Economics

1 October 2022
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47 test answers

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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 best describes why a company issues stocks?
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to raise capital
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The Fed's aim in responding to a recession is to decrease
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decreasing government spending.
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Jacob is considering buying a new car. Which nonrenewable resource should influence the decision?
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petroleum
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Which statement best explains a scholarship?
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A scholarship is aid given to a student by an institution.
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Which organization created a shared economy?
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the European union
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An annual percentage rate, or APR, represents how much
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interest is paid over a year
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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 __________.
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production cost; opportunity cost
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Do all accounts serve the same function? Why or why not?
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No, some accounts are for saving and others are for investing
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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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The graph shows the market for graphic T-shirts. What does the graph show about the relationship between a product and its price?
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As the amount of a product goes up, the price goes up. As the amount of a product goes down, the price goes up. As the interest in a product goes up, the price goes up. As the interest in a product goes down, the price goes up.
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Which best describes why a company issues stocks?
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to raise capital
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Who was Adam Smith?
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He was a philosopher who promoted the idea of free enterprise.
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Savings should be treated as another type of
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net income.
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Embargoes, quotas, and standards are tools that countries use
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to restrict imports
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When it spends money on education, a government is trying to
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meet a social need and improve the economy
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How does a socialist government with a command economy manage its economy?
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The government controls factories and other forms of production.
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What is one example of a closed economy?
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a restricted system that blocks trade with international partners
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Which best describes how advertising influences consumer choice in an oligopoly?
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Advertising undermines competition
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In a free market system, price controls can include both floors and
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ceilings
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What new laws did the New York Factory Investigating Commission request? Check all that apply.
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increased sanitation standards fire alarms and sprinkler systems
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A regulatory agency that attempts to limit risk in the banking system is
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the OCC
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Though it is seen as a last resort, bankruptcy allows a consumer to
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eliminate certain types of debt
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Economic policy must strike a balance between ideals and
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needs
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Besides the actual mortgage payment, which also factors into the monthly payment on a home?
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-renters' insurance property taxes
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In which situation would a savings account be the best investment to earn interest?
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saving to buy a new house in seven years
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Producer A's opportunity cost would be
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analyzing the climate to see which fruit would grow better. -choosing to grow both fruit varieties or only apples.
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Which are affected by the factors of production? Check all that apply.
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the demand of the item the availability of the item the quality of the item
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Aggregate supply is best described as the
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total output of a product.
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Corporate taxes are a type of
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income tax.
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Which is the best definition of hyperinflation?
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a gradual decrease in the price of goods and services a gradual increase in the price of goods and services an exponential decrease in the price of goods and services an exponential increase in the price of goods and services
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A certificate of deposit pays a higher interest rate than a savings account because the money is
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immediately available to consumers.
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What are the two steps a producer can take to gain an absolute advantage?
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Produce more goods. Use local resources.
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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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Demand-pull inflation occurs when
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the price of goods rises suddenly and extremely fast
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Daryl would like to open new checking and savings accounts. One of his primary concerns is avoiding bank fees. Which type of banking institution is most suitable for Daryl?
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a savings and loan
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Which economic indicators are used to measure the global economy? Check all that apply.
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purchasing power parity spending power parity gross domestic product
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An interest in supervising other workers would be useful for someone who wanted to become
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an office manager or warehouse manager
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An extended recessionary period is indicative of
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a growing recession.
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The higher a country's gross domestic product (GDP)
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is developed.
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If expansionary taxation policies are left unchecked, which is the most likely result?
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high inflation
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Which occurs during disequilibrium? Check all that apply
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Supply is less than demand. Supply is greater than demand.
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Public property is land or goods
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owned by the government.
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According to the graph, the American dollar was the strongest during which month?
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October 2012. November 2012. February 2013. March 2013.
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In a mixed market economy, what is a typical way the government can reduce unemployment?
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The government can pay for projects to create work.
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A mixed-market economy is one in which
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the government has complete control. there are strict limits on economic choice.
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Which are indicators that economists use to measure how an economy grows? Select all that apply.
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measuring how much the economy produces tracking the unemployment rate