Economics FLVS

Imagine the federal government has a national debt of $10.2 trillion. Congress' budget for the coming year includes a spending projection of $4.2 billion. Tax revenue projects $3.8 billion. Which fiscal policy should Congress adopt to avoid increasing the national debt?

If inflation begins to rise rapidly, which step is the Federal Reserve likely to take?

Cardinal Comics produces graphic historical novels and retails them through local shops throughout the United States. The publisher maintains an in-house staff of editors and illustrators but contracts out writing, printing, and distribution. Its printer uses domestically recycled paper but imports ink and much of its printing equipment from overseas. Segment B of the circular flow diagram above reflects which part of this scenario?

Economists warn that the nation is slipping into a recession. Which fiscal policies will the federal government most likely take to help the economy grow?

Following U.S. involvement in the Korean War and the related period of low unemployment and rising prices, the Federal Reserve intervened to curb growth and decrease inflation. At what point in the business cycle did the Federal Reserve take action?

Abbie is in high school and saves money from her afterschool job to buy a car after she graduates from college. She wants a new car but knows it will cost more than $20,000. By her freshman year, she has saved $12,000. Which of the following would most help her have the most money by graduation?

Some banks offer variable rate loans with defined periods. For example, a variable rate loan might start at 3% and have the rate guaranteed not to increase for five years. This could be a rational loan option for a person if he or she

A nonprofit agency sets up a website to channel investments from all over the globe into microloans to support local farms, artisans, and other small businesses in developing nations. Which of the following would be a positive externality for the global environment?

A toxic dumping site leaks into a local water supply and prompts a public outcry. The local and then the state government each take actions to clean up the site and to fine the company for damages. Which of the following would be a potential positive externality for the national environment?

The main benefit of a technical school certification is

A period of economic stability began in the 1980s. In 2001, prices began to increase. In 2007, an economic crisis caused prices to fall. Which of these dates would be considered the peak of this cycle?

How are start-up costs related to natural monopolies?

What is the main function of the Federal Open Market Committee

What can result from the line marked "Artificial Price"?

Jared's friends invite him to dinner at a new restaurant in town. Money has been tight this month, and the new restaurant offers the same meal as another local restaurant but at a higher price. Jared declines the invitation to the new restaurant and opts to dine at the less expensive establishment. Which of the following best represents the reason for Jared's decision?

Which of the following statements best accounts for the data shown in the graph above?

Study the map above. Who would object to negative externalities related to the use of renewable and nonrenewable resources in the map?

Roger always purchased insurance for the 10 years he owned an expensive speedboat. Since he never had an accident, the premiums he paid were

The city council allocates funds for road repair. Which of the following circumstances would be a positive externality?

Which of the following is a government price control?

The country has entered a period of economic growth, but prices are rising too rapidly. To stabilize prices, the Federal Reserve decides to

A price higher than the equilibrium point

A price lower than the equilibrium point

An increase in demand will

A corporation or limited liability

Adam Smith believed

A free-market economy is

A tariff is

Emabrdo

A potential benefit of inflation

Consumers usually want to