Economics
Bank failures during the Great Depression led to the creation of the
Federal Deposit Insurance Corporation
In terms of purpose, which of the following do municipal governing boards most closely resemble
General Assembly
Which of the following best explains the upward slope of the supply curve?
High prices motivate suppliers to produce more
Which of the following statements correctly describes the federal income tax?
People with lower incomes pay a smaller percentage of their income as taxes
What happens when the same amount of input, used in the same amount of time, produces a greater amount of output?
Productivity goes up
Which of the following is one of the steps to making a budget?
Record everything that you earn and it's source
How do corporations finance their start-up and operation?
Sales of stock
An example of mandatory spending by the federal government is the money is used
Social Security benefit checks
A business that donates money and products to a local charity is showing?
Social responsibility
The primary motive in business is to
increase profits
Private property rights promote capitalism by
providing incentives to make, save, and spend money
The Fed increases the money supply when it buys bonds because it
puts cash in investor's hands
The Gross Domestic Product examines the
quantity of goods and services produced
Members of an unincorporated community may request annexation by an adjacent municipality in order to
receive municipal services
One advantage of a sole proprietorship is that the owner
receives all the profits
When labor unions and business managers disagree, they may ask an arbitrator to
record their contract discussions listen to both sides and to make a decision.
Which is an example of how to produce?
regulating the amount of pollution factories can produce
What forces people to make economic choices?
scarcity of resources
Articles of partnership describe how business partner will
share profits and losses
Long term financial goals
sometimes conflict with short-term spending
Which of the following is a drawback of having credit?
spending more than you can afford by using easily available credit.
The government sector of the United States receives most of its revenues from
taxes on individuals and businesses
Which of the following requires legislative action by the NC general Assembly
taxing citizens
According to rational economic decision making, we should accept an option when
the benefits outweigh the costs
An example of macroeconomics
the central bank of the United States decides to lower the interest rates on loans
Which of the following represents marginal cost?
the cost of producing one additional unit
Which example illustrates how changes in complements can influence demand?
the demand or pencils increases when the price of lamps increases
In what part of the world does the U.S have the smallest degree of defensive cooperation?
the middle east
For which of the following reasons do market style economies tend to produce more wealth than command economies
the opportunity for individuals to profit from their own efforts
Why are money and factors/goods moving in opposite directions?
they are means of exchange for one another
Nations experience economic growth when their
total output of goods and services increases
Which feature of capitalism is at work when buyers and sellers freely and willingly engage in market transactions?
voluntary exchange
When would most consumers prefer to borrow money?
when the Fed buys bond
Another benefit to investing in stocks is that
you own a part of the company in which you invest
Which sales strategy demonstrates an understanding of the principle of diminishing marginal utility?
consumers who purchase an item at full price may purchase another one at half price.
A company makes the decision to drop a particular product from its line. Such a decision was MOST likely prompted by a
cost-benefit analysis showing it was no longer profitable to make that product
Which of the following defines global interdependence?
countries that rely on one another for their goods and services
Which of the following is an example of microeconomics?
economics of an individual
On average, income tends to increase as
educational level increases
Reductions in the loan discount rate will
encourage economic growth
Since 1992, the rate of change from year to year has
fluctuated
Specialization helps improve productivity because it allows businesses to
focus on what they do best
Which sector of the economy sells products to and buys products from the United States?
foreign
Demand is likely to be inelastic
have very few or no substitutes
The economy grows
in alternating periods of growth
What is an advantage of free global trade?
incentives of world peace
Your ____ is the money you earn from all sources and your ___ are the money you choose to spend.
incomes/expenses
Which of the following is a way to prevent impulse buying?
Make a list of the things you need and stick to it
Which of the following is a characteristic of a market economy?
people have the freedom to choose from a variety of products
Supply shifts to the right, demand doesn't change.
price has decreased because supply has increased
What does the phase "the market cleared" mean?
price reached equilibrium
If the fixed costs of producing dresses are 1,000 and the variable costs are $500, then the total cost is
$1500
IN which of the following government types are the people most free
A republic
Demand for a product tends to increase when?
Consumers expect a shortage
How might damage to oil refineries demonstrate the economic interdependence of the U.S. businesses?
Depend on oil will see disruptions in the productivity
What presents the greatest near term challenge to america's global economic dominance?
Developing economies such as india and china
What example illustrates how changes in substitutes can influence demand?
The demand for ford cars increases when the prices of general motors increase
Which of the following statements best answers the question posed by the man in the cartoon?
When demand increases, price increases.
Which sector of the economy buys the greatest percentage of final goods as measured by the Gross Domestic Product?
consumers
Which factor is most likely to cause the supply of a product to decrease?
a new environmental regulation
equilibrium price
at intersection of Po and Qo
which of the following requires workers to belong to a union before they can be hired?
closed shops
One purpose of saving money is to-
collect enough money for a major purchase
To keep track of inflation, the government uses the
consumer price index
Which of the following is believed to be a benefit of global trade?
increased global production and wealth
From which source do local governments receive the greatest amount of money
intergovernmental revenues
Which of the following is a human resource?
knowledge
Which of the following does the Fed regulate?
large commercial banks in the United States
Which level of government is responsible for fire protection
local
One of the main purposes of the United Nations is to
maintain international peace
The federal reserve system's board of governors is independent of the president and congress so that it may
make decisions without out political pressure
The extra revenue that results from selling one more unit or the output is the
marginal revenue
What is financial capital?
money needed to start and operate a business
What could explain supply moving to the right
more efficient means of manufacturing
Which of the following causes a change in demand?
number of consumers
Workers organize labor unions in order to
obtain better pay and working conditions
The loss of years of income resulting from the decision to go to college is the
opportunity cost
When people buy stock in a business, they become
part owners of the company
A demand curve shifts to the left when?
people are willing to buy fewer items at all possible prices