N/A — Exam Answers

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Glenda selects express shipping for her purchase and the company bills her credit card 91 point 8 6 dollars for the total of the online purchase. Determine if Glenda has been billed correctly for her purchase.

A
Glenda has been over charged by 3 point 4 0 dollars for her purchase.
B
Glenda has been over charged by 3 point 8 0 dollars for her purchase.
C
Glenda has not been charged enough for her purchase.
D
Glenda has been billed correctly.
4

Compound interest is usually better than simple interest because it pays

A
interest on the principal and the interest earned in each period.
B
more, as it is matched by an employer’s 401k contribution.
C
interest on the entire principal rather than the interest in each period.
D
more often throughout the year rather than once a year.
6

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 decides to grow extra potatoes so they have more to export, while Country B does not grow potatoes to export.
C
Country A invests in a new technology while Country B chooses to invest in education.
D
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.
7

Which expenditure will be the same whether you lease or buy a new vehicle?

A
total cost
B
monthly payments
C
gas cost
D
required down payment
8

Which organization created a shared economy?

A
European Union
B
Association of Southeast Asian Nations
C
North American Free Trade Agreements
D
World Trade Organization
10

Which statement best explains a scholarship?

A
A scholarship is the price of attending classes at a school.
B
A scholarship is money borrowed to pay for an education.
C
A scholarship is aid given to a student by an institution.
D
A scholarship is federal money awarded to a student.
12

Davis is planning to buy a bike. He has the full amount in his bank account. He does not want to pay any interest on his purchase. Which option(s) can Davis use when making the purchase?

A
Use a debit card, or use a credit card and pay the balance in full when the bill arrives.
B
Use a debit card, or use a credit card and make payments over the next few months.
C
Use a debit card only.
D
Use a credit card only.
14

How do trade agreements help the countries involved?

A
by decreasing trade barriers
B
by accelerating production
C
by restricting imports
D
by expanding tax revenues
15

What is the advantage of creating a file freeze of your credit report?

A
Credit freezes prevent someone from using your credit cards.
B
Credit freezes also freeze your credit score.
C
Credit freezes mean you do not have to check your credit report every year.
D
Credit freezes block access to your credit report, keeping new accounts from being opened in your name.
16

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.
17

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 the company will rebound because she likes to use the products they sell
B
because it is smart to buy when prices are high and sell when prices are low
C
because it is smart to buy when prices are low and sell when prices are high
D
because her investment will be guaranteed by the government if the company fails
20

Which economic indicators are used to measure the global economy? Choose four correct answers.

A
trade volumes
B
spending power parity
C
purchasing power parity
D
gross domestic product
E
trade deficits and surpluses
F
labor market data
22

Businesses can use globalization to their advantage by

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

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