Econ

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What does deficit spending require a government to do? lay off workers cut taxes take on debt hire more workers

What is a major factor in the decline of some occupations, such as those in the textiles and clothing industries? shifting consumer tastes overseas labor costs changing technologies aging populations

According to the graph, the marginal cost begins to increase when the producer makes two pies. three pies. four pies. five pies.

As of 2013, which of these countries had the highest GDP per capita? Uganda the United States Switzerland Brazil

What area of economics focuses on the interactions between individual consumers and producers? aggregates macroeconomics microeconomics markets

Which best explains why producers choose to specialize? Check all that apply. to increase sales to gain a comparative advantage to decrease the amount of goods produced to maintain market share to increase efficiency

2,5

Banks pay interest to customers through a savings account. credit card account. mortgage account. 401k account.

One primary purpose of the European Union is to create a common market. eliminate borders between countries. allow highly skilled workers to be employed. establish a free trade zone in the marketplace.

One sign of transition to a mixed-market economy is the establishment of a fair labor market. anti-poverty regulations. state-owned business. a smaller middle class.

Paying for transportation to and from work is an example of a mandatory expense. a variable expense. a short-term expense. a discretionary expense.

Read the graph that displays mortgage interest rates between 1978 and 1983. In what year did consumers get the best deal on a mortgage? 1978 1980 1982 1983

Read the graph. What can the reader reasonably conclude from information in the graph? Fewer new businesses were started in 2010 than in other years. The opening of new businesses peaked between 2007 and 2008. More new businesses were started in 2006 than in 2005. The number of new businesses remained constant between 2006 and 2009.

According to the article by Brooks, successful entrepreneurs are most interested in job security. financial gain. personal fulfillment. a flexible working environment.

All things being equal, when producers sell goods for a lower price, they make more money. the same amount of money. less money. as much money as the law allows.

An entrepreneur would most likely be a low risk taker. trained manager. person who works well alone. person who has a brief work week.

An example of a substitute good would be a sale on skis in the summer. sale on swimsuits in the winter. lower-priced gallon of milk. higher-priced luxury car.

Brenda's Boards manufactures skateboards. Each skateboard sells for $45 and includes the following expenses: $3 for the wheels and mounts, $1 for the plastic board, $1 for the paint, and $10 for the labor. What is the total profit the company earns after selling 100 boards? $300 $350 $3,000 $3,500

Economic interactions involving which of the following would most likely be studied in macroeconomics? a family's finances trade at a duty-free shop on the U.S.-Canadian border International Monetary Fund policy a small company's supply contract for a local town

Everyone's rights should be protected" is an argument for competition. against competition. for regulation. against regulation.

Failure to address the three questions of economics will have what kind of impact on an economy? It will have no consequences. It will help meet citizens' needs and wants. It will have negative consequences. It will help contribute to the success of the society.

How do bank loans help the nation's economy? They ensure consumer spending and confidence. They ensure the success of new businesses. They allow businesses to expand and improve. They allow consumers to quickly pay off debts.

How does a production possibility chart assist in outlining opportunity cost? It compares profit potential of one product to another. It compares production cost of one product to another. It compares production numbers of one product to another. It compares consumer demand of one product to another.

How has Internet access changed and affected globalization from 2003 to 2013? A ten percent increase in Internet access has had little effect on globalization. A twenty percent decrease in Internet access has had little effect on globalization. A thirty percent increase in Internet access has sped up globalization. A fifty percent decrease in Internet access has slowed down globalization.

The diagram shows the three-step process by which economic policy is created. Which is the best label for the first step in the process? Discuss a plan. Interview an interest group. Identify a problem. Gather data.

The document asks about dependents because the number can affect who pays taxes. increase overall taxes. lower overall taxes. affect when to pay taxes.

The goal of a command economy is to sustain self-sufficiency. preserve traditional customs. create equality within a society. promote free economic choices.

The graph demonstrates that the cost at private and public technical schools greatly varies. vocational schools greatly varies. four-year universities greatly varies. community colleges greatly varies.

The graph is a marginal cost curve that compares expenses for producing apple pies. According to the graph, the marginal cost begins to increase when the producer makes two pies. three pies. four pies. five pies.

The graph shows a point of equilibrium. If supply for a product is low but demand is high, what most likely needs to happen to achieve equilibrium? The price needs to be raised. The price needs to be lowered. The supply needs to be raised. The demand needs to be lowered.

The graph shows government spending as a percentage of GDP from 1990 to 2012. At its peak, government spending made up about half of GDP. 100 percent of GDP. one quarter of GDP. one tenth of GDP.

The graph shows the number of employed workers in the United States in nonfarm jobs from 2008 to 2013. What course of action might a government take to respond to the downturn revealed in this graph? reducing the size of its armed forces laying off unnecessary workers investing in job-training programs encouraging people to travel overseas

The highest amount a landlord can charge for rent is an example of an incentive. a price floor. a price ceiling. an elastic service.

The law of supply demonstrates the behaviors of producers when they change their company's name. decide to hire fewer workers. supply goods to consumers. launch a new marketing campaign.

The most common economic system in the world is a closed economy. command economy. market economy. traditional economy.

The pie chart shows federal spending in 2010. Which of the following was the highest spending priority for the federal government in 2010? labor and transportation veterans' affairs education/health and human services international assistance

This is a graph of the business cycle. Time is measured along the x-axis. What is measured along the y-axis? employment levels prices economic output demand

This photo shows a label that appears on food products in the United States. This label is an example of producer innovation in a market economy. freedom in the free-enterprise system. regulation by a government agency. competition between businesses.

To change gross income, someone would need to save more per month. reduce deductions. earn more money. increase withholdings.

Which describes a type of tax that funds city programs? progressive tax federal income tax local income tax medicare tax

A pure market economy is sometimes called pure capitalism .

capitalism

A is an occupation or profession that requires special training or education.

career

The North American Free Trade Agreement created a free trade zone between Canada, the United States, and Mexico .

Mexico

In a transitional economy, a ⇒ command economy is changing to a mixed-market economy.

command economy

The most common measure of inflation is a statistic called the .

consumer price index

In developed economies, less-educated workers have more jobs to choose from. are often more highly skilled than other workers. may be outsourced to other nations. can have difficulty finding work.

Labor unions were certain to advocate for the best interests of workers because the government shut down factories that did not improve work conditions. the top factories were run by owners who wanted to retain their workers. the government required all labor unions to promote workplace reform. the labor unions were created by workers and made up of workers.

To generate higher profit margins, producers must work to increase their total supply. increase their total expenses. decrease their customer base. decrease their production costs.

What determines the value of an item? the amount of goods that are produced the capital required to build the factory the unlimited wants of the consumers the resources consumed in production

Which best describes what injector factors bring to an economic system? factors of production imports consumers money

An expense that is constant each month is called a expense.

fixed

Income reaches the highest level at the peak point of the business cycle.

peak

Excess supply is created when price or move away from the equilibrium point.

quantity

A salary is a set amount of pay received by a worker over the course of a year.

salary

Sales tax is calculated by multiplying the price of an item by the .

tax rate

Recent improvements in have increased the pace of globalization.

technology

A pair of stylish sneakers could be considered a want ⇒ want because it is not a necessity.

want

What are the basic types of resources used by producers? Check all that apply. capital labor value scarcity land

1,2,5

The questions of economics address which of the following? Check all that apply. who what where when why how

1,2,6

The chart shows the marginal cost of producing apple pies. According to the chart, the marginal cost of producing the second pie is .

.50

To be successful, what must an entrepreneur be willing to invest? Check all that apply. money unemployment personal safety time considerable effort

1,,4,5

Which does the law of demand do? Check all that apply. allows producers to respond to consumers allows consumers to influence prices provides a demand schedule for a market allows consumers to choose low-priced goods provides consumers with additional income

1,2

Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers? CHECK ALL THAT APPLY. High school athletes stop shopping there. The inventory of sports socks goes unsold. Publicity for the store declines. Profits decline because dress shoes cost less than sneakers.

1,2

The Davis family grows organic vegetables to sell at a local farmer's market. Which are factors that directly affect their profit? Check all that apply. an increase in the cost of farm equipment a rise in demand for organic produce an increase in customers at the market a change in the market price for non-organic fruit a sale on organic meats at the market

1,2,3

Which of the following statements about opportunity cost are true? CHECK ALL THAT APPLY. It exists because resources are scarce. It influences consumers. It influences producers. It assists in anticipating profits. It encourages people to spread their resources around.

1,2,3

When governments inject money into the economy, which of the following are their goals? Check all that apply. reducing unemployment improving economic stability encouraging competition laying off striking workers improving production

1,2,3,5

In the circular flow model, factors of production flow to firms. Which of the following are the primary factors of production? Check all that apply. labor capital goods land services

1,2,4

Which are types of income tax that people pay? Check all that apply. federal local progressive state sales flat

1,2,4

In a free enterprise system, what are the goals of government? Check all that apply. to ensure safety for its citizens to ensure that citizens' needs are met to stay out of all economic decisions to solve the problem of poverty to prevent citizens from getting rich to ensure that the market is fair

1,2,4,6

The graph shows a supply curve. Which events could cause the change in supply shown on this graph? Check all that apply. A producer goes out of business. A natural disaster causes production to drop. A new company joins the marketplace. A company begins to produce more goods. A resource needed to produce more of the good has became scarce.

1,2,5

What types of information does a W-2 form contain? Check all that apply. how much has been earned how much sales tax has been paid how much has been withheld for taxes how much property tax has been paid how much additional tax is due how much withheld tax will be refunded

1,3

What circumstances during the early days of industrialization led to a need for reform? Check all that apply. Factory equipment was dangerous to operate. There were too few capable workers to fill positions. There was little government regulation of workplaces. A typical work shift might be twelve to sixteen hours long. It was very expensive to keep factories running.

1,3,4

Which are the roles of a bank? Check all that apply. Storing and holding money Making purchases to create profits Lending money Investing in the economy Creating money for the economy

1,3,4

In which of the following ways do governments spend money to meet public needs? Check all that apply. by protecting the public by arming the public by providing health care by supporting education by building roads and bridges

1,3,4,5

Which statements describe a free enterprise system? Check all that apply. Citizens can own property. The government employs all workers. Supply and demand drives production. Consumers and producers make their own decisions. Citizens can accumulate wealth. The government sets prices and wages.

1,3,4,5

What are the cons of a mixed market economy for most citizens? CHECK ALL THAT APPLY. There may be a sizable gap between rich and poor people. It can be very difficult for citizens to start private businesses. Citizens must pay for most basic necessities by themselves. There is no guarantee of steady employment for many citizens. Citizens may pay higher taxes than in other economic systems. Citizens often purchase their own health care and higher education.

1,3,4,6

Which are considered types of credit available to borrowers? Check all that apply. personal loans bonds credit cards mortgages cash auto loans gift cards

1,3,4,6

What are the signs of low inflation? Check all that apply. Demand steadily rises. Demand steadily falls. Prices continue to increase. Prices continue to decrease. The economy grows in a healthy way. The economy stagnates and struggles.

1,3,5

Which is most likely to happen to consumers with good credit? Check all that apply. They can be approved for loans. They are denied a mortgage. They can receive lower interest rates. They are denied an unsecured loan. They can use credit in emergencies. They are forced into high interest rates.

1,3,5

Which of these qualify as variable expenses? Check all that apply. clothing purchases loan payment monthly groceries apartment rent medical prescriptions

1,3,5

How has globalization made countries more interdependent? Check all that apply. Countries rely on each other for vital resources. Countries rely on each other for new industries. Countries rely on each other for chances to import. Countries rely on each other for an employment base. Countries rely on each other for cheaper products. Countries rely on each other for chances to export.

1,3,6

To be successful, what must an entrepreneur be willing to invest? Check all that apply. money unemployment personal safety time considerable effort

1,4,5

Which indicators do economists use to determine the state of the economy? Check all that apply. prices immigration levels agricultural output employment levels gross domestic product (GDP)

1,4,5

Which of the following are considered needs? Check all that apply. food Internet cell phone residence television water

1,4,6

Which factors must a producer consider when deciding what good to supply? Check all that apply. the appeal of the good to family members the elasticity of a good being supplied competition within the market the ability to produce the good efficiently the ability to produce a good of low quality

2,3,4

Which statements correctly describe the FAFSA? Check all that apply. It can only be completed in person or through the mail. It requires students to provide their financial information. It gives students access to money from the government. It helps determine whether a student needs financial aid. It helps predict how much a student will make in the future.

2,3,4

How can producers maximize their profit? Check all that apply. They can work to increase their marginal cost. They can work to decrease their marginal cost. They can raise prices to increase marginal revenue. The can lower prices to decrease marginal revenue. They can keep marginal costs below marginal revenues. They can keep marginal revenues below marginal costs.

2,3,5

What decisions does the business cycle help businesses make? Check all that apply. whether to stay at old facilities or move to new facilities whether to grow or shrink the business whether to keep or change products whether to increase or decrease production whether to hire or lay off workers whether to invest or save money

2,4,5,6

Which statements correctly explain price floors and price ceilings? Check all that apply. Ineffective price floors tend to be too high. Ineffective price ceilings tend to be too low. Price floors help producers by raising prices. Price ceilings help consumers by lowering prices. Effective price floors are set above equilibrium. Effective price ceilings are set below equilibrium.

3,4,5,6

What does the concept of scarcity explain? Check all that apply. why a product could lose significant value over time. why people continue to purchase different products. why consumers are willing to pay high prices for items. why decisions must be made on how to use resources why resources can be both renewable and nonrenewable. why a single resource has more value than another resource.

3,4,6

What steps must countries take to transition to a mixed-market economy? Check all that apply. They must establish state-owned businesses. They must decrease private ownership. They must establish a fair labor market. They must discourage foreign investment. They must open up trade to other countries.

3,5

Elasticity is a measure of behaviors by producers and consumers in response to changes in price.

Elasticity

A country that has multinational corporations is most likely to be a developed economy. a transitioning economy. a developing economy. a control economy.

A factory owner might decide to manufacture shirts in Pakistan instead of the United States because it is less expensive to make shirts there. it is worth paying more for foreign labor. workers in Pakistan are more skilled. workers in Pakistan work fewer hours.

A producer with a comparative advantage has the ability to produce a good or service at a lower opportunity cost than any competitor can. a faster rate than any competitor can. a greater volume than any competitor can. a lower cost than any competitor can.

A responsibility the Federal Reserve has is to loan money to banks during a crisis. loan money to corporations for capital. provide banking services to consumers. provide financial services to banks.

A society decides that it needs to produce more corn to feed the growing population. What must it do before it begins the production process? analyze existing resources, such as water availability determine how people will receive the surplus crops study the profitability of increasing corn production understand who is in a position of authority to produce more

A student who is interested in becoming an air traffic controller will make more money than an athletic trainer but will have a harder time finding a job. more money than an athletic trainer and will have an easier time finding a job. less money than an athletic trainer but will have an easier time finding a job. less money than an athletic trainer and will have a harder time finding a job.

According to Brooks's article, what was the main effect of entrepreneurship in China? Poverty noticeably declined. Foreign investment declined. New products were invented. Product exports exceeded imports.

Aging populations can be a problem for developed countries because there are fewer younger workers coming into the workforce. most older workers demand top-level pay and full benefits. many older people are skilled in manufacturing, not technology. younger workers cannot find jobs when older people work longer.

An entrepreneur is someone who starts and runs a business. is an employee of a business. invents products for other businesses. works for multiple developing businesses.

At an educational institution, the cost of room and board includes housing and meals. health and dental care. textbooks and supplies. tuition and class fees.

Both newspaper journalists and postal workers have been negatively affected by the popularity of electronic communication and the Internet. declining literacy rates and lack of interest in reading. government budget cuts that led to fewer jobs in these fields. competition with cheaper labor performed by overseas workers.

Companies report people to credit agencies if they fail to pay their bills on time. borrow too much money. fail to use different types of credit. use large amounts of credit at once.

Consumers create demand for goods and services. sales and low prices. goods and income. services and low prices.

Global trade provides consumers with more options and lower prices. fewer options and lower prices. more options and higher prices. fewer options and higher prices.

How do consumers' feelings about the economy help contribute to growth? Positive consumer attitudes influence spending habits. Positive consumer attitudes increase job prospects. Positive consumer attitudes inspire increased production. Positive consumer attitudes can end a depression.

How does demand-pull inflation differ from cost-push inflation? Demand-pull inflation is driven by consumers, while cost-push inflation is driven by producers. Demand-pull inflation is driven by producers, while cost-push inflation is driven by consumers. Demand-pull inflation is driven by the private sector, while cost-push inflation is driven by the government. Demand-pull inflation is driven by the government, while cost-push inflation is driven by the private sector.

How does international trade best benefit specialization? A country can make and sell goods affordably and buy goods it cannot make. A country can make what it chooses and can sell its goods to other countries. A country can decide to buy everything it needs from other countries. A country can efficiently make goods that were once difficult to make.

How is a student loan different from a scholarship? A student loan must be paid back, but a scholarship is not paid back. A scholarship must be paid back, but a student loan is not paid back. A student loan is a form of financial aid, but a scholarship is not. A scholarship is a form of financial aid, but a student loan is not.

How would a manufacturer benefit by using fewer scarce resources? The product would be less expensive to produce. The product would better satisfy consumer needs. The product would be popular and readily available. The product would provide a more satisfactory profit.

In a free enterprise system, governments address public problems through policy to ensure that citizens' needs are met and protected. economic operations of businesses are controlled. workers earn more than workers in other countries. the nation's level of productivity remains steady.

In a free-enterprise system, producers decide how much to charge. which services to buy. where to shop for goods. which goods interest them.

In a transitioning economy, what is a downside of rapid economic growth? Rapid economic growth can be difficult to regulate. Rapid economic growth benefits only the wealthy. Rapid economic growth usually leads to a crash. Rapid economic growth may stifle cultural growth.

In microeconomics, price helps determine both supply and demand. Which other factors also help determine each? Supply is determined by production costs, and demand is determined by need for the product. Supply is determined by production costs, and demand is determined by producer behavior. Supply is determined by consumer behavior, and demand is determined by aggregate demand. Supply is determined by producer behavior, and demand is determined by need for the product.

Innovation allows producers to create goods that draw consumer attention. follow restrictions that the government imposes. avoid competing with similar businesses. offer warranties for all of their products.

John has a large apple orchard. He has decided to bake pies and sell them at the local farmer's market. Which best describes John's use of economics? John is using available and renewable resources. John is relying on inexpensive labor costs to improve profits. John is using resources to produce both goods and services. John is assuming consumers will have limited need for his product.

Look at the sample production possibility curve. Which point indicates an inefficient allocation of resources? Y B C X

On a graph, an equilibrium point is where a supply curve and a demand curve meet. a supply curve is higher than a demand curve. the supply and demand curves head up. the supply and demand curves head down.

One of the three economic questions deals with deciding what goods and services should be produced. what the costs of production should be. how goods and services will be marketed. how consumers will receive products.

Read the scenario. Ricardo works part time at his local computer store. One day, his manager approaches him about moving from cashier to floor supervisor. Ricardo is excited because the promotion comes with a raise, but the extra work hours would take away from time with his friends. In the end, he decides to take the promotion. What is Ricardo's opportunity cost? Choosing the promotion over time with his friends. Being able to use the extra money for summer football camp. Losing extra time to spend with his friends. Receiving another promotion in six months.

Rescooperate Ice Cream Shop recently analyzed their books. They found that in the past year, they made $100,000 selling ice cream and spent $75,000 on supplies and factory space. The remaining $25,000 represents profit. loss. revenue. expense.

Resources needed to provide goods or services are called factors of production. facets of production. functions of production. facts of production.

Stagflation occurs when high inflation combines with high unemployment and a low level of production. low unemployment and a high level of production. a drop in buying power and a rise in workers' wages. a rise in buying power and a drop in workers' wages.

Supply and demand coordinate to determine prices by working together. competitively. with other factors. separately.

The development of many new businesses helps limit unemployment. taxation. revenue. risk.

The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the market price. What will most likely result from this price control? The demand for bread will fall, which could result in an excess supply. The demand for bread will rise, which could result in an excess supply. The demand for bread will fall, which could result in a decreased supply. The demand for bread will rise, which could result in a decreased supply.

The graph shows a point of equilibrium. How many goods must be supplied to achieve equilibrium? 15 20 25 30

The graph shows the price of a good compared to the quantity demanded and the quantity supplied. On this graph, the top horizontal line represents a price floor set above equilibrium. a price floor set below equilibrium. a price ceiling set above equilibrium. a price ceiling set below equilibrium.

The law of demand applies most directly to which group? buyers sellers producers lawmakers

The type of credit people are most likely to use during their lifetimes is a credit card. personal loan. auto loan. mortgage.

This graph demonstrates that private universities can cost three times as much to attend as public universities. public universities can cost three times as much to attend as private universities. community colleges can cost five times as much to attend as technical schools. technical schools can cost five times as much to attend as community colleges.

This graph shows a supply curve. What happens when the price of a good increases? The quantity of goods that are produced increases. The producer of the good is certain to make less money. The quantity of goods that are produced decreases. The quantity of goods that are produced stays about the same.

Trade agreements are helpful because they allow countries to trade for necessary goods. increase trade tax revenue. influence foreign trade. help create new trade barriers.

Typically, low inflation is a sign of a healthy economy because it results from a steady rise in demand. a healthy economy because it results from a steady rise in supply. a struggling economy because it results from a steady fall in demand. a struggling economy because it results from a steady fall in supply.

What is one consequence of stagflation? The economy drastically slows down as money loses its buying power. Producers cannot keep up with consumer interest and raise their prices. There are not enough workers to meet the rising level of production. Demand is too high and people spend more money than they should.

What is one way a command economy affects the lives of private citizens? Citizens cannot make most economic decisions. Citizens can only work in factories or on farms. Citizens must pay for their own health care. Citizens have limited access to education.

What is one way a market economy affects the lives of private citizens? Citizens can change jobs relatively easily. Citizens cannot choose their own careers. Citizens do not have to pay for their housing. Citizens have little freedom and independence.

What is the definition of minimum wage? the lowest hourly pay that workers can receive the average pay for qualified workers the starting salary for all new employees the required pay when an employee is injured

What is the name of the period when an economy begins to shrink? recession depression recovery prosperity

What most likely will happen if the pie maker continues to make additional pies? The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, decreasing the profit. The marginal costs will continue to fall, decreasing the total cost, while the marginal revenue remains the same, increasing the profit. The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, increasing the profit. The marginal costs will continue to fall, decreasing the total cost, while the marginal revenue remains the same, decreasing the profit.

What part does interest play in deficit spending? Governments must pay interest on money they borrow when they take on debt. Citizens must pay interest when their governments borrow money. Governments may charge foreign countries interest when they borrow money. Interest is not a factor when a government's budget is in deficit.

What restriction would the government impose in a closed economy? The government would prohibit trade with other nations. The government would set the prices for imported goods. The government would preserve traditional customs only. The government would prevent private ownership of property.

What type of labor force might a pottery factory want to focus on when hiring? highly skilled highly wealthy highly educated highly localized

When a company produces goods for sale, those goods must be created in ways that meet consumer demand. designed in ways that are highly creative. priced lower than the goods sold by another company. created in quantities that are relatively scarce.

Which best describes a reason that consumer demand can change? loss of income loss of supply distribution problems market problems

Which best describes how globalization connects the world?

Which best describes how producers benefit from specialization? Producers can increase their profits. Producers can expand their market. Producers can offer a wider range of goods. Producers can increase sales.

Which best describes the economic impact of defaulting on bank loans? The economy suffers because banks have less money to loan to others. The economy suffers because people have less money to spend. The economy suffers because businesses are scared to take out loans. The economy suffers because people are scared to take out loans.

Which best describes the nature of cause and effect in the context of the business cycle? Each effect has other effects. Causes and effects cannot be easily defined. A cause has multiple independent effects. Each effect has a cause.

Which best describes the purpose served by economic models within an economic system? Models identify patterns. Models determine the business cycle. Models control change. Models define global demand.

Which body or group is most able to use money to influence the economy? government consumers firms producers

Which describes the difference between a trade surplus and a trade deficit? A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports. A trade surplus is when a country imports more than it exports, while a trade deficit happens when exports exceed imports. A trade surplus is when a country produces more than it consumes, while a trade deficit happens when consumption exceeds production. A trade deficit is when a country loses money on products it makes, while a trade surplus happens when production leads to profits.

Which is a kind of federal payroll tax? medicare tax sales tax property tax progressive tax

Which is an example of regulation in the automobile industry? the creation of fuel-efficiency standards for cars the installation of satellite radio systems in some cars the usage of multiple-year warranties to cover repairs the production of hybrid models that conserve gasoline

Which is the best example of opportunity cost? A country that chooses to export bananas but not wheat. A country that chooses to invest in manufacturing and agriculture. A country that chooses to specialize in producing paper products. A country that chooses to export all its products.

Which most likely results from producers engaging in specialization? Producers reduce their costs. Producers increase their market share. Producers decrease the materials needed for production. Producers always offer more competitive pricing.

Which nation has a socialist command economy? Cuba North Korea South Korea the United States

Which of the following best describes the circular flow model? The model represents the movement of money throughout the economy. The model represents the interactions within sectors. The model represents the flow of goods and services between sectors. The model represents the changing relationships between actors.

Which of the following best illustrates deciding how to produce a specific product? Should we make a bunch of cheaper jeans or one really exclusive pair? Can we market our jeans to teenagers or focus on people in their twenties? Do we have enough customer support to charge more for our jeans? Are jeans still "in," or should we develop a line of skirts instead?

Which of the following is an example of a land resource? cow factory employee tractor

Which of the following statements most accurately describes the federal government and its employees? Millions of Americans work for the federal government. The federal government is not allowed to hire employees. The majority of Americans are employed by the federal government. The number of federal employees is too small to affect government spending.

Which quality best describes a producer with an absolute advantage? efficient fast accurate prolific

Which situation best reflects the concept of free enterprise? Consumers have a choice between two bakeries in a single city block. An agency determines which supplements are safe for people to buy. Local officials set the prices for all the gas stations in a community. The government decides the minimum wage for all airline workers.

Which statement accurately describes a developing country? The country's population has a high growth rate. The country has a high standard of living. The country's population has a high life expectancy. The country has a high GDP per capita.

Which statement best explains a grant? A grant is federal money awarded to a student. A grant is aid given to a student by an institution. A grant is money borrowed by a student to pay for an education. A grant is the price of attending classes at a school.

Why do developing countries usually have less variety in their economic activities? Limited access to education means that people are not trained to work in industry or technology. Focusing on one or two economic activities leads to more rapid economic development. Developing countries are usually small and have limited populations and resources. People prefer the lifestyle that accompanies traditional activities such as farming.

The graph shows excess supply. Which needs to happen to the price indicated by p2 on the graph in order to achieve equilibrium? It needs to be increased. It needs to be decreased. It needs to reach the price ceiling. It needs to remain unchanged.

A car dealer who does not have enough customers for a supply of new cars faces equilibrium. disequilibrium. coordination. excess demand.

A factor that most influences changes in consumer demand is quantity. price. quality. competition.

A reason that countries trade with each other is to help their neighbors. to get products they cannot produce. to sell goods they do not need. to share excess resources.

According to the business cycle, what characteristic indicates that a depression has been reached? The economy reaches recovery. A trough has occurred. The peak has passed. A period of property has ended.

According to the law of demand, as prices decrease, demand decreases. increases. stays the same. disappears.

A way to build good credit is using only secured loans. taking out many lines of credit. paying bills when they are due. using only credit cards.

According to this excerpt, what is one major way in which the World Bank differs from a regular bank? The World Bank is a source of financial assistance. The World Bank aims to improve living standards. The World Bank provides low-interest loans and credit. The World Bank serves people of different income levels

Airplanes have changed the way the world does business by making long trips less expensive. making long trips in faster time. opening up new trade markets. increasing hiring opportunities.

Among the changes that labor reformers wanted after the Industrial Revolution was more jobs for untrained workers. a ban on child factory workers. jobs for women factory workers. equal pay for owners and workers.

Bank deposits help the nation's economy by providing protection for consumers from theft. giving banks the money to loan and invest. providing protection for banks on investments. giving consumers the ability to save money.

Based on the receipt, what is the sales tax rate in Sacramento, California? 6.25 percent 8.5 percent 10 percent 10.85 percent

Completing the FAFSA could help decide whether a student deserves a merit-based award. should receive student-specific financial aid. should be given an athletic scholarship. requires an academic scholarship.

Cost-push inflation occurs when consumers show an interest in purchasing more goods. producers need more money to make and distribute goods. the government prints more money and pushes prices up. consumers have more money to spend on goods and services.

Demonstrating opportunity cost is done through production analysis. possibility. calculation. research.

Economic interdependence means that economic policies must balance the needs of all governments in the world. governments, individuals, and businesses. small businesses and large corporations. both wealthy and poor individuals.

Equilibrium is defined when supply is limited and demand decreases. supply and demand meet. demand is higher than supply. supply is higher than demand.

Equilibrium occurs when supply and demand coordinate to set excess demand. set prices and production. maintain excess supply. raise prices and production.

Globalization is the process of limiting exhange of goods and services. connecting the world over time. requiring or relying on something. focusing on certain goods and services.

Goods that are considered to be needs tend to be elastic when the price changes. inelastic when the price changes. elastic when the supply changes. inelastic when the supply changes.

Gross domestic product tracks economic growth by measuring all goods and services exported by an economy. produced by an economy. imported by an economy. purchased by an economy.

How can a nation benefit from effectively exporting its goods? Its citizens can buy cheaper goods. Its businesses can invest in the future. Its domestic spending increases. Its citizens have more money.

How is a federal loan different from a private loan for an education? A federal loan is available for any student who meets the government's lending standards. A private loan is only available for students who show a need. A federal loan is only available for students who show a need. A private loan is available for any student who meets the bank's lending standards. A federal loan can only be used to pay for a student's tuition. A private loan can be used to pay for a student's tuition and any other expenses. A federal loan can be used to pay for a student's tuition and any other expenses. A private loan can only be used to pay for a student's tuition.

Which statement best describes the impact of scarcity? People are able to meet most of their needs. Consumers must pay higher prices for many items. Governments must try to meet the wants of citizens. Economies can work to provide more goods and services.

How might foreign investment be problematic for a transitioning economy? Foreign investment can temporarily slow economic growth. It may be difficult to adjust to another nation's influence. A foreign government may seize control of the country. The transitioning economy must adopt a foreign currency.

If union contracts raise wages above competitive levels, what might be one negative outcome? Industries will raise salaries for top-level workers but not entry-level workers. Companies will move overseas to escape unions and hire cheaper labor. Inexperienced workers will lose their jobs to more experienced workers. Employees will be content with their status and thus less likely to join unions.

In a competitive market, a furniture company decides to use cheaper materials to decrease production costs and pass on the savings. This is an example of following a federal regulation. lowering prices for customers. reducing the risk for consumers. creating a new or better product.

In addition to federal income tax, many people also pay state property tax. state income tax. local medicare tax. local social security tax.

In order to stay on track for long term financial goals, money for emergency spending should be taken first from your savings account. discretionary money. fixed expense money. net income.

In the free-enterprise system of the United States, the government makes no economic decisions. makes some economic decisions. makes most economic decisions. makes all economic decisions.

Land is considered a resource because it is always available to use. is used to produce things. costs little or nothing to use. requires labor to be useful.

One of the main questions of economics involves deciding upon the method for distributing goods and services. creating goods and services. pricing goods and services. enhancing goods and services.

Opportunity cost means that something needs to be replenished. given up. ignored. paid for.

Read the graph. What can the reader conclude from the graph? A company selling telephones most likely has only a 40 percent chance of surviving for at least four years. A company offering physical therapy most likely has only an 80 percent chance of surviving for at least two years. A company offering cleaning services most likely has only a 50 percent chance of surviving for at least seven years. A company selling diabetes supplies has only a 60 percent chance of surviving for at least three years.

Short-term financial goals might include spending less on gas. buying movie tickets. purchasing a new car. saving up for vacation.

Tasty Treat Tea is a popular iced tea drink. When the manufacturer begins to use imported tea leaves, the price rises and consumer demand for the drink falls. This suggests that Tasty Treat Tea is an elastic good because it is more of a need than a want. Tasty Treat Tea is an elastic good because it is more of a want than a need. Tasty Treat Tea is an inelastic good because it is more of a need than a want. Tasty Treat Tea is an inelastic good because it is more of a want than a need.

The Federal Reserve Bank of the United States is also known as the people's bank. central bank. world bank. retail bank.

The United States is said to have an absolute advantage in producing food compared with Japan. What does that mean? It must import most of its food from Japan. It produces food more efficiently than Japan. It produces food at a higher cost than Japan. It must export most of its food to Japan.

The aim of the study of macroeconomics is to examine the interactions between individual producers and consumers. the economy's behavior. the relationship between supply and demand. the economy's viability.

The best reason to record income at the top of a budget is to easily add expenses to it. it is the foundation of the budget. to avoid spending too much money. it is more important than expenses.

The chart shows the marginal cost and marginal revenue of producing apple pies. What most likely will happen if the pie maker bakes a seventh pie? The marginal cost will most likely decrease to $1.00 The marginal cost will most likely increase to $2.00 The marginal revenue will most likely remain the same, not decrease to $8.00. The marginal revenue will most likely remain the same, not increase to $12.00.

The diagram shows different types of policies. Which would be the best label for the circle in the center? The Best Economic Policies Government Economic Policies Ineffective Economic Policies The Free Enterprise System

The equation calculates an annual rate in economics. What rate does the equation calculate? employment rate inflation rate demand rate supply rate

The factors of production attempt to instill the idea that resources are expensive. scarce. unlimited. needed.

The graph shows a point of equilibrium. If supply for a product is high but demand is low, what most likely needs to happen to achieve equilibrium? The price of the product must go up. The price of the product must go down. Supply and demand must be raised. Supply and demand must be lowered.

The graph shows a point of equilibrium. What does "Q" represent on the graph? the point where equilibrium is achieved the quantity at the equilibrium point the average cost of goods sold the point where supply and demand drop

The graph shows demand. In order to achieve equilibrium, what else must be included on the graph? disequilibrium supply curve excess supply excess demand

The graph shows the price of green tea compared to the amount supplied by producers. What does this graph suggest about green tea? Check all that apply. Green tea is elastic in terms of supply. Green tea is inelastic in terms of supply. Green tea is neither elastic nor inelastic. The supply of green tea changes sharply with the price. The supply of green tea does not change sharply with the price.

This diagram shows how banking in the financial sector fits into the circular flow model. Based on the diagram, which example describes how a bank injects money into the economy? A bank opens a savings account for a customer. A bank approves a mortgage for a customer. A bank buys a company's rapidly growing stock. A bank buys property in a bustling business district.

What is the definition of gross income? amount of income saved per year amount earned before deductions amount of tax deducted from income amount received after deductions

What is the difference between marginal cost and marginal revenue? Marginal cost is the money earned from selling one more unit of a good. Marginal revenue is the money paid for producing one more unit of a good. Marginal cost is the money paid for producing one more unit of a good. Marginal revenue is the money earned from selling one more unit of a good. Marginal cost is the money a producer might make from one more unit. Marginal revenue is the money a producer actually makes from one more unit. Marginal cost is the money a producer actually makes from one more unit. Marginal revenue is the money a producer might make from one more unit.

What is the main role of the US Import Administration? creating more free trade treaties enforcing conditions of trade agreements regulating standards for goods exchanged in trade recruiting countries to participate in trade agreements

What is the purpose of the US International Trade Association? to help countries establish free trade to help businesses create viable exports to limit levels of investment in trade opportunities to limit trade opportunities for competing companies

What might happen if an economy is unable to produce wanted goods and services? People will go without them. People will look elsewhere for them. People will stop wanting them. People will focus on needs instead.

What trend does the graph demonstrate? Student loan debt will most likely decrease in the coming years. Students have taken out higher and higher loans since 1994. Enrollment for higher education will soon begin to decrease. Tuition for higher education has risen steadily since 1994.

What was the status of US workplace safety laws in 1900? A few states had tried to pass safety laws, but they had no public support. Most states had passed some safety laws, but enforcement varied. Most states opposed safety laws, but workers began to demand them. All states had safety laws, but no one bothered to enforce them.

When a government decides to limit the number of goods that can be sold to another nation, that government is creating monetary policy. trade policy. fiscal policy. regulatory policy.

When a person invests income, he or she spends no money in the short term and saves it all for the long term. uses money in a way that will increase its value in the future. spends income only on essential needs such as housing. cuts out all discretionary spending for a set period to save money.

When creating a budget, log fixed expenses before income. after income. after savings. at the top.

When prices for homes rise, why might construction companies decide to build more homes? to increase employment to make a profit to create a need for more resources to boost name recognition

Which best describes the effect of globalization on China's economy? China is shifting toward specialization in agriculture and industry and away from services. China is shifting toward specialization in industry and services and away from agriculture. China is shifting toward specialization in agriculture and services and away from industry. China is shifting toward specialization in agriculture, services, and industry.

"Everyone's rights should be protected" is an argument for competition. against competition. for regulation. against regulation.

Which best describes the purpose of this document? It shows how much a person paid in taxes, and how much more is due. It shows how much a person earned, and how much was withheld in taxes. It shows how much a person earned, and how much tax is to be refunded. It shows how much a person paid in taxes, and whether they have a spouse.

Which best describes the relationship between consumers and producers? They usually ignore each other. They interact with each other. They agree on prices. They dislike each other.

Which best describes why taxes and savings are considered leakage factors? They take money out of households. They take money out of the economic system. They take money out of the economic sectors. They take money out of the financial sector.

Which calculation helps determine which producer has the absolute advantage? Resources used multiplied by amount produced Amount produced divided by resources used Amount produced minus resources used Resources used divided by amount produced

Which describes a type of tax that people pay on money they earn? flat tax income tax purchase tax progressive tax

Which describes a way in which consumers most likely benefit from producers' absolute advantage? Consumers' opportunity costs decrease. Prices decrease as a result of increased production efficiencies. Producers always use savings to improve products. Consumers can find a given product in more places.

Which interest could best help someone become an athletic trainer? enjoying working with aircraft understanding sports injuries wanting to manage workers enjoying working with food

Which is an effect of stagflation? Trade with other economies increases. The value of a country's currency drops. Prices for goods fall sharply and suddenly. The GDP rises along with production levels.

Which is the best definition of inflation? a gradual reduction in the price of goods and services a gradual expansion in the price of goods and services an exponential reduction in the price of goods and services an exponential expansion in the price of goods and services

Which is the best title for this diagram? The Definition of Supply Factors That Affect Supply Elasticity and Competition The Law of Supply

Which most likely occurs because resources are nonrenewable and because wants and needs are unlimited? production scarcity labor devaluation

Which object is likely to have the most value based on the concept of scarcity? a flowering plant a silver necklace a new coffee table a crop of oranges

Which of the following best illustrates the importance of addressing the three questions of economics? People's desires and needs are always changing. Businesses need to use limited resources wisely. Traditional methods of production are outdated. Businesses need to limit production.

Which of the following is a characteristic of the prosperity phase of the business cycle? stagnant prices high levels of production ambivalence about the economy reduced incomes

Which of the following is an example of a capital resource? coal loom time horse

Which of the following lists the proper placement of terms, from left to right, to complete the equation? revenue, profit, production cost profit, revenue, production cost production cost, profit, revenue production cost, revenue, profit

Which power source has been least developed? wood wind biofuel hydroelectric

Which scenario is an example of cost-push inflation? Consumers have more money to buy cars, and the prices of cars and car parts rise as a result. An increase in workers' wages raises the production cost of cars, and car prices rise as a result. The demand for cars falls as consumers have less disposable income, and car prices fall as a result. A government bailout helps car manufacturers lower their costs, and car prices fall as a result.

Which situation is the best example of competition in an economic system? A restaurant just opened down the block from a movie theater, and the restaurant owner hopes to attract diners after each movie. A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs. A store that sells sneakers has offered a special deal to customers from a nearby health club. A federal agency has been created to monitor the production and distribution of food supplements.

Which statement best compares the two jobs? Job A has a lower salary than job B, but the benefits make job A a more attractive pay package. Job B has a lower salary than job A, but the benefits make job B a more attractive pay package. Job A has a higher salary than job B plus benefits that make job A a more attractive pay package. Job B has a higher salary than job A plus benefits that make job B a more attractive pay package.

Which statement best describes how globalization is affecting the world? Globalization is growing less important as time passes. The world is becoming more globalized and connected. Globalization has resulted in fewer connections among countries. Countries are growing less likely to trade with one another.

A similarity between mortgages and auto loans is that both are more risky for lenders. require a down payment. are less risky for lenders. require minimum payments.

Why do countries most often create trade agreements? to limit imports to reduce tariffs to establish quotas to decrease competition

Why were free trade zones created in China? to avoid governmental rules and conditions to attract investments by foreign countries to import technology more easily to control imports and exports

Wind and solar energy are examples of scarce resources. renewable resources. expensive resources. nonrenewable resources.

Work-study is a program that includes working at an outside job to help pay for school. taking a school job to help pay for an education. agreeing to serve in the military for financial aid. participating in a service program to receive aid.

A supply schedule shows how prices affect the quality of a good. overall economy of a country. quantity of a good supplied by a producer. unemployment rate.

How will an increase in the percentage of older Americans affect the healthcare field? There will be far fewer qualified workers to fill positions in the healthcare field. Salaries will drop in the healthcare field so that businesses can control costs. The healthcare field will create new jobs because more people will need care. Fewer people will need health care, so there will be a drop in healthcare jobs.

If Massachusetts has a sales tax of 6 percent and New Hampshire has no sales tax, how much money can be saved by buying a $1,000 television in New Hampshire? $6 $16 $60 $600

In a free-enterprise system, consumers decide how to set prices. which goods to export. which services to buy. how to use materials.

In determining whether to issue a loan, banks are not allowed to ask about an applicant's employment history. date of birth. country of origin. income tax returns.

In microeconomics, what occurs when equilibrium is reached? Prices decline. Prices increase. Prices are set. Prices fluctuate.

In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of purchasing a unit. distributing that unit. producing the next unit. producing a different unit.

In the market, actions known as incentives affect producers only. consumers only. consumers or producers. neither consumers nor producers.

International trade organizations promote free trade by encouraging countries to maintain tariffs. establish trade quotas. remedy trade surpluses. develop products.

One factor that indicates a developed economy's standard of living is its growth in outsourcing rates. strong social connections. high levels of education. low GDP per capita.

One of the three main questions of economics addresses who should produce goods and services. market goods and services. receive goods and services. distribute goods and services.

Producers must understand the marginal benefit of making an additional unit, which shows the actual gain. eventual gain. possible gain. unlikely gain.

Read the scenario. Samira is a freshman basketball player who hopes to go to college on a basketball scholarship. She is offered the chance to play on her school's varsity basketball team, which plays in tournaments during holiday breaks. Samira usually spends her breaks working at the local hardware store. After careful consideration, Samira decides to stay on the freshman basketball team and keep working over breaks. The fact that Samira may miss out on a scholarship opportunity by staying on the freshman team illustrates a cause. minor consequences. an effect. unexpected risk.

The 1040 form is used to collect state tax. local tax. federal tax. sales tax.

The best inference that can be made based on the graph is that workers in Houston are more likely to have jobs with high growth rates. workers in New York may face a cost of living that will exceed their salaries. jobs in San Francisco may have higher salaries to offset the cost of living. jobs in Cleveland tend to pay based on an hourly wage instead of a salary.

The citizens of the United States live and work in a closed economy. command economy. mixed market economy. pure market economy.

The diagram shows an aspect of fiscal policy. What aspect of fiscal policy does this diagram show? the way in which a government creates a budget a budget that is severely unbalanced government spending to strengthen the economy ways in which governments spend money

Typically, high inflation is a sign of a healthy economy because it results from a fall in production costs. a healthy economy because it results from a rise in consumer interest. a struggling economy because it results from a rise in production costs. a struggling economy because it results from a fall in consumer interest.

Use the numbers to place the companies in order of greatest comparative advantage to least comparative advantage in producing large tubes of toothpaste. 2, 1, 3, 4 4, 1, 2, 3 4, 3, 1, 2 3, 2, 1, 4

Venya and Kari own a flower shop that specializes in custom bouquets. Wanting to expand into selling potted plants, they create a production possibility chart to asses whether the potted plants are a good idea. Study their chart: How many potted plants should they be able to produce on Day 3? 25 30 50 75

What best determines whether a borrower's interest rate goes up or down? a fixed interest rate a bank's finances a market's condition a person's finances

What conclusion can be drawn about trade between the United States and China? The United States has a trade surplus with China. China's economy is declining. The United States has a trade deficit with China. China's economy is improving.

What is one benefit or drawback to an hourly wage? An hourly wage is a set payment. An hourly wage is regular over a year. An hourly wage may result in lower pay. An hourly wage will never vary in required hours.

What is one difference between a vocational school and on-the-job training? A vocational school degree takes one year to earn. On-the-job training takes two or more years. A vocational school degree takes weeks or months to earn. On-the-job training takes two years or fewer. A vocational school is usually paid for by the worker. On-the-job training is usually paid for by the employer. A vocational school is usually paid for by the employer. On-the-job training is usually paid for by the worker.

What is one stated purpose of the World Trade Organization? to create a common currency to encourage the expansion of exports to monitor trade policies of many countries to establish direct trade agreements between countries

What is one way for an entrepreneur to decrease risk? by mimicking popular products by maintaining personal flexibility by creating a strong business strategy by developing reliable sources for materials

What is the best definition of elasticity in economics? Elasticity of supply measures how the amount of a good changes when the producer hires more employees. Elasticity of supply measures how the amount of a good changes when the producer uses new materials. Elasticity of demand measures how the amount of a good changes when its price goes up or down. Elasticity of demand measures how the amount of a good changes when its distribution expands.

What might be the best decision for Country A? focus both on its petroleum and seafood industries focus on the seafood industry only focus on the petroleum industry only decide to find another industry to focus on

What must an entrepreneur assume when starting a business? that the correct location guarantees success that every product has a customer who wants it that clever market strategies may still fail to sell a product that raising funds is the most difficult step in starting a business

What role do government agencies play in a mixed market economy? They run shipping companies and other sources of distribution. They own farms, factories, and other sources of production. They regulate some aspects of production and distribution. They employ most of the workers in the economic system.

What term is used in macroeconomics to describe the total supply and the total demand? capital inflation aggregate equilibrium

Which best describes how a recession develops as demand and production decrease? The recession accelerates. The recession spirals out of control The recession feeds on itself. The recession starts and stops.

Which best describes how governments respond to changes in the business cycle? Governments issue more currency. Governments refuse to pass a budget. Governments change their policies. Governments reduce spending.

Which best describes what is represented in the business cycle model? the interactions between producers and consumers the change in production cost macroeconomic trends supply and demand trends

Which best explains how globalization offers an advantage to businesses? Businesses can take advantage of favorable laws to make products cheaply. Businesses can take advantage of favorable taxes to make products cheaply. Businesses can take advantage of new forms of technology to make products cheaply. Businesses can take advantage of new forms of democracy to make products cheaply.

Which best explains why a US corporation would open a factory in China? to take advantage of affordable land prices to take advantage of abundant resources to take advantage of lower labor costs to take advantage of favorable tax laws

Which consideration must be addressed when deciding for whom to produce? Who can be most creative with the product? Who has the largest resource pool? Who has the greatest need? Who can bring in the greatest profit?

Which describes the difference between a personal loan and a credit card? Credit cards offer lump sums of money, while personal loans set a maximum amount a person can borrow. Credit cards are secured loans for large amounts, while personal loans are unsecured for small purchases. Personal loans offer lump sums of money, while credit cards set a maximum amount a person can borrow. Personal loans are secured for small purchases, while credit cards are unsecured loans for large amounts

Which explains how elastic demand would most likely affect consumer demand? People might buy a more expensive substitute good. People might buy a less expensive complementary good. People might buy a less expensive substitute good. People might buy a more expensive complementary good.

Which of the following illustrates an opportunity cost? James has enough money to buy some socks and a book. Alyssa does not have enough time to study for her test. Amir only has time to study or to play basketball. Lydia does not have enough money to buy a new shirt.

Which of the following will be accomplished by assessing the factors of production? ensuring economic profitability understanding whether a product will fail guaranteeing the fulfillment of needs and wants replenishment of limited resources

Which of these policies would a government take when it comes to employment? paying employees whether they work or not seeing that at least half the workforce has a job ensuring that as many workers are employed as possible making sure that only skilled workers get jobs

Which of these results in a lower net income? fixed spending budgets withholdings discretionary spending

Which statement best describes a pure market economy? Producer intervention in economic choices is strictly forbidden. The government determines economic choices and makes most decisions. The decisions made by producers and consumers drive all economic choices. Producers and consumers make some economic choices while the government makes others.

Which statement best describes incentives? Incentives are mostly positive. Incentives are mostly negative. Incentives can be positive or negative. Incentives are neither positive nor negative.

Who benefits most from workplace safety regulations? employers, who are less likely to lose income and productivity due to serious employee injuries qualified workers with disabilities, against whom employers may no longer discriminate all workers, who are less likely to miss work because of injury or face high medical bills rival companies, which gain an advantage by using more cost-effective safety measures

Why does an increase in literacy rates often accompany an increase in per capita income? People who have higher-paying jobs often have the time available to develop literacy skills. Developing countries have higher-than-average literacy rates, which typically leads to higher income. People who can read and who receive an education are eligible for higher-paying jobs. Developed countries often attempt to raise low literacy rates to improve income.

Why would a country want to establish absolute advantage? to produce more goods than other countries to produce fewer goods than other countries to produce goods more efficiently than other countries to produce higher quality goods than any other country

Zahara Smith is wondering how she can make her check stretch enough to afford her monthly cable, water, grocery, and cell phone bills. Zahara is concerned with needs. limits. needs and wants. wants and limits.

Filing for bankruptcy can make it hard for a consumer to reestablish and obtain credit .

credit

"GDP per capita" means that the GDP is calculated per country. day. dollar. person.

A chart that shows the connection between consumer demand and price is a market schedule. market curve. demand curve. demand schedule.

A clothing store has ordered a new supply of jeans for the fall season and wants to sell off the remaining items from the previous spring. What action would the store owner most likely take? The store owner would most likely raise the price of the spring jeans to encourage producers. The store owner would most likely lower the price of the spring jeans to encourage producers. The store owner would most likely raise the price of the spring jeans to encourage consumers. The store owner would most likely lower the price of the spring jeans to encourage consumers.

A command economy tends to exist under a communist government that provides little regulation. democratic government that provides some regulation. representative government that provides no regulation. socialist government that provides a lot of regulation.

A country that makes a product more inexpensively and efficiently than another country has an import advantage. an export advantage. a comparative advantage. an absolute advantage.

A credit score is based in part on employment and race. income and location. employment and trust. income and total debt.

A government's monetary policy is its plan to control taxation and spending. prices. workers' wages. the money supply.

A new business should be based on an entrepreneur's individual interests because the entrepreneur must have sufficient confidence to succeed. be willing to take personal responsibility. have enough determination to work alone. dedicate as many hours as needed to the work.

A producer with an absolute advantage has the ability to produce a good or service at a lower opportunity cost than any competitor can. a faster rate than any competitor can. a greater volume than any competitor can. a lower cost than any competitor can.

Expansionary spending takes place when a government makes the decision to put a freeze on the number of its employees. raise taxes to balance its budget. raise taxes to run a budget surplus. raise spending to stimulate the economy.

How did NAFTA affect the economies of participating countries? by creating unrestricted trade benefits by raising employment rates and standards of living by creating a balance of exports and imports by increasing the overall volume of production

Hyperinflation can occur when consumers show an interest in purchasing more goods. producers need more money to make and distribute goods. companies raise prices to pass on costs to consumers. the government prints more money and pushes prices up.

Motherboards, Inc., manufactures computer parts. The company's total revenue is the money the company earns after paying all of its production costs. the total wages the company pays workers in its factories and stores. the amount of money the company earns from selling an individual part. the amount the company receives from the sale of all of its computer parts.

Producers hoping to earn profits supply goods and services to debtors. themselves. competitors. consumers.

Purchasing power parity is used to compare the gross domestic product between

Read the graph about mortgage interest rates and housing starts between 1978 and 1983. A conclusion that can be drawn from both graphs by looking at 1983 is that interest rates dropped, which led to more home starts. peaked, while home starts bottomed out. climbed, which led to fewer home starts. bottomed out, while home starts peaked.

Read the graph that displays interest and total payments on a loan. Banks make the most money and take the most risk with an interest rate of 5 percent. 10 percent. 15 percent 18 percent.

Read the scenario below and then answer the question. Sample scenario: Scientists have created a new grass seed that stops grass growth at a specific length, eliminating the need to mow the lawn. The price of this seed is high, but many consumers still want to use it. As a result, several different producers supply a large amount of this seed to consumers. In order to attract consumers to their product, some producers lower their prices and supply fewer bags of seeds. What is the best description of the grass seed that is described in this scenario? a good with a low price a good with a high price a good with an inelastic supply a good with an elastic supply

School band members need to raise money for new uniforms. Some members want to sell energy drinks at a football game, but others want to organize a car wash in the school parking lot. Based on economics, what would be most influential in making the decision? the labor needed the consumer appeal the capital needed the value of the resources

Student-specific scholarships are awarded to students who have impressive athletic accomplishments. have impressive academic achievements. demonstrates a specific skill are members of a certain group.

The goal of a market economy is to sustain self-sufficiency. preserve traditional customs. create equality within a society. promote free economic choices.

The government of Country C has passed a law protecting the physical safety of factory workers. This is an example of monetary policy. supply and demand. fiscal policy. regulatory policy.

The graph shows a demand curve. What does the shift in demand, as shown in the graph, demonstrate? an increase in demand as price decreases an increase in price as demand decreases an increase in demand due to a decrease in price an increase in price due to an increase in demand

The graph shows a demand curve. What change does the graph show? a decrease in demand as prices decrease an increase in price as demand decreases a decrease in income as demand increases an increase in demand as prices decrease

The graph shows a supply curve. Which change is illustrated by the shift taking place on this graph? an increase in demand a decrease in demand an increase in supply a decrease in supply

The graph shows employment figures for nonfarm workers for 2008 to 2013. What problem does this graph identify? low production inflation budget deficit unemployment

The graph shows the federal budget from 1980 to 2010. What conclusion can be drawn from this graph? Federal law requires the budget to be balanced. Republicans do a good job in balancing the budget. In most years, the federal budget shows a surplus. The federal budget is usually unbalanced.

The graph shows the number of employed workers in the United States in nonfarm jobs from 2008 to 2013. Which generalization best describes the information provided by this graph? The United States had the world's weakest economy by 2010. In today's economy, a country needs fewer workers to remain strong. By 2012, the United States had solved its economic problems. The United States faced an economic crisis that started in 2008.

The graph shows the price of a good compared to the quantity demanded and the quantity supplied. On this graph, the bottom horizontal line represents an ineffective price floor set above equilibrium. an effective price floor set below equilibrium. an ineffective price ceiling set above equilibrium. an effective price ceiling set below equilibrium.

These are the four stages of the business cycle. 1. depression 2. prosperity 3. recession 4. recovery In which order do these stages occur? 1, 3, 4, 2 3, 1, 2, 4 4, 2, 3, 1 2, 3, 1, 4

This diagram shows a government's approach to taxing and spending. Which of the following would be a good title for this diagram? Government Spending The National Economy The Federal Debt Fiscal Policy

This table shows the number of cookies several bakeries sell each day. Bakery Number of Cookies Sold Mrs. Track's 90 Chips 100 The Bakeshop 75 Uncle John's 125 All else being equal, which bakery has the absolute advantage? Mrs. Track's Chips The Bakeshop Uncle John's

This table shows the number of employees needed to fill lunch orders at several food trucks. Food Truck Number of Lunch Orders Number of Employees Frank's Falafels 20 per hour 2 Kimchi Kim's 25 per hour 3 Deli Delight 30 per hour 3 Lunch on the Go 25 per hour 2 Which food truck has the absolute advantage? Frank's Falafels Kimchi Kim's Deli Delight Lunch on the Go

What does the International Monetary Fund (IMF) seek to accomplish for developing countries? The IMF establishes industries and technologies in developing countries. The IMF helps a developing country's citizens establish bank accounts. The IMF gives college aid to qualified individuals in developing countries. The IMF provides economic advice and loans to developing countries.

What is a benefit of obtaining a personal loan? getting money with special repayment terms getting money with favorable interest rates getting small amounts of money to use immediately getting large amounts of money to use immediately

What is one benefit for US workers who have a college degree rather than a high school diploma? More than 80 percent of jobs require a college degree. Those with a college degree report higher job satisfaction. Most workers with a college degree are immune to layoffs. Those with a college degree earn nearly twice as much as those without college.

What is the definition of collective bargaining? ongoing salary negotiations between an employee and a factory owner an agreement among a group of factory owners to raise worker wages a written set of guidelines about legal and illegal workplace conditions labor union and employer negotiations about wages and other issues

What is the difference between inflation and deflation? Inflation can result from falling demand and boosts the value of money. Deflation can result from rising demand and reduces the value of money. Inflation can result from rising demand and boosts the value of money. Deflation can result from falling demand and reduces the value of money. Inflation can result from falling demand and reduces the value of money. Deflation can result from rising demand and boosts the value of money. Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boosts the value of money.

What is the job outlook for a US postal worker? The career is growing and will provide more opportunities over time. The career is growing and will provide fewer opportunities over time. The career is shrinking and will provide more opportunities over time. The career is shrinking and will provide fewer opportunities over time.

What type of economic growth do most developed economies experience? rapid growth unpredictable growth moderate growth slow growth

When a country chooses to limit the kinds of goods or services it produces, it is practicing absolute advantage. globalization. dependency. specialization.

When a government creates a budget, it is seeking a way to spend as much revenue as possible. cut spending to a bare minimum. return as much money to taxpayers as possible. allocate money to programs and projects.

When revenues are higher than expenditures in a budget, that budget shows a deficit. is in balance. must be discarded. shows a surplus.

Which best describes a way people can use personal loans? to buy a house to buy a vehicle to pay for college to pay for groceries

Which best describes how consumers may benefit from specialization? Consumers can only purchase high-quality goods. Consumers have more price options. Consumers receive more sale offers. Consumers find products at lower prices.

Which best describes how specialized producers decrease their opportunity costs? by reducing production costs by focusing on target markets by increasing production of certain items by limiting the types of goods produced

Which best describes why a government's actions are important within macroeconomics? Government controls industry through policy. Government is both a consumer and a producer. Government can prevent changes and challenges. Government can use policy to influence the economy.

Which best explains why banks consider interest on loans to be important? Interest enables them to control the economy. Interest helps them to satisfy customers. Interest enables them to stockpile money. Interest helps them cover business costs.

Which educational institutions typically cost the most to attend? vocational schools community colleges public universities private colleges

Which form of transportation has led to more efficient business in a global market? helicopters high-speed trains tractor trailers cargo ships

Which is an example of a negative incentive for producers? a chance to make more money a special sale at a department store a coupon clipped from a newspaper a sharp increase in production costs

Which is an example of income withholdings? an unexpected salary cut income lost due to illness vacation budget retirement savings

Which is the best way to achieve long-term financial goals? Spend less on mandatory expenses. Eliminate short-term financial goals. Increase discretionary expenditures. Save more money from net income.

Which of the following conditions is most indicative of recovery? The economy has stopped shrinking. The economy begins to peak. The economy has passed the trough. The economy is growing again.

Which of the following illustrates one of the three questions of economics? How many proposals do we need to get this product approved? Do our salespeople know how to price this product based on competition? Is this product going to cost more to distribute than our other products? Should we use the assembly line method to create this product?

Which of the following would be considered a nonrenewable resource? the computer used in an office the sandwich prepared by a cook the work performed by a dental assistant the petroleum used to make trash bags

Which of these best describes an opportunity cost? a win-win a loss a chance a trade-off

Which process helps countries import things they cannot make while allowing them to specialize in exports? absolute advantage isolation competition international trade

Which region specializes in diamonds? Central America Middle East Europe Sub-Saharan Africa

Which situation is the best example of regulation in an economic system? A retail business just opened a new store in a community close to its original location. A small clothing shop slashed it prices to attract customers from a larger department store nearby. A farmers' market has offered a special deal to customers from a nearby yoga school. A state agency has been created to monitor the production and distribution of sports drinks.

Which statement best defines tuition? Tuition is federal money awarded to a student. Tuition is aid given to a student by an institution. Tuition is money borrowed to pay for an education. Tuition is the price of attending classes at a school.

Which statement best describes the main cause of the 2008 housing market crash in the United States? Many people could not buy new homes during a weak economy. Many homes could not sell because housing prices rose too fast. Many homes could not sell because banks charged high interest. Many people could not make home payments during a weak economy.

Why are environmental problems common in developing countries? The citizens of developing countries have not been educated about the dangers of pollution and the need to protect resources. People in developing countries travel long distances by car to get to work and school, leading to air pollution and habitat destruction. Rapid growth of new industries and technology has led to an enormous increase in environmental woes in developing countries. Developing countries often specialize in manufacturing and providing raw materials, which can seriously harm the environment.

Why does the US import oil? because it does not produce any oil because it has exported too little oil because it has exported too much oil because it does not produce enough oil

Why must the government consider companies' needs as well as those of workers? Workers often take advantage of safety and wage laws and regulations. Company owners can easily vote government officials out of office. Employers deserve the same benefits and protections as employees do. Regulations can be costly and may drive companies out of business.

With which statement would President Bill Clinton most likely have agreed? Free trade helps every nation. Free trade has drawbacks for participants. Free trade will eliminate poverty. Free trade must be carefully monitored.

Spending that can change from year to year is known ass

discretionary spending

On a graph, when demand , the demand curve shifts to the left.

decreases

A demand curve ⇒ demand curve is a graph that shows how prices affect consumer demand.

demand curve

On a graph, a(n) shows the demand portion of equilibrium.

demand curve

is the process of an economy's increasing industrialization, standard of living, and economic wealth.

development

The simplest form of a trade agreement is a agreement created between two countries.

direct

The exchange of factors of production for income occurs in the factor market.

factor

In a republic, elected officials create laws to regulate the economy.

laws

In the United States, the government creates laws and regulations that business activities to prevent wrongdoing.

limit

A budget should be based on a person's income.

net

Simple interest is paid only on the .

principal borrowed

Producers often work to maximize their and make them as large as possible.

profits

Most state and local income taxes are either .

progressive or flat

A can be defined as whatever people use to create services and goods.

resource

Before creating a business plan, an entrepreneur must research businesses in the past.

similar

Fiscal policies establish a government's plans for taxation and .

spending

In 1776, an economics book titled was published to promote the concept of free enterprise.

the wealth of nations

Study the following production possibility curve. The number of data points that illustrate the proper allocation of resources is .

three

To be successful, an entrepreneur must be willing to invest money, considerable effort, and time .

time

To calculate profit, producers subtract their total production cost from their .

Econ

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