Answers EAP-Economics and Personal Finance BCumulative Exam

Cumulative Exam Answers

0 verified answers

In a free market system, price control can include both a floor and a .

Answer not available

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?

the first pair of cleats

the second pair of cleats

the third pair of cleats

the fourth pair of cleats

Which factors influence changes in consumer demand? Check all that apply.market shareelasticityinternational tradeclearance salesincome

market share

elasticity

international trade

clearance sales

income

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

total product.

total demand.

total input.

total output.

The chart shows the marginal cost of producing apple pies.This chart demonstrates that the marginal cost

initially decreases as production increases.

initially increases as production increases.

eventually decreases as production increases.

eventually increases as production decreases.

What is the best definition of profit?

Profit is the possible income from producing an additional item.

Profit is the price of producing one additional unit of a good.

Profit is the additional income gained from selling an additional good.

Profit is the financial gain from business activity minus expenses.

According to the law of demand, as prices increase, quantity demanded

increases.

decreases.

stays the same.

disappears.

Which occurs during disequilibrium? Check all that apply.Supply and demand meet.Supply is less than demand.Supply and demand set prices.Supply is greater than demand.Supply and demand set production.

Supply and demand meet.

Supply is less than demand.

Supply and demand set prices.

Supply is greater than demand.

Supply and demand set production.

What is one main objective in the study of economics?

recognizing the types of services available to everyone

recognizing the relationship between producers and consumers

recognizing the reasons why consumers supply services

recognizing the difference between producers and consumers

Hayek believed that the economy could be hard to measure because

individuals have the power to make decisions and are unpredictable.

individuals have the power to make decisions and are predictable.

government has the power to make decisions and is unpredictable.

government has the power to make decisions and is predictable.

The graph shows a point of equilibrium.What is the price at which equilibrium is achieved?

$10

$30

Economists can use new technology to

study data and patterns.

create and apply automation.

improve production and shipping.

increase demand and consumption.

What is one way that technology can improve the production of goods?

Websites can allow consumers to purchase goods online.

Container ships can transport a number of goods at once.

Automation can create goods more cheaply and easily.

Airlines can send goods from one place to another.

Which best describes an opportunity cost?

accepting an opportunity to do something else when making an economic decision

giving up an opportunity to do something else when making an economic decision

accepting an opportunity to help accomplish something else when making an economic decision

giving up an opportunity to increase prices when making an economic decision

Which is the best definition of hyperinflation?

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

Public property is land or goods

owned by an individual.

owned by the government.

used for private businesses.

used to gain personal wealth.

Demand-pull inflation occurs when

the price of goods rises suddenly and extremely fast.

consumers begin purchasing more goods.

producers need more money to make and distribute goods.

the government prints more money and pushes prices up.

Which best defines a service?

a task that is performed in exchange for payment

an object that is acquired

a plan that is executed

an image that is drawn

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

the amount of microwaves produced increases the price

the amount of microwaves produced decreases the price

the price decreases with a larger quantity demanded

the price increases with a larger quantity demanded

Which economic indicators are used to measure the global economy? Choose four answers.purchasing power paritytrade volumesspending power paritylabor market datagross domestic producttrade deficits and surpluses

purchasing power parity

trade volumes

spending power parity

labor market data

gross domestic product

trade deficits and surpluses

Economists use changes in GDP to measure

the balance of trade with other countries.

any economic growth or shrinkage.

the causes of unemployment.

the distances between cities.

Which are affected by the factors of production? Choose three answers.the demand of the itemthe availability of the itemthe cost of the itemthe quality of the itemthe popularity of the item

the demand of the item

the availability of the item

the cost of the item

the quality of the item

the popularity of the item

worthlessplentifulelasticinelastic

worthless

plentiful

elastic

inelastic

In a competitive market, a computer store offers customers a warranty to help pay for any future damages. This is an example of

following a federal regulation.

lowering prices for customers.

reducing the risk for consumers.

creating a new or better product.

The US Department of Education reaches its goals by

delegating responsibility to state and local leaders.

depending on other organizations to create new policy.

supporting the efforts of state and local leaders.

overseeing individual districts and schools directly.

The factors of production include the number of

customers needed to make a profit on a good.

consumers who show an interest in a good.

employees needed to manufacture a good.

producers who supply the same good.

President Roosevelt’s New Deal created programs that were

administered by the federal government.

based on the principles of the Great Society.

considered constitutional in their purpose.

solely funded by individual state governments.

John Maynard Keynes developed new economic theories in response to the

stock market crash of 1929.

Great Depression of the 1930s.

first and second world wars.

economic boom of the 1950s.

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

The government can pay for projects to create work.

The government can control new factories to provide jobs.

The government can create new farm fields to hire workers.

The government can raise taxes to encourage employment.

Look at the following chart.

analyzing the climate to see which fruit would grow better.

studying the profitability of growing apples versus oranges.

researching what competitors are doing.

choosing to grow both fruit varieties or only apples.

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

always

as needed

as requested

never

Which best describes how advertising influences consumer choice in an oligopoly?

Advertising coaxes people to buy new products.

Advertising alerts consumers to price reductions.

Advertising undermines competition.

Advertising informs brand knowledge.

Businesses can use globalization to their advantage by

creating trade barriers to other countries.

reducing exports to other countries.

finding customers in other countries.

insourcing jobs in other countries.

Jacob is considering buying a new car. Which nonrenewable resource should influence the decision?

labor

water

minerals

petroleum

What is an example of scarcity

an abundance of resources

limited resources

renewable resources

a choice of resources

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

is wealthy.

is developed.

has high inflation.

has little debt.

Which are indicators that economists use to measure how an economy grows? Select two options.monitoring election resultsmeasuring how much the economy producesmonitoring the popularity of different music groupsstudying the economy of another countrytracking the unemployment rate

monitoring election results

measuring how much the economy produces

monitoring the popularity of different music groups

studying the economy of another country

tracking the unemployment rate

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 __________.

opportunity cost; production cost

production cost; resource cost

production cost; opportunity cost

resource cost; production cost

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

the FDA.

the EPA.

the OCC.

the HHS.

Which of these practices describe how producers in oligopolies generally try to create competition? Check all that apply.by keeping prices lowby offering promotionsby advertisingby cultivating brand loyaltyby overcoming barriers to entryby developing a specific image

by keeping prices low

by offering promotions

by advertising

by cultivating brand loyalty

by overcoming barriers to entry

by developing a specific image

Aggregate supply is best described as the

total output of all products and services.

point of equilibrium.

nation’s real gross national product.

excess supply in the market.

What are the two steps a producer can take to gain an absolute advantage?Produce more goods.Use high-quality resources.Produce more expensive goods.Use fewer resources.Produce high-quality goods.Use local resources.

Produce more goods.

Use high-quality resources.

Produce more expensive goods.

Use fewer resources.

Produce high-quality goods.

Use local resources.

A mixed-market economy is one in which

the government has complete control.

there are strict limits on economic choice.

the government makes no regulations.

there is competition and free enterprise.

How does a socialist government with a command economy manage its economy?

The government lets producers set wages for workers.

The government owns all homes and other forms of housing.

The government allows consumers to make their own choices.

The government controls factories and other forms of production.

The law of supply states that as the price of a good declines, the quantity supplied of that good

remains the same.

decreases.

increases.

disappears.

What is the role of the three questions of economics?

to assess product profitability

to aid in production decisions

to offset a poor economy

to determine quality and cost

An extended recessionary period is indicative of

a depression.

the start of a recovery.

a growing economy.

the end of a recession.

Who was Adam Smith?

He was a philosopher who promoted the idea of free enterprise.

He was an economist who spoke against the market economy.

He was an official who ran an important government agency.

He was a producer who operated a factory in Scotland.

What do the indicators used by economists reveal?

changes in production and demand

changes in employment levels

changes in prices

changes in the health of an economy

What is one example of a closed economy?

a barter system that does not rely on money or other currency

a restricted system that blocks trade with international partners

a trade-based system that encourages the flow of goods and services

an old-fashioned system that preserves traditional choices and customs

Did you find these answers helpful?

Cumulative Exam Answers

More from this Course

TRY EDGENUITY HACKS