econ exam pt 2

17 December 2022
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question
An extended recessionary period is indicative of ----- .
answer
a depression
question
Which are indicators that economists use to measure how an economy grows? Select all that apply.
answer
measuring how much the economy produces tracking the unemployment rate
question
Read the format of an outline for an informative essay. 1. _____________________ A. Thesis statement 2. Subtopic body sentence A. Evidence B. Evidence 3. Subtopic body sentence A. Evidence B. Evidence Which item would best fill in the blank space?
answer
introduction
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Unlike collateral, down payments ______ .
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reduce overall debt
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How do trade agreements help the countries involved?
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by decreasing trade barriers
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Which is the best definition of hyperinflation?
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an exponential increase in the price of goods and services
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The primary purpose of a conclusion in an informative essay is to _____ .
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refer back to the thesis.
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Demand-pull inflation occurs when _____.
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the government prints more money and pushes prices up.
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It costs Cool Clothes Company $15 to produce one pair of jeans, but they needed to discontinue production of shirts to focus on jeans. For this company, the $15 is the _______, and discontinuation of shirt production is considered their __________.
answer
production cost; opportunity cost
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Gross domestic product (GDP) is the value of goods and services produced in a country annually. It can best be described as measuring an economy's ____ .
answer
total demand
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What is the best definition of profit?
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Profit is the financial gain from business activity minus expenses.
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An income is measured as _____ .
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an amount received in a specific period: weekly, biweekly, or yearly.
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What is the role of the three questions of economics?
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to aid in production decisions
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Which organization created a shared economy?
answer
European Union
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Which statement is most accurate about the hourly pay a worker receives?
answer
It is the rate for each day that is worked.
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In which situation would a savings account be the best investment to earn interest?
answer
saving to buy a new house in seven years
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What do the indicators used by economists reveal?
answer
changes in prices
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Market performance in the United States is tracked using stock ______, which use formulas to calculate price changes.
answer
indexes
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Hayek believed that the economy could be hard to measure because _____ .
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individuals have the power to make decisions and are unpredictable.
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Which type of credit is most likely to be unsecured?
answer
personal loans
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John Maynard Keynes developed new economic theories in response to the ____ .
answer
Great Depression of the 1930s.
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A company that makes mobile phones introduces a new, faster model that has strong consumer interest. However, the old model is still available. What will most likely happen to the price of the old model, and why?
answer
The price will fall to encourage consumers to continue to purchase it.
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What is one reason why the government would provide financial assistance to an entrepreneur?
answer
to stimulate the economy while decreasing unemployment
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Which best describes how advertising influences consumer choice in an oligopoly?
answer
Advertising informs brand knowledge.
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The graph shows a point of equilibrium. What is the price at which equilibrium is achieved?
answer
$10
question
Emma is trying to decide whether to buy a new laptop. As a student, she has a budget and wants to make sure this is the right financial decision. Which question should she ask herself in determining the opportunity cost of this purchase?
answer
What will I have to sacrifice if I buy this laptop?
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The chart shows the marginal cost of producing apple pies. This chart demonstrates that the marginal cost _____ .
answer
initially decreases as production increases.
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An effective claim in an argumentative essay _____ .
answer
offers a very passionate viewpoint.
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Angela is considering buying stock in a popular computer software company whose price has dropped significantly in the last year. Why might this be a wise move for Angela to make?
answer
because it is smart to buy when prices are low and sell when prices are high
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The graph shows the market for graphic T-shirts. What does the graph show about the relationship between a product and its price?
answer
As the amount of a product goes up, the price goes up.
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Corporate taxes are a type of _____ .
answer
sales tax
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Which of these practices describe how producers in oligopolies generally try to create competition? Check all that apply.
answer
by offering promotions by advertising by cultivating brand loyalty
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When entrepreneurs develop new products, other companies also experience growth because they _____ .
answer
create many companion products.
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Which occurs during disequilibrium? Check all that apply.
answer
Supply is less than demand. Supply is greater than demand.
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The graph shows the marginal cost of producing soccer cleats for Sabrina's Soccer. At which level of production does the company make the most profit?
answer
the first pair of cleats
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Economists can use new technology to _____ .
answer
study data and patterns
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Which financial tool is most important when planning for your future financial goals?
answer
creating a budget
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In a competitive market, a computer store offers customers a warranty to help pay for any future damages. This is an example of _____ .
answer
following a federal regulation.
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Jacob is considering buying a new car. Which nonrenewable resource should influence the decision?
answer
petroleum
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The Fed may respond to a recession by _____ .
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decreasing interest rates.
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Compound interest is usually better than simple interest because it pays ____ .
answer
interest on the principal and the interest earned in each period.
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Aggregate supply is best described as the ____ .
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total output of all products and services.
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A regulatory agency that attempts to limit risk in the banking system is ____ .
answer
the OCC
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Which statement best describes on-the-job training?
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An employer typically pays for it in order to educate an employee.
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Look at the following chart. Producer A's opportunity cost would be ____ .
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studying the profitability of growing apples versus oranges.
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Economists use changes in GDP to measure ____ .
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any economic growth or shrinkage.
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Which economic indicators are used to measure the global economy? Choose four answers.
answer
trade volumes labor market data gross domestic product trade deficits and surpluses
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People who oppose labor unions believe that unions ____ .
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keep more qualified workers from being hired.
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What is one way that technology can improve the production of goods?
answer
Automation can create goods more cheaply and easily.
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Which are affected by the factors of production? Choose three answers.
answer
the demand of the item the cost of the item the quality of the item