Econ Exit Tickets
Which of these is a Marginal Benefit of buying a car -Changing the oil -Buying new tires -Driving to work -Insuring the car
Driving to work
Worker safety is regulated by ____.
OSHA
Consumer complaints associated with credit cards include issues with which of the following? -advertising -All of these -interest rates -billing -collections
All of these
You usually go out to dinner at a restaurant twice a month. This is an example of a fixed cost.
FALSE
Your creditworthiness is measured by a number called a _________________. -Premium -Ratings test -FICO score -Application ratio
FICO score
The ____ promotes competition.
FTC
A surplus exists in a market when the price is -the same as the equilibrium price. -lower than the equilibrium price. -higher than the equilibrium price. -higher than the equilibrium quantity.
higher than the equilibrium price.
are not very liquid because you cannot take out money when you want or pay a penalty or lose interest; however, the longer the term the higher the return. -Stocks -Treasury Securities -Certificates of Deposit -Savings Accounts
Certificates of Deposit
Which of these is NOT part of the PACED decision model? -Exclusions -Problem -Criteria -Alternatives
Exclusions
_________________________ are products that are produced domestically but sold internationally. -Imports -Exports -Voluntary exchanges -Transfer payments
Exports
A change in demand is caused by the price of the product changing.
FALSE
Determining the procedures used to make a decision is the first step in the PACED decision-making model.
FALSE
Full employment is achieved when the unemployment rate reaches 0%, meaning everyone who can be employed is employed.
FALSE
Health insurance can be denied to an individual based on preexisting conditions.
FALSE
Human capital is when a worker is using capital equipment.
FALSE
____ health insurance plans pay the highest percentage of healthcare costs.
Gold
Taxes are included in which of the following? -Net pay -Neither gross pay nor net pay -Both gross pay and net pay -Gross pay
Gross pay
Which of the following categories of spending is the largest for the Federal government? -Transportation -Healthcare -Foreign aid -Interest on the national debt -National defense
Healthcare
Which of the following is the largest category of federal spending? -Healthcare -Education -Social Security -Defense Spending -Interest payments on the national debt
Healthcare
Venezuela experienced ___ when the inflation rate rose to over 4,000% in 2017?
Hyperinflation
Which of the following is true for the federal government budget each year? -It can reduce any category of spending at its discretion -It can only spend as much as it gets in tax revenues -It can spend more than it gets in tax revenues -All of these -It spends a majority of its budget in foreign aid
It can spend more than it gets in tax revenues
Which of the following results in a positive externality? -You pass a factory that is emitting an awful smell -You are stung by a neighbor's honey-producing bee -You bring your lunch to school -Your neighbor's dog barks all night -Your classmate gets a flu shot
Your classmate gets a flu shot
Which of these is NOT a benefit of trade? -creation of dependencies -access to resources -fulfilment of needs otherwise not fulfilled -increase in maximum satisfaction
creation of dependencies
All occupations require ____ human capital investment.
different
If a 5% change in the price of a product causes a greater than 5% change in quantity demanded, the demand is ____.
elastic
_____ is the most valued employee benefit.
health insurance
Economic growth over time is reflected by: -higher standards of living. -the business cycle. -the Consumer Price Index, CPI. -none of the rest.
higher standards of living.
An _____ is an example of unanticipated income.
inhertitance
Commercial banks hold deposits and -pay account holders interest -pay borrowers interest -charge savers interest -charge account holders interest
pay account holders interest
FICA taxes are voluntary payroll deductions.
FALSE
Having term limits on Boards of Directors for companies forces firms to rotate leadership to get new ideas. It also creates this unintended consequence: -Board members serve on multiple boards -People with knowledge of the firm's history are replaced with those who may not know as much information -Less frequent board meetings -Better decisions about important issues
People with knowledge of the firm's history are replaced with those who may not know as much information
Which of the following is an example of a negative externality? -National defense -Pollution -State roads -Clean air -Public park
Pollution
Too little of a good or service is produced when there is a -Private good -External cost -Private benefit -Negative externality -Positive externality
Positive externality
If low-income families pay 10% of their income in taxes while high-income families pay 20% of their income in taxes, the tax system is which of the following? -Excessive -Regressive -Unfair -Progressive -Proportional
Progressive
To function as money, the money must serve as an medium of exchange, a unit of account, and a/an _____.
store of value
Monitoring your investment portfolio is important because -all of these -your goals change over time -you are legally required to sell some assets each year -you might miss when a payment on a bill is due
your goals change over time
Free riding is likely to occur with the provision of _____.
(govt protection
The Social Security program was created in the -2000's -1950's -1990's -1930's
1930's
Which of the following can the government use to address an externality? -A subsidy -Tradeable permits -Command and control regulations -All of these -A tax
All of these
Which of the following is an example of a public good? -All of these -Public park -State roads -Clean air -National defense
All of these
Antitrust laws make which of the following illegal? -Anti-competitive behaviors -Natural monopolies -Any merger -All monopolies -Patents
Anti-competitive behaviors
The Virginia general sales tax is 7%.
FALSE
Which types of goods have a reduced sales tax rate? -Alcohol -Food to be consumed on premises -Groceries -All of these -School supplies
Groceries
Public goods are -Non-rival and non-excludable -Rival and excludable -Rival and non-excludable -Non-rival and excludable -Non-rival and common
Non-rival and non-excludable
A significant decline in general economic activity extended over a period of time is known as a(n) ____.
Recession
You want to invest in a computer/internet company. Which type of investment would you most likely choose? -Bonds -Mutual Funds -Stocks -Retirement plans
Stocks
A ______________ benefits foreign companies selling their products in the United States. -Weak dollar -Strong dollar
Strong dollar
Government intervention is required in the case of a public good because everyone can use the good so no one will pay to produce it.
TRUE
Governments intervene in the economy to correct market failures.
TRUE
Identity thieves are especially interested in obtaining your Social Security number.
TRUE
If the U.S. dollar strengthens compared to the Mexican peso, imports from Mexico would become less expensive.
TRUE
One cost of high unemployment is that the economy cannot produce as many goods and services.
TRUE
The federal funds rate is the interest rate that banks charge each other for short term loans
TRUE
A PACED decision-making grid used to decide where to go to college might include which of the following alternatives -Job placement success -Distance from home -Rate of return on investment -Forgone earnings -The local community college
The local community college
When a country imports more than it exports, the difference is called ___________. -an import -a trade deficit -an export -a trade surplus
a trade deficit
Inflation caused by an overall increase in the price of energy is _____ inflation. -unanticipated -demand pull -cost push -anticipated -hyper
cost push
The columns of a PACED decision-making each represent a ___.
criterion
Cars and furniture are examples of _____
discretionary items
When I get a vaccination, it creates both a private benefit and a(n) ____.
external benefit
Land, labor capital and entrepreneurial ability are sold in the ____ market.
factor
There's no penalty on their monthly Social Security earnings from earning wages for retirees that ________________________ -work only part time -have reached full retirement age -also collect Medicare benefits -begin collecting Social Security at age 62
have reached full retirement age
With expansionary fiscal policy, what is the goal for aggregate demand? -increase aggregate demand -decrease aggregate demand -increase then decrease aggregate demand -stabilize aggregate demand by holding it constant
increase aggregate demand
After a tariff is imposed, the price the consumer pays will _______________________, and the price the producer receives will _________________ -decrease, increase -decrease, decrease -increase, increase -increase, decrease
increase, decrease
Price ceilings and floors are _____.
legally mandated prices in markets that create disequilibrium.
Saving for a large purchase like the down-payment for a new home is an example of a -short-term goal. -immediate goal. -long-term goal. -year-long goal.
long-term goal
Factors that determine elasticity of supply include which of the following? -number of producers, luxury or necessity, substitutability of inputs -share of budget, excess capacity, substitutability of inputs -number of producers, excess capacity, substitutability of inputs -number of producers, excess capacity, availability of substitutes
number of producers, excess capacity, substitutability of inputs
Adam Smith believed that government should -control all resources -Answer the economic questions of what to produce, how to produce, and who to produce for. -play a limited role in the functioning of the economy -exist only to appoint judges to the court system
play a limited role in the functioning of the economy
Medicare Part D covers ___________________ -prescriptions -hospitalizations -doctor visits -all of these
prescriptions
The quantity supplied of a product is the quantity that producers will bring to market at a given -price -quantity -quantity demanded -demand
price
During the Great Recession the Federal Reserve conducted _____ to increase the money supply by buying long-term securities.
quantitative easing
The process of matching your personal records with the banks records of transactions is called ________________________. -falsifying -reconciling -identifying -reviewing
reconciling
Furniture acquired from friends and relatives will ______________________ -reduce the cost of furnishing your house -all of these -guarantee matching colors throughout the home -be more expensive than new furniture
reduce the cost of furnishing your house
The largest fixed expense for a renter is the -rent payment -electric bill -natural gas or oil bill -mortgage payment
rent payment
When quantity demanded exceeds quantity supplied the market is in ___.
shortage
Taking wallets, purses, mail, pre-approved credit offers, new checks, or anything else to find personal information is called ___.
stealing
A share of ownership in a company is known as ________________ -value-ownership -mutual funds -bonds -stock
stock
When money is used for exchanges, what happens to transaction costs? -they fluctuate -they increase -they decrease -they stays the same
they decrease
Profit is equal to -total revenue minus total cost. -per unit revenue minus total cost. -total revenue plus total costs. -total revenue divided by total cost.
total revenue minus total cost.
A car is considered ____if the costs of repair exceed the value of the car.
totaled
A __________ is when you sacrifice something in order to gain something else -scarce good -trade-off -opportunity cost -resource
trade-off
There can be fees associated with using ATMs that are not owned by your bank.
TRUE
Underemployed workers include part-time workers who want to be working full time.
TRUE
When an embargo is placed on a country, no imports from or exports to that country are allowed.
TRUE
_____ in Virginia charge a 6% sales tax.
A few localities
-Which of the following is a step for evaluating sources of consumer information? -All of these -Consult experts. -Check the date. -Check your biases. -Check the author.
All of these
Contracts do which of the following? -Encourage economic activity -Create a legal agreement enforceable by law -All of these -Facilitate trust between parties in a market -Specify the terms of an agreement between parties
All of these
Decreasing taxes will decrease the price level.
FALSE
If two television networks merge, it is a vertical merger.
FALSE
Too much of a good or service is produced when there is a -External benefit -Positive externality -Private cost -Public good -Negative externality
Negative externality
Which of the following is illegal under antitrust laws? -All mergers -Being a monopoly -Competition -Pollution -Restraint of trade
Restraint of trade
Progressive income taxes are an automatic stabilizer.
TRUE
Which of these is a main feature of the market economy? -Governmental regulation -Restricted resource use. -Lack of private ownership of resources -The profit motive
The profit motive
____ may lead to spending beyond one's means, causing them to borrow money for expensive purchases. -Bank accounts -Spending Plans -Conspicuous consumption -Discretionary spending
Conspicuous consumption
The government grants which of the following to protect the property rights of writers and composers? -Natural monopolies -Copyrights -Subsidies -Patents -All of these
Copyrights
Which of the following should be covered in a roommate agreement? -All of these -who takes care of chores -how living space will be shared -rules regarding pets, smoking, drinking, and guests -who pays for what and when
All of these
You can have your cake or choose to eat it. This is an example of property rights providing the right for you to ____.
Enjoy property
There are never unintended consequences of government intervention to address market failures.
FALSE
The federal government relies most heavily on which type of tax revenue? -Property taxes -Income taxes -Fines and fees -Estate taxes -Sales taxes
Income taxes
When the government provides free and reduced lunches to low-income students, it is addressing which type of market failure? -Inequity -Imperfect information -Market power -Externalities -Public goods
Inequity
Consumers, individual savers, investors, and financial institutions care about the____ because it allows them to better plan for the future.
Inflation Rate
The Federal Reserve's dual mandate is its responsibility to use monetary policy to promote ____ and stable prices.
Maximum employment
Private goods are ____.
Rival and excludable
Benefits add an average of 30% to an employee's compensation package.
TRUE
Innovation in production comes from ____.
entrepreneurs
A balanced budget occurs when revenues ____expenditures.
equal
When resources are underemployed, $1 of spending in the economy can increase GDP by ____ the $1 in spending.
more then
Fiscal policy components that are built into the economy are known as ____ fiscal policy actions. -discretionary -non-discretionary
non-discretionary
The ability of an individual to own resources and use them in any legal way they see fit is known as _________________________. -consumer sovereignty -regulation -the profit motive -private ownership
private ownership
A _____ would be counted as NOT in the labor force.
retired volunteer worker
The chance you take of making or losing money on your investment is known as -income -reward -risk -recession
risk
If a chain of sandwich shops buys a bakery, the merger is ____.
vertical
Which of the following is true regarding the Gini Index and the income distribution in the United States since 1970? Gini Index ------Income distribution A. increase -----more equal B. increase -----less equal C. decrease ----more equal D. decrease ----less equal E. decrease -----no change
B
If looking for a form of IRA that can be paid into above the age of 70.5, select the __________ IRA. -Roth -Cost-based -Accelerated -Traditional
Roth
When there is a market failure, the market outcome is not socially optimal.
TRUE
Your local electric company buys one hundred tons of coal that they will burn to produce electricity. This purchase is an example of a ______ and is not included in GDP.
a used good
Well-defined and enforced property rights -decrease the amount of economic activity. -are applied only to real property. -are necessary to prevent externalities. -create incentives for purchases and investments -exist only in command economies.
create incentives for purchases and investments
Renting would be better than buying for an individual who __________________________ -wants to own several large dogs and a few cats. -does not want to pay for maintenance and upkeep expenses. -wants to paint the walls bright colors. -plans on staying at their home for at least 20 years.
does not want to pay for maintenance and upkeep expenses.
With a shortage, as prices rise quantity demanded ___.
falls
system that allows supply and demand to determine the exchange rates is called a -fixed exchange rate system -floating exchange rate system
floating exchange rate system
Which group of people ultimately determines the products that a command economy produces? -companies -government officials -consumers -property owners
government officials
At a higher price the quantity supplied of a product typically is ____.
higher
With a ____ tax structure, as income rises the tax rate rises.
progressive
An effectiveness lag is the time it takes for the policy to begin having an impact on _____ .
real GDP and employment.
When you are ready to buy a home you should locate a ______________________, because they are well versed in local home listings, real estate laws, and regulations. -shop owner -parent -banker -realtor
realtor
Fiscal policy is most effective when combating -inflation caused by supply and demand shocks -inflation caused by supply shocks -recessions caused by supply shocks -recessions caused by demand shocks
recessions caused by demand shocks
Rebates and warranties are examples of _____________________, which are designed to encourage you to make a purchase -marginal benefits -sales incentives -discretionary spending -marginal costs
sales incentives
Adam Smith believed that _____________ would lead to the production of items that consumers want. -productivity -self interest -government control of resources -lack of competition
self interest
Once someone has worked for the specified period of time and they are eligible to keep 100% of their employer's contributions to their retirement fund, they are fully __________ in the plan. -connected -attached -vested -associated
vested
Conditions for demand are consumers -willingness but not ability to buy -willingness and ability to sell -ability but not willingness to buy -willingness and ability to buy
willingness and ability to buy
Employer-sponsored retirement plans requiring a minimum length of time of service to participate are -Keogh plans -SEP IRA's -401(k) plans -Annuitites
401(k) plans
Which regulatory agency protects consumers from injury or death resulting from the use of a product? -OSHA -CPSC -EPA -NHTSA -EEOC
CPSC
Market structures are categories that identify the amount and type of competition in an industry.
TRUE
Monopoly markets have significant barriers to entry.
TRUE
Which of the following categories of spending is the largest for state and local governments? -National defense -Education -Social Security -Interest on the national debt -Foreign aid
Education
Which of these categories of expenses would be present for both renters and buyers? -Electric and natural gas utilities expense -Monthly rent payment -interest on a home loan -security deposit
Electric and natural gas utilities expense
At what point of the Business Cycle would an economy be if companies are increasing production, jobs are available, and consumer spending is increasing? -Trough -Contraction -Expansion -Peak
Expansion
A business cycle is a type of recession.
FALSE
A(n) ______budget plans expenses for the entire year.
annual
Buying a car might be the best option for someone who -wants low monthly payments on the vehicle -always wants to drive a newer car -wants to own the car as an asset at the end of the term -always wants to have their car under warranty for repairs
wants to own the car as an asset at the end of the term
A promise that specific facts in a contract will happen is called a contract ____.
warranty
Voluntary exchange means that you _________________________________. -pay taxes -require the government to give you permission to buy something -seek the lowest price product from a list of possible choices -willingly trade your resources for a product or service
willingly trade your resources for a product or service
You can not own the rights to music, art, writing, or other creative endeavors.
FALSE
Which of the following goods is both rival and excludable? -A ballpoint pen -A city park -A fish in the ocean -A movie in an empty cinema -All of these
A ballpoint pen
When the government provides streetlights, it is addressing which of the following? -Property rights -A public good -A monopoly -The need for central planning -Income Distribution
A public good
Which of the following is true? -The depreciation of new cars is minimal in the first year of ownership -The price advertised by the dealership for the car includes the tax and title fees -Car prices cannot be negotiated on the internet. -Add-ons from the dealership like rustproofing are generally not a good idea.
Add-ons from the dealership like rustproofing are generally not a good idea.
Which of the following is a consumer right? -All of these -To be safe -To choose -To be heard [To have avenues for redress of grievances
All of these
The Board of Governors of the Federal Reserve System consists of twelve members.
FALSE
What is the most commonly used measure of price-level change? -Personal Consumption Index -Consumer Price Index -Producer Price Index -Consumer Consumption Index
Consumer Price Index
The three main credit bureaus are Experience, Equifax, and TransUnion
FALSE
Generally speaking, a car is _____ asset.
a depreciating
A ____buys and sells assets for someone else.
broker
The SNAP and CHIP programs provide food to families and children and are part of the safety net provided by the federal government.
FALSE
The clothes, books, electronics, sports equipment, etc. that you won are examples of real property.
FALSE
Which of the following unconventional monetary policy tools is the Fed's primary tool for conducting monetary policy? -Repurchase agreements -Forward guidance -Interest on excess reserves -Large-scale asset purchases
Interest on excess reserves
A supply schedule is a table that shows the quantity supplied of a product at various prices.
TRUE
An increase in supply is illustrated by a supply curve shifting to the right.
TRUE
Breakthroughs in technology improve productivity.
TRUE
Occupations that require a college degree often have higher earnings than those that do not.
TRUE
When the legal reserve ratio increases, the ability of the commercial banking system to create money _____.
decreases
Assets, such as property, that a borrower can use to repay the lender if repaying with cash is not possible are known as ___________________. -Conditions -Capital assessments -Collateral -Repayment Materials
Collateral
To calculate the Future Value of money, you need to know the amount of money you have now, the number of periods, and the __________________. -interest rate per period -consumer confidence ratio -inflation rate -unemployment rate
interest rate per period
An increase in demand signifies that at every _____ consumers will buy ____ .
price; more
Investors can learn about the historical performance of a stock by looking at a ________________________ -stock table -production table -Gallup poll -market reference
stock table
The government can encourage the production of goods that create positive externalities by creating ____.
subsidies
The difference between gross pay and net pay includes ____.
taxes
A common property good, like the fish in an ocean, are both non rival and non excludable.
FALSE
To create a budget, a list of expenses and income is needed. Savings goals are not needed to create a budget because they are not a bill paid monthly.
FALSE
Government regulations that prevent a firm from dumping toxic waste into a river address which type of market failure? -Imperfect information -Negative externality -Market power -Positive externality -Private good
Negative externality
Police and fire protection, healthcare for the elderly, and defense spending are all examples of government spending.
TRUE
State and local government may not run budget deficits.
TRUE
The Sherman Act is one of the earliest and most important antitrust laws.
TRUE
The amount of earned income in the economy is much higher than the amount of unearned income.
TRUE
The better business bureau works to resolve disputes, facilitate communication, and provide information on ethical business practices.
TRUE
The federal income tax system in the United States is progressive.
TRUE
The state law that addresses tenant-landlord issues is the Virginia Residential Landlord and Tenant Act (VRLTA).
TRUE
When conducting the nations monetary policy the Federal Reserve keeps its Dual Mandate in mind.
TRUE
When the price of a substitute increases the demand curve for the original product will increase and price and quantity of the product will increase.
TRUE
When there is a technological improvement for a product, the supply curve shifts to the right and price decreases while quantity increases.
TRUE
With a regressive tax system, people with lower incomes pay a higher percentage of their income in taxes.
TRUE
An increase in demand is shown by -a movement down an existing demand curve. -a shift of the demand curve to the left. -a movement up an existing demand curve. -a shift of the demand curve to the right.
a shift of the demand curve to the right.
When a bank provide their customers a place to earn money over the long term by allowing other companies to use their money, they are offering the financial service of _____________ -Investing -Spending -Saving -Borrowing
investing
Going into debt to improve your education is considered good debt because -it increases your investment in human capital and potentially a higher salary -it increases your chance of being unemployed -it's better use of your money than buying your own business -the interest rate is lower than the rate on a credit card
it increases your investment in human capital and potentially a higher salary
Automobile insurance can cover which of the following types of losses? -Medical expenses -Damage to cars -All of these options -Property damage -Bodily injury
All of these options
An entrepreneur is someone who organizes, manages, but assumes no risk for the business or enterprise.
FALSE
Expansionary monetary policies are actions taken by the Federal Reserve to decrease the growth of the money supply and the amount of credit available.
FALSE
Federal student grants must be repaid.
FALSE
Financial records must be kept in an electronic filing system.
FALSE
If quantity supplied equals quantity demanded in a market, the price will fall.
FALSE
If the country of Duoland has a real GDP of $400,000 and the country of Unoland has a real GDP of $100,000, the standard of living is higher in Duoland than in Unoland.
FALSE
It would be an expansionary monetary policy action if the Fed increases the interest rate paid on excess reserves.
FALSE
On average, the earned income over a lifetime for someone with a bachelor's degree is roughly $2 million more than someone with only a high school diploma.
FALSE
A consumer should continue to comparison shop as long as the marginal benefit from the additional time spent is -greater than zero -equal to the marginal cost -greater than the price of the product -less than the price of the product -greater than the marginal cost
greater than the marginal cost
improvements in technology cause supply to _____.
increase
When the price of a complementary good increases the demand curve for the original product will increase and price and quantity of the product will increase.
FALSE
When you lease a car you have to be concerned about depreciation.
FALSE
Without government intervention, public goods will be overproduced.
FALSE
You will need access to important documents when you file your taxes, or apply for a loan, credit card, job, or apartment lease.
TRUE
This part of your car insurance policy pays for damages to your car in case you are in an accident. -Overall vehicle -Uninsured motorist -Comprehensive -Collision
Collision
The knowledge and skills possessed by workers is known as -None of these -Entrepreneurship -Productivity -Human Capital -Worker Value
Human Capital
Government regulations that prevent two firms from merging to become a monopoly address which type of market failure? -Positive externality -Private good -Market power -Negative externality -Imperfect information
Market power
If you are unhappy about the current transportation system, which of the following politicians will you vote for? -Politicians who aim to improve the educational system -Politicians who suggest increasing the sales tax -Politicians who want to improve roads and highways -Politicians who advocate going to war abroad
Politicians who want to improve roads and highways
If the exchange rate between U.S. dollars and British pounds was $1.50 per British pound, you would receive approximately 150 U.S. dollars for 100 British pounds.
TRUE
Importing Japanese cars into the United States is cheaper when the U.S. dollar is strong against the Japanese yen.
TRUE
A change to the ___ rate paid by individuals on their income is a fiscal policy action that the government can use to control economic growth.
Tax
Which of the following is the United States' primary antitrust law? -The FTC Act -The Roosevelt Act -The Patent Creation Act -The Clayton Act -The Sherman Act
The Sherman Act
In a traditional IRA, what happens if an investor makes an early withdrawal? -They can no longer contribute to their IRA -They must cancel the IRA and re-invest elsewhere -They must pay a pay a high penalty fee -They have 2 months to pay the full amount back or the IRA will be cancelled.
They must pay a pay a high penalty fee
Which of the following is NOT a positive incentive for employees of a business? -Frequent promotions -Threat of being fired -Wages -Benefits
Threat of being fired
A(n) ____ form is used to calculate the correct amount of taxes to withhold from an employee's paycheck.
W-4
Which of the following is NOT something that lenders consider before approving a mortgage? -Your credit history -Your regular income -Whether or not you have pets -Whether or not you have any debts
Whether or not you have pets
A decrease in demand is shown by -a movement up an existing demand curve. -a shift of the demand curve to the right. -a shift of the demand curve to the left. -a movement down an existing demand curve
a shift of the demand curve to the left.
Credit card bills, phone and utility bills, rent, insurance are examples of ______ .
anticipated expenses
If a German family wishes to tour New York City, they want the German currency (the Euro) to _________________ so they get more dollars per Euro. This also means the US dollar would ________________________ -depreciate, depreciate -depreciate, appreciate -appreciate, depreciate -appreciate, appreciate
appreciate, depreciate
The market structures with many sellers are -competitive and oligopoly -oligopoly and monopoly -monopolistic competition and oligopoly -competitive and monopolistic competition
competitive and monopolistic competition
A Trade Deficit occurs when ___________________________________. -profits are greater than costs -imports are greater than exports -exports are greater than imports -federal spending on programs is greater than income from programs
imports are greater than exports
Consumers are limited in the total utility that they can gain from buying products because they have limited -satisfaction -income -marginal utility -costs
income
In general, earnings and human capital tend to be _____.
positively related
Conspicuous consumption was a term created by Thorstein Veblen.
TRUE
The _____________________ makes it illegal for creditors to discriminate against a credit applicant on the basis of race, color, religion, national origin, sex, marital status, age, or because the applicant receives public assistance. -Equal Credit Opportunity Act -Card Accountability, Responsibility, and Disclosure Act -Fair Credit Billing Act -Fair Debt Collection Practices Act
Equal Credit Opportunity Act
_________ student loans typically require a credit check and/or a co-signer.
Private loans
People not having enough resources to get everything they want is referred to as _____.
Scarcity
A natural resource can be found -on the ground -none of these -above the ground -any of these
any of these
An individual with a good ________________________ will have access to lower insurance premiums, potential for better job opportunities, and lower interest rates on loans. -credit rating -education -bank account -monthly rent payment
credit rating
____life insurance is a hybrid life insurance policy that combines elements of term life insurance with an investment savings option.
universal
Nations with persistent trade deficits often experience slower economic growth
TRUE
Government failure occurs when the benefits of regulation are -Higher than the costs -Too high -Too difficult to measure -Only given to certain members of society -Lower than the costs
Lower than the costs
An individual can begin collecting Social Security benefits at age 62, however, -their income tax rates increase substantially -their payments will stop after 10 years -their spouse will not be eligible to receive any Social Security benefits -their payments will be lower than if they wait until their full retirement age
their payments will be lower than if they wait until their full retirement age
Potential costs of going paperless include which of the following? -Missing payments -Remembering passwords -Limited access to older statements -Delay in monitoring accounts -All of these
All of these
The European Union is different from a Free Trade Area because the EU also allows -existence of its own flag -a common currency if members choose to adopt it -all of these -resources to move freely across borders
a common currency if members choose to adopt it
There is ease of entry in _________ market structures.
competitive and monopolistic competition
Which of the following increases the need for a person to purchase life insurance? -Paid-off mortgage -Large savings -Low debt -Dependents -All of these options
dependents
The Social Security Trust fund is expected to be depleted in the _____________, and an alternate method of funding Social Security payment shortages will need to be located. -2020's -it will never be depleted. -2030's -2060's
2030's
Because people who are more likely to get sick are more likely to buy health insurance, insurance companies face imperfect information due to _____.
Adverse selection
Which of the following is an example of a negative externality? -Air pollution -A wonderful smell coming from a bakery -Locally produced honey -Police and fire protection -A flu shot
Air pollution
Estate planning involves which of the following? -appointing the person who will oversee that distribution -deciding how you want your estate to be distributed after your death -All of these -recording your wishes on the care of minor children -shortening probate and minimizing taxes or other costs of distributing your estate after your death.
All of these
Public education results in which of the following? -All of these -More education than would be provided by the market -Positive externalities -Private benefits -External benefits
All of these
State and local governments generally fund which of the following types of services? -Public safety -Public welfare -Education -All of these -Transportation
All of these
Which of the following is a safety net program that redistributes income? -Supplemental Nutrition Asistance Program (SNAP) -Children's Health program (CHIP) -All of these -National School Lunch Program -Medicaid
All of these
This type of bankruptcy allows the debtor to keep his or her property and pay debts over a period of 3-5 years. -Governmental method -Chapter 13 -Liquidation method -Chapter 7
Chapter 13
When the government makes sure that gas pumps accurately measure the amount of gas they provide, it is addressing which type of market failure? -Imperfect information -Externalities -Inequity -Public goods -Market power
Imperfect information
The Commonwealth of Virginia relies most heavily on which type of tax revenue? -Income taxes -Sales taxes -Estate taxes -Fines and fees -Property taxes
Income taxes
Which of these costs for equipment or supplies would only apply to homeowners and not those living in an apartment building? -trash bags -replacement vacuum cleaner bags -Bathroom cleaning products -Lawn care equipment
Lawn care equipment
Zander has chosen to visit his grandmother on Thursday night instead of playing volleyball or seeing a movie. This is an example of which part of the PACED model? -Make a decision -Evaluate the choices -List the alternatives -Define the problem
Make a decision
The United States most closely resembles which type of economic system? -Command -Centrally planned -Traditional -Market -Mixed
Mixed
A product's packaging is part of which of the 4 P's of marketing? -Product -Preferences -Promotion -Price -Place
Product
____is measured by how many goods and services a worker produces in an hour. -Productivity -Standard of living -Gross Domestic Product -Human Capital
Productivity
Which of the following is NOT a reason why a home inspection is necessary? -Real estate agents need to be held accountable for any problems with the property they are selling. -Newer homes often have structural defects that need to be located. -You may be able to lower the sell price of the house if fixable problems are found. -The property needs to be in good condition to get a homeowner's insurance policy.
Real estate agents need to be held accountable for any problems with the property they are selling.
A contract is a legal agreement between two parties that is enforceable by law.
TRUE
A force majeure is an unforeseeable circumstances that prevent someone from fulfilling a contract.
TRUE
A furniture store in Nepal buys furniture from a manufacturer in India. This transaction represents an export for India and an import for Nepal.
TRUE
A law that prevents smoking on airplanes addresses a negative externality.
TRUE
Entrepreneurs respond to the incentive of profit.
TRUE
Externalities exist when the costs or benefits of a transaction fall on someone not involved in it.
TRUE
Which of these is NOT a determinant of the size of a retiree's Social Security check? -Their age when they finally retire -The number of children they have -The amount they have contributed to the system during their working years -The average earnings during their lifetime under the Social Security system
The number of children they have
Balance of trade is defined as -an increase in the monetary value of exports and a decline in the value of imports -a situation where the monetary values of a country's imports and exports are equal -an increase in the monetary value of imports and a decline in the value of exports -the difference in the monetary value of a country's exports and imports for a specific period
a situation where the monetary values of a country's imports and exports are equal
In order for the Rule of 72 to give an accurate estimate of how long it will take to double in size, the interest rate must be ________________ across the time period. -negative -constant -above 5% -below 2%
constant
The last step in the PACED decision making model is to __________________ -list the alternatives. -evaluate the alternatives. -define the problem. -make a decision.
make a decision
When a lender offers a loan to a buyer for a house, _______________ serves as collateral for the loan -the borrower's income tax refund -the house -the borrower's car -nothing
the house
The government is NOT likely to address a negative externality using ____.
subsidies
____ is the legitimate minimizing of taxes, using methods included in the tax code.
tax avoidance
In measuring Gross Domestic Product, market value refers to: -the value of sales at all shopping malls, grocery stores and retail outlets throughout the -the price at which a good or service sells in the market place. -the number of goods and services sold during a year. -the prices of goods produced but not services provided.
the price at which a good or service sells in the market place.
Most people are fully banked, meaning they have a checking or savings account that they use to meet their financial transactions needs.
TRUE
Other investments generally earn a higher return than permanent life insurance.
TRUE
You can be required to sign a release for an insurance company to review your medical records when you purchase life insurance.
TRUE
Which of these is the first step in opening a new bank account? -ordering checks -filling out an application -taking out a loan -balancing your checkbook
filling out an application
Car loans are good examples of _________________ -managerial credit -installment closed end credit -non-installment credit -revolving open-end credit
installment closed end credit
If Zander is deciding between seeing a movie, playing volleyball, or visiting his grandmother tonight, this is which part of the PACED model? -list the alternatives -making a decision -evaluating the choices -defining the problem
list the alternatives
Your parents send you to the store for milk. While you're there you discover they're hiring for summer jobs. You apply and get the job. Getting the job you've been looking for is an example of: -A bad decision -Opportunity cost -A negative unintended consequence -A positive unintended consequence
A positive unintended consequence
Which of the following statements about interest rates is true? -The interest rate depends on your credit score -The APR of a loan includes interest rates, annual fees, and the amount of the principal payment -Variable interest rates are less risky than fixed interest rates -All interest rates are variable
The interest rate depends on your credit score
A repossession occurs when ___________________________ -You are not permitted to sell your property until the debt on your property is paid off -A bank holding your mortgage takes back your house due to non-payment -A landlord has renters removed from houses or apartments -The seller takes the goods back when the buyer fails to keep up with payments
The seller takes the goods back when the buyer fails to keep up with payments
Which of the following individuals will purchase life insurance primarily for the death benefit? -Wealthy seniors planning their estate -None of these -Young people with children -Middle-aged workers focused on capital accumulation -Older workers planning for their retirement
Young people with children
To get a loan at a Payday Loan shop, you must write a check for the amount you want in cash plus________________. -a fee to get the cash plus a fee each time you renew the loan -sign over the title to your vehicle in case the loan is not paid back. -a maximum of 10% interest payments. -a one time small fee of $10, per federal law.
a fee to get the cash plus a fee each time you renew the loan
Your liabilities are what you owe. These can include: -the market value of your home. -the money in your bank account. -cash value of your insurance policies. -your student loans.
your student loans.
A budget is a plan for expenses and income.
TRUE
A consumer who has excessive spending habits could end up filing for bankruptcy
TRUE
In 2019, workers paid an average of ____in health insurance premiums.
$6,000
Which of the following makes a person less likely to need life insurance? -High savings -Dependents -Dangerous hobbies -All of these options -High debt
High savings
Loss of use coverage pays for the cost of living elsewhere when a house covered by homeowner's insurance is damaged by a covered event.
TRUE
What portion of future jobs will require postsecondary education? -Two-thirds -One half -One third -Three-fourths
Two-thirds
Which of the following is NOT included in a net worth statement? -You pay $500 per month for school loans; the current balance is $25,000. -The balances on your credit cards that total $15,000. -You pay $350 per month for Pre‐Kindergarten tuition. -Your $500 in a checking account.
You pay $350 per month for Pre‐Kindergarten tuition.
How much the insurance company will pay in the event of an accident is called_____ .
coverage
The _______________ is the maximum amount of available credit a cardholder may access -credit line (credit limit) -disclosure agreement -APR -penalty
credit line (credit limit)
John goes to the movies on Friday night and pays $10.00 for a ticket. If John had worked instead he could have earned $40.00. What is John's opportunity cost of going to the movie? -$30 -$50 -$40 -$10
$50
Information can be found about the average earnings of a specific career and the average cost of training for that career from ______.
Bureau of Labor Statistics
Most basic health insurance plans cover dental and vision care.
FALSE
Students must fill out FAFSA only at the beginning of their educational experience.
FALSE
The average cost of a car accident is around $2,000.
FALSE
You can tell how much wealth a person has by looking at the type of house they own.
FALSE
Which of these regulates consumer reporting agencies and the use of consumer credit information? -Fair Debt Collection Practices Act -Fair Credit Billing Act -Fair Credit Reporting Act -Equal Credit Opportunity Act
Fair Credit Reporting Act
The ___protects the environment.
EPA
The law of demand states that as price of a product increase quantity demanded increases.
FALSE
The national debt is the sum of all past annual budget deficits minus surpluses.
FALSE
There is no multiplier effect in money creation.
FALSE
Unintended consequences are outcomes that can never be anticipated in advance.
FALSE
When consumer choices influence producer output it is called consumer democracy.
FALSE
A withdrawal slip -Gives other people permission to take money out of your account -Gives you access to your online account -Shows how much money you are putting into your account -Shows how much money you want to take out of your account
Shows how much money you want to take out of your account
Costs that are anticipated but may change from month to month. Examples may include entertainment, hobbies or certain -educational expenses. -fixed costs. -variable costs. -medical costs. -income costs.
variable costs.
Compared to high school graduates, those who complete additional education after high school have a ______.
lower chance of unemployment
To get an approximation of how long it will take to double the size of your investment, use ________________________ -the time value of money equation -a ratio of the dollar amount invested and the interest rate -the Rule of 70 or the Rule of 72 -the future value equation
the Rule of 70 or the Rule of 72
A three-day cooling off period applies to which of the following? -All of these -Items purchased from temporary business locations, such as mall kiosks -Sales hosted in locations such as a hotel, restaurant, or convention center -Home-sale parties -Purchases made from a door-to-door salesman
All of these
Which of these is an example of conspicuous consumption? -Buying an $60,000 car when a $20,000 car would meet your needs -Shopping at a thrift store. -Buying a slightly larger computer monitor -Upgrading your phone one year after the newest version is released
Buying an $60,000 car when a $20,000 car would meet your needs
Which regulatory agency protects workers from discrimination in the workplace? -EEOC -EPA -CPSC -NHTSA -OSHA
EEOC
According to these graphs, which of these is true? -England has an absolute advantage in tents -England has an absolute advantage in radios -Neither England nor Ireland has an absolute advantage in tents -Ireland has an absolute advantage in tents
England has an absolute advantage in tents (https://virtualvirginia.instructure.com/courses/5249/assignments/431553/submissions/19197)
Accountants include implicit or opportunity cost in their profit calculations.
FALSE
All states have an income tax.
FALSE
Price elasticity of demand measures how responsive producers are to a change in price.
FALSE
Price floors create surpluses where quantity demanded exceeds quantity supplied.
FALSE
Producing a good is efficient as long as the external benefits exceed the external costs.
FALSE
Saving for a limo to take you to the prom is an example of a long-term financial goal.
FALSE
The following equation is used to calculate the Inflation Rate. (Qty × Price) + (Qty × Price) / 100 = ?
FALSE
The countries of Sigma and Kappa both have a GDP of $25 billion. The population of Sigma is 1 million. The population of Kappa is 2 million. Which country has a higher standard of living? -Sigma and Kappa have the same standard of living. -Kappa -It cannot be determined with the information provided. -Sigma
Sigma
Magazines like Consumer Reports and Money provide consumers with useful information on a variety of products and services.
TRUE
People on fixed incomes are hurt by inflation because their incomes can now buy less goods and services and their purchasing power is reduced..
TRUE
Productivity in the United States has increased, meaning it is able to produce more goods with the same or fewer workers, therefore America's standard of living has increased.
TRUE
Property rights will not prevent littering in a public park.
TRUE
Recessions are declines in real GDP and employment.
TRUE
Regulations regarding the disposal of hazardous waste are intended to prevent negative externalities.
TRUE
Social costs include both private costs and external costs.
TRUE
The goal of advertising is to convince people to buy a particular product or service.
TRUE
The goal of consumer choices is to maximize utility.
TRUE
A friend says they found a perfect apartment and that the rent is only 50% of their total income. How should you respond? -That's way too high of a percentage. Look for housing that's no more than around 30% of your total income. -Choose any apartment you want to rent, the cost of rent as a percent of income doesn't matter at all. -That's perfect - the target is right around 50% of your income.
That's way too high of a percentage. Look for housing that's no more than around 30% of your total income.
Assume Chile and Canada can produce either olive oil or plastics. In addition, assume Chile has a comparative advantage in producing olive oil, while Canada has a comparative advantage in producing plastics. According to the principle of comparative advantage and trade, which of the following statements is true? -Both countries will benefit from trade -Chile should import plastics, while Canada should import olive oil. -Chile should export olive oil, while Canada should export plastics. -All of these
all of these
The fee charged by a stockbroker to make a purchase of stock on a customer's behalf is a _______________ -commission -slotting fee -effluent fee -capital gain
commission
Assume that product X is a normal good. When income increase, what will happen to the demand for product X, and the price and quantity of product X. -demand increases, decreasing price and quantity -demand decreases, decreasing price and quantity -demand increases, increasing price and quantity -demand decreases, increasing price and quantity
demand increases, increasing price and quantity
If the price of a good increases and consumers purchase more of a related good, the good is a ____good.
substitute
If a student borrower works in the public or non-profit sector, the Federal student debt is forgiven after -10 years -20 years -15 years -5 years
10 years
The amount of coverage and size of the deductible affect the premium of a homeowner's insurance policy.
TRUE
_________________ are the things on which you spend money, such as food, clothing, rent, and transportation. -College tuition -Bills -Anticipated income -Expenses
Expenses
___ insurance covers property that is easily movable.
Floater
Scarcity exists when there are _______ resources available to satisfy all the competing uses -Too Many -Just Enough -Not Enough -No
Not Enough
Which of the following is typically true? -People's choices have consequences for the future. -Voluntary trade causes winners and losers. -Correct choices have no costs. -People do not respond to incentives.
People's choices have consequences for the future.
When sicker people buy more insurance than healthier people, it is known as... -asymmetric information. -propitious selection. -moral hazard. -adverse selection.
adverse selection.
Which of the following is true about credit cards? -Most require a credit score of 600, unless you're a student, in which case the requirement is waived -They are a great way to build a credit score -All of these -Some come with rewards (ie free money)
all of these
Which of these is a pitfall of using credit cards? -all of these -fees for late bill payments -interest charged on balances and cash advances -possible annual fees, depending on the card
all of these
Which type of insurance could be involved if someone sustains injuries as a result of a car hitting a building? -Health -Property -All of these -Automobile
all of these
Depreciating assets are possessions that decrease in value over time. Examples include _____ .
computer equipment
Which of these is a financial institution owned by the account holders? -credit union -check cashing outlet -commercial bank -payday lending shop
credit union
The portion of a loss that the insured pays before the insurance company pays for a loss is called the _____.
deductible
Since all transactions are completed electronically, there is not much worry about the safety of the money when a customer chooses to use ____________________________ -paper checks -internet banking -cash -brick-and-mortar locations
internet banking
Cory gives his friend money to buy a cheeseburger since he forgot his wallet at home, but expects to be repaid. This represents the financial service of: -Borrowing -Investing -Lending -Saving
lending
Carlos is a senior and is looking forward to taking his girlfriend, Rachel, to the prom this spring, but he needs to save his money to rent a tux. Carlos works part-time and brings home $150 each week. He bought a used car last month and his payment is $200 per month. His parents cover his insurance, but he must cover his gas to and from work and school. Carlos also has a cellphone, which costs $85 per month. He hopes to attend college this fall and plans to live at home, but he needs to save up to pay for his tuition and books. In order to afford the fall semester, he needs to contribute $200 each month to his college savings account. What can Carlos do to decrease his monthly spending? -Increase his college savings to $250.00 a month. -Only pay $150.00 towards his car payment each month. -Lower his cellphone bill by changing to a cheaper plan. -Work more hours at his part-time job.
lower his cellphone bill by changing to a cheaper plan.
Budgets can help identify how _____ is spent and allow for sensible changes to spending habits in order to reach financial goals.
money
Which of these is not covered by FDIC at a commercial bank -shares of stock -checking accounts -certificates of deposit -savings accounts
shares of stock
The government addresses market failures when it enforces property rights.
TRUE
You can choose to sell your house to someone else. This is an example of property rights providing the right for you to _____ .
Exchange property
A 1099 INT form shows taxable interest income earned.
TRUE
No trespassing signs are an example of owners enforcing their right to _____.
Exclude people from your property
An equilibrium price in a market is where quantity demanded exceeds quantity supplied.
FALSE
An increase in leather prices in Argentina will not affect the export of Argentinean leather shoes.
FALSE
An infant industry is a well-established industry that can compete in the marketplace
FALSE
Which of the following is a type of employee benefit? -All of these -Compensation incentive -Rewards incentive -Appreciation incentive -Recognition incentive
All of these
Which of the following is an example of conspicuous consumption? -Expensive jewelry -Silver spoons -Rolex watches -Rolls Royce automobiles -All of these
All of these
Which of the following is true about pollution from a firm emitting waste into the environment? It -decreases the firm's private cost -leads to greater than the efficient level of production -is a negative externality. -creates an external cost -All of these
All of these
How many members are there in the European Union? -22 -28 -18 -38
28
To avoid financial worry, keep the cost of housing (including mortgage, interest, insurance, and property taxes ) below ___________ of pre-tax income. -5% -28% -15% -50%
28%
Comparison shopping involves comparing only the price of the product from various sellers.
FALSE
Which of the following is true? -A budget is less flexible than a spending plan -A budget is more flexible than a spending plan -Both budgets and spending plans allow you the same level of flexibility in financial planning -You should never use a spending plan as a financial tool
A budget is less flexible than a spending plan
Government's provide information to protect which of the following? -All of these -The environment -Consumers -Labor -Competitors
All of these
Which of the following is a step to take to avoid credit card fraud? -Store your card in a secure place. -Sign your card as soon as you receive it. -Notify the card issuer immediately if you lose your card. -Be sure to secure your receipt after you buy something on credit. -All of these
All of these
Which of the following was a cause of the German hyperinflation that occurred after World War I? -An increase in the value of gold. -An increase in the money supply. -An increase in the currency exchange rate. -An increase in the value of the German Mark.
An increase in the money supply.
____ is a large online database with the histories of used cars. -CARDETAIL -WRECKEDCARS -CARFAX -CARNEWS
CARFAX
Why do some argue that interdependence is beneficial? -all of these. -Studies have shown that interdependence prevents other countries from economic growth -Countries that are interdependent are likely to compete against one another, often resulting in conflict. -Countries that are interdependent will not want to conflict with each other in the interest of their economic interests.
Countries that are interdependent will not want to conflict with each other in the interest of their economic interests.
The Federal Reserve committee that directs monetary policy is the ____.
Federal Open Market Committee
Which part of the Federal Reserve System serves the daily needs of banks across the country? -Federal Reserve Banks -Federal Open Market Committee -Federal Advisory Committee -U.S. Department of the Treasury
Federal Reserve Banks
What problem exists when people who can't be excluded from using a good choose not to pay for it? -Free-rider problem -Rivalry problem -Free market problem -Common property problem -Public good problem
Free-rider problem
Which of the following is an example of unearned income? -Tips -Overtime -Interest income -All of these -Commissions
Interest income
Participants can put up to 25% of their compensation (or $57,000, whichever is less) into this type of plan -SEP IRA -SIMPLE IRA -403(b) -Annuity
SEP IRA
_____ is a safety net program that provides food assistance.
SNAP
Which of the following is NOT a step in filing your tax return? -Calculate your taxable income -Calculate your adjusted gross income -Collect your tax documents -Make up tax deductions you are not entitled to claim -Identify the correct tax form to use
Make up tax deductions you are not entitled to claim
When people take more risks because they know that they are protected from the costs of their actions, ______ creates a market failure.
Moral hazard
You want to make an investment that is diverse but that might offer a better-than-average return over several years. Which might be the best investment for you? -Bonds -Retirement plans -Stocks -Mutual Funds
Mutual Funds
An accident caused by texting and driving is an example of a(n) ____.
Negative externality
The socially optimal number of lighthouses will not be provided by the market because they are ______.
Non-rival and non-excludable
What is the major disadvantage of having a regular savings account? -Not being able to access money for a specified amount of time -Not having enough growth potential -Having a minimum amount of money deposited to keep it open -Having an expiration date
Not having enough growth potential
The government grants which of the following to protect the property rights of inventors? -Subsidies -Copyrights -Natural monopolies -All of these -Patents
Patents
Which of the following is a NOT public good provided by the government? -Pollution -Police protection -Roads -Clean water -National defense
Pollution
A W-4 form is also called an Employee's Withholding Allowance Certificate.
TRUE
Firms are sellers in the product market.
TRUE
Fixed rate mortgages can come in different term lengths.
TRUE
Government failure occurs when a government's attempt to correct a market failure has unintended consequences.
TRUE
In Virginia, government agencies that address market failures include the Attorney General, the Department of Labor, and the Department of Environmental Quality.
TRUE
In recessionary times an appropriate fiscal policy action is increasing government spending in order to put people back to work.
TRUE
Local governments are funded by transfers from the state.
TRUE
Long-run inflation is driven mostly by increases in the money supply.
TRUE
M1 is the most liquid measure of the money supply.
TRUE
The civilian labor force includes: -all employed and unemployed people. -all people not in the military and all unemplyed people. -all working people not in the military -all employed people.
all employed and unemployed people.
You have a 3 year lease on your car but at the end of 2 years you decide you want to get a new car. What happens when you trade in your leased car? -The dealership will refund your payments since you are returning the car early. -You can walk away from the lease at any time with no fees/payments due. -You will need to sell your car to a private buyer -You will have to pay the full lease amount or make arrangements to end the lease early.
You will have to pay the full lease amount or make arrangements to end the lease early.
If there is an increase in the number of lemonade stands in the summer, which of these do we expect to happen? -an increase in governmental regulation of lemonade stands -a decrease in the quality of lemonade -a decrease in the price of lemonade -an increase in the price of lemonade
a decrease in the price of lemonade
The boss stops providing free coffee to the workers when the monthly sales goal is not met. This is an example of: -both a positive and a negative incentive -a negative incentive -a positive incentive -neither a positive nor a negative incentive
a negative incentive
Your teacher gives extra homework on the weekends if the class average on the exam is under 75%. This is an example of: -a positive incentive -neither a positive nor a negative incentive -both a positive and a negative incentive -a negative incentive
a negative incentive
Individuals may restructure their investment portfolios because -all of these -they are older than when they first opened the portfolio -they may need to increase the diversification of assets held -their portfolio is not performing as well as anticipated
all of these
When a trading partner's economy improves, we expect to see ____________________ in the quantity of exports from the United States to that country. -no change -all of these -a decrease -an increase
an increase
Antitrust laws make _______ behavior illegal.
anti-competitive
If renting, you may have to pay all of these except_______________ -electric bills. -appliance repairs. -natural gas bills. -water and sewer bills
appliance repairs.
Entrepreneurs are good for the economy because they -are guaranteed to earn profit for their ideas -decrease competition -prevent corporations from forming -constantly create new ideas
constantly create new ideas
The business cycle: -measures year over year changes in unemployment. -captures fluctuations in interest rates over the year. -can be defined as the expansion and contractions of the economy -over time. -measures monthly changes in GDP.
can be defined as the expansion and contractions of the economy over time.
An incentive -is the same thing as opportunity cost. -can be negative but not positive. -can be positive but not negative. -can be positive or negative.
can be positive or negative.
Investment companies are companies that -liquidate assets for failed companies -sell stocks for companies in initial public offerings (IPO) only -collects and pools money from many investors and invests in stocks, bonds, and other assets -buy the assets from bankrupt companies for a small percentage of total value
collects and pools money from many investors and invests in stocks, bonds, and other assets
Liability rules do which of the following? -apply only to governments. -specify what an owner may do with their property. -All of these -create obligations based on law -specify what an owner may do with their property.
create obligations based on law
It is legal to refuse to rent to a potential tenant due to their ____.
credit rating
When there is an increase in the cost of milk, at every price producers of ice cream will produce _________, and at every quantity the market price will be _____.
less; higher
The first step in the PACED decision model is -list the alternatives -make a decision -define the problem -evaluate the choices
define the problem
As you consume more and more of a product the additional satisfaction declines. This is called the law of -diminishing total utility. -diminishing marginal utility. -diminishing marginal returns. -diminishing total returns.
diminishing marginal utility.
The part of the lease that outlines how and when a landlord is to enter the rental unit is the ________________ -sublet statement -entry statement -term of the lease -Occupancy certificate
entry statement
When quantity supplied equals quantity demanded the market is in ____.
equilibrium
A decrease in demand signifies that at _____ price consumers will buy ____.
every; less
The price of a currency compared to another currency is the _____________________ -absolute advantage -balance of trade -exchange rate -comparative advantage
exchange rate
Unemployment typically ____ during an expansion.
falls
The ____ government can spend more than its revenue.
federal
The WTO may support trade barriers when it discovers that -one country is wealthier than another -expanding firms are highly competitive -firms in one country are dumping products. -all of these.
firms in one country are dumping products.
The Chair and Vice-Chairs of the Board of Governors serve _____ year terms. -four -two
four
A form of business in which one owner uses the model, methods and trademarks of another is a ____.
franchise
The three primary benefits of competition in market are -greater quantity of products, lower prices, and efficiency. -smaller quantity of products, lower prices, and efficiency. -greater quantity of products, higher prices, and efficiency. -greater quantity of products, lower prices, and less efficiency.
greater quantity of products, lower prices, and efficiency.
Medicare, Medicaid, and the CHIP program are all safety net programs that provide ____. -education -housing -healthcare -food
healthcare
The largest category of federal spending in the United States is _____.
healthcare
Countries should import goods for which they have a _______________ opportunity cost. -low -zero -high -equal
high
By using a spreadsheet to record monthly utility expenses, -homeowners and renters can select which bills they will pay first -homeowners should pay the highest bill first each month -homeowners can reduce their monthly mortgage expense -homeowners can predict when expenses will go up and down for each service provider
homeowners can predict when expenses will go up and down for each service provider
In the circular flow model what are the exchanges in the resource market? -firms sell goods and services to households for income -firms sell resources to households for income -households sell resources to firms for income -households sell goods and services to firms for income
households sell resources to firms for income
Entrepreneurs thrive in economies with -no government intervention -little government intervention -much government intervention -total government ownership of resources
little government intervention
In order to decrease the premiums paid for homeowner's insurance, you could: -decrease the deductible on your policy -increase the deductible on your policy -spread out all insurance policies to multiple companies -increase the amount of coverage on your possessions
increase the deductible on your policy
Which of these is an incentive that would get you to save more money at a bank? -increased interest rates -higher profit for the manufacturing sector -lower wages -higher prices in the grocery store
increased interest rates
In a market economy, the basic economic decisions are driven by_____ -government -businesses owners only -individuals -banks
individuals
In a market economy, the _____________ decide what people are supposed to produce, how they should produce, and who will receive the production. -government -banks -foreigners -individuals and firms
individuals and firms
When consumers' income increases and they purchase less of a product, the product is a/an good .
inferior
The relationship between price and quantity demanded is typically ____.
inverse
The government borrows money to fund deficits by -printing currency. -buying bonds. -issuing bonds. -issuing stock.
issuing bonds.
Human capital is associated with the resource of ____.
labor
The rest of the world impacts the circular flow with leakages and injections. Which of the following correctly identify these leakages and injections? -leakage of imports and injection of exports -leakage of imports and injection of borrowing -leakage of savings and injection of exports -leakage of exports and injection of imports
leakage of imports and injection of exports
A shortage exists in a market when the price is lower than the equilibrium price. higher than the equilibrium price. higher than the equilibrium quantity equal to the equilibrium price.
lower than the equilibrium price.
Consumers have more consumer sovereignty in ________.
market economies
Sitting near someone who smokes exposes you to "second hand smoke" therefore smoking creates a(n) ____.
negative externality
With a newspaper headline suggesting additional health benefits from eating apples, based on the change in demand in the apple market, price and quantity will change in what ways? -price decreases and quantity decreases -price increases and quantity decreases -price decreases and quantity increases -price increases and quantity increases
price increases and quantity increases
In _______________, owners mostly can do as they wish with their property because it is theirs, not the governments. -private enterprise -wealth management systems -communism -socialism
private enterprise
The market where consumers purchase goods and services is the ____ .
product market
_________________ show the maximum amount of output possible given a set quantity of resources and a set level of technology, in a particular time period. -absolute advantage -production possibility curves -comparative advantage -specialization
production possibility curves
In a competitive market ____ is an incentive for new sellers to enter the market.
profit
Which of the following are examples of automatic stabilizers? -progressive income taxes, retail commissions, need-based government spending -regressive income taxes, unemployment compensation, need-based government spending -progressive income taxes, unemployment compensation, need-based government spending -progressive income taxes, unemployment compensation, investment spending
progressive income taxes, unemployment compensation, need-based government spending
Open market operations are the ________ by the Federal Reserve.
purchase and sale of government bonds
When a shortage occurs, as the price moves toward equilibrium what will happen to quantity demanded and quantity supplied? -quantity demanded rises and quantity supplied rises -quantity demanded falls and quantity supplied falls -quantity demanded falls and quantity supplied rises -quantity demanded rises and quantity supplied falls
quantity demanded falls and quantity supplied rises
Economic growth is measured by changes in ____.
real GDP
The largest category of income is ____.
salaries and wages
If a high school graduate decides to go to college, a private university ____ has a higher return on investment than a public university.
sometimes
During the late 1990s, a lot of big animation companies started to move away from the traditional hand-drawn animation and towards computer animation. As a result, they had to lay off their employees who did not have experience with computer animation. What type of unemployment did these workers experience? -Cyclical unemployment -Structural unemployment -Frictional unemployment -Seasonal unemployment
structural unemployment
You invest in a retirement plan and after three years want to withdraw the funds. You should not do this because there is a __________________ for early withdrawal of funds. -tax break -commission -dividend -substantial penalty
substantial penalty
When wages for bagel workers decrease, what will happen to the supply of bagels and the price and quantity in the bagel market? -supply decreases increasing price and decreasing quantity -supply increases increasing price and decreasing quantity -supply increases decreasing price and increasing quantity -supply decreases decreasing price and increasing quantity
supply decreases increasing price and decreasing quantity
What happens in the market for apples when the cost of fertilizer for apple groves increases? -demand increases, increasing price and quantity -demand decreases, decreasing price and quantity -supply increases, decreasing price and increasing quantity -supply decreases, increasing price and decreasing quantity
supply decreases, increasing price and decreasing quantity
Which of the following is not a monetary policy tool used by the Federal Reserve? -tax changes -Open market operations -Reserve requirements -Discount rate
tax changes
Which of the following are considered soft skills for workers? -mathematical skills, communication, getting along with other people -teamwork, communication, getting along with other people -teamwork, communication, software proficiency -teamwork, fluency in a second language, getting along with other people
teamwork, communication, getting along with other people
Which of the following are non-price determinants of supply ? -technology, cost of inputs, and number of potential buyers -technology, cost of inputs, and number of sellers -technology, income, and number of sellers -taste and preference, cost of inputs, and number of sellers
technology, cost of inputs, and number of sellers
Involuntary exchanges are not preferred because _________. -both parties benefit -all of these -they do not happen at agreed upon prices no one benefits
they do not happen at agreed upon prices no one benefits
A benefit of placing money in a savings account is that your money ______________. -will be hard to access -will get stolen -will not be insured -will earn interest
will earn interest
An open economy means that countries: -will only produce goods that cannot be produced anywhere else -will not trade with each other at all -specialize in the production of goods where they have absolute advantage -will trade with each other
will trade with each other
Credit cards from retailers generally have higher interest rates than credit cards from banks.
TRUE
Individuals with personal property insurance should keep an inventory of their valuable possessions.
TRUE
Tools, equipment, machines, and infrastructure are all considered ___________ resources -Labor -Capital -Land -Money
Capital
Homeowner's insurance covers which of the following? -Home repair for covered damages -Liability for injuries to visitors to the covered home -All of these options -Rebuilding a house destroyed by covered events -Replacement of possession in homes lost due to covered events
All of these options
Which of the following is a qualifying life event for changing health insurance coverage? -Getting married -Moving to a new state -Having a baby -All of these options -Involuntarily losing health insurance coverage
All of these options
Credit card rewards are given based on items purchase, interest paid, and fees assessed on an account.
FALSE
If a premium is not paid, an insurance policy will continue to cover any losses.
FALSE
Permanent life insurance is an excellent way to invest for retirement.
FALSE
Being able to predict how much income you will earn over a period of time can make it easy to create short and long term spending goals and help you stick to a budget.
TRUE
Assets minus liabilities equal your net worth.
TRUE
Automobile liability insurance covers both bodily injury and property damage.
TRUE