AnswersMO-EconomicsGlobalization

Globalization — Cumulative exam Answers

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21
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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 __________.

A
opportunity cost; production cost
B
production cost; resource cost
C
production cost; opportunity cost
D
resource cost; production cost
22
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Which economic indicators are used to measure the global economy? Choose four answers.

A
purchasing power parity
B
trade volumes
C
spending power parity
D
labor market data
E
gross domestic product
F
trade deficits and surpluses
23

This table shows the 2014 tax brackets for single taxpayers.

Question illustration
A
The more money someone makes, the higher the percentage he or she pays in taxes.
B
Single-wage earners are taxed at the same percentage, regardless of income.
C
Americans pay higher taxes than single-wage earners in other countries.
D
Tax percentages are evenly distributed across the tax brackets.
24

A regulatory agency that attempts to limit risk in the banking system is

A
the FDA.
B
the EPA.
C
the OCC.
D
the HHS.
25

The graph shows a demand curve with the price of a good compared to the quantity demanded.What does this graph demonstrate?

Question illustration
A
the amount of microwaves produced increases the price
B
the amount of microwaves produced decreases the price
C
the price decreases with a larger quantity demanded
D
the price increases with a larger quantity demanded
26

When does government regulate producers in a mixed-market economy?

A
always
B
as needed
C
as requested
D
never
27

If expansionary taxation policies are left unchecked, which is the most likely result?

A
reduced profits
B
high inflation
C
reduced production
D
reduced disposable income
28

Compound interest is usually better than simple interest because it pays

A
interest on the principal and the interest earned in each period.
B
interest on the entire principal rather than the interest in each period.
C
more, as it is matched by an employer’s 401k contribution.
D
more often throughout the year rather than once a year.
29

Which best describes why a company issues stocks?

A
to increase the company’s value
B
to ensure profits
C
to increase dividends
D
to raise capital
30

An extended recessionary period is indicative of

A
a depression.
B
the start of a recovery.
C
a growing economy.
D
the end of a recession.
31

[BLANK]

A
indexes
B
quotes
C
futures
D
trades
32

[BLANK]

A
worthless
B
plentiful
C
elastic
D
inelastic
33

In a mixed market economy, what is a typical way the government can reduce unemployment?

A
The government can pay for projects to create work.
B
The government can control new factories to provide jobs.
C
The government can create new farm fields to hire workers.
D
The government can raise taxes to encourage employment.
34

What do the indicators used by economists reveal?

A
changes in production and demand
B
changes in employment levels
C
changes in prices
D
changes in the health of an economy
35

Which statement best explains a scholarship?

A
A scholarship is federal money awarded to a student.
B
A scholarship is aid given to a student by an institution.
C
A scholarship is money borrowed to pay for an education.
D
A scholarship is the price of attending classes at a school.
36

Economists can use new technology to

A
study data and patterns.
B
create and apply automation.
C
improve production and shipping.
D
increase demand and consumption.
37

The higher a country’s gross domestic product (GDP), the more likely it is that the country

A
is wealthy.
B
is developed.
C
has high inflation.
D
has little debt.
38

Who was Adam Smith?

A
He was a philosopher who promoted the idea of free enterprise.
B
He was an economist who spoke against the market economy.
C
He was an official who ran an important government agency.
D
He was a producer who operated a factory in Scotland.
39

Besides the actual mortgage payment, which also factors into the monthly payment on a home?

A
repair costs
B
renters' insurance
C
property taxes
D
down payment
40

Based on this paragraph, what factors can influence a person to donate? Choose two answers.

A
the time of year
B
a sense of urgency
C
the donor’s gender
D
a direct request for a contribution
E
a personal connection to an issue

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