Exam 15-18

Which statement is true? Select the best answer.

If a tradeoff curve flattens out, it means that this range corresponds to a situation when a country is able to achieve greater equality without significantly hurting economic output. Government policies to encourage economic equality can injure incentives for economic output. Countries with similar levels of income may have different levels of inequality. The Occupy Wall Street movement protested the way that people with lower incomes seemed to bear the consequences of a decline in output that they didn't cause. Certain government programs might increase both economic output and income equality.29.

Which statement is correct? Select the best answer.

If investors buy stocks, they can expect to receive dividends. Both firms and various levels of government can issue bonds. IPO means a firm's first stock sale to the public. A capital gain is one form of a rate of return an investor can expect to receive. A venture capital firm is an early-stage investor.

Which issue is the following special interest group most likely concerned with? Select the best answer. National Border Patrol Council

Immigration

Which option accurately completes the following statement? Select the best answer. [Blank] information is the cause of the moral hazard problem.

Imperfect

If the worker's total income is $15,000, what is their labor income? Write the exact answer. Do not round.

10,000

Which statement about lobbying and special interest groups is true? Select the best answer.

In the U.S., the elderly can be a powerful special interest group. Special interest groups might sometimes hurt the political parties they have a relationship with. Special interest groups can be formed either by individuals or companies. Democratic institutions offer opportunities for special interests and ways of counterbalancing those interests over time. The problem of special interests in politics can be related to regulatory capture.

Which statement about pork-barrel spending is true? Select the best answer.

It is easier for legislators who have been in office for a while to enact this practice. The costs of this legislative practice often add up over time. The costs of this legislative practice are statistically increasing in the U.S. The main purpose of this practice is to direct federal money into a local initiative. The benefits of this legislative practice are obvious for voters in the legislator's political district. This practice often results from the initiative of a single legislator.

If the worker's labor income is $10,000, what is their total income? Write the exact answer. Do not round.

15.000

If the worker's hours of leisure are 2,500, what is their labor income? Write the exact answer. Do not round.

17,500

If the worker's hours of leisure are 2,500, what is their total income? Write the exact answer. Do not round.

17,500

If the worker's labor income is $15,000, what is their total income? Write the exact answer. Do not round.

17,500

For which of the following age groups is the poverty rate the highest? Select the best answer.

18-24

Which option correctly completes the following sentence? Select the best answer. AFDC was changed to TANF in [blank].

1996

If equality increases from 40 to 80, which country sees a greater decrease in output? Select the best answer.

2

If equality increases from 5 to 15, which country sees a greater decrease in output? Select the best answer.

2

If output decreases from 20 to 10, which country sees a greater increase in equality? Select the best answer.

2

If output increases from 40 to 60, which country sees a greater loss in equality? Select the best answer.

2

If the worker's labor income is $15,000, what are their hours of leisure? Write the exact answer. Do not round.

2,500

If the worker's labor income is $15,000, what is their government support? Write the exact answer. Do not round.

2,500

If the worker's labor income is $25,000, what is their total income? Write the exact answer. Do not round.

25,000

If the worker's total income is $25,000, what is their labor income? Write the exact answer. Do not round.

25,000

If equality decreases from 15 to 4, which country sees a greater increase in output? Select the best answer.

3

If equality increases from 0 to 50, which country sees a greater decrease in output? Select the best answer.

3

If output decreases from 15 to 5, which country sees a greater increase in equality? Select the best answer.

3

If the worker's labor income is $10,000, what are their hours of leisure? Write the exact answer. Do not round.

3,000

If the worker's total income is $15,000, what are their hours of leisure? Write the exact answer. Do not round.

3,000

If equality decreases from 70 to 50, which country sees a greater increase in output? Select the best answer.

4

If equality decreases from 90 to 70, which country sees a greater increase in output? Select the best answer.

4

If equality increases from 80 to 90, which country sees a greater decrease in output? Select the best answer.

4

If the worker's total income is $10,000, what are their hours of leisure? Write the exact answer. Do not round.

4.000

If the worker's hours of leisure are 0, what is their labor income? Write the exact answer. Do not round.

40,000

If the worker's hours of leisure are 0, what is their total income? Write the exact answer. Do not round.

40,000

If the worker's labor income is $10,000, what is their government support? Write the exact answer. Do not round.

5,000

If the worker's total income is $15,000, what is their government support? Write the exact answer. Do not round.

5,000

Which of the following most accurately defines municipal bond? Select the best answer.

A bond issued by a city

Which of the following most accurately defines treasury bond? Select the best answer.

A bond issued by the federal government

Which statement is correct? Select the best answer.

A bond's present value is the most that a buyer would be willing to pay for a given bond. A good way to minimize risks when buying stocks or bonds is diversification. Banks typically pay a lower interest rate for regular savings accounts than for certificates of deposit. Any bank can play the role of a financial intermediary. For the average person, keeping money in a bank account is safe even if the bank goes bankrupt.

Which of the following most accurately defines sole proprietorship? Select the best answer.

A business controlled day-to-day by one individual

Which of the following most accurately defines corporation? Select the best answer.

A business owned by shareholders with limited liability for the business's debt

Which of the following most accurately defines public company? Select the best answer.

A business that decides to sell stock shares

Which statement is correct? Select the best answer.

A buyer confronted with imperfect information will often believe that the price reveals something about the quality. In a market with imperfect information, a lower price may not attract more customers. The presence of imperfect information can discourage both buyers and sellers from participating in a market. If you apply for a job and hide your low level of knowledge in the interview, this is an example of asymmetric information. In cases of imperfect and asymmetric information, buyers or sellers need more information to make informed decisions. The short-term benefits of selling customers a "lemon" could cause a loss of long-term profits.

Which of the following most accurately defines private company? Select the best answer.

A company owned by the people who run it on a day-to-day basis

Which of the following most accurately defines dividends? Select the best answer.

A direct payment by a firm to its shareholders

Which of the following most accurately defines corporate bond? Select the best answer.

A firm agrees to repay a borrowed amount at the end of the contract and make interest payments

Which statement is correct? Select the best answer.

A firm does not receive any funds when one shareholder sells stock in the firm to another investor. Venture capital firms supply money to small startups and provide advice on potential products, customers, and key employees. Banks are more willing to lend to well-established firms. There are three main characteristics of a bond: face (or par value), interest rate, and maturity date. Investors will be more willing to invest in firms that pay part of their profits as dividends. Investors that own the majority of shares in a firm can control who runs the firm on a day-to-day basis.

Which of the following most accurately defines initial public offering? Select the best answer.

A firm's first stock sale to the public

What is a special interest group? Select the best answer.

A group that is numerically small but well organized and is able to exert a disproportionate effect on political outcomes A group that is small in number relative to the nation but quite well organized and focused on advancing its economic interest on a specific issue A relatively small well-organized group that pursues their common economic interests by influencing political processes

Which definition matches the following term? Select the best answer. Treasury bond

A low-risk bond issued by the U.S. government

Which of the following scenarios is an example of how imperfect information can affect a market? Select the best answer.

A lower price may result in a decrease in sales. Buyers may become reluctant to participate. Sellers of high-quality goods may become hesitant to participate. A higher price may increase sales.

Which of the following most accurately defines partnership? Select the best answer.

A private company controlled day-to-day by a group

Which definition matches the following term? Select the best answer. Certificate of deposit (CD)

A type of saving in which a person agrees to deposit a certain amount of money in the account for a stated period of time, typically ranging from a few months to several years. In exchange, the bank agrees to pay a higher interest rate than for a regular savings account

Which option correctly completes the following sentence? Select the best answer. [Blank] was changed to [blank] in 1996.

AFDC; TANF

What did Mollie Orshansky's studies reveal about the spending habits of an average family? Select the best answer.

About one-third of a family's income is spent on food.

Which statement is correct? Select the best answer.

According to Sir Winston Churchill, democracy, though imperfect, is the best form of government compared to all other existing ones. Government actions, while addressing problems in markets, sometimes do not reflect the views of the majority. Both markets and the government are imperfect and can sometimes produce unwanted results and face problems. Economists who belong to different political parties may express different opinions about the virtues and limitations of markets and government involvement in the economy. Markets can produce pollution, poverty, income inequality, and discrimination. In order to efficiently allocate scare resources, society can use markets.

Which term matches the following description? Select the best answer. The total yield from an investment, including capital gains and interest paid, at the end of a period of time

Actual rate of return

Which option accurately completes the following statement? Select the best answer. [Blank] selection refers to when insurance buyers have more information about their risk level than insurance companies.

Adverse

The poverty rate is highest for which ethnic group? Select the best answer.

African-Americans

Which option correctly completes the following sentence? Select the best answer. AFDC stands for [blank].

Aid to Families with Dependent Children

Which option correctly completes the following sentence? Select the best answer. [Blank] provided cash payments to mothers with children who were below the poverty line.

Aid to Families with Dependent Children

Which option correctly completes the following sentence? Select the best answer.AFDC stands for [blank].

Aid to Families with Dependent Children

Which option correctly completes the following sentence? Select the best answer. Temporary Assistance for Needy Families replaced [blank].

Aid to Families with Dependent Children (AFDC)

Which statement is correct? Select the best answer.

An "angel investor" is an individual who puts his/her own money into a new small firm in exchange for owning some portion of the firm. Venture capital firms invest money gathered from individuals and/or institutions, who receive returns according to how the fund performs. An initial public offering is a way to substantially expand a company's funds without borrowing money. Usually, a firm that has sold its stock receives no financial gain if those stocks are bought and sold later on. Corporate governance is necessary due to possible conflicts of interests among stakeholders.

Which term matches the following description? Select the best answer. An economic entity that owns a bond and receives interest payments

Bondholder

Which of the following financial investments has the lowest risk? Select the best answer.

Bonds Savings Account Certificate of Deposit

Which definition matches the following term? Select the best answer. Junk bonds

Bonds that offer high interest rates to compensate for their relatively high chance of default

Which issue is the following special interest group most likely concerned with? Select the best answer.Consumer Federation of America

Business

Which option correctly completes the following sentence? Select the best answer. [Blank] stands for the government tax cuts for the child tax credit.

CTC

If the worker's hours of leisure are 0, what is their government support? Write the exact answer. Do not round.

0

If the worker's hours of leisure are 4,000, what is their labor income? Write the exact answer. Do not round.

0

If the worker's labor income is $25,000, what is their government support? Write the exact answer. Do not round.

0

If the worker's labor income is $40,000, what are their hours of leisure? Write the exact answer. Do not round.

0

If the worker's total income is $10,000, what is their labor income? Write the exact answer. Do not round.

0

If the worker's total income is $25,000, what is their government support? Write the exact answer. Do not round.

0

If equality increases from 10 to 25, which country sees a greater decrease in output? Select the best answer.

1

If output decreases from 10 to 5, which country sees a greater increase in equality? Select the best answer.

1

If output decreases from 8 to 3, which country sees a greater increase in equality? Select the best answer.

1

If output increases from 1 to 7, which country sees a greater loss in equality? Select the best answer.

1

If output increases from 3 to 9, which country sees a greater loss in equality? Select the best answer.

1

If the worker's total income is $25,000, what are their hours of leisure? Write the exact answer. Do not round.

1,500

If the worker's hours of leisure are 4,000, what is their government support? Write the exact answer. Do not round.

10,000

If the worker's hours of leisure are 4,000, what is their total income? Write the exact answer. Do not round.

10,000

Which statement is correct? Select the best answer.

Many firms offer money-back guarantees for an unlimited period of time, not just a few weeks or months. The rationale for offering money-back guarantees, warranties, and service contracts is that they will create loyal customers, who in turn will recommend the business to others. The requirement for an occupational license can lead to higher prices and fewer consumer choices in markets. Occupational licenses are used to establish quality in the labor market. Using the first few months of employment as a trial or probation period is a mechanism to reduce the risk of imperfect information.

Which issue is the following special interest group most likely concerned with? Select the best answer. Women's Campaign Fund

Campaign finances

Which of the following most accurately defines profits as financial capital? Select the best answer.

Capital created when revenues exceed costs

Which of the following most accurately defines venture capital? Select the best answer.

Capital provided by different parties, such as individual investors, banks, and insurance companies

Which term matches the following description? Select the best answer. A bank account that pays a relatively high interest rate in exchange for a promise to leave the money in the account for a specified period of time

Certificate of deposit

Which term matches the following description? Select the best answer. A bank account that typically pays little or no interest but gives easy access to money

Checking account

Which issue is the following special interest group most likely concerned with? Select the best answer. National Association for the Advancement of Colored People (NAACP)

Civil rights

Which issue is the following special interest group most likely concerned with? Select the best answer. National LGBTQ Task Force

Civil rights

Which statement is correct? Select the best answer.

Classifying people into risk groups is necessary to charge lower premiums to those with lower risks. Adverse selection causes an asymmetric information problem for insurance companies. A person has health insurance that covers doctor visits; he rarely washes his hands or watches his health. This is probably an example of the moral hazard problem. Deductibles, copayments, and coinsurance are the main methods for reducing moral hazard. Imperfect information can cause the moral hazard problem.

Which of the following financial investments has the highest risk? Select the best answer.

Collectibles Gold

Which of the following financial investments has the lowest liquidity? Select the best answer.

Collectibles Housing Gold

Which issue is the following special interest group most likely concerned with? Select the best answer. Social Media Today

Communication and technology

How can income inequality be measured? Select the best answer.

Compare shares of income that different percentages of the population receive

How is income inequality defined? Select the best answer.

Comparing shares of income that different percentages of the population receive

Which term matches the following definition? Select the best answer.The name economists give to the institutions that are supposed to watch over top executives

Coporate gpverance

What is the source of financial capital in the following scenario? Select the best answer. A big corporation wants to borrow millions of dollars and agrees to pay interest over ten years.

Corporate bonds

What is the source of financial capital in the following scenario? Select the best answer. A giant chain of grocery stores needs to borrow money, and lenders quickly agree based on the store's reputation and financial stability.

Corporate bonds

What is the source of financial capital in the following scenario? Select the best answer. A large company is ready to borrow millions of dollars and has enough funds to make the interest payments over the next twenty years.

Corporate bonds

What is the source of financial capital in the following scenario? Select the best answer. A large company is ready to borrow several million and has enough funds to make the interest payments over the next few years.

Corporate bonds

What is the source of financial capital in the following scenario? Select the best answer. A technology corporation wants to borrow millions of dollars to be repaid in fifteen years, with an annual interest payment of six percent.

Corporate bonds

Which term matches the following description? Select the best answer. Institutions that are responsible for providing investors with accurate information about a firm's economic conditions and financial operations

Corporate governance

Which term matches the following description? Select the best answer. An economic entity that is owned by other economic entities, who get a share of the profits and have limited liability for its debt

Corporation

If equality decreases from 30 to 10, which country sees a greater increase in output? Select the best answer.

Country 1

If output decreases from 9 to 4, which country sees a greater increase in equality? Select the best answer.

Country 1

Which statement is correct? Select the best answer.

Medicare and Medicaid were created because free markets failed to provide insurance at an affordable price. In the case of a health maintenance organization (HMO), healthcare providers have an incentive to reduce care based on future opportunity costs. In the case of a health maintenance organization (HMO), a patient with insurance has an incentive to demand more care, but the healthcare provider has an incentive to limit care. The major costs to insurance companies, other than claim payments, are the costs of running a business. Medicaid provides healthcare to people with low incomes.

What is an example of a mechanism that reduces the risk of imperfect information? Select the best answer.

Money-back guarantee Cosigner Warranty Service contract Collateral Occupational license

Which option accurately completes the following statement? Select the best answer. [Blank] hazard occurs when people engage in riskier behavior when they have insurance than they don't have insurance.

Moral

Which option accurately completes the following statement? Select the best answer. [Blank] is spending that benefits mainly a single political district.

Pork-barrel spending

Which term matches the following description? Select the best answer. The price of a bond at a specific point in time

Present value

What is the source of financial capital in the following scenario? Select the best answer. A Florida beach resort just had an excellent year and is planning on investing some of the extra funds into new beach bungalows.

Profits

What is the source of financial capital in the following scenario? Select the best answer. A successful bakery wants to open a second store and plans to use its own funds accumulated over the last three years.

Profits

What is the source of financial capital in the following scenario? Select the best answer. After covering all expenses for his small woodshop, Max is left with a substantial windfall and decides to buy a new band saw to expand his business.

Profits

What is the source of financial capital in the following scenario? Select the best answer. Because the revenues greatly exceeded the costs of running her business, Alexandra buys herself a new laptop that will further enhance her business.

Profits

What is the source of financial capital in the following scenario? Select the best answer. Eddie runs a small-truck delivery company that is struggling to keep up with demand. Taking advantage of the funds his company has made recently, he decides to add a few additional trucks.

Profits

What is the source of financial capital in the following scenario? Select the best answer. Sarah owns a dog kennel that attracts many happy customers. To be able to satisfy the high demand she faces, she reinvests a large sum of money she made in the past two years to expand her facility.

Profits

Which term matches the following description? Select the best answer. An economic entity that is owned by many business entities that have bought shares in it and that must have at least two directors

Public company

Consider the following conversation: "Are you planning to go vote today?" asked Nicki."No, I have so many things to do and don't want to get caught in long lines," replied Cassandra. Cassandra's reply is most likely the result of what? Select the best answer.

RI

Consider the following conversation: "Are you planning to go vote today?" asked Nicki."No, I recently moved to a new state and feel like the re-registering process is too time consuming," replied Cassandra. Cassandra's reply is most likely the result of what? Select the best answer.

RI

What is the most likely result of the following scenario? Select the best answer. Potential voters expect to endure long lines as a result of a reduced number of voting booths.

RI

What is the most likely result of the following scenario? Select the best answer. Prior to Election Day, news channels have predicted a wide margin of victory by a particular candidate.

RI

What is the most likely result of the following scenario? Select the best answer. There are fewer televised debates, resulting in less-informed potential voters.

RI

What is the most likely result of the following scenario? Select the best answer. There is no public transportation that goes to official polling sites, raising the costs for potential voters to reach the voting booths.

RI

What is the most likely result of the following scenario? Select the best answer. Potential voters feel their vote is too insignificant to have any real impact upon the election results.

Rational Ignorance

What is the most likely result of the following scenario? Select the best answer. Potential voters find it too time-consuming to research each candidate's position on key issues.

Rational Ignorance

What is the most likely result of the following scenario? Select the best answer. Potential voters think the voter registration process is too time-consuming.

Rational Ignorance

What is the most likely result of the following scenario? Select the best answer. There are many candidates, making it difficult for potential voters to stay informed about each candidate's positions on certain issues.

Rational Ignorance

Which statement about safety net programs is true? Select the best answer.

Safety net programs are initiatives designed to offer some protection for those who find themselves without jobs or income (or those who earn a very low income). In general, households are expected to spend thirty percent of their own net income on food. Antipoverty programs like TANF, SNAP, and the EITC are able to transfer income to the working poor. Federal welfare spending under AFDC was state-specific. In recent years, the EITC has become a hugely expensive program. Medicaid ensures that participants receive a basic level of benefits, but each state sets eligibility requirements and provides varying levels of service.

Which of the following financial investments has the lowest return? Select the best answer.

Savings Account Checking Account

Which of the following financial investments has the highest liquidity? Select the best answer.

Savings Account Checking Account Certificate of Deposit Stocks

Which term matches the following description? Select the best answer. A bank account that pays an interest rate, but withdrawing money may require a trip to the bank or an ATM

Savings account

Which term matches the following description? Select the best answer. An economic entity that owns at least some shares of stock and therefore owns a part of a company

Shareholder

Which of the following most accurately defines corporate stock? Select the best answer.

Shares of a corporation held by many individuals

Which option accurately completes the following statement? Select the best answer. [Blank] interest groups are small, well-organized, and focused on a specific issue.

Special

What is the source of financial capital in the following scenario? Select the best answer. A big firm wants to raise financial capital by selling shares to the public.

Stock

What is the source of financial capital in the following scenario? Select the best answer. A clothing line wants to finance a new store and relies on new shareholders to buy in the company.

Stock

What is the source of financial capital in the following scenario? Select the best answer. A restaurant chain makes an initial public offering to raise financial capital.

Stock

What is the source of financial capital in the following scenario? Select the best answer. A well-known tech company wants to expand and will offer huge dividends to its shareholders.

Stock

What is the source of financial capital in the following scenario? Select the best answer. In order to expand its business, a cosmetic corporation agrees to sell shares.

Stock

What is the source of financial capital in the following scenario? Select the best answer. To raise financial capital needed for an expansion, a large business offers shares to the public.

Stock

What is the source of financial capital in the following scenario? Select the best answer. To start production of a new car model, a big car manufacturer raises funds that promise huge capital gains.

Stock

Which of the following financial investments has the highest return? Select the best answer.

Stocks Mutual Funds

Which option correctly completes the following sentence? Select the best answer. The [blank] provides poor people with a debit card that they can use to buy food.

Supplemental Nutrition Assistance Program

Which option correctly completes the following sentence? Select the best answer. [Blank] provides cash support for the disabled and the elderly poor.

Supplemental Security Income

Which option best completes the following statement? Select the best answer. Reducing the poverty trap was a goal of [blank].

TANF

Which option correctly completes the following sentence? Select the best answer. No one can receive [blank] benefits with federal money for more than a total of five years over his or her lifetime.

TANF

Which option correctly completes the following sentence? Select the best answer. [Blank] recipients must be working or attending school.

TANF

Which option correctly completes the following sentence? Select the best answer. TANF stands for [blank].

Temporary Assistance for Needy Families

Which definition matches the following term? Select the best answer. Face value of a bond

The amount the borrower agrees to pay the investor at maturity

The original formula for the poverty line was calculated based on what assumption? Select the best answer.

The average family spends about one-third of its income on food.

Which term matches the following definition? Select the best answer.Elected by shareholders and first line of corporate governance and oversight for top executives

The board of directors

Which definition matches the following term? Select the best answer. Investment liquidity

The ease with which one can exchange money or financial assets for a good or service

Which definition matches the following term? Select the best answer.Investment liquidity

The ease with which one can exchange money or financial assets for a good or service

Which definition matches the following term? Select the best answer. Coupon rate

The fixed interest rate that the issuer of a bond agrees to pay the bond holder each year until the bond matures

What is the poverty line based on? Select the best answer.

The income one needs for a basic standard of living

Which statement is correct? Select the best answer.

The language and terminology of economics are not limited to one set of political beliefs. When faced with well-organized special interest groups, a democratic government will not always enact economically wise projects or programs. It is sensible to consider the strengths and weaknesses of both markets and government since one is not better than the other by definition. In some circumstances, like the occurrence of negative externalities, government intervention has a potential role. In some circumstances, such as the existence of monopolies, there is potential for government intervention.

How is poverty measured? Select the best answer.

The number of people who fall below a certain level of income

Does the poverty line vary across the United States? Select the best answer.

The poverty line is the same in all regions.

If output increases from 2 to 8, which country sees a greater loss in equality? Select the best answer.

Country 1

If equality decreases from 100 to 80, which country sees a greater increase in output? Select the best answer.

Country 2

If equality decreases from 20 to 10, which country sees a greater increase in output? Select the best answer.

Country 2

If output increases from 20 to 40, which country sees a greater loss in equality? Select the best answer.

Country 2

If equality decreases from 80 to 60, which country sees a greater increase in output? Select the best answer.

Country 3

If equality increases from 10 to 90, which country sees a greater decrease in output? Select the best answer.

Country 3

If output decreases from 90 to 80, which country sees a greater increase in equality? Select the best answer.

Country 3

If output increases from 80 to 90, which country sees a greater loss in equality? Select the best answer.

Country 3

Which term matches the following description? Select the best answer. The interest rate for a bond

Coupon rate

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. A used car dealership sells many lemons without informing customers.

This is an example of asymmetric information.

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. Bill sells his used Mazda but does not inform the buyer about the faulty CD player.

This is an example of asymmetric information.

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. Chelsea purchased a car that was actually three years older than the seller claimed.

This is an example of asymmetric information.

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. Cindy wants to buy a used Toyota but is unaware the previous owner had to replace the windshield after an accident.

This is an example of asymmetric information.

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. Desmond's manager hired him without awareness of his constant tardiness.

This is an example of asymmetric information.

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. Lucille's manager hired her without awareness of her laziness.

This is an example of asymmetric information.

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. Melanie purchased a used car that she realized was a lemon a month later.

This is an example of asymmetric information.

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. Sean's manager hired him without awareness of his secret second job.

This is an example of asymmetric information.

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. Travis wants to sell his BMW but did not inform the buyer about the repairs he had made earlier.

This is an example of asymmetric information.

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. Amanda wants to adopt a dog but the seller does not remember its birthdate.

This is an example of imperfect information.

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. Gwen wants to sell her Jeep but doesn't remember how many cities she's driven to.

This is an example of imperfect information.

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. Neither Devon nor a garden center employee is aware of the shelf-life of a particular type of fertilizer.

This is an example of imperfect information.

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. Neither Lee nor the grocery store employee knows how long it will take for the pineapple to ripen.

This is an example of imperfect information.

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. Neither Marceline nor the barista knows how many calories are in a medium green tea latte.

This is an example of imperfect information.

Is the following statement an example of asymmetric information or imperfect information? Select the best answer. Neither Priscilla nor the used car salesman knows how long the previous owner had the car.

This is an example of imperfect information.

Which statement about logrolling is true? Select the best answer.

This practice may be characterized as a trading of favors. This practice involves legislators supporting initiatives they do not have a special interest in. This practice must be enacted by a group of legislators, not a single individual.

Which statement is correct? Select the best answer.

Unpredictable news may influence stock prices dramatically. Additional education is one of the keys to high earnings in the future. On any given day, stock prices are just as likely to rise as to fall. Stock prices depend heavily on expectations about the future. Simple interest is an interest rate calculated only on the principal amount. If you start saving money early, you are likely to be relatively wealthy in the future.

Which term matches the following description? Select the best answer. An economic entity that makes financial investments in new, relatively small companies with the potential to grow substantially

Venture capital firm

For which ethnic group is the poverty rate the lowest? Select the best answer.

Whites

Which issue is the following special interest group most likely concerned with? Select the best answer. Animal Welfare Institute

Wildlife

In the U.S., what characteristic indicates that you are least likely to be poor? Select the best answer.

You are old.

In the U.S., what characteristic indicates that you are more likely to be poor? Select the best answer.

You are young.

Which option accurately completes the blank in the following sentence? Select the best answer. Automobile insurance is paid out when [blank].

a car is stolen and damaged in an accident

Which option accurately completes the following statement? Select the best answer. The small amount that health insurance policyholders must pay when they go to the doctor is called [blank].

a copayment

Which option accurately completes the blank in the following sentence? Select the best answer. Property and homeowner's insurance is paid out when [blank].

a home is flooded, burglarized, and catches fire

Which option accurately completes the blank in the following sentence? Select the best answer. Malpractice insurance is paid out when [blank].

a service provider harms a client

Which option accurately completes the blank in the following sentence? Select the best answer. Health insurance is paid out when [blank].

a trip to the emergency room is needed, and medical expenses are incurred

Which term matches the following definition? Select the best answer.A network of well-to-do individuals who put their own money into new small companies at an early development stage, in exchange for owning some portion of the firm

angel investor

Which option accurately completes the following statement? Select the best answer. People who lose from economic policies are [blank].

anonymous

Which option best completes the following statement? Select the best answer. Most people who receive TANF benefits [blank].

are working or in school

Which term matches the following definition? Select the best answer.A source of financial capital where a firm borrows money and promises to repay it, including some rate of interest, over a predetermined period of time

bank loan

Which option correctly completes the following sentence? Select the best answer. Aid to Families with Dependent Children provided cash payments to mothers [blank] the poverty line.

below

Which term matches the following definition? Select the best answer.A source of financial capital that is also a financial contract, where a borrower agrees to repay the amount borrowed in addition to an interest rate

bond

Which term matches the following definition? Select the best answer.Anyone who owns a bond and receives the interest payments

bondholder

Which term matches the following definition? Select the best answer.The increase in stock value between when it's bought and sold

capital gain

Which option correctly completes the following sentence? Select the best answer. CTC stands for the government tax cuts for the [blank].

child tax credit

Which option best completes the following statement? Select the best answer. In terms of numbers, the largest group enrolled in Medicaid is [blank].

children

Which term matches the following definition? Select the best answer.A type of bond issued by a firm

coporate bond

Which term matches the following definition? Select the best answer.A business owned by shareholders that have limited liability for the company's debt but share in its profits (and losses)

corporations

Which option accurately completes the following statement? Select the best answer. The vertical axis of the Lorenz curve shows the [blank].

cumulative percentage of total income received

Which option accurately completes the following statement? Select the best answer. The horizontal axis of the Lorenz curve shows the [blank].

cumulative share of population

Which option accurately completes the following statement? Select the best answer. A [blank] is an amount that the insurance policyholder must pay out of his or her own pocket before the insurance coverage starts paying.

deductible

Which term matches the following definition? Select the best answer.When a firm makes a direct payment to its shareholders

dividend

Which option accurately completes the blank in the following sentence? Select the best answer. Malpractice insurance is paid for by [blank].

doctors, lawyers, and service providers

Which option accurately completes the following statement? Select the best answer. A legislator may vote to impose a tariff on an imported good if [blank] producers lobby.

domestic

Which option accurately completes the following statement? Select the best answer. A [blank] family would most likely be represented in a top quintile.

double-income

Which option best completes the following statement? Select the best answer. Medicaid programs have been changed to reduce the poverty trap by [blank].

expanding Medicaid to cover those who are earning incomes above the poverty line

Is the following statement true or false? Select the best answer.In the U.S., older people (age 65 and over) are more likely to be living in poverty than young people.

false

Is the following statement true or false? Select the best answer.In the United States in 2013, Hispanics had the highest poverty rate among ethnic groups.

false

Is the following statement true or false? Select the best answer.In the United States in 2013, whites had the highest poverty rate among ethnic groups.

false

Is the following statement true or false? Select the best answer.Poverty is measured by the number of people who fall below average income.

false

Is the following statement true or false? Select the best answer.Poverty rates for women are lower than poverty rates for men.

false

Is the following statement true or false? Select the best answer.The U.S. has been successful in reducing poverty rates since the 1960s.

false

Is the following statement true or false? Select the best answer.The majority of people living in poverty in the U.S. are African-American.

false

Is the following statement true or false? Select the best answer.The majority of people living in poverty in the U.S. are Hispanic.

false

Is the following statement true or false? Select the best answer.The poverty rate in the U.S. today is much lower than it was in the 1960s.

false

Is the following statement true or false? Select the best answer.The poverty rate in the United States is set higher in areas with a higher cost of living.

false

Which option accurately completes the following statement? Select the best answer. Earners of the top twenty percent of income belong in the [blank] quintile.

fifth

Which option accurately completes the following statement? Select the best answer. Insurance is meant to be a [blank] reimbursement for a loss or damage.

financial

Which option accurately completes the blank in the following sentence? Select the best answer. Liability insurance is paid for by [blank].

firms and individuals

Which option accurately completes the following statement? Select the best answer. Earners of the bottom twenty percent of income belong in the [blank] quintile.

first

Which option accurately completes the following statement? Select the best answer.Earners of the bottom twenty percent of income belong in the [blank] quintile.

first

Which option accurately completes the following statement? Select the best answer. A health maintenance organization (HMO) provides health care that receives a [blank] amount per person enrolled in the plan.

fixed

Which option correctly completes the following sentence? Select the best answer. The Supplemental Nutrition Assistance Program (SNAP) provides poor people with a debit card they can use to buy [blank].

food

Which option accurately completes the following statement? Select the best answer. Every Lorenz curve diagram begins with a line sloping up at a [blank] angle, representing perfect income equality.

forty-five-degree

Which option correctly completes the following sentence? Select the best answer. The federal government [blank] Medicaid, and states [blank] it.

funds; administer

Which option accurately completes the following statement? Select the best answer.Economists cite [blank] as a reason for income inequality.

globalization

Which option correctly completes the following sentence? Select the best answer. The Low Income Home Energy Assistance Program provides help with home [blank] bills.

heating

Which option accurately completes the blank in the following sentence? Select the best answer. Property and homeowner's insurance is paid for by [blank].

homeowners and renters

Which option accurately completes the following statement? Select the best answer. The [blank] axis of the Lorenz curve shows the cumulative share of population.

horizontal

Which option accurately completes the following statement? Select the best answer. People who gain from economic policies are [blank].

identifiable

Which option best completes the following statement? Select the best answer. Suppose families spend all their income on food and other goods. Assume that both food and other goods are normal goods. If the family receives one thousand dollars in SNAP benefits that can only be spent on food, it is likely that the family will [blank].

increase spending on food by less than one thousand dollars and increase spending on other goods

Which option accurately completes the blank in the following sentence? Select the best answer. Automobile insurance is paid for by [blank].

individuals

Which option accurately completes the blank in the following sentence? Select the best answer.Automobile insurance is paid for by [blank].

individuals

Which option accurately completes the blank in the following sentence? Select the best answer. Health insurance is paid for by [blank].

individuals and employers

Which option accurately completes the blank in the following sentence? Select the best answer. Life insurance is paid for by [blank].

individuals and employers

Which term matches the following definition? Select the best answer.A firm's first stock sale to the public

inital public offering

Which option correctly completes the following sentence? Select the best answer. TANF funding from the government [blank] across states.

is constant

Which option best completes the following statement? Select the best answer. The EITC is a popular program with economists because [blank].

it increases incentives to work

Which option best completes the following statement? Select the best answer. If a family is currently spending five thousand dollars on food and receives one thousand dollars in SNAP benefits, [blank].

it may or may not spend more money on food than it did previously

Which option accurately completes the following statement? Select the best answer. Special interest groups spend a lot of time and energy [blank].

lobbying

Which option accurately completes the following statement? Select the best answer. Legislators may vote for spending projects not in their own district due to [blank].

logrolling

Which term matches the following definition? Select the best answer.A type of bond issued by a city

municipal bond

Which option accurately completes the following statement? Select the best answer. Economists cite [blank] as a reason for a rise in income inequality.

new technology

Does the following scenario depict a flaw in the democratic system? Select the best answer. President Jones wins an election by a landslide.

no

Does the following scenario depict a flaw in the democratic system? Select the best answer.A candidate wins an election by a landslide.

no

Does the following scenario depict a flaw in the democratic system? Select the best answer.A liberal candidate gains twenty percent of votes, and a conservative candidate gains eighty percent of votes.

no

Does the following scenario depict a flaw in the democratic system? Select the best answer.Anabelle voted liberal over conservative.

no

Does the following scenario depict a flaw in the democratic system? Select the best answer.Elizabeth likes both candidates in an election and is not sure who she wants to vote for.

no

Does the following scenario depict a flaw in the democratic system? Select the best answer.Gordon and Simon both vote to serve hot dogs over hamburgers at the barbeque.

no

Does the following scenario depict a flaw in the democratic system? Select the best answer.Mayor Sison wins an election by a landslide.

no

Does the following scenario depict a flaw in the democratic system? Select the best answer.President Jones wins an election by a landslide.

no

Does the following scenario depict a flaw in the democratic system? Select the best answer.Ray registered to vote for a candidate that has promised better public transportation for the city.

no

Does the following scenario depict a flaw in the democratic system? Select the best answer.Residents in Oklahoma City vote ninety-three to seven for a conservative candidate.

no

Does the following scenario depict a flaw in the democratic system? Select the best answer.Residents of Austin vote seventy-five to twenty-five for a liberal candidate.

no

Does the following scenario depict a flaw in the democratic system? Select the best answer.Residents of Mesa vote sixty-eight to thirty-two for a conservative candidate.

no

Does the following scenario depict a flaw in the democratic system? Select the best answer.Senator Leroy loses an election by a landslide.

no

Does the following scenario illustrate the median voter theory? Select the best answer. Mayor Williams' campaign focuses on the needs of conservative voters.

no

Does the following scenario illustrate the median voter theory? Select the best answer. President Shaw's campaign strictly appeals to the average liberal voter.

no

Does the following scenario illustrate the median voter theory? Select the best answer. Senator Juhani's campaign is heavily focused on conservative ideologies.

no

Does the following scenario illustrate the median voter theory? Select the best answer. Senator Romay's campaign targets young liberal voters.

no

Does the following scenario illustrate the median voter theory? Select the best answer.Governor Jones plans to create policies that benefits liberal voters.

no

Does the following scenario illustrate the median voter theory? Select the best answer.Mayor Segal's platform benefits voters on the right side of the spectrum.

no

Does the following scenario illustrate the median voter theory? Select the best answer.Mayor Williams' campaign focuses on the needs of conservative voters.

no

Does the following scenario illustrate the median voter theory? Select the best answer.President Cassidy's platform benefits voters on the left side of the political spectrum.

no

Does the following scenario illustrate the median voter theory? Select the best answer.President Green's platform does not benefit voters on the right side of the political spectrum but rather voters on the left side.

no

Does the following scenario illustrate the median voter theory? Select the best answer.President Malcolm plans to create a policy that may negatively affect liberal voters and positively affect conservative voters.

no

Does the following scenario illustrate the median voter theory? Select the best answer.Senator Blackburn plans to create policies that benefit the average conservative voter.

no

Does the following scenario illustrate the median voter theory? Select the best answer.Senator Juhani's campaign is heavily focused on conservative ideologies.

no

Does the following scenario illustrate the median voter theory? Select the best answer.Senator Rojo's campaign appeals to the right side of the political spectrum.

no

In the following scenario, would Bart and Elisa qualify for TANF? Select the best answer.Bart and Elisa are unemployed and not in school.

no

In the following scenario, would Holly qualify for WIC? Select the best answer.Holly has a large source of income and is expecting her first child.

no

In the following scenario, would Jenny qualify for WIC? Select the best answer.Jenny is not pregnant and has no children.

no

In the following scenario, would Wendell and Gladys qualify for SSI? Select the best answer.Wendall and Gladys are wealthy senior citizens.

no

In the following scenario, would the Garcia family qualify for SNAP? Select the best answer.The Garcias can buy nutritious food with ten percent of their annual income.

no

In the following scenario, would the Leon family qualify for TANF? Select the best answer.The Leons have been on TANF for five years and need it for three more years.

no

In the following scenario, would the Lipton family qualify for SNAP? Select the best answer.The Liptons can buy nutritious food with ten percent of their annual income.

no

Would policy promoting a carbon tax reduce income inequality? Select the best answer.

no

Would policy promoting a cigarette tax reduce income inequality? Select the best answer.

no

Would policy promoting a consumption tax reduce income inequality? Select the best answer.

no

Would policy promoting a corporate income tax cut reduce income inequality? Select the best answer.

no

Would policy promoting a flat income tax reduce income inequality? Select the best answer.

no

Would policy promoting a gasoline tax reduce income inequality? Select the best answer.

no

Would policy promoting a lump sum tax reduce income inequality? Select the best answer.

no

Would policy promoting a tax on utilities reduce income inequality? Select the best answer.

no

Would policy promoting an alcohol tax reduce income inequality? Select the best answer.

no

Would policy promoting an income tax cut for high income earners reduce income inequality? Select the best answer.

no

Would policy promoting anti-union policies reduce income inequality? Select the best answer.

no

Would policy promoting environmental regulations reduce income inequality? Select the best answer.

no

Would policy promoting mandatory education requirements for computer programmers reduce income inequality? Select the best answer.

no

Would policy promoting strict physician licensing requirements reduce income inequality? Select the best answer.

no

Would policy promoting subsidies for green luxury vehicles reduce income inequality? Select the best answer.

no

The poverty rate is lowest for which age group? Select the best answer.

over 65

Which option best completes the following statement? Select the best answer. In the past, Medicaid contributed to the poverty trap because [blank].

people would lose Medicaid coverage if they took a job, but many jobs do not provide health insurance benefits

Which option accurately completes the following statement? Select the best answer. The points along the forty-five-degree line in a Lorenz curve show what [blank] of the income distribution looks like.

perfect equality

Which option best completes the following statement? Select the best answer. To minimize the poverty trap, the EITC [blank].

phases out benefits slowly as income rises

Which option accurately completes the following statement? Select the best answer. Premiums are paid by the [blank].

policyholder

Which option accurately completes the following statement? Select the best answer. The deductible is paid by the [blank].

policyholder

Which option accurately completes the following statement? Select the best answer.The deductible is paid by the [blank].

policyholder

Which option correctly completes the following sentence? Select the best answer. The Supplemental Nutrition Assistance Program (SNAP) provides [blank] people with a debit card they can use to buy food.

poor

Which option correctly completes the following sentence? Select the best answer. Under AFDC, the federal government's welfare spending would rise or fall depending on the number of [blank] people.

poor

Which option accurately completes the following statement? Select the best answer. West Virginia Senator Byrd funded the Robert C. Byrd Highway, the Robert C. Byrd Locks and Dam, the Robert C. Byrd Institute, and the Robert C. Byrd Federal Courthouse in West Virginia. This is an example of [blank].

pork-barrel spending

Which option correctly completes the following sentence? Select the best answer. The Supplemental Nutrition Assistance Program (SNAP) provides [blank] to poor people.

pre-loaded debit cards

Which option correctly completes the following sentence? Select the best answer. The Special Supplemental Food Program for Women, Infants, and Children (WIC) provides food assistance for [blank].

pregnant women, new mothers, and newborns

Which option accurately completes the following statement? Select the best answer. Households or firms with insurance make regular payments called [blank].

premiums

Which term matches the following definition? Select the best answer.A company owned by the people who run it on a day-to-day basis

private company

Which term matches the following definition? Select the best answer.A potential source of financial capital that results when a firm's revenue is greater than its costs

profts

Which term matches the following definition? Select the best answer.A company that sells stock, which financial investors can buy and sell

public company

Which option accurately completes the following statement? Select the best answer. A Lorenz curve graphs the cumulative shares of income received by everyone up to a certain [blank].

quintile

Which option best completes the following statement? Select the best answer. SNAP benefits are given in the form of a debit card that can only be used for food because [blank].

recipients cannot "waste" SNAP dollars on other consumption

Which option best completes the following statement? Select the best answer. The SNAP program [blank].

reduces benefits as income increases

Which option best completes the following statement? Select the best answer.The SNAP program [blank].

reduces benefits as income increases

Which option accurately completes the following statement? Select the best answer. Members in a [blank] group share roughly the same risks of an adverse event occurring.

risk

Which option accurately completes the following statement? Select the best answer. Moral hazard occurs when people engage in [blank] behavior because they have insurance than they would if they did not have insurance.

riskier

Which term matches the following definition? Select the best answer.Those who buy the stock of a firm and are its owners

shareholders

Which term matches the following definition? Select the best answer.What a company's stock is divided into

shares

Which option accurately completes the following statement? Select the best answer. Unemployment insurance usually covers workers who lose their jobs and are searching for new jobs for up to [blank] months.

six

Which option accurately completes the following statement? Select the best answer. Large communities are unable to influence policies the same as special interest groups because of the [blank] benefit to the individual.

small

Which option accurately completes the following statement? Select the best answer. Special interest groups are typically [blank], well-organized, and focused on a specific issue.

small

Which term matches the following definition? Select the best answer.When an individual owns and runs a company

sole proprotorship

Which option correctly completes the following sentence? Select the best answer. Each [blank] determines eligibility and the level of benefits for Medicaid recipients.

state

Which option best completes the following statement? Select the best answer. Medicaid eligibility and benefits are set by [blank], and they [blank].

states; vary between states

Which term matches the following definition? Select the best answer.Represents firm ownership

stock

Which option best completes the following statement? Select the best answer. In terms of spending, the largest group in Medicaid is [blank].

the blind and disabled

Which option correctly completes the following sentence? Select the best answer. Supplemental Security Income provides cash support for [blank].

the disabled and the elderly poor

Which option best completes the following statement? Select the best answer. Arguably, the success of TANF in reducing the number of families on welfare and reducing welfare spending is partly due to [blank].

the expansion of the EITC, which increased the return to work

Which option correctly completes the following sentence? Select the best answer. Medicaid is a joint health insurance program, involving the states and [blank].

the federal government

Which option accurately completes the blank in the following sentence? Select the best answer.Liability insurance is paid out when [blank].

the insurance holder causes an injury

Which option accurately completes the blank in the following sentence? Select the best answer. Life insurance is paid out when [blank].

the policyholder dies

Which option best completes the following statement? Select the best answer. TANF attempted to correct [blank].

the poverty trap

Which term matches the following definition? Select the best answer.A type of bond issued by the federal government through the U.S. Department of the Treasury

traesury bond

Is the following statement true or false? Select the best answer.In the U.S., young people under the age of 18 are more likely to be living in poverty than old people.

true

Is the following statement true or false? Select the best answer.In the United States in 2013, African-Americans had the highest poverty rate among ethnic groups.

true

Is the following statement true or false? Select the best answer.Poverty is measured by the number of people who fall below a certain income level, which is determined by basic needs.

true

Is the following statement true or false? Select the best answer.Poverty rates for men are lower than poverty rates for women.

true

Is the following statement true or false? Select the best answer.The current poverty rate in the U.S. is higher than it has been since the early 1960s.

true

Is the following statement true or false? Select the best answer.The majority of people living in poverty in the U.S. are white.

true

Is the following statement true or false? Select the best answer.The poverty line in the United States is the same for all regions.

true

Which option correctly completes the following sentence? Select the best answer. AFDC funding [blank] across states.

varies

Which option correctly completes the following sentence? Select the best answer. Medicaid [blank] from state to state.

varies

Which option correctly completes the following sentence? Select the best answer. TANF benefits for poor families [blank] across states.

vary

Which term matches the following definition? Select the best answer.Firms that make financial investments in new companies that are still relatively small in size but have potential to grow substantially

venture captial firms

Which option accurately completes the following statement? Select the best answer. The [blank] axis of the Lorenz curve shows the cumulative percentage of total income received.

vertical

Which option correctly completes the following sentence? Select the best answer. Aid to Families with Dependent Children is also known as [blank].

welfare

Which option correctly completes the following sentence? Select the best answer. The Personal Responsibility and Work Opportunity Reconciliation Act is commonly called the [blank].

welfare reform act

In the following scenario, would Stan qualify for SSI? Select the best answer.Stan is elderly and blind.

yes

In the following scenario, would the Curry family qualify for TANF? Select the best answer.Sean and Amanda Curry both work as elementary school teachers and need assistance to support their children.

yes

In the following scenario, would the Jonson family qualify for SNAP? Select the best answer.The Jonsons can buy nutritious food with sixty percent of their annual income.

yes

In the following scenario, would the Romano family qualify for TANF? Select the best answer.The Romanos have been on TANF for three years and need it for two more years.

yes

In the following scenario, would the Smith family qualify for SNAP? Select the best answer.The Smiths can buy nutritious food with fifty percent of their annual income.

yes

Would policy promoting Medicaid reduce income inequality? Select the best answer.

yes

Would policy promoting a capital gains tax reduce income inequality? Select the best answer.

yes

Would policy promoting a progressive income tax reduce income inequality? Select the best answer.

yes

Would policy promoting a property tax reduce income inequality? Select the best answer.

yes

Would policy promoting a tax cut for low income earners reduce income inequality? Select the best answer.

yes

Would policy promoting a wealth tax reduce income inequality? Select the best answer.

yes

Would policy promoting an inheritance tax reduce income inequality? Select the best answer.

yes

Would policy promoting expanding high-skilled immigration reduce income inequality? Select the best answer.

yes

Would policy promoting food stamps reduce income inequality? Select the best answer.

yes

Would policy promoting restricting low-skilled immigration reduce income inequality? Select the best answer.

yes

Which issue is the following special interest group most likely concerned with? Select the best answer. Southern Alliance for Clean Energy Action Fund

Energy

Which issue is the following special interest group most likely concerned with? Select the best answer. Climate Hawks Vote

Environment

Which issue is the following special interest group most likely concerned with? Select the best answer. Ocean Champions

Environment

Which term matches the following description? Select the best answer. How much income a project or investment is planned to yield for the investor, either in future interest payments, capital gains, or increased profitability

Expected rate of return

Which term matches the following description? Select the best answer. How much income a project or investment is planned to yield for the investor, either in future interest payments, capital gains, or increased profitability

Expected rate of return

Which term matches the following description? Select the best answer. The amount of money a borrower agrees to pay a bondholder at maturity

Face value

Which term matches the following description? Select the best answer. The amount of money a borrower agrees to pay a bondholder at maturity

Face value

Which issue is the following special interest group most likely concerned with? Select the best answer. Population Connection

Family

Which issue is the following special interest group most likely concerned with? Select the best answer. Brady Campaign to Prevent Gun Violence

Guns

Which issue is the following special interest group most likely concerned with? Select the best answer. Alzheimer's Impact Movement

Health care

Which issue is the following special interest group most likely concerned with? Select the best answer. National Trust for Historic Preservation

History

Which issue is the following special interest group most likely concerned with? Select the best answer. Women Employed

Employment Affirmative action

The theory of rational ignorance states that people are less likely to vote if the cost is too high or they believe their vote won't affect the outcome.Which of the following would cause people to be more likely to vote? Select the best answer.

An election is likely to have a result decided by an extremely slim margin. Choosing not to vote is becoming less socially acceptable. The nominees' stances on all issues are well-known to the public. The town holding the election is not highly populated, generating the idea that one's vote could make the difference in the election outcome. Eligible voters live in a community where political issues are frequently discussed, leading to more informed voters. Eligible voters take pride in snapping selfies as they leave the polls to show others they have voted, creating social pressure to vote. The many debates and interviews held with candidates have resulted in a highly informed public. The check-in system to validate voter identify is quick and easy. Past elections have often been decided by just a few votes. The public is easily and accurately informed via various media outlets. Voter participation has been mandated by law. National news networks all release polls predicting a very tight race. "I voted" stickers provide a social incentive for many to get out and vote. An improvement made to the voting process reduces wait times. A runoff election has sparked greater voter interest and the feeling that one vote could make the difference in the election outcome. Polls will be open later than normal in an effort to provide eligible voters with time to vote after working hours. Polls will be open later than normal in an effort to provide eligible voters with short wait times. Political debates are viewed as entertaining to watch, and clips are often posted on social media. More employers offer election day off as paid vacation time. Candidates have used social media like Twitter to help inform eligible voters of their stance on key issues. Education levels of the general public have increased, resulting in greater interest of key election issues. The voter registration process has been made more user-friendly. Social media helps to keep eligible voters more informed and interested in the election. Eligible voters live in a swing state where the outcome is highly uncertain.

Which of the following most accurately defines capital gains? Select the best answer.

An increase in the stock value between the purchase and sale of the stock shares

Which definition matches the following term? Select the best answer. Financial intermediary

An institution that operates between a saver who deposits funds in a bank and a borrower who receives a loan from that bank

Which term matches the following description? Select the best answer. An economic entity that invests money in small start-ups in exchange for owning some portion of the firm

Angel investor

Which issue is the following special interest group most likely concerned with? Select the best answer. Big Cat Rescue

Animals and wildlife

What is pork-barrel legislation? Select the best answer.

Appropriations made by a legislature for projects that are non-essential but still sought because they benefit the constituents of the legislators in a direct and obvious way Legislation that bundles together a number of projects, each benefiting local interests at the expense of general taxpayers Legislation that contains a number of projects benefiting local interests at the expense of the general taxpayer

The poverty line for a single person in the U.S. in 2015 is set at approximately what level? Select the best answer.

Approximate income level of $12,000

The poverty line was, in part, based on which data for a U.S. family of four in 2015? Select the best answer.

Approximate income level of $25,000

Which issue is the following special interest group most likely concerned with? Select the best answer. Americans for the Arts Action Fund

Arts

Which issue is the following special interest group most likely concerned with? Select the best answer. Association for Supervision and Curriculum Development

Education

What is the source of financial capital in the following scenario? Select the best answer. A group of wealthy golfers decides to put funds together to help a young entrepreneur.

Early-stage financial capital

What is the source of financial capital in the following scenario? Select the best answer. A venture capital firm is looking to invest in a few small but promising businesses

Early-stage financial capital

What is the source of financial capital in the following scenario? Select the best answer. Mark is an excellent photographer but does not own a photography studio. To buy a place that he can transform into a studio, he convinces a group of local businesses to help him with the financing.

Early-stage financial capital

What is the source of financial capital in the following scenario? Select the best answer. Mary has been recycling colorful, used cloth to make beach bags and plans to make this her business. She has a business plan and some savings but will need more funding.

Early-stage financial capital

What is the source of financial capital in the following scenario? Select the best answer. Paul has built a prototype of a new gardening tool and is looking for small investors.

Early-stage financial capital

What is the source of financial capital in the following scenario? Select the best answer. Paul wants to open a catering business that would exclusively prepare food for people with diabetes and cholesterol. He has no customers but hopes that investors see his business as a viable one.

Early-stage financial capital

What is the source of financial capital in the following scenario? Select the best answer. To open a bed and breakfast, Sarah secured funds from different sources, including individual and institutional investors.

Early-stage financial capital

Which option correctly completes the following sentence? Select the best answer. The [blank] is a method of assisting the working poor through the tax system.

Earned Income Tax Credit

Which issue is the following special interest group most likely concerned with? Select the best answer. American Federation of Teachers

Education

Which statement is correct? Select the best answer.

In the U.S., there is evidence of a strong relationship between voters' connectedness to society and their likeliness to vote. Politicians elected in a situation of low voter turnout may not enact economic policies in the best interests of the whole population. In the U.S., presidential candidates may use public funds to finance their election campaigns. The theory of rational ignorance holds that people will not vote if the costs of becoming informed and voting are too high or they feel their vote will not be decisive in the election. In the U.S., the costs of elections for president, Congress, and state and local offices are usually relatively low compared to the GDP of the country. Some people do not vote because they think their vote won't make a difference.

Which of the following most accurately defines shareholders? Select the best answer.

Individuals that buy a firm's stock

Which of the following most accurately defines bondholders? Select the best answer.

Individuals that buy bonds and receive interest payments

Which of the following most accurately defines corporate governance? Select the best answer.

Institutions that watch over top executives of firms

Which option accurately completes the following statement? Select the best answer. [Blank] is a method that households and firms use to prevent any single event from having a significant detrimental financial effect.

Insurance

Which option accurately completes the following statement? Select the best answer. [Blank] monitor and investigate claims to prevent insurance fraud.

Insurance companies

Which market is most likely to have imperfect information? Select the best answer.

Insurance markets

Which of the following is the best example of asymmetric information? Select the best answer.

Linda, a potential employee, knows more about her quality than her employer. Lenny has more information about his personal health care actions than his health insurer. The salesperson at Bullseye knows more about a television than the customer. Michael, the buyer of a new car, has all the information that the seller has, but only Michael knows how much he is willing to spend. Ron has more information about his personal health care actions than his health insurer. Richard has more information about his personal health care actions than his health insurer. Loretta has more information about the car she wants to sell to Jorge. Marcel, the buyer of a new car, has all the information that the seller has, but only Marcel knows how much he is willing to spend. Lisa has more information about her personal health care actions than her health insurer. The salesperson at A Good Buy knows more about a dishwasher than the customer. Kendra has more information about the car she wants to sell to Ken. The salesperson at Better Buy knows more about a stereo than the customer. Miguel, the buyer of a new car, has all the information that the seller has, but only Miguel knows how much he is willing to spend. Jessica, a potential employee, knows more about her quality than her employer. Linda has more information about the car she wants to sell to Michael. Lauren has more information about the car she wants to sell to Lonnie.

Which option accurately completes the following statement? Select the best answer. [Blank] is the situation in which groups of legislators all agree to vote for a package of otherwise unrelated laws that they individually favor.

Logrolling

Which option accurately completes the following statement? Select the best answer.[Blank] is the situation in which groups of legislators all agree to vote for a package of otherwise unrelated laws that they individually favor.

Logrolling

Which statement is correct? Select the best answer.

Logrolling is a term for when groups of legislators all agree to vote for a package of otherwise unrelated laws that they individually favor. Five firms with potential combined losses of five hundred thousand dollars are more likely to unite and lobby favorable laws and regulations than a thousand people with potential combined losses of one million dollars. Pork-barrel spending is legislation that mainly benefits a single political district. Many political issues are of intense interest to a relatively small group. Special interest groups may develop a close relationship with one political party, so their ability to influence legislation rises and falls as that party moves in or out of power. A special interest group can pressure legislators to enact public policies that do not benefit society as a whole.

Which option accurately completes the following statement? Select the best answer. [Blank] typically encourages [blank].

Logrolling; pork-barrel spending

Which option accurately completes the following statement? Select the best answer. A [blank] curve depicts income inequality data.

Lorenz

Which option accurately completes the following statement? Select the best answer. Every [blank] curve diagram begins with a line sloping up at a forty-five-degree angle, representing perfect income equality.

Lorenz

Which statement is correct? Select the best answer.

The poverty rate can change without any significant changes in income inequality. Reducing the income of everyone in the population by the same proportion would raise the poverty rate, but income inequality would be the same. Income inequality involves comparing those with high, middle, and low incomes. In the U.S., one factor of growing income inequality is the increase in the percentage of married women in the labor force. A general rise in income levels over time does not necessarily affect income inequality. Despite a general rise in income levels, income inequality across households has increased in the United States. In the U.S., changes in technology have increased income inequality due to a shift in the distribution of wages.

Which statement about government agencies and private-sector firms is correct? Select the best answer.

The pressure a government agency faces to seek greater efficiency is much less than the pressure exerted by the self-correcting mechanism on private-sector firms. Local workers and local economies might benefit if there was no self-correcting mechanism putting pressure on private-sector firms. Even if a government agency produces at a higher cost than a private-sector firm would, it usually continues to operate in the market. The self-correcting mechanism puts significant pressure on private-sector firms, while government agencies experience almost no such pressure. A government agency's performance can be improved, mainly through the actions of elected politicians. Private-sector firms compete with one another to survive in the market, but government agencies do not because they survive on tax dollars. Government agencies can provide services using private-sector firms under contract.

Which definition matches the following term? Select the best answer. Bond yield

The rate of return a bond is expected to pay over time

Which definition matches the following term? Select the best answer.Default risk

The risk that the borrower fails to pay back the bond or loan

Which definition matches the following term? Select the best answer. Interest rate risk

The risk to the bond holder that changes in interest rates may affect the market value of a bond.

What is logrolling? Select the best answer.

The situation where a member of Congress votes to approve a bill in exchange for favorable votes from other members on other bills The situation in which legislators support one another's projects in order to ensure support for their own A situation in which legislators agree to support colleagues' projects in order to ensure support for their own

Which definition matches the following term? Select the best answer. Expected rate of return

The sum of future interest payments, or the capital gains, or the increased profitability that an investor can expect to reap from her investment, expressed as a percentage of the price of the asset

Which definition matches the following term? Select the best answer. Actual rate of return

The total rate of return, including capital gains and interest paid on an investment at the end of a time period

In the following scenario, would James qualify for TANF? Select the best answer.James is unable to work because he is attending school full-time.

yes

Does the following scenario depict a flaw in the democratic system? Select the best answer.For breakfast, Tristan wants pancakes, Emily wants waffles, and Soroush wants cereal.

yes

Does the following scenario depict a flaw in the democratic system? Select the best answer.For summer vacation, Melinda wants to go camping, Russell wants to go waterskiing, and Evelyn wants to go skydiving.

yes

Does the following scenario depict a flaw in the democratic system? Select the best answer.Marge, Lisa, and Maggie are in a voting cycle between pizza, pasta, or salad for lunch.

yes

Does the following scenario depict a flaw in the democratic system? Select the best answer.Residents in Virginia Beach vote among two conservative candidates and one liberal candidate. Together, the conservatives the had majority vote. However, the liberal candidate wins because the votes were divided between the two conservative candidates.

yes

Does the following scenario depict a flaw in the democratic system? Select the best answer.The Wayans family are in a voting cycle, trying to decide what to watch for movie night.

yes

Does the following scenario depict a flaw in the democratic system? Select the best answer.There is a fifty-fifty split in an election.

yes

Does the following scenario depict a flaw in the democratic system? Select the best answer.Two conservative candidates each win thirty percent of the votes, and a liberal candidate wins forty percent of the vote.

yes

Does the following scenario depict a flaw in the democratic system? Select the best answer.When there are more than two candidates, it may be difficult to get a single desired outcome.

yes

Does the following scenario illustrate the median voter theory? Select the best answer. Governor Marks' campaign appeals to the median voter.

yes

Does the following scenario illustrate the median voter theory? Select the best answer. Mayor Robbins plans to create policies that benefit the median voter.

yes

Does the following scenario illustrate the median voter theory? Select the best answer. Senator Ramsay's campaign speech highlights points that the median voter appreciates.

yes

Does the following scenario illustrate the median voter theory? Select the best answer.Governor Schwartz's campaign aims at voters in the middle of the political spectrum.

yes

Does the following scenario illustrate the median voter theory? Select the best answer.Mayor Adams' campaign mixes conservative and liberal elements to appease both sides of the political spectrum.

yes

Does the following scenario illustrate the median voter theory? Select the best answer.Mayor Jackson plans to create policies that benefit the median voter.

yes

Does the following scenario illustrate the median voter theory? Select the best answer.Mayor Jensen studies the political atmosphere and designs his campaign to benefit the median voter.

yes

Does the following scenario illustrate the median voter theory? Select the best answer.Mayor Kim's campaign platform focuses on the needs of the median voter.

yes

Does the following scenario illustrate the median voter theory? Select the best answer.President Minguez's campaign mixes democratic and republican ideologies to appease the average voter.

yes

Does the following scenario illustrate the median voter theory? Select the best answer.Senator Ramsay's campaign speech highlights points that the median voter appreciates.

yes

In the following scenario, would Carly qualify for WIC? Select the best answer.Carly is pregnant with her second child.

yes

In the following scenario, would Dan qualify for AFDC? Select the best answer.Dan is a single father and unemployed.

yes