06.06 Segment Exam Part B – Flashcards
Unlock all answers in this set
Unlock answersquestion
Cardinal Comics produces graphic historical novels and retails them through local shops throughout the United States. The publisher maintains an in-house staff of editors and illustrators but contracts out writing, printing, and distribution. Its printer uses domestically recycled paper but imports ink and much of its printing equipment from overseas. Segment B of the circular flow diagram above reflects which part of this scenario?
answer
Consumers purchase graphic historical novels from local shops.
question
2010 Budget - Projected deficits and debt increases Which of the following statements best accounts for the data shown in the graph above?
answer
Spending relative to tax revenue drastically increased in 2009.
question
Which of these is an example of the line marked "Artificial Price"?
answer
Rent Controls
question
Sixty-five nations sign a treaty pledging caps on industrial emissions and the development of renewable resource energy production. Which of the following would be a long-term positive externality for global health?
answer
Lower rates of childhood asthma
question
If private investors put a lot of money into the U.S. economy, the gross domestic product will increase. What else will likely occur?
answer
An increase in inflation and a decrease in the unemployment rate
question
The main benefit of a technical school certification is
answer
reduced costs compared to other degree options
question
One bank offers a 2% variable rate loan, while a competitor offers a 3% fixed rate loan over the same period. It is likely better to choose the fixed rate loan, even though the interest rate is higher, because the rate on the
answer
variable loan can increase dramatically
question
If the economy is in decline, and the Federal Reserve wants to encourage banks to lend to consumers, which step will the Fed likely take?
answer
Decrease the discount rate.
question
How are start-up costs related to natural monopolies?
answer
High start-up costs prevent others from offering the same service in a natural monopoly.
question
Imagine the federal government has a national debt of $10.2 trillion. Congress's budget for the coming year includes a spending projection of $4.2 billion. Tax revenue projects $3.8 billion. Which fiscal policy should Congress adopt to avoid increasing the national debt?
answer
Decrease Spending
question
Tennessee Valley Authority (TVA) Sites Red = water dams Purple = nuclear power plants Orange = fossil fuel power plants Study the map above. The TVA believes that the positive externalities outweigh the negative externalities of which renewable resource?
answer
Water
question
The country has entered a period of economic growth, but prices are rising too rapidly. To stabilize prices, the Federal Reserve decides to
answer
Raise The Discount Rate
question
A livestock ranch decides to expand its operations. Which of the following would be a negative externality for the local environment?
answer
More groundwater pollution
question
Jared's friends invite him to dinner at a new restaurant in town. Money has been tight this month, and the new restaurant offers the same meal as another local restaurant but at a higher price. Jared declines the invitation to the new restaurant and opts to dine at the less expensive establishment. Which of the following best represents the reason for Jared's decision?
answer
High food prices at the new restaurant
question
Juanita, who lives with her brother, has saved $12,000 for a down payment on her own house. Her financial planner suggests she look for a savings account that offers compound interest accounts. Why should Juanita take this advice?
answer
She will earn interest on the initial deposit, as well as interest earned.
question
Which best describes the function of the Federal Reserve System?
answer
Control Of The Money Supply
question
The city council allocates funds for road repair. Which of the following circumstances would be a positive externality?
answer
Citizens spend less money repairing punctured and torn tires.
question
Unemployment is rising, and the federal government wants to encourage job growth. Which of the following actions would be an appropriate fiscal policy?
answer
Increase spending on infrastructure projects
question
Which of the following industries benefits from government subsidies?
answer
Agriculture
question
If a series of events results in a decrease in investments in U.S. businesses, what is the result on the U.S. economy?
answer
Contraction
question
If Juliet consistently buys health insurance for twenty years but never suffers a costly illness, were her premium payments wasted?
answer
No, if the safety of being insured was worth more to her than the monetary cost of the premiums
question
Look at the circular flow diagram. Choose and define an environmental issue. Using the diagram as a guide, explain how the environmental issue you chose affects the relationship between business and factor market.
answer
Factor market contains labor, capital, land and entrepreneurship. Business--look to cut corners on costs and pollute environment (land), for their employees (labor) possible disease, and possible, future capital investment may be cleaner factory.
question
In 2011, Brazil had a GDP of $2.3 trillion and a per capital GDP of $11,800. A fifth of the population lived below the poverty line, and life expectancy was about 73 years. Which of these additional factors would most support the conclusion that Brazil is an emerging economy rather than a developing economy?
answer
Rapidly increasing exports
question
Supporters of free trade zones would most likely argue that this map demonstrates how free trade
answer
breaks down barriers among nations
question
Which of the following entities would most likely agree with Adam Smith's statement?
answer
Stockholders for a pharmaceuticals company that has a new cancer drug
question
An artisan sells handmade journals. His products are successful. Based on the chart, what will happen next?
answer
He will increase the price and make more journals.
question
The bookstore is overstocked with old fantasy novels. It needs to get rid of the novels to make room for newly published fantasy novels. Based on the chart, what could the bookstore do to increase quantity demanded for fantasy novels?
answer
Decrease price on the old fantasy novels.
question
Marcie wants to work as a freelance editor. She purchases a desk, computer, widescreen monitor, and ergonomic keyboard. What kind of resources are these?
answer
Capital
question
Based on the charted data, which of these statements is true?
answer
Being an attorney requires more education than being an administrative assistant.
question
Sayuri's Asian Café needs to make pot stickers faster, so Sayuri buys a new machine to speed production, and the team starts using it on Day 4. Sayuri tracks production over the course of seven days. Which of these statements summarizes how the machine affects productivity?
answer
It initially slows production, but then production improves greatly.
question
The most immediate impact of rising inflation is
answer
higher prices
question
Given the data in the chart above, which statement explains why these three countries would benefit from specialization and trade?
answer
No country has an absolute advantage in all activities.
question
Angela is a musician who writes short musical pieces for use in religious services and nonreligious festivals. There is a large anniversary celebration in her town in one month, and she has been asked to compose an original nonreligious piece. How might this affect her production possibility curve for new music?
answer
Production would increase for nonreligious music and decrease for religious music.
question
Ming is starting a business and she would like her personal assets to be protected. Which organizational structures should she consider?
answer
Corporation or limited liability corporation
question
Look at the graph. A bookstore owner increases the price of art books to $25. Which of these would occur?
answer
A surplus, because the price is higher than equilibrium price
question
Life Expectancy Given the data in the chart, which of the following statements is true?
answer
Australia and the United States are more developed than India.
question
Which of the following statements reflects the broad economic goal of equity?
answer
Removing funding from public universities that refuse to accept women, minorities, or economically disadvantaged applicants as students
question
Andy compares mattresses. A twin-sized NightSoft mattress at the large chain BuyRite costs $1,500. The BuyRite saleswoman tells Andy that the company's 24-hour customer service, free mattress cleaning, and 60-day return policies are the best in the business. A similar twin-sized model, the DarkNights mattress, at the small store Joe's Bed and Linens, costs $1,495. The salesman at Joe's tells Andy that this store offers a 30-day money-back guarantee, plus free delivery. Which of these is Andy experiencing?
answer
Non-price competition in a monopolistically competitive market
question
In the rural farming town of York Springs, Smith's was the only grocery store and Lehman's was the only animal feed mill. How would you describe these businesses?
answer
Natural monopolies
question
Given the data in the chart, over which country does the United States have a comparative advantage in oil production?
answer
Canada
question
Diplomatic relations have broken down between the United States and another nation. To punish the other nation for treaty violations, the U.S. government bans all trade with that nation. This is an example of which kind of trade barrier?
answer
Embargo
question
Entrepreneurs An Wang George Washington Carver Samuel F. B. Morse Margaret Hutchison Rousseau Choose one entrepreneur from this list. Write about an innovative idea this entrepreneur had. Include details about the person who brought it into being and the contributions he or she made to our society. How did this entrepreneur embody one or more characteristics from the HUNT? Present your response in a clear, organized manner and cite specific examples.
answer
George Washington Carver he made remarkable thing with peanuts that help farming family and we still use his farming techniques today. He took his vision in using peanuts to help people and he was the first one to do so to go out help farming families that needed these techniques to survive.
