Economics Practice Questions
The political system that dominated Russia for most of the 20th century is known as: A democracy. B communism. C monarchy. D republicanism.
B
The price determined by the invisible hand is known as: A deadweight loss. B equilibrium. C demand curve. D producer surplus.
B
A decrease in spending on public social services is likely to be undertaken with which of the following goals? A reducing the budget deficit B controlling inflation C decreasing unemployment D increasing the budget deficit
A
A demand curve is said to be unit elastic when which of the following occurs? A The demand of a good changes in exact proportion to the change in price. B The demand for a good does not change regardless of price changes. C The demand of a good changes by a greater proportion than the change in price. D The demand of a good changes by a lower proportion than the change in price.
A
A primary goal of Franklin D. Roosevelt's New Deal programs of the 1930s was to: A counter the poverty of the Great Depression. B halt nuclear proliferation. C spread democracy abroad. D increase American exports.
A
A production point that lies within a production possibilities curve is: A possible but not efficient. B not possible given current resources and technology. C not possible in all circumstances. D possible and efficient.
A
Aaron owns his own business washing cars on the weekends. He charges $25 per car and uses his own set of sponges, soap, and brushes to clean the cars. He works out of a rented space in a local car dealership. Which of the following is an example of labor as a factor of production for Aaron? A the physical work he puts into washing each car B the sponges and soap he used to wash each car C the $25 he charges to wash each car D the rented space he uses to wash each car
A
Adam Smith argued that which of the following system is best designed to utilize the individual labor of a person? A capitalism B authoritarianism C socialism D communism
A
An increase in real GDP will have which of the following effects? A an increase in real money demand B an increase in the graduated tax rate C a decrease in real inflation D a decrease in real interest rate
A
Assume that the apparel company, One One Six, can produce 300 pairs of jeans or 160 sweatshirts, whereas another company, Meyer & Co., can produce 250 pairs of jeans or 340 sweatshirts using the same amount of resources. The companies will benefit from specialization and trade if: A One One Six specializes in jeans and trades one pair of jeans for one sweatshirt. B Meyer & Co. specializes in jeans and trades one pair of jeans for one sweatshirt. C both companies produce both products and do not trade. D One One Six specializes in sweatshirts and trades one sweatshirt for one pair of jeans.
A
Assume the United States does not currently impose a tariff on imported horse saddles from Spain. If a tariff were imposed, what would be the effect on the United States saddle market? A Prices would increase because of a decrease in the supply of saddles. B Prices would decrease because of an increase in the supply of saddles. C Prices would decrease because of a decrease in the supply of saddles. D Prices would increase because of an increase in the supply of saddles.
A
Assume the United States has a zero balance of trade with China. If the Chinese yuan depreciates relative to the United States dollar, Chinese exports to the United States would _______ and China would have a trade _______? A increase; surplus B decrease: deficit C increase; deficit D decrease: surplus
A
Economic scarcity is best understood as the recognition that: A there are limited amounts of goods to go around. B the free market produces inequality. C governments are necessary to ensure human needs are met. D humans do not make rational choices.
A
Ernest Rutherford's greatest contribution to science was that he discovered the: A nucleus of the atom. B modern microscope. C elliptical nature of the orbits of the planets. D first radioactive element.
A
Frank is hiring workers for his new home repair business. Which of the following will help Frank best increase his productivity? A Allocate work to each employee based on their skills. B Hire only students who can work part-time. C Advertise among friends and family first. D Directly oversee each work project himself.
A
The main cause of the creation of a perfect competition market structure is: A low barriers to entry. B brand loyalty. C profit. D government regulation.
A
Frequently, retirement or pension accounts are composed of a group of stocks or other assets that are pooled to allow retirement accounts to reduce risks and ensure a regular source of income later in life. These kinds of accounts are known as A. Mutual funds B. Asset-backed securities C. Bonds D. 501(c)(3)s
A
Fulton's invention of the steamboat helped to increase river commerce across the United States. Which of the following reflects another impact of Fulton's steamboat? A Migration within the United States increased. B Migration within the United States decreased. C The use of slave labor decreased on the frontier. D The process of statehood was accelerated for frontier states.
A
Gene's bakery sells two products, cookies and cupcakes. When Gene decides to decrease the price of both products by 15%, quantity demanded of cupcakes increased 30%, and quantity demanded of cookies increased 7%. Which of the following is true? A The demand for cupcakes is more elastic than the demand for cookies, and Gene's total revenue from selling cupcakes increased. B The demand for cookies is more elastic than the demand for cupcakes, and Gene's total revenue from selling cupcakes decreased. C The demand for cupcakes is more inelastic than the demand for cookies, and Gene's total revenue from selling cupcakes decreased. D The demand for cookies is more elastic than the demand for cupcakes, and Gene's total revenue from selling cupcakes increased.
A
If China holds a trade surplus with the United States and then increases the value of its exports, which of the following happens to the Chinese balance of trade? A It increases. B It decreases. C It remains the same. D It depends on the United States' balance of trade.
A
In 2008, during the height of the economic recession, President Barack Obama pushed through Congress a stimulus plan designed to increase government spending on infrastructure and other internal improvements. This policy most reflected which of the following? A. John Maynard Keynes's argument that deficit spending should be employed during times of reduced aggregate demand. B. Adam Smith's arguments encouraging faith in the market's ability to right the economy during economic downturns. C. Milton Friedman's contention that gradual increases in the money supply provide the best strategy for achieving long-term economic stability. D. Support for David Ricardo's contention that population growth will ultimately undermine prospects for wage growth and higher standards of living.
A
In economics, the need to make choices arises due to: A scarcity. B opportunity cost. C producers. D consumers.
A
In response to an oil embargo by OPEC, US gasoline prices quickly rose. Officials asked people to limit consumption and the president requested gasoline stations to not sell on Saturday nights or Sundays. While most of the stations complied, long lines were common and prices continued to rise. Overall, prices rose from a national average of 38.5 cents in May 1973 to 55.1 cents in June 1974 at pumps. Which of the following best describes why demand did not decrease with the calls for reduction and higher prices? A Gasoline is an inelastic good. B The price reflected support of the government. C The price was controlled by the government. D Gasoline is an elastic good.
A
In the fall of 2014, the price of oil fell sharply from an average of over $100 per barrel to less than $50 per barrel. Based on the principles of supply and demand, which of the following is most likely true? A The price decline was caused by an overproduction of oil. B The price decline was caused by a decrease in oil production. C The price decline caused an increase in capital investment in oil production. D The price decline was caused by an increased demand for oil.
A
In which of the following economic systems are the means of production directly and privately owned by people and operated to make a profit? A capitalism B mercantilism C communism D socialism
A
Increasing government spending in the midst of a recession would likely lead to which of the following? A an increase in demand for labor B a decrease in inflation C an increase in prime interest rate D an decrease in consumer confidence
A
Microeconomics is the branch of economics that studies how: A individuals and firms make decisions. B governments allocate resources. C small national economies form. D labor unions organize.
A
Mr. Garish begins a project among his eighth-grade class. He gives the class $20 to purchase coloring pencils and has his students sell them to students who have forgotten their pencils at home. Which of the following economic principles can Mr. Smith's students learn from this project? A supply and demand B opportunity cost C impact of imports and tariffs D comparative advantage
A
Mr. James would like to show his students the great diversity in science history. Which of the following activities would best allow him to do this? A Lead students on a scavenger hunt for information about scientists who developed objects they use in their everyday lives. B Show students pictures of engineers who worked on a local building project. C Assign each student a different scientist to research. Ask students to write a one-paragraph essay on that scientist's life and contributions. D Show students a documentary about Hedy Lamarr, an actress who pioneered frequency hopping.
A
Ms. Schatz asks her sixth-grade students to draw what they think of when they hear the word "scientist". Most of her student draw men in white lab coats with messy hair. Ms. Schatz then shows students pictures of scientists throughout history that do not fit this description. She also shows students pictures of professionals in various fields who could accurately be called scientists, such as gardeners, dairy farmers, oil field workers, and chefs. Which misconception is Ms. Schatz most likely trying to correct? A A scientist is a specific type of person, and there is very little diversity in science. B Science is not interesting. C Only scientists wear white lab coats. D Scientists do not have to wear white lab coats in the lab. Some scientists wear rubber aprons
A
Price controls are most likely to be instituted in which of the following situations? A when a basic good such as wheat is affected by natural disaster to the point of scarcity B during times of economic depression in the national economy C as imports of a basic good from abroad increase competition D as consumer tastes change
A
Producers in the free enterprise system are driven by which of the following? A profit maximization B economic efficiency C rational choice D social equity
A
Subsidies are designed to have which of the following effects? A to encourage companies to produce otherwise cost-prohibitive goods B to stimulate growth of publicly-owned industries C to stimulate competition in monopolistic markets D to encourage consumers to purchase an overproduced good
A
The free-enterprise system as it operates in the United State is characterized by all of the following features EXCEPT: A centralized output goals. B market competition. C competitive prices. D low barriers to entry.
A
The large and sustained growth in China's GDP over the last twenty years indicates what about the Chinese economy and its place in the world? A China is increasing economic output and becoming a more influential power on the world stage. B China is decreasing in economic output. C The standard of living for the average Chinese citizen has increased. D China is increasingly relying on sources of renewable energy.
A
What is the difference between a bondholder and a stockholder? A. The owner of a share of stock has part ownership of a corporation, whereas a bondholder is merely a creditor of the company. B. A bondholder is not taxed on interest earned from ownership of a bond, while a stockholder is taxed on dividend income. C. Stocks can be sold, but bonds cannot. D. When a company goes bankrupt, stockowners are paid first before bondholders.
A
Wheat farmers, soybean farmers, coffee growers, dairy farmers, and other producers of agricultural commodities are most often found in which of the following market structures? A. Pure competition B. Oligopoly C. Monopoly D. Monopolistic competition
A
When Uber and Lyft drivers and taxi drivers are replaced by self-driving automobiles and find themselves out of work, economists will define this kind of unemployment as which of the following? A. Structural unemployment B. Cyclical unemployment C. Frictional unemployment D. Seasonal unemployment
A
Which of the following New Deal programs contributed to integrating the American economy and fostering later economic growth? A. Works Progress Administration road-building projects B. Civilian Conservation Corps forestry improvements C. The FDIC's guarantees of individual savings accounts D. Agricultural Adjustment Act (AAA) farm subsidies
A
Which of the following advantages are associated with the partnership form of business firm? A. Start-up costs are relatively low and the business is relatively easy to establish. B. The liability of each partner for business debts is limited. C. Partnerships have little risk of disagreement or frictions among the partners. D. If partners leave the firm, it is easy to disentangle ownership stakes and divide up the shares of the firm.
A
Which of the following best describes how the Federal Deposit Insurance Corporation (FDIC) contributed to increased capital investment in the 1940s and 1950s? A. It encouraged increased private saving. B. It provided the funding for the Social Security System. C. It stabilized exchange rates and strengthened the value of the dollar. D. It reduced mortgage costs and encouraged home construction.
A
Which of the following best describes why the Great Recession was not limited to the United States but affected most industrialized nations? A Investors across the globe had purchased securities backed by the United States mortgage market. B The International Monetary Fund downgraded the credit ratings of countries that had invested in the United States housing market, making it harder for them to borrow. C The United States borrowed from other economies during the housing crisis, sending those economies into recession. D The World Bank raised interest rates on other developed countries to help bail out the United States after the collapse of the housing market.
A
Which of the following best explains why firms in a monopolistic competition market have some degree of control over the market and are not pure price-takers? A Consumers exhibit some degree of brand loyalty. B Firms in a monopolistic competition market do not face any competition. C Market control is rotated through firms in a monopolistic competition market due to government regulation. D Firms in a monopolistic competition market are legally allowed to collude.
A
Which of the following correctly states the law of supply and demand? A All else being equal, the unit price of a good in a competitive market will vary until quantity supplied equals quantity demanded. B All else being equal, subsidies are required to reach market equilibrium in a perfectly competitive market. C In a perfectly competitive market, suppliers exist as firms with the ability to set prices. D In a competitive market, the quantity demanded will always exceed the quantity supplied.
A
Which of the following descriptions best summarizes the tradeoff produced by taxation? A Government revenue increases at the expense of privately available funds. B The higher the tax, the less revenue available for government use. C Taxes lead to price increases, but also public goods. D Public goods come at private expense
A
Which of the following institutions is responsible for regulating corporate banking in the United States? A the Federal Reserve B the Department of the Treasury C the Small Business Administration D the Securities and Exchange Commission
A
Which of the following inventions significantly increased the demand for slaves in America? A the cotton gin B the steam boat C the iron plow D the textile mill
A
Which of the following is NOT a common criticism of the United States' national debt practices? A Holding national debt is a roundabout way of profiting off of the country's success. B National Security decisions are unduly influenced by cost expenditures. C The current level of national debt owned by foreign nations affects our international relations. D The interest level on current debt hampers potential development.
A
Which of the following is not a component of GDP calculation? A income taxes B investment C consumption expenditures D government expenditures
A
Which of the following is the MOST liquid asset? A. A checking account B. A savings bond C. A share of corporate stock D. Real estate
A
Which of the following is the best way to engage students from diverse cultural backgrounds in the practices of science? A incorporate science lessons that develop from the actual experiences of students in their culture B utilize science lessons that mimic high school science topics to prepare students for the upper grades C include mainly science lessons that are published by science supply companies D teach science topics that are the focus of a science textbook, because that is what each student needs to know
A
Which of the following is the largest component of the annual federal budget in the United States? A social services B defense C foreign aid D education
A
Which of the following is true for firms in monopolistic competition? A Branding is an important means of product differentiation. B Price is set by producers' profit-maximization strategy. C Firms face little to no competition. D Firms face high barriers to entry.
A
Which of the following is true in science? A Science is open to change. B Scientific laws and theories are the same. C Scientific laws are the same as facts. D Scientific theories always evolve into scientific laws.
A
Which of the following is true of firms in both perfect competition and monopolistic competition, if both have the same costs? A The firms' goods in both markets will be sold at a price determined by the market. B Both sets of firms will focus mainly on branding as a main focus differentiation. C Firms in both markets will act as price-setters. D The firms in monopolistic competition will by necessity sell products at a lower price than those in perfect competition.
A
Which of the following is typically excluded from any measurement of the labor force? A retired individuals not looking for work B those unable to find a job but still looking C anyone attending school D those with a current job
A
Which of the following scientists' experiments with Drosophila led to the discovery that genes are carried on chromosomes? A Thomas Hunt Morgan B Rosalind Franklin C Gregor Mendel D James Watson
A
Which of the following will result in a production possibilities curve for cheese and milk shifting outward? A an increase in the number of dairy cows in the United States B a decrease in the number of dairies producing cheese and milk C a decrease in the production of goat milk, a competitor D an increase in the sales tax rates on dairy products
A
Demand for the US dollar increases when which of the following is true? Select all answers that apply. A Supply of the US dollar on the world market decreases. B The inflation rate in the US is lower than that in the general world economy. C Supply of the US dollar on the world market increases. D The inflation rate in the US is higher than that in the general world economy.
A and B
In which of the following market structures do firms face low barriers to entry? Select all answers that apply. A monopolistic competition B perfect competition C oligopoly D monopoly
A and B
Which of the following features are characteristic of a monopoly structure? Select all answers that apply. A ability to accomplish profit maximization B high degree of market control C low barrier to entry D ability to market and advertise your product
A and B
Which of the following qualify as subsidies? Select all answers that apply. A providing low-income students financial aid to attend college B adding a tax to the purchase price of cigarettes C funding given to farmers who produce soybeans for fuel D charging a factory for the pollution it generates
A and C
Supply and demand curves can be used to illustrate which of the following? Select all answers that apply. A consumers' willingness to buy B changes in GDP C deadweight loss from taxation D producers' willingness to sell
A, C, and D
A country practicing inflation targeting will likely give up their potential to maximize which of the following, in order to achieve their goal? A social services B economic growth C employment D price stability
B
According to the model of the circular flow of money, what form does money take when flowing from households to firms? A wages B consumer expenditure C dividends D rents
B
Andy can produce either 24 cookies or 8 cakes. The opportunity cost for Andy to produce a cake is: A ⅓ cookie. B 3 cookies. C 3 cakes. D ⅓ cake
B
As reproductive technology has advanced, many ethical dilemmas have arisen. Which of the following presents the fewest ethical challenges? A undergoing assisted reproductive technology in order to choose an embryo's athleticism B undergoing assisted reproductive technology in order to choose an embryo that does not carry cystic fibrosis C undergoing assisted reproductive technology in order to choose an embryo's hair or eye color D undergoing assisted reproductive technology in order to choose an embryo's gender
B
Assume that bicycles and skateboards are substitutes. If the skateboard manufacturers experience a decrease in the price of wheels, which of the following will most likely occur? A The demand curve for skateboards will shift to the left. B The demand curve for bicycles will shift to the left. C The supply curve for skateboards will shift to the left. D The supply curve for bicycles will shift to the right.
B
The majority of democracies operate under the principles of what political system? A socialism B capitalism C communism D distributism
B
Assume that pens and pencils are substitutes. If the pencil manufacturers experience a decrease in the price of wood, which of the following will most likely occur? A The demand curve for pencils will shift to the left. B The demand curve for pens will shift to the left. C The supply curve for pens will shift to the right. D The supply curve for pencils will shift to the left.
B
Assume that with the same amount of resources, the country of Artan can produce 500 pairs of shoes and 200 leather jackets, whereas the country of Nebdin can produce 250 pairs of shoes and 450 leather jackets. Artan and Nebdin would both: A benefit from trade, if Nebdin specializes in shoes and trades 1 pair of shoes for 1 leather jacket. B benefit from trade, if Artan specializes in shoes and trades 1 pair of shoes for 1 leather jacket. C not benefit from trade because Nebdin has an absolute advantage in the production of both shoes and leather jackets. D not benefit from trade because Artan has an absolute advantage in the production of both shoes and leather jackets.
B
At the world price of corn, Brazil has a quantity demanded of 900 tons and a quantity supplied of 400 tons. If the government of Brazil sets a tariff on corn imports, which of the following will occur? A The quantity of corn imported to Brazil will decrease. B The price of corn in Brazil will increase. C The quantity of corn imported to Brazil will increase. D The price of corn in Brazil will decrease.
B
Compared to a firm in a monopoly, a firm under perfect competition is different in that it: A is under government regulation. B is a price taker. C sets the price of its goods. D faces high barriers to entry.
B
Dr. Louis Pasteur made great discoveries in the causes and prevention of diseases. He created the first vaccinations for rabies and anthrax, which in turn saved many lives. Because of these discoveries, he is known as one of the fathers of: A oncology. B germ theory. C cardiology. D diabetes prevention.
B
During a recession, a desire to stimulate growth in the economy by funding major public infrastructure projects will lead to an increase in: A consumer spending. B government spending. C consumer confidence. D investment spending.
B
From Russ Roberts, It's a Wonderful Loaf: I have my tastes and you have yours, we each have our own urgesYet somehow there's no conflict, a harmony emergesOur dreams can fit together like a quilt that someone weaves usBut there isn't a weaver of dreams, reality deceives usAnd here's the crazy thing, if someone really were in chargeTo make sure that bread was plentiful, with the power to enlargeThe supply of flour, yeast and of bakers and ovens, tooWould that person with that power have any idea of what to do?The poem above most clearly illustrates which of the following? A. David Ricardo's "Iron Law of Wages." B. Adam Smith's conception of the "Invisible Hand." C. Say's Law that "Supply creates its own demand." D. Karl Marx's "Labor Theory of Value."
B
In a free market, as price increases the quantity supplied will __________ while the quantity demanded will __________. A decrease; increase B increase; decrease. C decrease; remain the same D remain the same; increase
B
In a mixed economy, price is set by: A supply and demand. B the market, with government input. C suppliers. D central planners.
B
In a unit on personal finance, a sixth-grade teacher wants students to be able to identify the difference between fixed and variable costs. Which of the following examples would best highlight this difference? A analyzing the money spent on gas each month of an average American and looking at how much a person drives impacting the price they will pay in gas B categorizing the expenses of a local restaurant into expenses that depend on the number of customers and expenses that do no not depend on the number of customers C looking at the differences between a tax deduction and a tax credit D having students ask their parents what fixed costs they pay each month
B
In economics, the "opportunity cost" of a choice refers to the cost of: A utility lost by not pursuing another option. B the next-best forgone activity. C monetary loss resulting from an action. D the sum of all forgone opportunities.
B
Interest is best defined as: A the amount of money someone can spend on a credit card. B the cost associated with borrowing from the bank which issues a credit card. C the minimum a borrower must pay each month on their credit card bill. D the discount provided by using a credit card.
B
Last year the Chinese yuan traded at 7 yuan per US dollar; this year the yuan trades at 9 yuan per dollar. Which of the following will occur as a result of this change? A US imports of Chinese goods will increase and the trade deficit will shrink. B US imports of Chinese goods will increase and the trade deficit will grow. C US imports of Chinese goods will decrease and the trade deficit will shrink. D US imports of Chinese goods will decrease and the trade deficit will grow.
B
Monopolistically competitive markets are similar to monopolistic markets in that in both markets: A consumers are price makers. B firms have some degree of market control. C substitute goods are readily available. D firms face high barriers to entry.
B
Of the following industries, which is expected to contribute most to the growth of the Texas economy in the 21st century? A energy B information technology C education D transportation
B
Producers tend to specialize in one particular good or service due to which of the following? A Scarcity of goods makes it such that producers can only procure certain raw materials. B Opportunity cost produces a trade-off when considering other goods. C Society at large is inequitable. D Government regulations limit the innovation of producers.
B
Samuel has been laid off because the economy is experiencing a recession. The kind of unemployment Samuel is experiencing is known to economists as A. structural unemployment. B. cyclical unemployment. C. frictional unemployment. D. seasonal unemployment.
B
The Communist Manifesto by Karl Marx advocated for which of the following ideals? A female suffrage B classless society C voting rights for African Americans D international cooperation
B
The Great Recession of 2008 most affected Texas in which of the following ways? A The Texas agriculture industry experienced a shortage of workers. B There was a significant drop in housing prices in many regions of Texas. C Automobile manufacturing began to move out of Texas. D Prices for crude oil spiked to all-time highs.
B
The Industrial Revolution most directly affected the social status of which of the following groups? A employed men B children C married women D enslaved Africans
B
The United States government can undertake which of the following fiscal policies to aid the economy in times of recession? A decreasing the prime interest rate B increasing government expenditure C decreasing government expenditure D increasing tax rates
B
The copyright to a popular series of romance novels expires later this year, and a number of publishing houses have plans to release their own editions of the series. As a result, the price of the novels will: A increase due to an increase in demand. B decrease due to an increase in supply. C decrease due to a decrease in demand. D increase due to a decrease in supply.
B
The economic system of communism holds which of the following as a core tenet of its ideology? A equal distribution of income and the guarantee of a living wage B public ownership of the means of production C limited government intervention in the market economy D specialization in economic tasks
B
When countries enter into multilateral trade accords such as NAFTA, they agree to: A remove visa requirements for travel. B lower economic barriers between the countries. C increase intra-state immigration. D protect one another militarily.
B
When the Federal Reserve decreases the interest rate, consumer spending is likely to: A increase or decrease, depending on other factors. B increase. C decrease. D stay the same.
B
Which of the following activities would most benefit an auditory learner in a unit about genetically modified organisms? A A drawing activity in which the student creates a pictorial diagram featuring arrows to show the process of inserting DNA into an organism to change its genome. B A structured debate activity in which the students study genetically modified organisms and then discuss whether these organisms should be available for mass consumption. C A report in which the student chooses a genetically modified organism and details the process of inserting the gene and explains how it changes the organism's genome. D A laboratory experiment in which the student uses protein gel electrophoresis to determine if the organism contains genes from another species.
B
Which of the following business enterprises has traditionally served as the largest sector of the Texas economy? A aerospace B energy C entertainment D information technology
B
Which of the following business ownership models concentrate risk to the greatest degree? A partnerships B sole proprietorships C corporations D none of the above; all models concentrate risk equally
B
Which of the following changes in the supply and demand of a good will likely increase the good's equilibrium price? A an decrease in supply and a decrease in demand B an decrease in supply and an increase in demand C an increase in supply and a decrease in demand D an increase in supply and an increase in demand
B
Which of the following describes a significant shift in the Texas economy in the early 1900s that still impacts the state today? A The development of the railroad decreased the demand for Texas cattle. B The Spindletop oil derrick attracted investors and speculators to Texas. C Demand for seafood from the Gulf increased from northern states. D Wheat production dropped in other parts of the country increasing reliance on Texas production.
B
Which of the following describes a situation where economic equilibrium has been achieved? A The quantity of textbooks demanded exceeds the quantity supplied. B The quantity of textbooks demanded equals the quantity supplied. C The price of textbooks on the market is set by the central government. D The quantity of textbooks demanded is less than the quantity supplied.
B
Which of the following economic ideas believes a country's wealth can be measured by its amount of gold reserves? A communism B mercantilism C capitalism D feudalism
B
Which of the following factors of production takes on risk as a feature of production? A land B entrepreneurship C labor D capital
B
Which of the following identifies the major difference between a partnership model and a corporation? A Partnerships are made up of several owners, whereas corporations have only a single owner. B In a partnership, risk is spread between multiple parties by the nature of their investment. In a corporation, each party is legally limited in the risk it bears. C Corporations are accountable to shareholders, whereas partnerships are not accountable to anyone but the owners. D Corporations are legally required to distribute profits equally, whereas partnerships are able to determine their own methods to profit distribution.
B
Which of the following identifies the primary purpose of the Federal Reserve? A regulate the foreign exchange markets of the US dollar B serve as the main regulator of monetary policy in the United States C provide oversight to the stock and options markets in the US D oversee the collection of federal income taxes
B
Which of the following increases the demand for labor? A a change in immigration policy, which results in the issuing of more work visas than before B the creation of new manufacturing jobs at a factory C a government program to train workers in computer skills D job training programs for workers collecting unemployment insurance
B
Which of the following industries revolutionized the Texas economy in the second half of the 19th century? A logging B railroads C cattle D manufacturing
B
Which of the following is a primary motivation for government action restricting monopolistic markets? A maintaining low levels of inflation B increasing economic efficiency C redistributing income D increasing competition to maintain product integrity
B
Which of the following is true about monopolistic competition and perfect competition? A Firms in both market types have full control over the price they charge. B Producers have more control over price in monopolistic competition than in perfect competition. C Firms in both market types act as passive price takers. D Producers have more control over price in perfect competition than in monopolistic competition.
B
Which of the following personal choices best illustrates the concept of opportunity cost? A. A student pays high rates of tuition in order to attend a prestigious college. B. A student cancels a spring break trip in order to study for an upcoming exam. C. A student takes out a loan to pay for a car needed to get to his or her job. D. A student changes majors to prepare for a more lucrative career.
B
Which of the following policies would move a nation's production point from inefficient production to efficiency on its production possibilities curve? A a government program to train workers in computer skills B a government program to subsidize farmers to use all available land C a privately-sponsored program aimed at reclaiming urban land for agricultural production D a tax incentive program for business to produce farm equipment rather than automobiles
B
Which of the following scientists is particularly noted for his or her contribution to atomic theory? A Dmitri Mendeleev B Niels Bohr C Marie Curie D Louis Pasteur
B
Which of the following scientists won two Nobel Prizes, one in physics and one in chemistry, and discovered the elements Radium and Polonium? A Antoine Lavoisier B Marie Curie C Dmitri Mendeleev D Rosalind Franklin
B
Which of the following was an economic policy enacted by President Ronald Reagan during the 1980s? A growing government oversight of the banking industry B tax cuts to encourage investment and consumer spending C increased taxes on high-level incomes in order to fund social services D creation of a federally-funded national healthcare system
B
Which of the following will cause an increase in the quantity of wool sweaters demanded? A a decrease in the cost of knitting looms B a decrease in the price of wool sweaters C an increase in the cost of sheep feed D an increase in the price of cotton
B
Which of the following will most likely result in a price decrease AND sales decrease for smartphones? A an increase in demand for smartphones B a decrease in demand for smartphones C a decrease in supply of smartphones D an increase in supply of smartphones
B
World War II and the early years of the Cold War contributed to American economic growth in all of the following ways EXCEPT: A. The industrial workforce expanded with the inclusion of African-Americans, Latinos, and women. B. Lowered tax rates and decreased government spending encouraged entrepreneurial innovation. C. New technologies developed for military purposes revolutionized leading sectors of the American economy. D. The growing strength of unions resulted in higher wages and increased consumer spending.
B
Which of the following are examples of competitive free-market economies? Select all answers that apply. A China B Great Britain C the United States D Sweden
B and C
A consumer takes out a loan for $500 that charges 10% annual interest. What is the total cost of the loan if the consumer pays it back one year from the date of origination? A $750 B $50 C $550 D $500
C
A decrease in the interest rate is likely to result in: A decreased price levels. B increased consumption saving. C increased consumer spending. D decreased inflation.
C
A market where only a few firms compete against each other is known as: A monopolistic competition. B perfect competition. C an oligopoly. D a monopoly.
C
A partnership or sole proprietorship that creates a legal barrier between the private wealth of the owners and the debts of the firm is known as a A. joint-stock company B. corporation. C. limited liability company (LLC). D. cooperative.
C
A recession occurs in country A. Which of the following policy actions can the government take to address the effects of the recession? A Decrease corporate tax rates. B Raise the prime interest rate. C Lower the prime interest rate. D Increase the minimum wage.
C
A sixth-grade teacher discovers that each student in his class receives an allowance from their parents. Which of the following examples would best demonstrate to the students the power of saving their allowance instead of spending all of their allowance? A Have students set aside 10% of their allowance each week. B Have students calculate the amount of federal tax owed on their allowance if it was taxed. C Show students the expected return of 5% allowance savings over a 10-year period. D Have students research a charity and ask how their allowance money could impact those whom the charity serves.
C
A student works for the local newspaper delivering papers. He uses money from his paycheck to buy a pair of shoes at a local store, which uses that money to pay their property tax. Which of the following is best illustrated by this scenario? A the demand curve B the AD-AS model C the circular flow of money D the supply curve
C
Amos is a carpenter who owns a piece of land and rents his land out to cattle ranchers. He takes the extra income earned from this and places it into a retirement account to be used when he is no longer working. Which of the following is true? A Amos rents his land in the product market and invests his money in the factor market. B Amos rents his land in the factor market and invests his money in the product market. C Amos rents his land in the factor market and invests his money in the financial market. D Amos rents his land in the product market and invests his money in the financial market.
C
An early winter frost destroys a large portion of the American tomato crop, drastically reducing supply, resulting in an _______ in price and a __________ in quantity demanded. A decrease; increase B increase; increase C increase; decrease D decrease; decrease
C
An increase in real GDP will have which of the following effects? A a decrease in real inflation B a decrease in real interest rate C an increase in real money demand. D an increase in the graduated tax rate
C
An increase in the price of cabbage will result in which of the following? A a decrease in demand of cabbage B an increase in the quantity demanded of cabbage C a decrease in the quantity demanded of cabbage. D an increase in demand of cabbage
C
Assume that the Ugandan shilling is trading at 3,700 shillings per one US dollar. If the shilling increases in value by 15%, the dollar would: A depreciate by 15% and would be valued at 4,225 shillings per dollar. B appreciate by 15% and would be valued at 3,145 shillings per dollar. C depreciate by 15% and would be valued at 3,145 shillings per dollar. D appreciate by 15% and would be valued at 4,225 shillings per dollar.
C
Billy is saving to buy a new phone. Billy's friends invite him to go to dinner and a movie. He wants to go, but decides that saving his money for a new phone is more important. Billy's choice best demonstrates which of the following? A scarcity of resources B comparative advantage C opportunity cost D supply and demand
C
During a unit on finances, a teacher begins an activity by randomly assigning a job and an hourly wage to each student in class. Which of the following real-life situations is best to help students understand gross income versus net income? A Students can have a portion of the earnings put into savings. B Students may purchase bonds. C Students must pay taxes on their earnings. D Students can choose to invest in the stock market.
C
During the economic dominance of mercantilism, he put forth an economic idea that an "Invisible Hand" directs the economy towards efficiency. A Karl Marx B Milton Friedman C Adam Smith D John Maynard Keynes
C
If the Indian rupee loses value against the United States dollar, which of the following consequences occurs for Indian export goods? A they become less expensive for Indian companies to export B they become more expensive for American companies to import C they become less expensive for American companies to import D they become more expensive for Indian companies to export
C
If the economy has experienced long-term sustained growth, the government is likely to do which of the following? A Reduce the graduated tax rates. B Increase government expenditure. C Increase the interest rate. D Pass a stimulus package.
C
If the market price of cabbage drops, you can infer that what has happened to cause this change? A Production of cabbage has been reduced. B Taxes have increased. C Consumers have been buying less cabbage. D Consumers have been buying more cabbage.
C
In a free-market economy, governments undertake which of the following in order to motivate the production of positive externalities? A Tax private entities that produce positive externalities. B Mandate minimum outlet levels of the good or service from which the externality is derived. C Subsidize the activities that produce positive externalities. D Nationalize any industry that provides positive externalities.
C
In the 19th century, the New England states mainly produced manufactured textile products while the South produced agricultural products like tobacco and cotton. Which economic principle best explains this? A inflation B opportunity cost C comparative advantage D supply and demand
C
In the first half of the 20th century, who advocated an economic belief that large government spending can stimulate an economy during periods of decline? A Friedrich Hayek B Adam Smith C John Maynard Keynes D Milton Friedman
C
In the nation of Arden, the government regulates the tourism industry, including limiting the number of permitted tour guides that can operate. Assume the government issues 90 additional tour guide permits that allow an individual to work legally as a tour guide. What effect will this action have on the price of tours in Arden? A The effect on price cannot be determined with only this information. B The price of tours will increase. C The price of tours will decrease. D The price of tours will not change.
C
Jack is a welder who owns his own shop and usually works Monday through Friday for ten hours each day. Out of his company profits, he pays himself $45 an hour. But one day, tired of welding and hoping to change careers, Jack decides to start taking night classes two nights a week, which cost $25 each and require him to close his shop two hours early. The total cost of Jack's night classes per week is: A $2250. B $50. C $230. D $90.
C
Labor includes which of the following? A the smelter used to melt the steel B the mill owners who organize the production process C employees who work at a steel mill producing steel D finished cars produced from steel
C
Many cities are implementing or expanding pre-existing recycling programs to include a wider variety of plastics. Companies are researching ways to reduce the amount of plastic used in packaging and make it easier to recycle. Which of the following societal issues is most directly addressed by the new developments and research in these fields? A the melting of polar ice caps B the runoff and infiltration of fertilizers and pesticides C the increased volume of garbage in landfills D the price of consumable goods
C
Negotiations between the United States and Canada during the 1990s most often dealt with which of the following issues? A protecting the border from terrorist threats B repayment for lands seized in the War of 1812 C trade relationships between the two countries D stopping the flow of illegal narcotics
C
Susie and Sally open a lemonade stand in their neighborhood and within the first day, they sell out of lemonade in just a few hours. The next day, Susie and Sally again sell out of lemonade in a few hours. Because they can only carry so many supplies to their stand, they decide to raise the price of their lemonade. Susie and Sally's choice best demonstrates which of the following? A opportunity cost B scarcity of resources C supply and demand D comparative advantage
C
The Federal Reserve is responsible for all of the following actions EXCEPT: A regulating banks. B managing interest rates. C setting tax rates. D overseeing monetary policy.
C
The Payday Lending industry has faced increased criticism and scrutiny for which of the following practices? A making cash available on short notice B increasing the credit scores of low-rated borrowers C charging high interest rates D supporting local economies in depressed cities
C
The exchange rate is A. the quantity of foreign currency that can be bought at any given point in time. B. the price of one currency on the international market. C. the value of one currency in another currency. D. the amount other countries will pay for a country's currency.
C
The game of musical chairs, where there is always one less chair than there are players in the game, best demonstrates which of the following? A comparative advantage B opportunity cost C scarcity of resources D supply and demand
C
The labor force, a key component of measuring unemployment, is composed of which of the following? A the number of people currently working B the number of people looking for a job but unable to find one C the number of people working and those willing to work but unable to find a job D all individuals 18 years and older in the United States
C
The law of supply states that producers are willing to sell more of a product when: A supply for the good increases. B supply for the good decreases. C the price increases. D the price decreases.
C
The price elasticity of demand of a good is considered inelastic if: A the percentage change in price is equal to the percentage change in quantity. B the percentage change in price is less than the percentage change in quantity. C the percentage change in price is greater than the percentage change in quantity. D the percentage change in price is inverse to the percentage change in quantity.
C
The production of any good or service requires land, labor, capital, and entrepreneurs. These collectively are known as: A supply and demand. B factor markets. C factors of production. D finished goods.
C
Two tropical nations, Costa Luna and St. Pierre, hire tour boat operators in a perfectly competitive labor market. If the demand for tour boat operators in Costa Luna falls, wages in Costa Luna are likely to: A rise, and the supply of workers in St. Pierre would increase. B fall, and the supply of workers in St. Pierre would decrease. C fall, and the supply of workers in St. Pierre would increase. D rise, and the supply of workers in St. Pierre would decrease.
C
Use the following excerpt from the United States Constitution to answer Question 102.Article I. Section 8, Clause 8 of the United States Constitution."The Congress shall have the power . . . to promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries."Which of the following resulted from this clause in the Constitution? A. The Sherman Antitrust Act B. The Interstate Commerce Commission C. United States Patent and Trademark Office D. The Food and Drug Administration
C
Which of the following best characterizes scarcity? A More needs exist than the government is willing to meet. B Corruption in government keeps needs from being met. C Demand for goods and services exceeds their availability. D Taxes are too high for all needs to be met.
C
Which of the following best illustrates how economic incentives cause changes in an individual's behavior? A A couple registers for wedding gifts before their wedding. B A firm increases output of a product because of increasing consumer demand. C An employee works fewer hours following an increase in pay. D A firm modifies the way it measures productivity after changing its product line.
C
Which of the following describes how fragmentation can affect an ecosystem? A It increases genetic variation within the species in the habitat. B Populations of one species can merge, increasing biodiversity. C It enables invasive species to more successfully enter the habitat. D It decreases the rate of photosynthesis by autotrophs in the habitat.
C
Which of the following forms of taxation is most regressive? A. The United States income tax B. The FICA tax C. State sales taxes D. Capital gains taxes
C
Which of the following individuals was largely responsible for developing the telegraph? A. Richard Arkwright B. Robert Fulton C. Samuel F.B. Morse D. Samuel Slater
C
Which of the following is NOT a feature of Marxist criticism of the free market system? A. The instability of the business cycle leads to recurring recessions and high unemployment. B. Income inequalities result from capitalists' accumulation of profits that rightfully belong to workers. C. Government intervention in the marketplace distorts prices and production decisions. D. Workers' wages and standards of living inevitably decline under conditions of free market capitalism
C
Which of the following is not typically used to measure the likelihood of economic activity in a given region? A availability of needed land B existence of a sufficient labor supply C number of competing industries D presence of an entrepreneur
C
Which of the following is used to measure inflation year to year? A unemployment rate B long-run aggregate supply C Consumer Price Index D interest rate
C
Which of the following monetary policies might be used by the Federal Reserve System to combat inflation? A. Reducing the reserve rate required by banks B. Buying government securities as part of open market operations C. Raising the discount rate charged to banks D. Lowering marginal tax rates
C
Which of the following statements about the history of scientific discovery is true? A The periodic table as we know it today was published by Dmitri Mendeleev in 1869. B Sir Isaac Newton's theory of relativity proposes that the laws of physics are universal for non-accelerating objects. C The first taxonomy of organisms was formed in ancient Greece. D Scientists knew very little about electricity until the late 1800s.
C
Which of the following statements best illustrates how to help students develop ethical thinking in science? A When appropriate, telling students how the science topic they are studying has benefited society. B Because of the controversial nature of ethics, this topic should be left for parents to teach at home. C A regular and consistent focus on how science can affect society, for good or bad. D An ethical decision-making activity in which students decide which person should be thrown out of a lifeboat that is too small for everyone.
C
Which of the following technological innovations had the most immediate impact on the spread of slavery into Alabama, Mississippi, Arkansas, and Texas? A. Spinning jenny B. Sugar mill C. Cotton gin D. Steamship
C
Which of the following theorists is most often associated with the development of socialism? A. John Maynard Keynes B. Adam Smith C. Karl Marx D. John Locke
C
Which of the following typically occurs during periods of economic growth? A stagflation B increased unemployment C inflation D recession
C
Which of the following was an important social development made possible by the First Industrial Revolution? A decreased power of business owners B strict laws to restrict child labor C the rise of the middle class D individuals amassing large fortunes
C
Which of the following was the primary reason for the growth of national markets in the US during the last half of the 19th century? A the urbanization of the workforce B the invention of the steamboat C the expansion of the railroad system D the growth of the oil industry
C
Which of the following will most likely occur if the federal government imposes a minimum wage that is above the equilibrium? A Wages in low-skill jobs will remain unchanged. B Employment in high-skill jobs will decrease. C Employment in low-skill jobs will decrease. D Wages in high-skill jobs will fall.
C
Which of the following would be considered a transfer payment? A. Interest payments B. Dividend income C. Social Security payments D. Rental income
C
Which of the following factors was the most influential on the Industrial Revolution? A the need for new sources of food for urban populations B the decline in the number of children per household C the implementation of laws restricting child labor D the available supply of raw materials, including labor
D
Which of the following are variable expenses? Select all answers that apply. A health insurance B mortgage payment C transportation cost D food
C and D
According to Keynesian fiscal policy theory, what should the government do during recessionary periods? A. Raise the federal funds rate charged to banks B. Raise tax rates on lower and higher income brackets C. Encourage the Fed to buy government securities from private sellers D. Increase the size of the federal deficit by cutting taxes and raising spending
D
According to the theory of comparative advantage, countries benefit from trade because A. trade allows firms to take advantage of cheap labor costs worldwide. B. trade reduces the likelihood of conflict between nations. C. every nation has an absolute advantage in something and should specialize in that product. D. global output increases when each nation specializes in what it does best relative to other nations.
D
Advocates for the labeling of genetically modified food argue that consumers should be made aware of food that contains genetically modified ingredients. Companies argue that these labels will increase their costs. If such a policy is put in place, what can be expected to happen? A The price of such food will decrease, and consumer spending will increase if demand is elastic. B The price of such food will increase, and consumer spending will decrease if demand is inelastic. C The price of such food will decrease, and consumer spending will decrease if demand is elastic. D The price of such food will increase, and consumer spending will decrease if demand is elastic.
D
Anthony and Brian are brothers who own a home repair business specializing in doors. They can accomplish the tasks in the following amount of time: Install One Door Anthony: 20 minutes Brian: 12 minutes Paint One Door Anthony: 35 minutes Brian: 45 minutes To maximize production, how should each brothers' labor be allocated? A Anthony should do both tasks since he has the absolute advantage. B The brothers should both install and paint doors simultaneously. C Brian should paint doors and Anthony install doors. D Anthony should paint doors and Brian should install doors.
D
Beginning in the mid 20th century, the United States began to rely on which of the following for long distance transport of goods? A high-speed railways B steamships navigating river channels C ocean transport through a series of canals D an interconnected system of national highways
D
Capitalism is an economy system which depends on the operation of what key market feature? A a command economy B cartels C subsidies D perfect competition
D
Consumers are more willing to buy goods at a lower price because: A lower prices increase producer surplus. B lower prices decrease producer surplus. C lower prices decrease consumer surplus. D lower prices increase consumer surplus.
D
Economic growth in the United States between 1877 and 1914 resulted from all of the following EXCEPT A. the "opening up" of land in the Great Plains and Southwest to agricultural production and mineral extraction. B. new technological innovations like electricity, the Bessemer furnace, and the internal combustion engine. C. the influx of large number of immigrants from eastern and southern Europe. D. Reductions in protective tariffs and reduced subsidies to American industries.
D
Firms in perfectly competitive markets release new products in order to: A create economies of scale. B create brand loyalty. C provide lower costs to consumers. D differentiate their firms from competitors.
D
Fiscal policy tools include all of the following EXCEPT: A tax increases. B increasing government spending. C reduction in the printed money supply. D changing the benchmark interest rate.
D
How might scientific research be advanced in a society? A Making choices based on instinct and gut feeling. B Paying researchers a higher salary. C Creating scenarios for scientists to practice solving issues. D Assessing needs and using scientific research to address those needs in order to benefit society and our environment.
D
If a country enters into a free-trade agreement with a union of other countries, what can be expected to occur? A The loss in producer surplus will exceed the gain in consumer surplus. B The loss in consumer surplus will exceed the loss in producer surplus. C The gain in producer surplus will exceed the loss in consumer surplus. D The gain in consumer surplus will exceed the loss in producer surplus.
D
Inflation typically signals what about the economy? A Consumer spending is down. B Economic activity has begun to slow. C Many producers are experiencing a surplus. D Consumer spending is up.
D
John Maynard Keynes advanced which of the following principles? A A single global economic oversight agency is necessary to maintain the free market. B Public ownership of the means of production will eliminate economic class distinctions. C Establishing commercial credit will allow the growth of the global economy. D Governments can influence economic performance through facilitating changes in aggregate spending.
D
Karl Marx argued that capitalism creates which of the following? A gender parity B incentives to production C economic equality D class divisions
D
Large deposits of lithium have recently been discovered underground in Bolivia. Once these reserves are brought to market, the price of lithium will: A decrease due to an decrease in demand. B decrease due to a decrease in demand. C increase due to an increase in supply. D decrease due to an increase in supply.
D
Mr. Klement's seventh-grade class is studying renewable and nonrenewable resources. He would like to encourage the students to apply their knowledge of resources to a real-world scenario and make an ethical judgment. Which of the following activities would best allow him to do this? A Ask students to write a letter to their local city council encouraging increased use of renewable energy. B Show a video about ecosystems destroyed by the irresponsible use of resources. C Have students research the several types of renewable and nonrenewable energy and prepare pro and con lists for each. D Lead students in a debate about whether individuals should be required by law to use renewable energy sources.
D
Mrs. Kendrick wants to show her students that humans can have a positive impact on their environment. Which activity would best illustrate this? A Showing students pictures of common dangerous insects and the safest way to kill them. B Taking students to tour a paper mill since paper is a renewable resource. C Encouraging students to plant a vegetable garden at home and recommending effective pesticides to be sure the plants grow well. D Taking students and families to help plant trees and flowers in bare areas around their town.
D
Mrs. Yarbrough wants to demonstrate to her students the difference in the standard of living between citizens of various countries. Which of the following metrics would be most useful to share with the students? A percentage of government spending vs. charitable giving B per capita gross national product C the growth rate of a population D per capita gross domestic product
D
On nearly every corner in some metropolitan areas can be found a wide range of companies selling mattresses. Which of the following best identifies the nature of the mattress industry? A. Pure competition B. Oligopoly C. Monopoly D. Monopolistic Competition
D
Putting a hydroelectric dam on a river will most likely cause which of the following? A decreased water supplies in the villages surrounding the dam B increased sedimentation downstream from the dam C increased elevation of the riverbed D increased vegetation downstream from the dam
D
Sally Ride's scientific career was highlighted when she: A discovered the first cure for leukemia. B quantified the charge on the Z boson. C vaccinated millions of children in Africa. D became the first American woman in space.
D
Students are separating costs of running a concession stand into expenses that depend on sales volume and those that do not. What concept does the teacher want students to understand through this activity? A supply and demand B sales tax C fixed and variable income D fixed and variable expenses
D
Subprime mortgages, one of the major instigators of the collapse of the US housing market that led to the Great Recession, differ from traditional mortgages in which of the following ways? A Traditional mortgages have a fixed interest rate, whereas subprime mortgages always have a variable interest rate. B Traditional mortgages are granted only for new homes, whereas subprime mortgages may be for any type of home. C Subprime mortgages are granted only for the market value of a home, whereas traditional mortgages may be for any amount. D Subprime mortgages are granted to individuals otherwise deemed too risky by traditional credit and mortgage agencies.
D
The American Recovery and Reinvestment Act of 2009 was intended to do which of the following? A to provide unemployment insurance to those unable to work B to increase trade between the US, Mexico, and Canada C to revitalize involvement in American labor unions D to help the US economy recover from the economic effects of the housing crisis and Great Recession
D
The concept of division of labor was developed and advanced by which of the following? A John Maynard Keynes B Karl Marx C Milton Friedman D Adam Smith
D
The enactment of the Dodd-Frank Act following the 2008 financial crisis could best be seen as reflecting which of the following ideals? A Public ownership of the means of production is the only way to ensure economic equality. B Unrestrained capitalism best provides for economic growth. C The federal government, and not the states, should be in charge of financial regulation. D Free-market capitalism needs government regulation to ensure equity and fairness in the market.
D
The factor distribution of income is best understood as the division of income between: A producers and consumers. B government and private citizens. C different countries. D land, labor, and capital.
D
What was the influence of the Industrial Revolution on the population densities of urban and rural communities? A The female populations of urban areas increased while the male populations of rural areas increased. B Both populations remained constant. C Rural population increased as urban areas decreased. D Urban areas grew rapidly as rural populations declined.
D
When the economy is experiencing inflation, the Federal Reserve might choose to raise interest rates in order to do which of the following? A increase the price level B decrease government spending C increase demand for money D decrease consumer spending
D
Which market structure is characterized by many firms with no market control, facing low barriers to entry, and all acting as price-takers? A monopolistic competition B monopoly C oligopoly D perfect competition
D
Which of the following behaviors would most reduce someone's impact on the environment? A walking their dogs daily B skipping eating lunch C drinking carbonated water instead of tap water D carpool instead of driving alone
D
Which of the following best characterizes the operation of voluntary exchange in the market? A the exchange of paper currency for its value in gold B a situation in which a worker leaves their position and spends time looking for new employment C any transaction that converts one currency into another D the freedom of buyers and sellers to engage in market transactions at their discretion
D
Which of the following groups of firms or individuals would benefit from the appreciation of the U.S. dollar? A. American workers in firms that export goods and services B. Tourists visiting the United States C. Banks that hold large gold reserves D. American consumers who purchase imports
D
Which of the following increases the demand for labor? A a change in immigration policy, which results in the issuing of more work visas than before B a government program to train workers in computer skills C job training programs for workers collecting unemployment insurance D the creation of new manufacturing jobs at a factory
D
Which of the following industries experienced a surge due to the rise of the railroad industry in the second half of the 19th century? A barbed wire B manufacturing C agriculture D logging
D
Which of the following investment instruments serve as loans to a city, state, or federal government in order to accomplish a particular policy project or to help pay down debt? A mutual funds B stocks C certificates of deposit D bonds
D
Which of the following is NOT considered a benefit of cash? A accessibility B acceptability C ease of use D security
D
Which of the following is a defining feature of a capitalist economy? A production goals B inflation targets C tariffs D free markets
D
Which of the following is a valid reason for protecting the habitats of certain species, such as the Preble's meadow jumping mouse? A to prevent a decrease in the food supply of hawks B to maintain the natural beauty of meadowland C to eliminate the negative effects of deforestation D to prevent a reduction in biodiversity
D
Which of the following is an example of genetically modified organisms? A rice, which has a gene inserted to produce beta carotene B corn, which has a gene that makes it resistant to certain pests C cows with human genes that cause them to produce milk identical to human breast milk D All of these are examples of genetically modified organisms.
D
Which of the following is likely to be examined through the study of Macroeconomics? A how much you would be willing to pay for a new pair of shoes B the price of a gallon of milk C the decision whether or not to operate a pizza parlor D the national average interest rate for a 30-year home loan
D
Which of the following is not a determinant of consumer spending? A consumer confidence B disposable income C consumer debt D firm competition
D
Which of the following is the best example of a tariff? A a $50,000 subsidy to corn farmers in Iowa B a $5,000 tax credit for firms researching solar battery cells C a 15% tax on year-end investment income D a 20% tax on imported cane sugar
D
Which of the following is the greatest result of the Second Industrial Revolution in America? A More newspapers and books were published and encouraged readership. B States began instituting public education. C There was an increase in the rise of the wealthy families and high taxes. D Movement of goods became cheaper.
D
Which of the following is the largest contributing reason for the global disruption during the 2008 Recession? A trade tariffs and retaliatory tariffs between countries B the creation of an economic "bubble" in energy commodities C the strength of the American dollar in relation to many Asian currencies D the inter-dependencies of global financial markets
D
Which of the following will likely gain from an increase in the inflation rate? A. retirees with fixed incomes B. banks that own 30 year treasury bonds C. firms that sell products to foreign countries D. households with fixed rate mortgages
D
Which of the following will most likely increase labor productivity in a workforce? A a decrease of technological innovation B an increase in government regulations C an increase in the cost of capital D division of labor
D
