Economics 6,8,9,15,16

To be prepared for a financial emergency, experts advise building up a what an easily accessible stockpile of savings?

"rainy-day fund"

How can cultural diffusion make a positive impact?

. It can help spread universal ideals, such as respect for human rights and freedom.

How does personal saving help the economy grow?

. It provides funds for business investment.

Economic development is defined as the process by which nations

. increase output and improve lives

International trade has ??? dramatically since the end of World War II.

. increased

Which of these developments has been the most essential factor in the growth of international trade?

. proliferation of container ports serving large ships

The controlled distribution of a limited supply of a good or service is called?

. rationing

What is the main goal of a cooperative?

. to offer its members low-cost goods or services

This rule says to divide what number by the annual rate of return on the investment.

72

In 2013, what was the percentage of sole proprietorship in America?

72%

Which service is counted as a U.S. export?

A German student pays tuition to attend college in the United States.

Which statement illustrates the law of comparative advantage?

A country makes the goods it produces most efficiently and trades for others

Which statement is false?

A disadvantage of sole proprietorship is the ability to sell stocks for their business.

Why are U.S. dollars considered money?

By law, they must be accepted as a means of payment

Why are stable legal institutions necessary for the economy of a developed country?

Courts enforce property laws and contracts

What is the advantage of investing in a mutual fund compared to buying a single stock?

Diversification reduces risk.

Another name for the market-clearing price is

Equilibrium

What institution determines what fraction of deposits a bank must set aside to be available for customer withdrawals?

Federal Reserve System

These are the characteristics of successful entrepreneurs EXCEPT

Loyalty

What has been the impact of globalization on languages?

Many smaller, local languages are dying out.

What is the usual result of setting a price ceiling on rents?

More people want to rent apartments than are available to rent.

Why is foreign debt a serious problem for poor countries?

Paying off principal and interest takes a large part of the national budget.

Why did per capita gross domestic product (GDP) of some least developed countries fall in 2012?

Populations grew faster than economic output

Government-imposed limits on the prices that producers may charge in the market are called?

Price controls

What is excess supply?

QS of a product exceeds QD, thus producing a surplus

Which of these are examples of nongovernmental organizations (NGOs)?

Sierra Club, CARE, Save the Children

Which of these situations best illustrates market equilibrium?

The amount of soap made matches the amount of soap that people want to buy.

What is the role of silent partners in a limited partnership?

They contribute capital but are not involved in day-to-day operations.

Which statement is true of all entrepreneurs?

They take a risk

Which of these best explains why gold and silver came to be regarded as money?

They were rare and did not decay.

Which of these supports large infrastructure projects, such as dams, in developing countries?

World Bank

Which of these might best signal furniture makers to cut back production?

a drop in the price consumers are willing to pay

Money in a checking account, however, earns how much interest.

a little or no interest

New Deal jobs programs offered employment during the Great Depression. In economic terms, such programs were designed to respond to

a surplus of workers.

According to the case study about McDonald's, how has the company adapted to local cultures?

all of these

Which event in Florida and California would most likely shift the supply curve for orange juice to the left?

an early frost accompanied by ice storms

What is the black market?

an illegal market in which goods are traded at prices higher prices

When you use a credit card, you are

borrowing money from a bank.

Which aspect of economic development has had the greatest impact on climate change?

burning of fossil fuels

One advantage of a partnership over a sole proprietorship is that a partnership

can get credit more easily.

Movement of money and investments from one country to another is called

capital flow

A bank must have a ??? from the state or federal government that spells out how it will operate and be regulated.

charter

Which of these is considered part of the money supply?

checking accounts

Individual borrowers take out what to make major purchases such as a new car or boat

consumer loans

Which form of business pays more taxes due to double taxation?

corporations

. The equilibrium price is the price at which

demand and supply curves intersect.

An attempt to influence another country's politics is the most common motive for which form of protectionism?

embargo

This is someone who takes on the responsibility and the risk of starting a business with the expectation of making a profit.

entrepreneur

The purpose of rationing during World War II was to ensure that

everyone could get essential scarce goods

Situation that exists when the quantity demanded of a product exceeds the quantity supplied, thus producing a shortage

excess demand

The United States borrows from foreign investors in order to

finance a trade deficit.

A bank's main function is to serve as a ??? an institution that brings together sellers and buyers in financial markets.

financial intermediary

The majority of economists support

free trade

. The concept of sustainable development draws particular attention to the well-being of

future generations.

The system of markets and trade that links the countries of the world is called the

global economy.

These are the responsibilities of business EXCEPT

helping their local community

The most important argument many economists make against price controls is that they are

inefficient

Google offered stock to the public in 2004. On the first day for Google, 22 million shares were sold. This sale raised about $1.2 billion for the company. This is called what?

initial public offering (IPO)

This involves using the money you have saved to earn even more money

investing

One country's comparative advantage over another might stem from any of several differences between them. Three of the most important are these EXCEPT:

labor unions

In the process, banks profit by charging more interest on what than they pay on deposits.

loans

Which of these is a disadvantage of turning a partnership into a corporation?

loss of control

The point at which the quantity of a product demanded by consumers in a market equals the quantity supplied by producers

market equilibrium

These are all example of stakeholders at FHS EXCEPT:

none of these

These are all the rights of businesses EXCEPT

none of these

Foundations and land trusts are examples of

nonprofit organizations.

Venture capitalists invest in new businesses in exchange for

ownership shares

This is the proportion of a household's income that its members save each year

personal savings rate

Maximum price set by the government to prevent prices from going too high is called?

price ceiling

Minimum price set by the government to prevent prices from going too low is called

price floor

Who are the primary customers of the Federal Reserve?

private banks

Which of the following concepts explains why a country would both import and export a particular type of good?

product differentiation

The structure of a corporation can best be described as a

pyramid

To expand their business, sole proprietorship most often depend on money from

reinvesting their profits.

A legal limit on the amount a landlord can charge a tenant; a price ceiling on rents is called?

rent ceiling

Franchisees must also pay this, or a percentage of earnings, to the parent company. These costs are on top of the usual costs of operating a business?

royalties

The main function of a bank is to bring together

savers and borrowers.

What investments that give their holders the right to receive some form of return, or profit.

securities

The United States borrows dollars from foreign investors by

selling government bonds.

The board of directors of a corporation is selected by and accountable to the

shareholders

If a manufacturer introduces a new product with a successful advertising campaign and an artificially low introductory price, which of these will most likely result?

shortage

How do high U.S. or European tariffs on agricultural products and clothing hurt least developed countries (LDCs)?

smaller market for LDCs' exports

.Which label belongs in place of the question mark?

social security, company retirement plans, personal savings

What is the most common form of business?

sole proprietorship

Which form of business organization is most common?

sole proprietorship

What determines floating rates of foreign exchange?

supply and demand

A pollution haven is a country

that attracts polluting industries because of its weak or poorly enforced environmental laws

One of the board's most important responsibilities is to select who?

the corporation's chief executive officer

The United States is

the leading importer and exporter in the world.

Many people who join co-ops are consumers looking to increase what?

their buying power

As developing countries shift from agriculture to industry,

their environmental problems multiply

What was a central goal of the formation of the European Union and the World Trade Organization?

to reduce trade barriers

What represents the interests of people working in a particular industry?

trade association

A country that imports more than it exports has a

trade deficit

How is the market-clearing price determined?

trial and error