AnswersEconomicsN/A

N/A — Exam Answers

49 verified answers1 views
1
Free Preview

What is the price at which equilibrium is achieved?

A
$9
B
$8
C
$30
D
$10
2
Free Preview

What does this graph demonstrate?

A
the amount of microwaves produced increases the price
B
the price increases with a larger quantity demanded
C
the price decreases with a larger quantity demanded
D
the amount of microwaves produced decreases the price
3

Businesses can use globalization to their advantage by

A
finding customers in other countries.
B
creating trade barriers to other countries.
C
insourcing jobs in other countries.
D
reducing exports to other countries.
4

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?

A
a savings and loan
B
a credit union
C
a commercial bank
D
a retail bank
5

Economic policy must strike a balance between ideals and

A
supply and demand.
B
needs.
C
freedom.
D
private property.
6

Angela is considering buying stock in a popular computer software company whose price has dropped significantly in the last year. Why might this be a wise move for Angela to make?

A
because her investment will be guaranteed by the government if the company fails
B
because it is smart to buy when prices are low and sell when prices are high
C
because the company will rebound because she likes to use the products they sell
D
because it is smart to buy when prices are high and sell when prices are low
7

Which is the best definition of hyperinflation?

A
an exponential increase in the price of goods and services
B
a gradual decrease in the price of goods and services
C
a gradual increase in the price of goods and services
D
an exponential decrease in the price of goods and services
8

Banks that offer low interest rates to people with good credit

A
maximize profits at little risk.
B
maximize profits at great risk.
C
sacrifice profits for less risk.
D
sacrifice profits for more risk.
9

An extended recessionary period is indicative of

A
a depression.
B
a growing economy.
C
the start of a recovery.
D
the end of a recession.
10

Which best describes why a company issues stocks?

A
to raise capital
B
to ensure profits
C
to increase dividends
D
to increase the company’s value
11

What is an example of scarcity

A
limited resources
B
a choice of resources
C
renewable resources
D
an abundance of resources
13

Which situation is an example of comparative advantage in an international market?

A
Factories in Country A and Country B produce the same number of tablet computers. Country A’s factories could be used instead to build more laptops than the factories in Country B.
B
Country A can produce 100 units of rice per acre of farmland, while Country B can only produce 70 units of rice per acre of farmland using the same resources.
C
Country A decides to grow extra potatoes so they have more to export, while Country B does not grow potatoes to export.
D
Country A invests in a new technology while Country B chooses to invest in education.
14

Public property is land or goods

A
used for private businesses.
B
owned by an individual.
C
owned by the government.
D
used to gain personal wealth.
15

An effective claim in an argumentative essay

A
establishes a focus for the reader.
B
tends to be nonspecific and undefined.
C
offers a very passionate viewpoint.
D
is an idea that anyone would support.
16

Corporate taxes are a type of

A
sales tax.
B
property tax.
C
income tax.
D
excise tax.
17

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

A
Container ships can transport a number of goods at once.
B
Automation can create goods more cheaply and easily.
C
Airlines can send goods from one place to another.
D
Websites can allow consumers to purchase goods online.
18

When it spends money on education, a government is trying to

A
find a way to meet a social need.
B
meet a social need and improve the economy.
C
encourage immediate economic growth.
D
find a way to spend budget surpluses.
19

A low-risk investment might have a high price if

A
it is in great demand.
B
it guarantees profits.
C
it belongs to a new company.
D
it protects the initial investment.
20

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
resource cost; production cost
B
production cost; opportunity cost
C
opportunity cost; production cost
D
production cost; resource cost
21

A company that makes mobile phones introduces a new, faster model that has strong consumer interest. However, the old model is still available. What will most likely happen to the price of the old model, and why?

A
The price will rise to encourage consumers to buy both models in equal amounts.
B
The price will fall to discourage the producer from making more old models.
C
The price will rise to encourage the producer to make more old models.
D
The price will fall to encourage consumers to continue to purchase it.

Did you find these answers helpful?

More from this Course

practice exam
34 verified answers

Practice Exam

Quiz
25 verified answers

Test

Quiz
25 verified answers

Test