Topic Test Answers

A store’s supply/demand graph for MP3 players is shown above. If the price is at the equilibrium point, how much money will the store make by selling MP3 players? a. $1,275 b. $1,600 c. $3,150 d. $3,300 Please select the best answer from the choices provided

The following chart shows a store’s coat sales for two years. Identify the percent increase in total sales and the percent increase in sales of trench coats. Then find which percent of increase is greater and by how much greater it is than the other. (Round your answer to the nearest tenth.) a. Sales of trench coats increased 0.7 percentage points faster than total coat sales. b. Sales of trench coats increased 8.3 percentage points faster than total coat sales. c. Total coat sales increased 2.5 percentage points faster than sales of trench coats. d. Total coat sales increased 10.7 percentage points faster than sales of trench coats. Please select the best answer from the choices provided

Suppose that Lebanon has placed tariffs on its imports and exports. The import tariff is 13%, and the export tariff is 8%. If Lebanon has a balance of trade of (equivalent US dollars) $5,510,000 and received tariff revenue of $4,019,200, what are its imports and exports worth?a.$30,916,923 in imports, $50,240,000 in exportsb.$17,040,000 in imports, $22,550,000 in exportsc.$6,226,300 in imports, $5,950,800 in exportsd.$4,793,700 in imports, $5,069,200 in exports

Based on the supply graph and the demand graph shown above, what is the price at the point of equilibrium? a. 20 b. 30 c. 40 d. There is not enough information given to determine the point of equilibrium. Please select the best answer from the choices provided

Using the following prices, calculate the unit price to determine how much it would cost for 7 granola bars and 9 bottles of water.$7.14 for 6 granola bars$8.72 for 8 bottles of watera.$18.14b.$18.63c.$21.41d.$31.72

Say that Thailand has a workforce of 35,709,487 people, each of whom earns an average salary of (equivalent USD) $8,630 annually. If the Thai government wants to raise $70 billion in tax revenue, approximately where should it set the income tax rate?a.5%b.15%c.23%d.29%

Minneapolis, MN has a CPI of 173. Anchorage, AK has a CPI of 226. How does the purchasing power of someone in Minneapolis earning a salary of $42,500 compare to the purchasing power of someone in Anchorage earning a salary of $67,000?a.The person living in Minneapolis has $57.61/CPI more than the person in Anchorage.b.The person living in Minneapolis has $130.45/CPI more than the person in Anchorage.c.The person living in Anchorage has $50.80/CPI more than the person in Minneapolis.d.The person living in Anchorage has $90.82/CPI more than the person in Minneapolis.

The prices of consumer goods do not always exactly follow the CPI. The following chart shows several consumer items, along with their respective prices in 1983 and today.ItemPrice in 1983 ($)Current Price ($)Pair of boots67.45126.85Hair dryer15.2529.95Box of tissues1.152.25Toaster22.8544.25Using the prices shown on this chart, which of the following is a reasonable estimate of the current CPI?a.208b.195c.180d.173

What is meant by the “right to redress”?a.The consumer has the right to repeat any transaction.b.The consumer has the right to replacement of damaged goods.c.The consumer has the right to hear back from businesses that they contact.d.The consumer has the right to fair settlement of disputes.

The following table shows the working populations, average salaries, and income tax rates of France and Germany.CountryWorkforceAverage Salary (€)Income Tax RateFrance31,491,23229,76669.3%Germany38,844,01732,10445.2%Based on the information in the table, how do the annual tax revenues of Germany and France compare to one another?a.The French government gathers €85,930,190,677 more than the German government.b.The French government gathers €543,141,128,984 more than the German government.c.The German government gathers €309,680,310,056 more than the French government. d.The German government gathers €223,750,119,378 more than the French government.

The chart below shows one store's sales of computers, listed by model. If the changes in sales between May and June continue at the same rate, what will be the percent change in total computer sales from June to July? (Round your answer to the nearest tenth.) a. 17.1% b. 20.7% c. 34.0% d. 43.2% Please select the best answer from the choices provided

Suppose that the countries of Brazil, Argentina, Ecuador, and Venezuela have interdependent economies. The following table shows the imports and exports between each of these countries. All prices are given in millions of equivalent US dollars.Country of OriginExporting toAmount ($ 1,000,000)BrazilArgentina4,691BrazilEcuador4,791BrazilVenezuela1,526ArgentinaBrazil1,881ArgentinaEcuador1,971ArgentinaVenezuela2,153EcuadorBrazil3,106EcuadorArgentina3,672EcuadorVenezuela2,018VenezuelaBrazil4,535VenezuelaArgentina1,577VenezuelaEcuador1,871If these four countries trade only within this group, what is the difference between the highest balance of trade and the lowest balance of trade?a.$6,221,000,000b.$5,003,000,000c.$3,772,000,000d.$2,123,000,000

The following chart shows a store’s records of sales of stuffed toys for two months. Which of the following are accurate assessments of trends displayed in this graph? I. The market share held by cats increased by about 6.5 percentage points. II. Roughly 22.2% more stuffed toys in the “other” category were sold in October than in September. III. The total number of stuffed toys sold increased by about 2%. a. I and II b. II only c. I and III d. I, II, and III Please select the best answer from the choices provided

Suppose that Bangladesh, India, Pakistan, and Nepal are economically interdependent. The following table shows the exports and imports of each country, with all monetary values given in millions of equivalent US dollars.Country of OriginExporting to...Amount ($ 1,000,000)BangladeshIndia2,817BangladeshPakistan2,369BangladeshNepal3,039IndiaBangladesh2,023IndiaPakistan3,462IndiaNepal2,184PakistanBangladesh3,201PakistanIndia2,336PakistanNepal2,338NepalBangladesh2,707NepalIndia3,363NepalPakistan2,332Based on the information in the table, assuming that these four countries trade strictly within the group, what is the value of the greatest trade balance in this group?a.$841 millionb.$847 millionc.$8,402 milliond.$8,516 million

In 1983, a winter hat cost $12.95. Today, a winter hat costs $24.50. If the CPI is 219, what is the percent relation of the actual price of a winter hat to the expected price?a.The actual price is 39.3% higher than the expected price.b.The actual price is 15.8% higher than the expected price.c.The actual price is 13.6% lower than the expected price.d.The actual price is 29.8% lower than the expected price.

Which of the following functions is most closely connected with the FDA?a.regulating markets and preventing monopoliesb.enforcing truth in advertisingc.protecting the public from unsafe medicines and foodsd.using monetary policy to prevent inflation

Contrary to common belief, the price of a single item as listed in the CPI (Consumer Price Index) does not always rise and fall in tandem with the price of the same item in the PPI (Producer Price Index). Which of the following is not a reason that makes this so?a.Imports are excluded from PPI, but included in CPI.b.Taxes paid as part of the purchase are not included as part of the PPI but are included in the CPI.c.The PPI includes the prices of goods purchased by other producers while the CPI includes only the prices of goods purchased by consumers.d.Since the PPI measures the change of the price the producer receives for their product and the CPI measure the change of the price the consumer pays for the product, one should rise while the other will fall.

How do the choices consumers make impact business decisions?a.Businesses are run by consumers, so the choices those consumers make will find their way into business decisions.b.Businesses can track the trends of what consumers are and are not buying, and will attempt to cater to the desires of those who provide them with profits.c.The government mandates that businesses respond promptly to the preferences of the market.d.Businesses, like consumers, tend to follow fads and trends, so setting trends can cause businesses to follow along.

In 1983, a pair of jeans cost $66.35. If a pair of jeans costs $118.10 today, what is the CPI?a.152b.156c.178d.184

What is a consequence of following the Comparative Advantage Principle?a.Countries only make one kind of good or service.b.Wages scale to exactly match the skill of the wage-earners.c.Countries become more interdependent on one another for goods and materials.d.Goods are traded directly, rather than using monetary trade.