Economics Exam

25 July 2022
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Economists use GDP to measure
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not the balance of trade with other countries. any economic growth or shrinkage.
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Which best describes how advertising influences consumer choice in an oligopoly?
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not Advertising coaxes people to buy new products. Advertising undermines competition.
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John Maynard Keynes developed new economic theories in response to the
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Great Depression of the 1930s.
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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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An annual percentage rate, or APR, represents how much
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interest is paid over a year.
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If a computer costs $600.00 and the sales tax rate is 7.5 percent, what is the total cost of the computer?
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$645.00
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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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kept by banks for a longer time period.
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Which best describes why a company issues stocks?
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not Which best describes why a company issues stocks? to raise capital
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Demand-pull inflation occurs when
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not the price of goods rises suddenly and extremely fast. consumers show an interest in purchasing more goods.
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The higher a country's gross domestic product (GDP), the more likely it is that the country
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not is wealthy. is developed.
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If expansionary taxation policies are left unchecked, which is the most likely result?
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reduced government spending
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What is the price at which equilibrium is achieved?
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$9
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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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In which situation would a savings account be the best investment to earn interest?
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saving in July to buy holiday gifts in a few months
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Savings should be treated as another type of
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not short-term goal. net income.
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A mixed-market economy is one in which
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there are strict limits on economic choice.
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An income is measured as
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not any money received at any time. an amount received in a specific period.
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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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The law of supply states that as the price of a good declines, the quantity supplied of that good
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decreases.
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Corporate taxes are a type of
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not excise tax. income tax.
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Banks that offer low interest rates to people with good credit
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sacrifice profits for less risk.
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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
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reducing the risk for consumers.
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Market performance in the United States is tracked using stock , which use formulas to calculate price changes.
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index
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Which is the best definition of hyperinflation?
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a gradual expansion in the price of goods and services
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Jacob is considering buying a new car. Which nonrenewable resource should influence the decision?
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labor
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Businesses can use globalization to their advantage by
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finding customers in other countries.
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A low trough is indicative of
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a serious depression.
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The Fed's aim in responding to a recession is to decrease
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government spending.
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If someone was unable to pay cash, which financing option would be better for the laptop and for the refrigerator?
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installment; installment
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People who oppose labor unions believe that unions
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not make many businesses more competitive. keep more qualified workers from being hired.
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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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not a savings and loan a retail bank
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What do the indicators used by economists reveal about the economy?
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changes in production and demand
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Though it is seen as a last resort, bankruptcy allows a consumer to
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not temporarily stop paying debts. receive credit in an emergency.
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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
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not total supply. total output.
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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. The $15 and discontinuation of shirt production are represented by which of the following sets of terms?
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production cost; opportunity cost
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If it becomes less expensive to travel overseas from the United States, American tourists are benefiting from the fact that
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the US dollar has become stronger in value.
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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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When artists pass away, the supply of their paintings most likely becomes
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inelastic
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This graph demonstrates how
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not the amount produced slightly changes with the price. the amount consumed slightly changes with the price.
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Total output is a synonym for
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not gross domestic product. aggregate supply.
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Which best describes why governments enact tariffs?
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not to limit the sale of foreign goods to discourage consumers from purchasing foreign goods
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This document is part of a
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not W-2 form. tax return.
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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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What is one cause of scarcity?
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lack of resources
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When does government regulate producers in a mixed-market economy?
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not always as required
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Which best describes what happens to a corporation after its owners retire?
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not It transfers to new owners. It continues in business.