question

Lesson 1 Speedback

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Answers

question

The opportunity cost of buying a slice of pizza for two dollars rather than a burrito for two dollars is: a. the pizza b. there is no opportunity cost c. the two dollars spent on the pizza d. the burrito

answer

d. the burrito

question

The power of the consumer in the market is called: a. supply and demand b. consumer sovereignty c. trade-offs d. opportunity cost

answer

b. consumer sovereignty

question

You receive a coupon in the mail that gives you a free meal at your favorite restaurant. You go to the restaurant and enjoy your free meal. The next time you go to the restaurant, you notice the price of your favorite dish has been raised. This example illustrates the concept of: a. opportunity cost b. "there is no such thing as a free lunch" c. scarcity d. utility

answer

b. TINSTAAFL

question

Goods that are naturally available to all are called: a. consumer goods b. product goods c. capital goods d. free goods

answer

d. free goods

question

A tire factory selling tires to a delivery company to use on its trucks is an example of a transaction that would take place in a product market. True or False?

answer

False

question

Education is valuable because of its: a. scarcity and demand b. scarcity and utility c. supply and demand d. value and efficiency

answer

b. scarcity and utility

question

Land, labor, capital, and entrepreneurship are the a. factors of production b. results of supply and demand c. results of production d. opportunity costs of businesses

answer

a. factors of production

question

All goods and services have the same value for every person in the economy. True or False?

answer

False

question

Scarcity is a problem only for economies that use money to coordinate decisions. True or False?

answer

False

question

Economics can be defined as: a. The study of how people satisfy seemingly unlimited wants with scarce resources b. a branch of psychology c. the scientific study of interactions between markets and production d. the limited description of economic activities and resources

answer

a. The study of how people satisfy seemingly unlimited wants with scarce resources

question

The fundamental economic problem is the number of businesses that fail all over the world. True or False?

answer

False

question

Kelly, a rich businesswoman, finds that no matter how many pairs of shoes she buys, she can still find plenty more that she wants. Her salary only allows her to buy fifty pairs of shoes per year. She cannot buy as many shoes as she wants. Kelly is facing: a. A large opportunity cost for her shoes b. a small opportunity cost for her shoes c. the fundamental economic problem of scarcity d. the fact that she cannot buy gods in a factor market

answer

c. the fundamental economic problem of scarcity

question

Martha works at a retail store. She is paid by the store in a factor market and buys her clothing at the store in a product market. This cycle of individuals and businesses interacting is called: a. the flow of factor markets b. the circular flow of economic activity c. an economic process d. scarcity

answer

b. the circular flow of economic activity

question

By limiting their wants, people can eliminate scarcity. True or False?

answer

False

question

Entrepreneurs are the driving force of a market economy. Peter is an entrepreneur focused on becoming an owner of a successful business. Peter is motivated by: a. the fundamental economic problem b. the incentive of making profit and becoming wealthy c. opportunity cost d. consumer goods

answer

b. the incentive of making profit and becoming wealthy

question

The opportunity cost of taking an unpaid vacation from work is the amount of money you would have made if you would have worked. True or False?

answer

True

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Lesson 2 Speedback

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Answers

question

The "invisible hand" is a metaphor used by Adam Smith: a. to explain that if all people were free to pursue their self-interest, the economy would naturally be guided to achieve the best for all. b. to explain that business owners pay workers less than the value of their labor c. to show the ability of the products to increase factors of production d. to explain the distribution of income equally to all

answer

a. to explain that if all people were free to pursue their self-interest, the economy would naturally be guided to achieve the best for all.

question

Since the mid-1900s, computers have evolved from the size of a large room to devices that fit in the palm of your hand. The technological capabilities of computers have increased production of many goods and services in the United States and throughout the world. Although computers have increased production, they have also eliminated many jobs. This is an example of: a. achieving economic growth, while not being able to achieve full employment b. achieving full employment, while not being able to achieve economic growth c. achieving equity, while not being able to achieve full employment d. achieving stability while not being able tot achieve full employment

answer

a. achieving economic growth, while not being able to achieve full employment

question

Changes in a market economy tend to be: a. gradual b. revolutionary c. prohibited d. discouraged

answer

a. gradual

question

In a market economy, the decisions of "what," "how," and "for whom" are often determined by: a. government and business owners b. consumers and business owners c. government d. consumers and labor unions

answer

b. consumers and business owners

question

A mixed economy is: a. an economic system that mandates public ownership of the factors of production b. an economy that does not allow any government regulation c. an economic system that combines elements of other economic systems d. usually a failure because of a lack of resources

answer

c. an economic system that combines elements of other economic systems

question

Adam's incentive to open a new restaurant is profit. He knows that if he works hard and his restaurant is successful he will be able to earn a lot of money. Adam is: a. going to fail because opening a new restaurant is difficult b. an entrepreneur in a capitalist economy c. an entrepreneur in a command economy d. an entrepreneur in a tradish economy

answer

b. an entrepreneur in a capitalist economy

question

Jamie works for the government in a factory. She works every day in order to fulfill government quotas. Her family lives in a modest apartment provided by the government. Jamie is part of a: a. command economy b. market economy c. mixed economy d. tradish economy

answer

a. command economy

question

One key strength of a command economy is its: a. ability to adapt quickly to differing economic needs in society b. ability to foster economic growth c. economic stability d. ability to use the invisible hand to its advantage

answer

a. ability to adapt quickly to differing economic needs in society

question

John's parents are fishermen, and ever since John was little he has been a fisherman. He uses little technology because he uses the fishing techniques of his ancestors. John is a part of a: a. tradish economy b. mixed economy c. market economy d. command economy

answer

a. tradish economy

question

George needs a new TV in order to watch the Super Bowl on Sunday. He wants to get the best deal, so he goes to many different stores and then buys the best TV for the cheapest price. This is an example of: a. self-interest and competition working together in a socialistic environment b. a simple transaction occurring in a tradish economy c. self-interest and competition working together in a capitalistic environment

answer

c. self-interest and competition working together in a capitalistic environment

question

According to Karl Marx, eventually the "have-nots" will: a. rebel against the capitalist system and instigate socialism b. move up in society and become "haves" c. always be working to keep up with those who are more powerful in society d. overpower the socialist rulers and begin capitalism

answer

a. rebel against the capitalist system and instigate socialism

question

Which of the following is not considered an economic and social goal of society? a. stability b. economic growth c. economic efficiency d. entrepreneurship

answer

d. entrepreneurship

question

Economic decisions in a command economy are made by: a. private businesses b. assembly line workers c. competition d. government agencies

answer

d. government agencies

question

It is difficult for societies to achieve all of the economic goals because: a. consumers and business owners cannot agree b. there's scarcity c. there are only so many resources to go around d. the pursuit of one often leads to the impossibility of achieving another

answer

c. there are only so many resources to go around

question

Lesson 3 Speedback

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Answers

question

A rise in the price of chicken feed shifts the supply curve of chickens leftward. True or False?

answer

True (Pay attention to the question "chicken FEED versus chickens")

question

New technology for manufacturing computer chips is developed. The new technology will: a. contribute to a decrease in the supply of computer chips b. contribute to cheaper production of computer chips c. not affect the supply of computer chips

answer

b. contribute to cheaper production of computer chips

question

The law of supply states that as the price of a good rises, the quantity supplied decreases. True or False?

answer

False

question

A price compromise between buyer and seller is known as a(n): a. target price b. adjustment price c. deficiency payment d. equilibrium price

answer

b. adjustment price

question

A decrease in consumer income shifts the demand curve leftward. True or False?

answer

True

question

The government sets a price ceiling on pizza that is below the equilibrium price of pizza, causing: a. a surplus of pizza b. none of these are correct c. no shortage of pizza d. a shortage of pizza

answer

d. a shortage of pizza

question

New cars are a normal good. Suppose the economy enters a period of strong economic expansion so that consumer incomes increase substantially. What will happen to the demand for new cars? a. It will increase because a rise in overall income produces an increase in demand for normal goods b. It will stay the same because people will increase the purchase of other goods c. It will decrease because a rise in overall income produces a decrease in demand for normal goods.

answer

a. It will increase because a rise in overall income produces an increase in demand for normal goods.

question

The law of demand states that as the price of a good rises, the quantity demanded decreases. True or False?

answer

True

question

Since prices don't favor producers or consumers, they are described as: a. flexible b. fixed c. biased d. neutral

answer

d. Neutral

question

A rise in the price of popcorn shifts the demand curve for popcorn rightward. True or False?

answer

False

question

It costs Balls-R-Us, a supplier of soccer balls, $3.00 to produce each soccer ball and $300.00 to make one hundred soccer balls. It is able to sell these soccer balls for $10.00 each. What is the marginal cost of producing soccer balls? a. 300 b. 10 c. 3 d. 1

answer

c. $3

question

If both the demand and supply curves shift equal distances rightward, the equilibrium price rises. True or False?

answer

False

question

Gruel is an inferior good. Hence, an increase in consumer income: a. decreases the demand for gruel b. increases the supply of gruel c. decreases the supply of gruel d. increases the demand for gruel

answer

a. decreases the demand for gruel

question

At any given price, a surplus of oranges will occur when: a. the quantity demanded is more than the quantity supplied b. the quantity supplied is greater than the quantity demanded c. the quantity demanded is the same as the quantity supplied d. the quantity supplied is less than the quantity demanded

answer

b. the quantity supplied is greater than the quantity demanded

question

A rise in the price of a game of bowling will: a. decrease the demand for bowling balls b. result in a lot more people bowling c. increase the demand for bowling balls d. decrease the demand for cars

answer

a. decrease the demand for bowling balls

question

In an unregulated market, which of the following will occur as a result of sudden destruction of a large proportion of the supply of housing? a. a decrease in demand for rental housing b. a surplus of rental housing c. higher rental prices d. a decrease in rental prices

answer

c. higher rental prices

question

Lesson 4 Speedback

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Answers

question

Which of the following is an economic responsibility of all businesses in the US? a. Conduct all business in an honest and ethical manner b. Spread negative information about the competition. c. Close on all government regulated holidays. d. Draft a code of ethics and make all employees sign it.

answer

a. Conduct all business in an honest and ethical manner.

question

Monopolies are typically created because: a. increasing competition discourages new businesses from entering the industry b. the industry has high barriers to entry that prevent many businesses from entering the industry c. there is alack of business interest in an industry d. the government promotes the establishment of monopolies.

answer

b. the industry has high barriers to entry that prevent many businesses from entering the industry

question

The shoe industry in the current American economy, where many different types and brands are offered, is an example of: a. a monopoly b. an oligopoly c. monopolistic competition d. perfect competition

answer

c. monopolistic competition

question

The United States GDP, which is the market value of all final goods and services produced in the nation in a year, is calculated by: a. It is impossible to computer the GDP because is impossible to measure all production data b. adding the expenditures of the four sectors of the economy c. multiplying production by consumption d. subtracting total imports from exports

answer

b. adding the expenditures of the four sectors of the economy

question

One distinct difference between monopolistic competition and perfect competition is: a. monopolistic competition is a monopoly b. buyers and sellers must be fully informed c. product differentiation d. insignificant

answer

c. product differentiation

question

Which of the following is an economic right of all businesses in the United States? a. involuntary exchange b. the ability to function as a monopoly c. government ownership of property d. voluntary exchange

answer

d. voluntary exchange

question

In order for people to use the savings of others, the economy must have a(n) system—a network of savers, investors, and financial institutions. a. saving b. transfer c. financial d. investment

answer

c. financial

question

One weakness of a sole proprietorship is that the: a. owner has too many partners b. owner has no control c. owner faces unlimited liability d. business will eventually go bankrupt

answer

c. owner faces unlimited liability

question

One advantage of a corporation is: a. it cannot enter into any legal contracts b. unlimited liability for its owners c. the ease of obtaining a charter d. a lifespan that is not linked to a specific owner

answer

d. a lifespan that is not linked to a specific owner

question

The economy is experiencing a recession. Is economic growth likely to grow?

answer

No

question

The economy is experiencing an increasing unemployment rate and a high inflation rate. Is economic growth likely to grow?

answer

No

question

The economy is experiencing expansion. Is economic growth likely to grow?

answer

Yes

question

The economy is experiencing a decreasing unemployment rate and an increasing GDP. Is economic growth likely to grow?

answer

Yes

question

The economy is experiencing an increase in overall GDP. Is economic growth likely to grow?

answer

Yes

question

Monopolies face disadvantages that focus around: a. production b. cost c. prices d. inefficiency

answer

d. ineffiency

question

What is the difference between real and nominal GDP? a. Real GDP is exact, while nominal GDP is estimated. b. Real GDP is estimated, while nominal GDP is exact. c. Real GDP is adjusted for inflation, while nominal GDP is not. d. There is no difference.

answer

c. Real GDP is adjusted for inflation, while nominal GDP is not.

question

The airline industry in America is an example of _________, because a few firms dominate the industry. a. a monopoly b. an oligopoly c. perfect competition d. monopolistic competition

answer

b. an oligopoly

question

What is main difference between inflation and deflation? a. Inflation is an overall decrease in price, and deflation is an overall increase in price. b. A high inflation rate means the economy is doing well, while a high deflation rate means the economy is doing poorly c. A high inflation rate means the economy is doing poorly, while a high deflation rate means the economy is doing well. d. Inflation is an overall increase in price, and deflation is an overall decrease in price.

answer

d. Inflation is an overall increase in price, and deflation is an overall decrease in price.

question

GDP is not a proper measure of the total production of the US economy because: a. it only includes final goods b. it doesn't take illegal or black market production into consideration c. it does not account for household labor or volunteer labor d. all of the above

answer

d. all of the above

question

In the business cycle, a trough is: a. the peak of economic growth b. a major downturn in economic growth c. measured when economic growth changes and begins to increase d. measured when economic growth is decreasing

answer

d. measured when economic growth is decreasing

question

More money become available for economic growth when: a. there is high unemployment b. pension funds increase c. people save d. interest rates are high

answer

c. people save

question

Saving makes economic growth possible because: a. financial institutions lend the savings of others to those who will invest them b. buyers and sellers are working together to make saving possible c. it means people have extra money and are spending less of it d. saving is more important than investing

answer

a. financial institutions lend the savings of others to those who will invest them

question

An oligopoly: a. only occurs when buyers and sellers are fully informed b. is established when perfect competition exists c. requires a partnership d. is an industry dominated by a small number of firms

answer

d. is an industry dominated by a small number of firms

question

The Department of ___________ compiles the statistics on the nation's output and income. a. Health and Human Services b. Commerce c. Internal Revenue d. Defense

answer

b. Commerce

question

The main advantage that partnerships have over sole proprietorships is: a. unlimited liability b. the ease of obtaining a charter c. the ability to specialize d. they are more likely to succeed

answer

c. the ability to specialize

question

In the business cycle, a recession: a. exists when there is an overall downturn of the economy b. is the peak of economic growth c. is a major increase in economic growth d. is measured when economic growth changes and begins to increase

answer

a. exists when there is an overall downturn of the economy

question

Lesson 5 Speedback

answer

Answers

question

What is the purpose of the Federal Reserve? a. to regulate the money supply in order to create a stable economy b. to insure all money deposited within banks c. to accept deposits and lend money to customers d. to control all business exchanges within the United States

answer

a. to regulate the money supply in order to create a stable economy

question

Increasing the discount rate in order to decrease the money supply is an example of fiscal policy. True or False?

answer

False

question

George Sparks has just been laid off. He had an excellent job as a computer programmer, but due to company cutbacks he lost his job. While looking for another job, he is able to collect unemployment insurance. This is an example of: a. an automatic stabilizer b. monetary policy c. taxation d. discretionary fiscal policy

answer

a. an automatic stabilizer

question

One of the main reasons for increasing economic regulations in the United States is the increasing population. True or False?

answer

True

question

The main duties of the Fed are to conduct monetary policy, provide banking services to financial institutions, and: a. regulate the banking industry b. enforce all economic regulations passed by the government c. conduct fiscal policy d. raise and lower taxes

answer

a. regulate the banking industry

question

John Furry purchased a vacation package from a telephone solicitor. The person asked John for a two-hundred-dollar deposit via credit card in order to reserve his package. John gave the solicitor his credit card number, but he never received the vacation. The agency responsible for investigating this fraud is: a. the Food and Drug Admin b. the Consumer Product Safety Commission c. The Federal Trade Commission d. The Environmental Protection Agency

answer

c. The Federal Trade Commission

question

Crazy Eight is very excited because he is opening a new business. He purchased a building, equipment, a license, and computers, and he remodeled his building. He also was able to acquire a patent for his new idea. He invested all his savings in the new business and he is hoping his new business will take off. Crazy Eight was able to open this new business because: a. he is a good businessman and will succeed b. the government guarantees he is able to own property and ideas c. he is leasing the building from the government under an agreement he will manufacture what the government orders d. he is able to bypass all the government regulations in order to open an illegal business

answer

b. the government guarantees he is able to own property and ideas

question

The Department of Defense is an important part of the economy because: a. it provides banking insurance so depositors' money is protected when it is placed in bank accounts b. it provides consumers and businesses with protection and a sense of security when making economic decisions c. it protects human health and the environment so consumers and businesses will be safe d. it develops military strategies during times of war

answer

b. it provides consumers and businesses with protection and a sense of security when making economic decisions

question

The time period between when an economic policy is decided and when it actually takes effect is called a(n): a. lag b. waiting period c. certification break d. automatic stabilizer

answer

a. lag

question

Which of the following is a function of our current banking system? a. determining the value of money b. lending money c. acting as a medium of exchange d. regulating the money supply

answer

b. lending money

question

In the United States, income tax is an example of a _______ tax, while sales tax is an example of a ________ tax. a. regressive ; progressive b. progressive ; regressive c. progressive ; proportional d. proportional ; regressive

answer

b. progressive ; regressive

question

John Maynard Keynes believed that all economic problems are caused by: a. inflation b. decreases in business sector spending c. the GDP d. unemployment

answer

b. decreases in business sector spending

question

The Environmental Protection Agency (EPA) impacts the economy by: a. providing consumers and businesses with protection and a sense of security when making economic decisions b. creating and enforcing truth-in-advertising laws to protect consumers c. providing banking insurance so depositors' money is protected when placed in bank accounts d. developing and enforcing regulations that protect human health and the environment

answer

d. developing and enforcing regulations that protect human health and the environment

question

Monetary policy alone is the most effective economic policy. True or False?

answer

False

question

In order to control inflation, governments might: a. sell government securities b. decrease government spending c. increase taxes d. all of these are correct

answer

d. all of these are correct

question

When the Federal Reserve decides it is necessary to expand the money supply, it might: a. increase the discount rate b. decrease the reserve requirement c. lower taxes d. sell government securities

answer

b. decrease the reserve requirement

question

Economic regulations help fulfill Adam Smith's idea of a laissez faire economy. True or False?

answer

False

question

Hypothetical situation: The economy has been declining for six months. The unemployment rate has increased by 2 percent in the past six months, and many Americans are looking for work. Production has decreased and many businesses are simply not investing or hiring new workers. Consumers are saving (not spending) their money because they are worried about current events. What should the Federal Reserve Board do? a. They should do nothing; the economic decreases are due to the regular business cycles and the economy will bounce back. b. They should raise the reserve rate and sell government securities in order to expand the money supply. c. They should lower taxes and increase government spending in order to increase overall demand. d. They should lower the discount rate and buy government securities in order to expand the money supply.

answer

d. They should lower the discount rate and buy government securities in order to expand the money supply.

question

What economic concept do the Fourth and Fifth Amendments to the Constitution identify? a. private ownership of property b. the organization of the Fed c. regulation of monopolies d. competition among businesses

answer

a. private ownership of property

question

In a recession, fiscal policy calls for the government to decrease taxes and increase spending. True or False?

answer

True

question

When the Federal Reserve sells government securities, it results in a decrease in the money supply. True or False?

answer

True

question

The purpose of economic regulations in the United States is to: a. promote economic growth, stability, and equity b. control population growth and birth rates c. limit the individual freedoms of all Americans d. undermine the free-market economy

answer

a. promote economic growth, stability, and equity

question

Lesson 6 Speedback

answer

Answers

question

The economic prosperity of the 1990s was primarily due to: a. the new economy created by the Internet b. the dot-com businesses which developed in the 1990s c. the development of the computer industry d. all of these are correct

answer

d. all of these are correct

question

Economists are hired by private businesses to: a. program computers b. do general labor c. manage companies d. analyze economic data

answer

d. analyze economic data

question

The War Industries Board: a. did not have any power during World War I b. helped produce a United States depression during World War I c. converted businesses to the war effort during World War I d. converted businesses to produce much needed products during the Great Depression

answer

c. converted businesses to the war effort during World War I

question

One of the most important economic results of World War I for the United States was: a. the Great Depression b. the United States moving from being a debtor nation to being a creditor nation c. the United States moving from being a creditor nation to being a debtor nation d. a recession

answer

b. the United States moving from being a debtor nation to being a creditor nation

question

The Civilian Conservation Corps: a. provided work to Americans in order to generate electrical power and control floods around the Tennessee River b. all of these are correct c. promoted fair competition in all industries d. provided work to single young men, requiring them to send most of the money home to their families

answer

d. provided work to single young men, requiring them to send most of the money home to their families

question

The FDIC: a. regulated the savings and loan industry b. insured bank depositors' savings c. regulated the stock and bond markets d. replaced Hoover's Reconstruction Finance Corporation

answer

b. insured bank depositors' savings

question

Labor movement refers to the: a. building of the railroads b. efforts of workers to improve their economic position c. movement of workers from farms to the industrial cities d. increasing number of jobs available to Americans in the nineteenth century

answer

b. efforts of workers to improve their economic position

question

The three Rs of the Great Depression were: a. reform, recession, and research b. reform, relief, and recovery c. research, read, and reform d. relief, recession, and reform

answer

b. reform, relief, and recovery

question

The labor movement resulted in: a. outlawing of child labor, eight-hour work days, and safer working conditions b. the elimination of labor unions c. competition for jobs in the cities, making it hard for people to find work d. a large population of unskilled workers in the cities

answer

a. outlawing of child labor, eight-hour work days, and safer working conditions

question

A labor union is: a. an organization that may resort to going on strike if its demands are not met b. all of these are correct c. an organization of workers who seek better treatment for workers d. an organization that takes part in collective bargaining with employers

answer

b. all of these are correct

question

During the Hundred Days: a. Roosevelt developed a clear idea of how to solve the nation's economic problems b. Roosevelt awaited his inauguration and prepared a strategy c. Congress delayed action on Roosevelt's legislation d. Congress passed many bills to help relieve the Great Depression

answer

d. Congress passed many major bills to help relieve the Great Depression

question

Entry level economists typically must have a: a. high school diploma b. bachelor's degree c. Ph.D. d. GED

answer

b. Bachelor's degree

question

The most significant legacy of the New Deal is: a. an increase in the size of the federal government and expansion of government programs b. the New Deal did not leave any lasting impact on the US c. separation of church and state d. a decrease in federal programs and in the size of federal government

answer

a. an increase in the size of the federal government and expansion of government programs

question

During the Cold War, the United States government spent large amounts of money a. all of these are correct b. in order to outspend the Soviet Union and end the Cold War c. on defense, including atomic warfare d. on the space program

answer

a. all of these are correct

question

16. The Social Security Act sought to help: a. the elderly b. the unemployable c. the unemployed d. all of these are correct

answer

d. all of these are correct

question

Which of the following was a cause of the recession of the 1980s? a. increasing employment b. overproduction c. large government deficits and increased consumer spending d. insufficient production in the United States

answer

c. large government deficits and increased consumer spending

question

President Ronald Reagan's new economic strategy included: a. cutting taxes and increasing government spending on domestic programs b. cutting taxes and decreasing government spending c. raising taxes d. raising taxes and increasing spending

answer

b. cutting taxes and decreasing government spending

question

What actually brought the United States completely out of the Great Depression? a. World War I b. the Second New Deal c. the New Deal d. World War II

answer

b. the Second New Deal

question

During the Great Depression, the major reason for farmers receiving low prices for their crops was: a. poor farming methods b. corruption c. underproduction d. overproduction

answer

d. overproduction

question

Lesson 7 Speedback

answer

Answers

question

An import is: a. an example of a production deficiency b. a good or service that is brought form a foreign country c. an example of profitable trade d. a good or service that is sent to a foreign country

answer

b. a good or service that is brought from a foreign country

question

A country experiences a _________ when the value of imports exceeds the value of exports. a. balance of trade b. trade deficit c. trade surplus d. balance of payments

answer

b. trade deficit

question

Desiree's pet care company, Doggone Gorgeous, is an exclusive salon that has shops in Paris, Milan, New York, and San Francisco. Desiree's business concept is unique because she does not accept currency; she accepts autographed photos of her famous clients with their dogs as payment. She has convinced several upscale shopkeepers to barter with the photos and assigns value to each photo based on the net worth of the person in the photo. She turns a tidy profit in all four locations by collecting and exchanging these famous client photos. Answer the following questions about Desiree's business: 3. The signed photographs of clients and their dogs constitute money. True or False?

answer

True

question

Doggone Gorgeous is a multinational company. True or False? (I'm doing this for you lazy people like me who just scoured Google for all the answers. You aren't alone.)

answer

True

question

Globalization is the term used to describe the emergence of a fragmented and divisive isolationist world view. True or False?

answer

False

question

Specialization promotes efficiency of the world economy by: a. allowing nations to only produce the goods they produce efficiently b. bringing absolute advantage to all nations c. making sure the exports and imports of all countries are the same d. increasing the availability of natural resources

answer

a. allowing nations to only produce the goods they produce efficiently

question

The ___________ argument is based on the belief that new industries are fragile and need to be protected from foreign competition. a. quota b. dumping c. national security d. infant industry

answer

d. infant industry

question

According to modern theory, it is beneficial for a country to trade a good with another country if one country has a(n) __________ in the production of that good. a. opportunity cost b. absolute advantage c. financial advantage d. comparative advantage

answer

c. financial advantage

question

A(n) _____ is determined by the supply and demand of that currency. a. floating exchange rate b. interest rate c. fixed exchange rate d. balance of trade

answer

a. floating exchange rate

question

NAFTA instituted a free trade policy between: a. Europe and Africa b. all world nations c. Canada, Mexico, and the United States d. Europe Asia

answer

c. Canada, Mexico, and the United States

question

A ______ dollar is able to purchase less foreign currency than a _________ dollar. a. global, non-global b. strong, weak c. balanced, imbalanced d. weak, strong

answer

d. weak, strong

question

During his administration, President George W. Bush believed that: a. free trade agreements are not necessary b. increasing trade restrictions is important to all of US industries c. foreign trade is not very important in the US economy d. participating in the world economy makes the US economy stronger

answer

d. participating in the world economy makes the US economy stronger

question

A country has an absolute advantage when it can: a. produce more of a product than another country b. produce a lot of different economic products c. produce a good at a lower opportunity cost than another country d. produce a good at a higher dollar cost than another country

answer

a. produce more of a product than another country

question

A country has a comparative advantage when it can: a. produce a good at a lower opportunity cost than another country b. produce a good at a lower dollar cost than another country c. produce more of a product than another country d. produce a lot of different economic products

answer

a. produce a good at a lower opportunity cost than another country

question

A tax placed on an import is a: a. tariff b. ration c. opportunity cost d. quota

answer

a. tariff

question

Beta can produce either ten apples or three oranges. Cama can produce either twelve apples or three oranges. Which of the following is true? a. Cama has a comparative advantage in the production of oranges. b. Beta has an absolute advantage in the production of apples. c. Cama has an absolute advantage in the production of apples. d. Cama has an absolute advantage in the production of oranges.

answer

C

question

The __________ is the price of a nation's currency relative to another nation's currency. a. fixed exchange rate b. foreign exchange rate c. interest rate d. floating exchange rate

answer

b. foreign exchange rate

question

The Hawley-Smoot Tariff is an example of: a. free trade b. infant industry c. dumping d. protectionism

answer

d. protectionism

question

The International Monetary Fund was created in 1944 in order to: a. determine the floating exchange rates b. manage the international monetary system of fixed exchange rates c. fix all interest rates d. create comparative advantage

answer

b. manage the international monetary system of fixed exchange rates

question

We're Finished!

answer

Poop

question

We're Finished!

answer

Poop

Economics 041 BYU – Flashcards

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