political support
Which of these describes a situation in which people have to pay a deductible?
When their insurance policy only covers part of a medical expense
When is liability insurance needed?
When you cause an accident that damages another vehicle or hurts someone
Countries are better able to negotiate free-trade agreements because of the existence of the which of the following?
World Trade Organization
What makes a checking account more convenient than a savings account?
You can spend your money without having to withdraw cash first.
Environmental-protection laws can be bad for the economy because they may do what?
Increase unemployment
What does complying with consumer-protection regulations do?
Increases production costs and raises prices
What does increasing consumer confidence do?
Increases purchases from producers
Government corporations can be described as which of the following?
Independently run
Censorship is a government-imposed limit on which of the following?
Individuals' freedom of expression
What makes a credit card more convenient than a debit card?
It can be used to buy things without immediate payment.
What does a progressive taxation system do?
It increases the tax rate as income rises.
What does the enforcement of antitrust laws do?
Speeds up the flow of capital and wages
What is one of the primary concerns of socially responsible consumers?
Sustainability
What is one thing the government must do to enforce consumer-protection regulations?
Test new products for safety and effectiveness
Government agencies are which of the following?
Part of the public sector
Why do consumers have influence over politicians?
Politicians rely on the votes of consumers to keep them in office.
Politicians can gain added support for themselves by approving what?
Pork barrel projects
Government corporations can be described as which of the following?
Private sector companies
Why does the free-market system require government regulation?
Producers are driven by the profit motive to work against competition.
Why do government regulations lead to higher prices for consumers?
Producers pass along the costs of compliance.
The World Trade Organization was formed in order to accomplish what?
Promote free trade
The government might enact a price floor in order to accomplish what?
Protect producers
The government might enact a price ceiling in order to accomplish what?
Protect the poor
The government can prevent the shortages that accompany price ceilings by doing what?
Rationing
Which merit good does the U.S. government provide through a payroll tax?
Retirement benefits
Which of these has been a trend in the 20th century?
Growing levels of government spending
What do capital controls prevent?
Hasty movements of money into and out of a country's economic system
What merit good does the U.S. government pay for through the Medicaid payroll tax?
Health care
Which merit good does the U.S. government provide through a payroll tax?
Health care
Pork barrel projects are approved because they do what?
Help politicians win support from their constituents
One drawback to consumer-protection regulations is that they lead to what?
Higher prices
The passage of environmental-protection laws results in what?
Higher prices
Environmental-protection laws are good for the economy because they do what?
Safeguard resources needed for future production
The government must force people to pay taxes so that it can do what?
Make and enforce the laws necessary to make the free-market system work properly
What do banking regulations prohibit?
Money laundering
A trade agreement that creates favorable trade terms between two nations establishes which of the following?
Normal Trade Relations
What kind of a credit card can customers with a bad credit history get?
One that's secured by collateral
