N/A — Exam Answers

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24
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In the year 2013, which of these fields has the largest percentage of workers?

A
manufacturing industry
B
construction industry
C
education and health care
D
entertainment and tourism
25
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If expansionary taxation policies are left unchecked, which is the most likely result?

A
high inflation
B
reduced production
C
reduced profits
D
reduced disposable income
26

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

A
The government can create new farm fields to hire workers.
B
The government can pay for projects to create work.
C
The government can control new factories to provide jobs.
D
The government can raise taxes to encourage employment.
27

Which aspect of monopolistic competition gives consumers more choice?

A
Producers are more concerned about selection than profits.
B
Few barriers to market entry exist.
C
Producers rely on consumer decisions to succeed.
D
Price is not an important factor.
28

Which of these will be accomplished by efficient allocations of the factors of production?

A
fulfilling many needs and wants of society
B
guaranteeing economic success
C
replenishment of limited resources
D
understanding whether a product will fail
29

Economists can use new technology to

A
increase demand and consumption.
B
create and apply automation.
C
improve production and shipping.
D
study data and patterns.
30

When entrepreneurs develop new products, other companies also experience growth because they

A
immediately copy the successful product.
B
attempt to improve the product.
C
try to develop their own products.
D
create many companion products.
31

What is the economic outlook for occupations in the healthcare sector?

A
weak to very poor
B
depends on the economy
C
will increase in demand over time
D
will remain stable
32

Demand-pull inflation occurs when

A
producers need more money to make and distribute goods.
B
consumers begin purchasing more goods.
C
the price of goods rises suddenly and extremely fast.
D
the government prints more money and pushes prices up.
33

The Fed may respond to a recession by

A
decreasing government spending.
B
decreasing interest rates.
C
discouraging consumer borrowing.
D
decreasing available credit.
34

Which of these regulations falls under the jurisdiction of the Environmental Protection Agency?

A
prescription safety
B
credit card interest rates
C
automobile emissions
D
power tools used in factories
35

Which factors influence changes in consumer demand? Choose two correct answers.

A
elasticity
B
clearance sales
C
market share
D
income
E
international trade
36

High government expenditures can lead to a bigger

A
deficit.
B
stimulus.
C
surplus.
D
revenue.
37

Which are indicators that economists use to measure how an economy grows? Choose two correct answers.

A
monitoring the popularity of different music groups
B
studying the economy of another country
C
measuring how much the economy produces
D
tracking the unemployment rate
E
monitoring election results
38

What are the two steps a producer can take to gain an absolute advantage? Choose two correct answers.

A
Produce more expensive goods.
B
Use local resources.
C
Use high-quality resources.
D
Use fewer resources.
E
Produce high-quality goods.
F
Produce more goods.
39

The point of maximum profit is the point at which the marginal cost equals the

A
market price.
B
production cost.
C
total revenue.
D
marginal revenue.
40

Aggregate supply is best described as the

A
nation’s real gross national product.
B
total output of all products and services.
C
point of equilibrium.
D
excess supply in the market.
41

Leah wants to get a home loan from her bank. Which agency would regulate that loan to ensure it is fair?

A
SEC- U.S. Securities and Exchange Commission
B
FCC- Federal Communications Commission
C
CFPB- Consumer Financial Protection Bureau
D
FDA- Food and Drug Administration
43

Hayek believed that the economy could be hard to measure because

A
individuals have the power to make decisions and are unpredictable.
B
individuals have the power to make decisions and are predictable.
C
government has the power to make decisions and is unpredictable.
D
government has the power to make decisions and is predictable.

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