FINAL 1
A period of economic stability began in the 1980s. In 2001, prices began to increase. In 2007, an economic crisis caused prices to fall. Which of these dates would be considered the peak of this cycle? 1980 1990 2001 2007
2007
Sayuri's Asian Café makes the best pot stickers in town. Sayuri tracks her production over the course of seven days. What would explain the low production on days 4 and 5?
A new hire was being trained to make pot stickers
Look at the graph. The retailer decreased the price of green glass ornaments to $10. Which of these would occur? A new equilibrium point, because the demand would decrease A shortage, because the price is lower than equilibrium price A surplus, because the price is lower than equilibrium price Selling more ornaments, because reducing the price would increase supply
A shortage, because the price is lower than equilibrium price
Look at the graph. A bookstore owner increases the price of art books to $25. Which of these would occur?
A surplus, because the price is higher than equilibrium price
Which of the following industries benefits from government subsidies?
Agriculture
If private investors put a lot of money into the U.S. economy, the gross domestic product will increase. What else will likely occur?
An increase in inflation and a decrease in the unemployment rate
Given the data in the chart, which of the following statements is true? Australia and the United States are more developed than India. Namibia and Australia are much less developed than the United States. Russia and the United States have about the same degree of development. The United States is less developed than Russia and China.
Australia and the United States are more developed than India.
Life Expectancy Given the data in the chart, which of the following statements is true?
Australia and the United States are more developed than India.
Based on the charted data, which of these statements is true?
Being an attorney requires more education than being an administrative assistant.
Based on the charted data, which of these statements is true? An elementary school teacher is in higher demand than a registered nurse. Society values registered nurses more than construction project managers. Being an attorney requires more education than being an administrative assistant. There are more construction project managers than elementary school teachers.
Being an attorney requires more education than being an administrative assistant.
Trevor's company makes fine chocolates. He has figured out how to maximize his profit. What letter on the graph represents Trevor's situation?
C
Given the data in the chart, over which country does the United States have a comparative advantage in oil production?
Canada
Marcie wants to work as a freelance editor. She purchases a desk, computer, widescreen monitor, and ergonomic keyboard. What kind of resources are these?
Capital
The city council allocates funds for road repair. Which of the following circumstances would be a positive externality?
Citizens spend less money repairing punctured and torn tires.
Occupation Salary Attorney $77,000 Software Engineer $63,000 Administrative assistant $33,000 Elemetary school teacher $40,000 Registered Nurse $53,000 Construction project manager $72,000 Which of these is likely true, based on the charted data?
Construction project managers are in higher demand than teachers
Cardinal Comics produces graphic historical novels and retails them through local shops throughout the United States. The publisher maintains an in-house staff of editors and illustrators but contracts out writing, printing, and distribution. Its printer uses domestically recycled paper but imports ink and much of its printing equipment from overseas. Segment B of the circular flow diagram above reflects which part of this scenario?
Consumers purchase graphic historical novels from local shops.
Cardinal Comics produces graphic historical novels and retails them through local shops throughout the United States. The publisher maintains an in-house staff of editors and illustrators but contracts out writing, printing, and distribution. Its printer uses domestically recycled paper but imports ink and much of its printing equipment from overseas. Segment B of the circular flow diagram above reflects which part of this scenario? Consumers purchase graphic historical novels from local shops. Publisher maintains an in-house staff of editors. Cardinal Comics contracts out writing, printing, and distribution. Printer uses domestically recycled paper.
Consumers purchase graphic historical novels from local shops.
If a series of events results in a decrease in investments in U.S. businesses, what is the result on the U.S. economy?
Contraction
Which best describes the function of the Federal Reserve System?
Control Of The Money Supply
Which best describes the function of the Federal Reserve System? Administration of taxes Control of the money supply Oversight of international trade Regulation of commerce
Control of the money supply
Ming is starting a business and she would like her personal assets to be protected. Which organizational structures should she consider?
Corporation or limited liability corporation
Mykha's company makes jewelry from doll shoes. She increases production but finds that her costs continue to rise while profits decrease. What letter on the graph represents Mykha's situation? A B C D
D
Imagine the federal government has a national debt of $10.2 trillion. Congress's budget for the coming year includes a spending projection of $4.2 billion. Tax revenue projects $3.8 billion. Which fiscal policy should Congress adopt to avoid increasing the national debt?
Decrease Spending
If the economy is in decline, and the Federal Reserve wants to encourage banks to lend to consumers, which step will the Fed likely take?
Decrease the discount rate.
If the economy is in decline, and the Federal Reserve wants to encourage banks to lend to consumers, which step will the Fed likely take? Encourage the sale of government securities. Decrease the discount rate. Increase the federal funds rate. Raise the prime rate.
Decrease the discount rate.
In this circular flow diagram, the flow direction that could represent personal income taxes corresponds to letter
E
Diplomatic relations have broken down between the United States and another nation. To punish the other nation for treaty violations, the U.S. government bans all trade with that nation. This is an example of which kind of trade barrier?
Embargo
Entrepreneurs An Wang Madame C. J. Walker Samuel F. B. Morse Joseph A. Unanue Choose one of the entrepreneurs from this list. Write an essay about how your chosen entrepreneur has affected life today. Detail challenges he or she faced and explain how this person embodies one or more characteristics from the HUNT. Present your response in a clear, organized manner and cite examples as needed.
Essay Submission
Look at the circular flow diagram. Choose and define an environmental issue. Using the diagram as a guide, explain how the environmental issue you chose affects the relationship between household and government.
Essay Submission
Look at the circular flow diagram. Choose and define an environmental issue. Using the diagram as a guide, explain how the environmental issue you chose affects the relationship between business and factor market.
Factor market contains labor, capital, land and entrepreneurship. Business--look to cut corners on costs and pollute environment (land), for their employees (labor) possible disease, and possible, future capital investment may be cleaner factory.
Shayla is making a circular flow diagram that includes specific examples for each heading. If she wrote that "Ming makes a monetary contribution to artisan group that produces natural dye in Guatemala" which two areas would be affected?
Factors for production, and rest of the world via foreign interactions
In 2011, Finland had a GDP of $195 billion and a per capita GDP of $36,000. Life expectancy was about 79 years. Which of these additional factors would most support the conclusion that Finland has a developed rather than an emerging economy?
Finland has a free-market economy
Entrepreneurs An Wang George Washington Carver Samuel F. B. Morse Margaret Hutchison Rousseau Choose one entrepreneur from this list. Write about an innovative idea this entrepreneur had. Include details about the person who brought it into being and the contributions he or she made to our society. How did this entrepreneur embody one or more characteristics from the HUNT? Present your response in a clear, organized manner and cite specific examples.
George Washington Carver he made remarkable thing with peanuts that help farming family and we still use his farming techniques today. He took his vision in using peanuts to help people and he was the first one to do so to go out help farming families that needed these techniques to survive.
Given the data in the chart above, which of the following trade scenarios is the most efficient? France produces olive oil; Greece and Italy produce wine. Greece and Italy produce olive oil; France produces wine. Greece and France produce olive oil; Italy produces wine. Italy produces olive oil; France and Greece produce wine.
Greece and Italy produce olive oil; France produces wine.
An artisan sells handmade journals. His products are successful. Based on the chart, what will happen next?
He will increase the price and make more journals.
An artisan sells handmade journals. His products are successful. Based on the chart, what will happen next? He will increase the price and make fewer journals. He will increase the price and make more journals. He will lower the price and make fewer journals. He will lower the price and make more journals.
He will increase the price and make more journals.
Jared's friends invite him to dinner at a new restaurant in town. Money has been tight this month, and the new restaurant offers the same meal as another local restaurant but at a higher price. Jared declines the invitation to the new restaurant and opts to dine at the less expensive establishment. Which of the following best represents the reason for Jared's decision?
High food prices at the new restaurant
How are start-up costs related to natural monopolies?
High start-up costs prevent others from offering the same service in a natural monopoly.
Which of the following statements best explains why the red bar goes up when the blue goes up? Equivalent spending and taxing does not allow for debt reduction. Higher spending than taxing results in a deficit, which contributes to more debt. Higher taxing than spending results in a deficit, which contributes to more debt. Higher taxing and higher spending result in more debt.
Higher spending than taxing results in a deficit, which contributes to more debt.
Jared's friends invite him to dinner at an expensive restaurant. Jared examines his budget and determines he cannot afford an expensive dinner, so he declines the invitation. Which of the following best represents the reason for Jared's decision? His dislike of the selected cuisine His limited income and budget Lower price of an alternative option Preference for another style of food
His limited income and budget
Unemployment is rising, and the federal government wants to encourage job growth. Which of the following actions would be an appropriate fiscal policy?
Increase spending on infrastructure projects
Unemployment is rising, and the federal government wants to encourage job growth. Which of the following actions would be an appropriate fiscal policy? Expand open-market operations Increase spending on infrastructure projects Lower discount rates Raise taxes on small businesses
Increase spending on infrastructure projects
Given the data in the chart, which of the following statements is true? Australia is more developed than the United States. China and Ecuador are more developed than Australia. India and Namibia are less developed than Russia. The United States is less developed than India.
India and Namibia are less developed than Russia.
Two traditional economies are trying to industrialize. The leaders of the first favor a command economic system. The leaders of the second want to try more free market-based policies. Which of the following actions would likely occur in one but not the other industrializing economy? Conversion of farmland from agriculture to industry Export of surplus goods not consumed locally Investment in loans to support independent start-ups Payment of workforce based on units of production
Investment in loans to support independent start-ups
Sayuri's Asian Café needs to make pot stickers faster, so Sayuri buys a new machine to speed production, and the team starts using it on Day 4. Sayuri tracks production over the course of seven days. Which of these statements summarizes how the machine affects productivity?
It initially slows production, but then production improves greatly.
Sayuri's Asian Café needs to make pot stickers faster, so Sayuri buys a new machine to speed production, and the team starts using it on Day 4. Sayuri tracks production over the course of seven days. Which of these statements summarizes how the machine affects productivity? It initially slows production, but then production improves greatly. It initially slows production, but then production returns to its normal rate. It initially speeds up production, but then production returns to its normal rate. It initially speeds up production, but then production slows down again.
It initially slows production, but then production improves greatly.
Economic forecasters predict a long period of job growth and consumer spending. The Federal Reserve is most likely to do which of the following to encourage this expansion? Increase federal funds rate Keep the discount rate low Sell government securities Maintain high reserve requirements
Keep the discount rate low
Bill and his wife, Vickie, want to start a company that develops training sessions for corporate clients. They would like to share the decisions, have few start-up costs, and protect their personal assets. Which of these would suit their needs best? Corporation Limited liability corporation Partnership Sole proprietorship
Limited liability corporation
Sixty-five nations sign a treaty pledging caps on industrial emissions and the development of renewable resource energy production. Which of the following would be a long-term positive externality for global health?
Lower rates of childhood asthma
Sixty-five nations sign a treaty pledging caps on industrial emissions and the development of renewable resource energy production. Which of the following would be a long-term positive externality for global health? Increased land allocation for wind farms Lower rates of childhood asthma More manufacturing of vaccines Reduction of vitamin deficiencies in children
Lower rates of childhood asthma
Which of the following is a government price control? Farm subsidies Minimum wage Research funding Union actions
Minimum wage
Which of the following is a potential benefit of inflation?
More business profits.
A livestock ranch decides to expand its operations. Which of the following would be a negative externality for the local environment?
More groundwater pollution
A livestock ranch decides to expand its operations. Which of the following would be a negative externality for the local environment? Higher property taxes Less land for development Less use of renewable resources More groundwater pollution
More groundwater pollution
In the rural farming town of York Springs, Smith's was the only grocery store and Lehman's was the only animal feed mill. How would you describe these businesses?
Natural monopolies
In the rural farming town of York Springs, Smith's was the only grocery store and Lehman's was the only animal feed mill. How would you describe these businesses? Active competitors Competitive companies Natural monopolies Price-controlling oligopolies
Natural monopolies
Given the data in the chart above, which statement explains why these three countries would benefit from specialization and trade?
No country has an absolute advantage in all activities.
If Juliet consistently buys health insurance for twenty years but never suffers a costly illness, were her premium payments wasted?
No, if the safety of being insured was worth more to her than the monetary cost of the premiums
Andy compares mattresses. A twin-sized NightSoft mattress at the large chain BuyRite costs $1,500. The BuyRite saleswoman tells Andy that the company's 24-hour customer service, free mattress cleaning, and 60-day return policies are the best in the business. A similar twin-sized model, the DarkNights mattress, at the small store Joe's Bed and Linens, costs $1,495. The salesman at Joe's tells Andy that this store offers a 30-day money-back guarantee, plus free delivery. Which of these is Andy experiencing?
Non-price competition in a monopolistically competitive market
Paul and his friend Tori make decorative art out of silver spoons. They want to start a business that they can easily dissolve when they move on to their next project. Which of these will suit their needs best?
Partnership
In anticipation of a hurricane, demand for tortillas goes up. Oyama's store produces tortillas. Based on the chart, how will Oyama respond to the new demand for tortillas?
Price and quantity supplied will increase
Angela is a musician who writes short musical pieces for use in religious services and nonreligious festivals. There is a large anniversary celebration in her town in one month, and she has been asked to compose an original nonreligious piece. How might this affect her production possibility curve for new music?
Production would increase for nonreligious music and decrease for religious music.
Angela is a musician who writes short musical pieces for use in religious services and nonreligious festivals. There is a large anniversary celebration in her town in one month, and she has been asked to compose an original nonreligious piece. How might this affect her production possibility curve for new music? Production would decrease for both religious and nonreligious music. Production would decrease for nonreligious music and increase for religious music. Production would increase for both religious and nonreligious music. Production would increase for nonreligious music and decrease for religious music.
Production would increase for nonreligious music and decrease for religious music.
In this diagram, which flow direction could represent foreign investors purchasing stock in U.S. companies?
Q
The country has entered a period of economic growth, but prices are rising too rapidly. To stabilize prices, the Federal Reserve decides to
Raise The Discount Rate
In 2011, Brazil had a GDP of $2.3 trillion and a per capita GDP of $11,800. A fifth of the population lived below the poverty line, and life expectancy was about 73 years. Which of these additional factors would most support the conclusion that Brazil is an emerging economy rather than a developing economy? A poorly educated workforce High social security costs Rapidly increasing exports Underdeveloped infrastructure
Rapidly increasing exports
In 2011, Brazil had a GDP of $2.3 trillion and a per capital GDP of $11,800. A fifth of the population lived below the poverty line, and life expectancy was about 73 years. Which of these additional factors would most support the conclusion that Brazil is an emerging economy rather than a developing economy?
Rapidly increasing exports
A game store sells the latest Dungeoncrawl game at the suggested retail value. Initially, the game sells well, until a combination of bad reviews and word of mouth reduce demand drastically. What should the store do to sell the remaining Dungeoncrawl games? Buy more Dungeoncrawl games from the supplier. Increase the price to increase demand. Keep the price the same until demand goes up again. Reduce the price until the games are sold.
Reduce the price until the games are sold.
Which of the following statements reflects the broad economic goal of equity?
Removing funding from public universities that refuse to accept women, minorities, or economically disadvantaged applicants as students
Which of these is an example of the line marked "Artificial Price"?
Rent Controls
A table showing worker hours to produce one unit of two common resources. Canada can produce lumber in 5 and oil in 20 worker hours. Russia produces lumber in 10 and oil in 10 worker hours. Saudi Arabia produces lumber in 60 and oil in 5 worker hours. United States produces lumber in 10 and oil in 15 worker hours. Venezuela produces lumber in 40 and oil in 15 worker hours. A third column, Worker Hours to Produce Oil instead of Lumber, Given the data in the chart, which two countries enjoy an absolute advantage in oil production over the United States?
Russia and Saudi arabia
Which of these is a natural monopoly? Cell phone service Computer repair Package delivery service Sewage treatment
Sewage treatment
Juanita, who lives with her brother, has saved $12,000 for a down payment on her own house. Her financial planner suggests she look for a savings account that offers compound interest accounts. Why should Juanita take this advice?
She will earn interest on the initial deposit, as well as interest earned.
Juanita, who lives with her brother, has saved $12,000 for a down payment on her own house. Her financial planner suggests she look for a savings account that offers compound interest accounts. Why should Juanita take this advice? She will earn interest on the initial deposit, as well as interest earned. She will have quick access compared to other savings account. She is saving for a short-term goal that will be reached soon. She has so little to invest that it will be safer over the long term.
She will earn interest on the initial deposit, as well as interest earned.
What can result from the line marked "Artificial Price"? Artificial monopoly Natural monopoly Shortage Surplus
Shortage
2010 Budget - Projected deficits and debt increases Which of the following statements best accounts for the data shown in the graph above?
Spending relative to tax revenue drastically increased in 2009.
Which of the following entities would most likely agree with Adam Smith's statement?
Stockholders for a pharmaceuticals company that has a new cancer drug
Imagine the federal government has a national debt of $10.2 trillion. Congress's budget for the coming year includes spending projections of $4.2 billion. Tax revenue projects $3.8 billion. Which will be the most likely consequence? The national debt will decrease. The national debt will increase. Personal incomes will go down. Unemployment programs will be cut.
The national debt will increase.
A new bakery opens downtown. Which circumstance would most likely be a negative externality? Customers of the old bakery see a drop in prices. Neighboring stores get more foot traffic. The city government collects added tax revenue. The old bakery down the street loses some customers.
The old bakery down the street loses some customers.
Rod has a business making silver and gold jewelry charms in the shapes of molecules. He has five metalsmiths who work for him. One week, his production possibilities curve shifts inward. What could explain this shift?
Two metalsmiths catch a viral infection and take sick days
Based on this chart, which statement is true? Saudi Arabia has an absolute advantage over the other countries in lumber production. Russia has an absolute advantage over the other countries in oil production. The United States has a comparative advantage over Russia in oil production. Venezuela has a comparative advantage over Canada in oil production.
Venezuela has a comparative advantage over Canada in oil production.
Study the map above. The TVA believes that the positive externalities outweigh the negative externalities of which renewable resource? Coal Uranium Water Lumber
Water
Tennessee Valley Authority (TVA) Sites Red = water dams Purple = nuclear power plants Orange = fossil fuel power plants Study the map above. The TVA believes that the positive externalities outweigh the negative externalities of which renewable resource?
Water
Supporters of free trade zones would most likely argue that this map demonstrates how free trade
breaks down barriers among nations
Supporters of free trade zones would most likely argue that this map demonstrates how free trade breaks down barriers among nations encourages the spread of industrialization expands national boundaries reduces the influence of command economies
breaks down barriers among nations
The bookstore is overstocked with old fantasy novels. It needs to get rid of the novels to make room for newly published fantasy novels. Based on the chart, what could the bookstore do to increase quantity demanded for fantasy novels?
decrease price on the old fantasy novels
A country withholds funding from any college or university that does not accept women at the same rate as men. This action reflects the broad economic goal of efficiency equity growth stability
equity
In 2008, Federal Reserve Chairman Ben Bernanke made credit more available within the U.S. financial system by loaning money to banks. This action was to encourage a(n) contraction expansion peak trough
expansion
One drawback of a four-year college degree is early entry in the workforce greater costs compared to community college guaranteed demand for your skills limited choices for career paths
greater costs compared to community college
The most immediate impact of rising inflation is
higher prices
The most immediate impact of rising inflation is decreasing trade higher prices increasing money supply less hiring
higher prices
An example of a positive externality is
parks
Which market type is most beneficial to consumers?
purely competitive market
The main benefit of a technical school certification is
reduced costs compared to other degree options
One bank offers a 4% variable rate loan, while a competitor offers a 3% fixed rate loan over the same period. Assuming no other differences between the loans, a customer should choose the fixed rate loan because the interest rate is higher and guaranteed to increase the interest rate is higher but will not increase the interest rate is lower and will not increase the interest rate is lower but is likely to increase
the interest rate is lower and will not increase
Given this statement, Adam Smith would be most likely to oppose encouraging trade competition getting rid of trade tariffs using taxes to help failing banks removing farm subsidies
using taxes to help failing banks
One bank offers a 2% variable rate loan, while a competitor offers a 3% fixed rate loan over the same period. It is likely better to choose the fixed rate loan, even though the interest rate is higher, because the rate on the
variable loan can increase dramatically
In the event no property damage or loss occurs during an insurance contract period, the premium payments were wasted only if the policyholder derived more benefit than the premium cost paid a minimal cost compared to received benefit would have preferred added risk over security would have preferred added security over risk
would have preferred added risk over security