Economics 6,8,9,15,16
To be prepared for a financial emergency, experts advise building up a what an easily accessible stockpile of savings?
"rainy-day fund"
How can cultural diffusion make a positive impact?
. It can help spread universal ideals, such as respect for human rights and freedom.
How does personal saving help the economy grow?
. It provides funds for business investment.
Economic development is defined as the process by which nations
. increase output and improve lives
International trade has ??? dramatically since the end of World War II.
. increased
Which of these developments has been the most essential factor in the growth of international trade?
. proliferation of container ports serving large ships
The controlled distribution of a limited supply of a good or service is called?
. rationing
What is the main goal of a cooperative?
. to offer its members low-cost goods or services
This rule says to divide what number by the annual rate of return on the investment.
72
In 2013, what was the percentage of sole proprietorship in America?
72%
Which service is counted as a U.S. export?
A German student pays tuition to attend college in the United States.
Which statement illustrates the law of comparative advantage?
A country makes the goods it produces most efficiently and trades for others
Which statement is false?
A disadvantage of sole proprietorship is the ability to sell stocks for their business.
Why are U.S. dollars considered money?
By law, they must be accepted as a means of payment
Why are stable legal institutions necessary for the economy of a developed country?
Courts enforce property laws and contracts
What is the advantage of investing in a mutual fund compared to buying a single stock?
Diversification reduces risk.
Another name for the market-clearing price is
Equilibrium
What institution determines what fraction of deposits a bank must set aside to be available for customer withdrawals?
Federal Reserve System
These are the characteristics of successful entrepreneurs EXCEPT
Loyalty
What has been the impact of globalization on languages?
Many smaller, local languages are dying out.
What is the usual result of setting a price ceiling on rents?
More people want to rent apartments than are available to rent.
Why is foreign debt a serious problem for poor countries?
Paying off principal and interest takes a large part of the national budget.
Why did per capita gross domestic product (GDP) of some least developed countries fall in 2012?
Populations grew faster than economic output
Government-imposed limits on the prices that producers may charge in the market are called?
Price controls
What is excess supply?
QS of a product exceeds QD, thus producing a surplus
Which of these are examples of nongovernmental organizations (NGOs)?
Sierra Club, CARE, Save the Children
Which of these situations best illustrates market equilibrium?
The amount of soap made matches the amount of soap that people want to buy.
What is the role of silent partners in a limited partnership?
They contribute capital but are not involved in day-to-day operations.
Which statement is true of all entrepreneurs?
They take a risk
Which of these best explains why gold and silver came to be regarded as money?
They were rare and did not decay.
Which of these supports large infrastructure projects, such as dams, in developing countries?
World Bank
Which of these might best signal furniture makers to cut back production?
a drop in the price consumers are willing to pay
Money in a checking account, however, earns how much interest.
a little or no interest
New Deal jobs programs offered employment during the Great Depression. In economic terms, such programs were designed to respond to
a surplus of workers.
According to the case study about McDonald's, how has the company adapted to local cultures?
all of these
Which event in Florida and California would most likely shift the supply curve for orange juice to the left?
an early frost accompanied by ice storms
What is the black market?
an illegal market in which goods are traded at prices higher prices
When you use a credit card, you are
borrowing money from a bank.
Which aspect of economic development has had the greatest impact on climate change?
burning of fossil fuels
One advantage of a partnership over a sole proprietorship is that a partnership
can get credit more easily.
Movement of money and investments from one country to another is called
capital flow
A bank must have a ??? from the state or federal government that spells out how it will operate and be regulated.
charter
Which of these is considered part of the money supply?
checking accounts
Individual borrowers take out what to make major purchases such as a new car or boat
consumer loans
Which form of business pays more taxes due to double taxation?
corporations
. The equilibrium price is the price at which
demand and supply curves intersect.
An attempt to influence another country's politics is the most common motive for which form of protectionism?
embargo
This is someone who takes on the responsibility and the risk of starting a business with the expectation of making a profit.
entrepreneur
The purpose of rationing during World War II was to ensure that
everyone could get essential scarce goods
Situation that exists when the quantity demanded of a product exceeds the quantity supplied, thus producing a shortage
excess demand
The United States borrows from foreign investors in order to
finance a trade deficit.
A bank's main function is to serve as a ??? an institution that brings together sellers and buyers in financial markets.
financial intermediary
The majority of economists support
free trade
. The concept of sustainable development draws particular attention to the well-being of
future generations.
The system of markets and trade that links the countries of the world is called the
global economy.
These are the responsibilities of business EXCEPT
helping their local community
The most important argument many economists make against price controls is that they are
inefficient
Google offered stock to the public in 2004. On the first day for Google, 22 million shares were sold. This sale raised about $1.2 billion for the company. This is called what?
initial public offering (IPO)
This involves using the money you have saved to earn even more money
investing
One country's comparative advantage over another might stem from any of several differences between them. Three of the most important are these EXCEPT:
labor unions
In the process, banks profit by charging more interest on what than they pay on deposits.
loans
Which of these is a disadvantage of turning a partnership into a corporation?
loss of control
The point at which the quantity of a product demanded by consumers in a market equals the quantity supplied by producers
market equilibrium
These are all example of stakeholders at FHS EXCEPT:
none of these
These are all the rights of businesses EXCEPT
none of these
Foundations and land trusts are examples of
nonprofit organizations.
Venture capitalists invest in new businesses in exchange for
ownership shares
This is the proportion of a household's income that its members save each year
personal savings rate
Maximum price set by the government to prevent prices from going too high is called?
price ceiling
Minimum price set by the government to prevent prices from going too low is called
price floor
Who are the primary customers of the Federal Reserve?
private banks
Which of the following concepts explains why a country would both import and export a particular type of good?
product differentiation
The structure of a corporation can best be described as a
pyramid
To expand their business, sole proprietorship most often depend on money from
reinvesting their profits.
A legal limit on the amount a landlord can charge a tenant; a price ceiling on rents is called?
rent ceiling
Franchisees must also pay this, or a percentage of earnings, to the parent company. These costs are on top of the usual costs of operating a business?
royalties
The main function of a bank is to bring together
savers and borrowers.
What investments that give their holders the right to receive some form of return, or profit.
securities
The United States borrows dollars from foreign investors by
selling government bonds.
The board of directors of a corporation is selected by and accountable to the
shareholders
If a manufacturer introduces a new product with a successful advertising campaign and an artificially low introductory price, which of these will most likely result?
shortage
How do high U.S. or European tariffs on agricultural products and clothing hurt least developed countries (LDCs)?
smaller market for LDCs' exports
.Which label belongs in place of the question mark?
social security, company retirement plans, personal savings
What is the most common form of business?
sole proprietorship
Which form of business organization is most common?
sole proprietorship
What determines floating rates of foreign exchange?
supply and demand
A pollution haven is a country
that attracts polluting industries because of its weak or poorly enforced environmental laws
One of the board's most important responsibilities is to select who?
the corporation's chief executive officer
The United States is
the leading importer and exporter in the world.
Many people who join co-ops are consumers looking to increase what?
their buying power
As developing countries shift from agriculture to industry,
their environmental problems multiply
What was a central goal of the formation of the European Union and the World Trade Organization?
to reduce trade barriers
What represents the interests of people working in a particular industry?
trade association
A country that imports more than it exports has a
trade deficit
How is the market-clearing price determined?
trial and error