econ final review lake norman charter

Overtime colonization became taboo (unpopular) and imperialism and eventually neo-colonialism became the new approaches to gaining influence around the world. Which of the following is NOT TRUE of imperialism and neo-colonialism?

Foreign aid in the form of tied aid has been helpful in avoiding neo-colonialism

How might the following argument influence a company? While quarterly reporting provides the public with more data and transparency, it only offers an overview for a very limited period. Without additional context, investors may be discouraged to invest if they see undesirable results or less profitable quarters.

Generate only yearly reports instead of quarterly reports

Courtney has decided to start a business growing Christmas trees. She has been able to secure a loan from the bank and purchased the land for planting. She even hired a few teenagers to help with some of the manual labor. Courtney has experience growing various types of plants and vegetables but has never grown trees for sale before. What factor of production might Courtney still need?

Human capital

Which of the following goods is most likely to be inelastic?

Medicine

Which event would most likely cause a decrease in the market price for cherries?

Michigan cherry production increases 47%

Which of the following types of economy describes the United States?

Mixed economy

If a company does not qualify to sell shares in the New York Stock Exchange, it might look to sell shares through..

Over the Counter Market

"Poverty is the lack of income." Of the following options, how could this statement best be improved?

Poverty is multidimensional and includes the lack of freedom and opportunity that comes with limited funds and resources.

In 2010 Russia was affected by a significant drought. Russia is a major producer and exporter of several agricultural commodities. As a result of the drought, Russia reduced some of its agricultural exports. In the context of the world supply/demand model for the affected agricultural commodities we should observe:

Reduced supply and unchanged demand

Which of the following is a market that allows companies to collect funds in the form of small investments by others?

Stock Exchange

A local Food Lion grocery store orders 200 cases of Pepsi each week and sells them at a price of $6.00 per case. At the end of the first week, they have only sold 160 cases. What economic situation is the grocery store facing and what will have to happen to price in order for equilibrium to be attained?

Surplus; price will fall

Why do most economies in the world follow a mixed economic system?

They can solve problems that neither free market nor command economies can.

Why are there no real-life examples of a true free market economy?

They require no government intervention in markets.

The majority of the US's debt is owed to...

US citizens

Read the description below, what business model is being described? Employees govern their business as a democracy. Each worker-owner has an equal stake and equal vote. The focus is on benefitting its employee-owners, not outside investors. Both employees and managers receive an equal share of the profits and losses.

a cooperative

The expansion and peak phases of the business cycle, also known as an upswing, upturn, and a growth period is often referred to as...

an economic boom

Wants, as opposed to demands...

are the unlimited desires of the consumer.

Which of the following can be described as loans made to companies, banks, or governments for a specific period of time in exchange for interest? (choose 2)

bonds, money market accounts

the additional value added to an asset when it is sold, leading to profit

capital gain

What has been the major motivation behind globalization and in turn global supply chains?

capitalizing on raw materials and lower wages around the world

In the town of Elkins, there are four businesses that offer internet service. Those businesses met one day and decided that if they all raised their prices, the people of Elkins would have no choice but to pay it. This scenario can best be described as..

collusive oligopoly

In a free market economy, the price and quality of goods and services are most strongly affected by

competition

Which of the following is NOT a way that economists measure business cycles?

consistency

Of the following business structures, which TWO protect owners the most from financial and legal liability?

corporation, llc

Which of the following makes up the largest portion of discretionary spending?

defense

what does the red line represent

demand

cryptocurrency

digital currency

Includes funding for federal agencies and is negotiated and voted on every yeardiscretionary spending

discretionary spending

Goods that last for three years or more are called..

durable goods

Which of the following social goals of economics is best represented in the following economic policy: The city government controls the water supply instead of private companies.

efficiency

Accountants can best be described as...

employees who record business transactions on behalf of an organization, report on company performance to management, and issues financial statements.

what does the center dot represent

equilibrium

Which of the following social goals of economics is best represented in the following economic policy: The government provides housing assistance for people living in poverty.

equity

the amount of monetary value remaining in something after all debt or expenses are deducted (taken out of the value)

equity

the percentage of ownership of an asset, representing the value of the asset once all debt is paid

equity

the costs of operation a business must pay

expenses

this is included in operating profit but not gross profit

expenses associated with operating the business, such as rent, utilities, and payroll

TRUE OR FALSE: A part of the economy not run by the government, but owned by private groups or individuals is known as the public sector.

false

When the price of a product goes up, the demand also goes up. true or false

false

A bonus given to an employee with the highest sales that month

financial incentive

Which of the following economic incentives is NOT typically given by the government?

financial incentives to promote increased sales by employees

Laws about work safety and minimum wages were created to protect workers and create security and stability in the economy. However, which social goal do these often conflict with?

freedom

Jean has $5.00 to buy either a ticket to see a new movie or a ticket to the rodeo in town. She decides to buy the ticket to the movie. What is Jean's opportunity cost?

giving up the rodeo

money collected from the raw sales not adjusted for returns, allowances, or discounts

gross sales revenue

Which of the following are NOT true regarding the impacts of colonization? Choose 2

helped a lot of undeveloped places such as North Africa and India become connected and profitable in global trade colonies were given land, resources, and labor in exchange for their loyalty

An economic depression can be characterized by all of the following EXCEPT...

high RGDP

Which of the following is NOT an issue with global supply chains? PICK 2

high prices for consumer goods specialization of labor in a country

When the price of jet fuel goes up, what will airlines do to continue to earn a profit?

increase the price of tickets

Which of the following is the largest source of government revenue?

individual income tax

additional money paid or earned at a specific rate due to money that has been loaned

interest

It must be paid in order to avoid the government defaulting on its debt default

interest payments

Economic indicators that predict future upturns or downturns in the economy are considered..

leading

Which of the following are NOT considered a form of making money or added value for a business?

liabilities

expenses, debts, or other financial obligations that cost you money

liabilities

Which of the following are costs that a business must pay? (Choose 2)

liabilities, expenses

how quickly a person or institution can turn assets into cash

liquidity

Includes entitlement programs such as social security, Medicare, and Medicaid

mandatory spending

All of the following are criticized for being western centric and outdated terms EXCEPT..

middle-income countries

"The rich have many assets; the poor have only one—their labor. Because good jobs are slow to come to the poor, the poor must move to find productive employment. Migration is, therefore, the most effective way to reduce poverty and share prosperity, the twin goals of the World Bank. According to the World Bank's research Moving for Prosperity: Global Migration and Labor Markets, some of the biggest gains come from the movement of people between countries." Based on this research we read in class, which of the following is NOT a way that host countries are impacted by migration?

migrants are a drain on the host country's economy often leading to a decrease in GDP

all of the following are socialist characteristics of the us

minimum wages, government healthcare for the elderly, subsidies for farmers, work place safety laws, national parks, corporate bailouts, and public education

At a price of $299.95, the manufacturer of a portable gas-powered generator is willing to produce 19,000 units per quarter. At a price of $349.95, it is likely that the manufacturer will be willing to produce

more than 19,000 units per quarter

Which of the following business models seek community betterment not creating wealth for stakeholders? CHOOSE TWO

non-profit organization, non-governmental organization

these are not included in operating profit but must be included to calculate the net profit

other forms of income as well as taxes and interest

Select ALL of the following that are untrue in regards to global poverty: Choose 2

overpopulation is the main cause of global poverty relative poverty is based on the international poverty line

Which of the following are capitalist's characteristics of the US economy?

private ownership of a business, market competition, private property, profit motive, income inequality, accumulation of wealth

the amount of money generated from sales or the normal operations of a business

revenue

the total amount of money earned from the sale of a company's goods and services for a particular period

revenue

The reality that there are limited resources available to satisfy infinite needs and wants is known as

scarcity

financial assets that can be bought and sold in markets

securities

derivates markets

securities contracts

what does the green represent

shortage

Which of the following makes up the largest portion of mandatory spending?

social security

company shares

stock markets

A direct or indirect payment to individuals or firms, to offset market failures or high costs

subsidy

what does the blue line represent

supply

When a city government gives a major company a tax break in exchange for them building an office or plant in their city

tax incentive

A state of local government reimburses citizens for investing in green energy through tax returns

tax rebate

If economists are looking to determine the magnitude of the peak-to-trough decline in the broad measures of output, employment, income, and sales, what are the measuring for?

the depth of a recession

Despite the many benefits, only about 3% of the world population lives in a country they were not born in. All of the following are barriers that might keep people from migrating EXCEPT? PICK 2

the potential to increase their income by 3-6 times in a higher income country the chance of escaping violence or discrimination in their home country

Multinational corporations are often criticized for all of the following EXCEPT?

their protectionist policies

Why do companies, banks, and governments participate in financial markets?

they gain access to extra funds often times without having to liquidate their own assets

During decolonization, countries faced all of the following EXCEPT..

total independence and the protection of their economic interests, allowing for full benefit of production and resources

True or False: Social Security taxes are taken out of each paycheck and act as credits toward your retirement fund which you can access starting at 62.

true

Among other things, a t-shirt manufacturer needs sewing machines to produce their good. Which factor of production would the cotton fall under?

Land

Which of the following is least competitive?

Monopoly

When a change in price changes the demand of a product a lot it is considered..

a substitute product

One of the distinguishing factors of a command economy is that

all production decisions are made by a central authority.

not included in revenue

any expenses or other forms of income

a resource owned or controlled by a business or person that has a positive economic value and can be converted into cash

assets

According to World System's Theory, _____ dominate and exploit the _____ for _____. In turn, this leads to _____ becoming more industrialized and _____ becoming dependent on them for _____.

core countries, periphery, raw materials and cheap labor, higher income countries, dependent, consumer goods

currencies

forex markets

A company being fined for not following employee safety regulations

negative incentive

what does the red represent

surplus

net profit

the bottom line

In the above diagram, what is the equilibrium price?

30

A sole proprietorship can best be described as...

A business that is owned and run by one individual.

Which of the following best describes the U.S. economy?

A market system of resource allocation, commerce, and trade in which free markets coexist with government intervention. The government intervenes to disrupt free markets by introducing regulations, subsidies, tariffs, tax policies, and state-owned enterprises such as public health or education systems to create stability and promote greater equality.

Which of the following situations would cause the supply curve in the grape market to shift left?

An outbreak of black rot, which destroys grape crops.

In this market a sugar producer and a sugar refinery manufacturer agree on future prices of sugar..

Commodities Market

Product changes for Camera Companies More Digital than Film Cameras Produced Which reason best explains these production changes for camera companies?

Consumer demand