Flashcards and Answers – Economics Multiple Choice

Unlock all answers in this set

Unlock answers
question
We are forced to make choices because a. not everything is limited. b. shortages are a constant situation. c. we live in a democracy. d. all resources are limited.
answer
all resources are limited
question
The four factors of production are the resources of land, labor, capital, and a. services. b. entrepreneurship. c. technology. d. goods.
answer
entrepreneurship
question
A truck used by a plumber is a type of a. capital. b. labor. c. raw good. d. modus transportius.
answer
capital
question
The value of the next best alternative that had to be given up to do the action that was chosen is the a. sale price. b. trade-off. c. opportunity cost. d. capital.
answer
opportunity cost
question
All the combinations of goods and services that can be produced in a given time with a fixed amount of resources are called a. costs. b. production possibilities. c. factors of production. d. trade-offs.
answer
production possibilites
question
When Adam Smith coined the term "invisible hand," he was referring to a. the government. b. the market. c. slave labor. d. entrepreneurship.
answer
the market
question
Pure capitalism is also known as a a. mixed economy. b. laissez-faire system. c. quota system. d. command economy.
answer
laissez-faire System
question
The desire to make money that motivates people to produce goods and services is called a. entrepreneurship. b. the profit incentive. c. laissez-faire. d. greed.
answer
the profit incentive
question
hich country best follows the ideas of Adam Smith? a. Cuba b. North Korea c. China d. Singapore
answer
singapore
question
Productivity refers to a. using the four factors of production. b. creating goods and services. c. measuring sales. d. producing goods and services in better and faster ways.
answer
producing goods and services in better and faster ways
question
Which of the following is a strength of a market economy? a. It gives producers and consumers a great deal of freedom. b. It provides centralized planning. c. It offers guaranteed lifetime employment. d. No one is allowed to live in poverty.
answer
it givers producers and consumers a great deal of freedom
question
Today most economic systems are a. command. b. traditional. c. capitalist. d. mixed.
answer
mixed
question
The goal of economic freedom is to a. ensure that businesses don't fail. b. give government a large role in the economy. c. allow people to make choices. d. limit competition.
answer
allow people to make choices
question
Unemployment compensation helps provide economic a. growth. b. freedom. c. stability. d. equity.
answer
stability
question
Since the founding of the United States, the role of government in the economy has a. had no impact on individual economic choices. b. been eliminated. c. increased. d. decreased.
answer
increased
question
Zoning regulations are an example of a. the lack of government involvement in economic activities. b. the role of government in regulating economic activities. c. a traditional economy. d. a pure market economy.
answer
the role of government in regulating economic activities
question
When analyzing an economic problem, economists do not consider a. government regulations. b. resources. c. choices. d. values.
answer
values
question
A free enterprise system involves trade-offs between a. state and federal government. b. businesses in the same industry. c. individual gain and social equity. d. customs and beliefs.
answer
individual gain and social equity
question
Which of the following is an example of a good? a. an oil change b. a car wash c. a tune-up d. a car
answer
a car
question
"Bait and switch" is an example of __________ advertising. a. generic b. informative c. deceptive d. competitive
answer
deceptive
question
Generic products a. have no name brand. b. have lifetime warranties. c. are sold only in major department stores. d. are the most expensive.
answer
have no name brand
question
Which federal agency has the responsibility of making sure that food production is sanitary? a. Consumer Product Safety Commission b. U.S. Department of Agriculture c. U.S. Office of Food Production d. Federal Trade Commission
answer
US department of agriculture
question
The federal agency that protects consumers from unsafe drugs, foods, and cosmetics is the a. U.S. Department of Agriculture. b. Food and Drug Administration. c. Federal Trade Commission. d. Consumer Product Safety Commission.
answer
Food and Drug Administration
question
On average, which of the following people can expect to earn the most money? a. a high school dropout b. someone with a college degree c. someone with an advanced degree d. someone with a high school diploma
answer
someone with an advanced degree
question
When an individual saves, a. it deprives others of money to invest. b. the whole economy benefits. c. the individual benefits. d. it deprives businesses of money to expand.
answer
the whole economy benefits
question
A promise by the manufacturer to replace or repair a faulty product is a. a warranty. b. a liability. c. required by federal law. d. bait and switch.
answer
a warranty
question
A financial institution that is owned and operated by its members to provide savings and low-interest loans to those members is a a. commercial bank. b. savings bank. c. savings and loan association. d. credit union.
answer
credit union
question
The benefit of borrowing is a. the interest the borrower has to pay on the loan. b. increasing your debt. c. being able to buy and enjoy the item now. d. the opportunity cost.
answer
being able to buy and enjoy the item now
question
Something of value that is used to secure a loan is a. collateral. b. chattel. c. principal. d. a mortgage.
answer
collateral
question
The Truth in Lending Act was created to a. reduce paperwork. b. reveal all the credit terms to the borrower. c. make it easier for collection agencies to collect. d. protect a person's credit record.
answer
reveal all the credit terms to the borrower
question
When deciding between two sources of credit, you should compare the a. credit limits. b. annual percentage rates. c. monthly payments. d. finance charges.
answer
annual percentage rates
question
Your credit rating affects your ability to a. get a job. b. get a loan. c. save money. d. get an education.
answer
get a loan
question
The passage of the Equal Credit Opportunity Act means that it is illegal to deny credit based on a. religion. b. race. c. gender. d. All choices are correct.
answer
all choices
question
A usury law a. regulates how borrowed money may be used. b. awards credit based on need. c. sets the maximum interest rates consumers can be charged. d. limits the amount of credit that a bank can offer.
answer
sets the maximum interest rates consumers can be charged
question
Declaring bankruptcy will stay on your credit record a. for ten years. b. for two years. c. forever. d. for seven years.
answer
for ten years
question
The opportunity cost for using store coupons when food shopping is a. less money. b. less time. c. lower quality. d. less food.
answer
less time
question
To help consumers compare food brands, most states require stores to provide a. generic brands. b. checkout scanners. c. unit pricing on products. d. advertising.
answer
unit pricing on products
question
Consumers who can store large quantities of bulk food items can save money by shopping at a. discount stores. b. warehouse stores. c. convenience stores. d. large supermarkets.
answer
warehouse stores
question
The advantage of home ownership is a. lower maintenance. b. increased mobility. c. creation of equity. d. higher price.
answer
creation of equity
question
The Dow Jones Industrial Average is a. a mutual fund. b. a stock index. c. the same thing as the S&P 500. d. a measure of industrial output.
answer
stock index
question
The work-time cost of a pair of shoes that cost $150 is the a. number of payments a buyer must make. b. number of hours a buyer must work to earn $150. c. value of time spent comparison shopping for the shoes. d. amount of time the buyer gets to use the shoes and the value placed on them.
answer
number of hours a buyer must work to earn $150
question
Monthly mortgage payments should be no more than a. 50 percent of monthly take-home pay. b. one third of monthly take-home pay. c. monthly rental payments. d. monthly food bills.
answer
one third of monthly take-home pay
question
Which group of people pays the highest automobile insurance rates? a. married women, ages 25-45 b. drivers with a good safety record c. single males, ages 16-25 d. people who live in a small town
answer
single males, ages 16-25
question
Service flow is a. how sales are routed in a store. b. the speed of a checker. c. the product lasting a long time. d. the amount of time someone gets to use a product and the value placed on its use.
answer
the amount of time someone gets to use a product and the value placed on its use
question
A lease describes a. rights and responsibilities of both the landlord and tenant. b. all conditions related to the mortgage. c. rights and responsibilities of the landlord. d. rights and responsibilities of the tenant.
answer
rights and responsibilities of both the landlord and tenant
question
The decline in value over time that occurs with vehicles is called a. appreciation. b. retrovalues. c. depreciation. d. liability.
answer
depreciation
question
A savings account is insured by a. private insurance corporations and agencies. b. individual banks and financial institutions. c. state agencies. d. an agency of the federal government.
answer
an agency of the federal government
question
The trade-off for the easy withdrawal of cash from savings accounts is a. penalties for early withdrawal. b. a waiting period before cash is received. c. lower interest rates. d. higher transaction costs.
answer
lower interest rates
question
A certificate issued by a government or firm in exchange for borrowed money is a/an a. IRA. b. asset. c. stock. d. bond.
answer
bond
question
The money earned from shares of stock is called a. interest. b. dividends. c. capital. d. equity.
answer
dividends
question
Which of the following investments has the greatest risk? a. savings bond b. stock market c. mutual fund d. Treasury note
answer
stock market
question
The law of __________ states that as a person consumes additional units of a good, eventually the satisfaction gained from each additional unit of the good decreases. a. supply and demand b. quantity demanded c. demand d. diminishing marginal utility
answer
diminishing marginal utility
question
When the demand curve shifts to the right, it indicates that buyers are willing and able to purchase __________ of a good at the original price and at all other prices. a. more b. none c. less d. all
answer
more
question
When demand is __________, the price change will not result in a substantial change in the quantity demanded. a. inelastic b. static c. elastic d. neutral
answer
inelastic
question
Important factors that can affect the elasticity of demand include the availability of substitutes, the percentage of income spent on a good, and a. season. b. time given to adjust to price change. c. the size of the good. d. competition.
answer
time given to adjust to price change
question
According to the law of supply, the quantity supplied of a good rises when the __________ of that good rises. a. price b. elasticity c. substitute d. quality
answer
price
question
A leftward shift in a supply curve means that supply has a. increased. b. remained stable. c. neither decreased nor increased. d. decreased.
answer
increased
question
Important factors that can cause supply curves to shift include input prices, technology, and a. imports. b. demand. c. taxes. d. consumer preferences.
answer
taxes
question
Price is determined a. by outside factors. b. primarily by demand. c. by supply and demand together. d. primarily by supply.
answer
by supply and demand together
question
A surplus will cause prices to a. remain constant. b. fall. c. rise gradually. d. rise suddenly.
answer
fall
question
A shortage will cause prices to a. fluctuate. b. rise. c. fall. d. remain constant.
answer
rise
question
An equilibrium price a. will reduce supply. b. rises with falling demand. c. should remain relatively stable. d. rises with rising demand.
answer
rises with falling demand
question
If nothing else changes, and the supply of a good rises, the price of that good will a. remain constant. b. rise. c. fluctuate. d. fall.
answer
fall
question
If nothing else changes, and the supply of a good decreases, the price of that good will a. rise. b. fall. c. remain constant. d. fluctuate.
answer
rise
question
Demand for one particular type of automobile is probably a. substitutable. b. inelastic. c. elastic. d. marginal utility.
answer
elastic
question
When the price of a product is below its equilibrium, the result is a. shortage. b. surplus. c. demand. d. black market.
answer
shortage
question
Typically, a good that has no substitutes will have a. very inelastic demand. b. no value. c. no demand. d. very elastic demand.
answer
very inelastic demand
question
Which of the following agencies enforces standards for air, water, and toxic waste? a. Federal Trade Commission b. Environmental Protection Agency c. Occupational Safety and Health Administration d. Food and Drug Administration
answer
environmental protection agency
question
All corporations must a. register with the state. b. All choices are correct. c. sell stock. d. elect a board of governors.
answer
all choices are correct
question
To determine a business's profits, you would a. subtract taxes from expenses. b. subtract total expenses from receipts. c. subtract wages from receipts. d. subtract costs of equipment from income.
answer
subtract total expenses from receipts
question
Risk is a part of a. any business venture. b. only large businesses. c. joint ventures. d. most partnerships.
answer
any business venture
question
The most common type of business is a. corporation. b. limited partnership. c. sole proprietorship. d. partnership.
answer
sole proprietorship
question
A sole proprietor has __________, which means that his or her personal assets may be used to pay off the debts of the business. a. unlimited liability b. unlimited life c. limited life d. limited liability
answer
unlimited liability
question
In a partnership, you would a. share the profits or losses with your partner. b. have no say in how the business is run. c. share only the profits with your partner. d. have no responsibility for the debts of the partnership.
answer
share the profits or losses with your partner
question
Which of the following is an example of a franchise business operation? a. Kmart b. The Gap c. JC Penny d. Burger King
answer
Burger King
question
Which of the following agencies regulates the workplace environment? a. Environmental Protection Agency b. Food and Drug Administration c. Federal Trade Commission d. Occupational Safety and Health Administration
answer
Occupation Safety and Health Administration
question
About the closest you can find to perfect competition is in a. agriculture. b. the Cuban economy. c. the airline industry. d. the computer industry.
answer
agriculture
question
Of the four market structures, __________ gives sellers the most control over prices. a. perfect competition b. oligopoly c. monopoly d. monopolistic competition
answer
monopoly
question
Perfectly competitive markets yield a. equal distribution of wealth. b. social discord. c. economic efficiency. d. growth.
answer
economic efficiency
question
A goal of the United States has been to a. encourage competition in the economy. b. protect monopolies. c. not interfere with the economy in any way. d. promote mergers.
answer
encourage competition in the economy
question
In perfectly competitive markets, all firms sell __________ goods. a. perfect b. nearly identical c. differentiated d. high-quality
answer
nearly identical
question
Mergers tend to a. improve product quality. b. have no effect on competitiveness in the marketplace. c. reduce competition in the marketplace. d. increase competition in the marketplace.
answer
reduce competition in the marketplace
question
When deciding whether to expand a business, you should a. sell bonds. b. make a cost-benefit analysis. c. ask friends for loans. d. sell stock.
answer
make a cost benefit analysis
question
A loan that is backed by collateral is called a. a secured loan. b. a line of credit. c. trade credit. d. an unsecured loan
answer
secured loan
question
A loan that will be repaid in 1 to 10 years is a. long-term financing. b. intermediate-term financing. c. short-term financing. d. a grant.
answer
intermediate-term financing
question
A business would seek long-term financing to a. make payroll. b. build a new plant. c. lease cars. d. reinvest in the stock market.
answer
build a new plant
question
Before obtaining capital, financial managers should consider market climate and a. interest rates. b. government regulations. c. production history. d. company reputation.
answer
intrest rates
question
Economists estimate that __________ percent of the price people pay for an item is the cost of marketing. a. 30 b. 50 c. 10 d. 20
answer
50
question
Marketing aimed at creating demand, or convincing consumers that a product is a necessity, began in a. the early 1900s. b. the 1950s. c. the 1990s. d. the 1920s.
answer
1950s
question
A gas station on a busy corner is an example of a. ownership utility. b. place utility. c. time utility. d. form utility.
answer
place utility
question
Selling a new product at a low price to try to attract customers away from an established product is called a. price leadership. b. penetration pricing. c. promotional pricing. d. direct pricing.
answer
penetration pricing
question
A business that buys large quantities of goods to resell to other businesses is called a/an a. e-mailer. b. wholesaler. c. distributor. d. retailer.
answer
wholesaler
question
Sam's Club is an example of a/an a. direct marketer. b. club warehouse. c. wholesaler. d. Internet marketer.
answer
club warehouse
question
Which of the following is an unskilled worker? a. architect b. delivery person c. physician d. bricklayer
answer
delivery person
question
The minimum wage law has the most impact for a. unskilled workers. b. professionals. c. skilled workers. d. white-collar workers.
answer
unskilled workers
question
Wages are determined by a. skill. b. location of job. c. All choices are correct. d. type of job.
answer
all choices are correct
question
This law allows the President to delay a strike if it threatens the nation's health and safety. a. Landrum-Griffin Act b. Norris Act c. Taft-Hartley Act d. Wagner Act
answer
Taft-Hartley Act
question
Which of the following is a right-to-work state? a. Texas b. California c. Colorado d. New Mexico
answer
Texas
question
Workers who replace striking workers are called __________ by the strikers. a. "whiners" b. "traitors" c. "losers" d. "scabs"
answer
scabs
question
When management prevents workers from returning to work, it is called a a. sick-out. b. boycott. c. strike. d. lockout.
answer
lockout
question
Since the 1940s, union membership has a. stayed the same. b. increased. c. not been tracked. d. decreased.
answer
decreased
question
When determining GDP, a. homes are counted two times for every car included. b. quality of goods is considered. c. both new and used goods are counted. d. the dollar is used as the common measure.
answer
the dollar is used as the common measure
question
A tight money policy would cause a. businesses to cut back on production. b. businesses to borrow money to expand capacity. c. people to borrow more money. d. home sales to increase.
answer
business to cut back on production
question
A car produced by General Motors in a plant in Ontario, Canada, a. would run better in the snow. b. would count in GNP. c. would count in GDP. d. would not count in GDP or GNP.
answer
would count in GNP
question
Welfare payments made to individuals are called a. wages. b. discretionary income. c. transfer payments. d. national income.
answer
transfer payments
question
When inflation occurs, the purchasing power of the dollar a. decreases. b. initially increases, then decreases. c. remains the same. d. increases.
answer
decreases
question
Gross domestic product that has been adjusted for inflation is called a. national income. b. CPI. c. real GDP. d. GDP.
answer
Real GDP
question
If current GDP was $10,000 and the price deflator was 110, then real GDP would be a. $9,090. b. $11,000. c. $9,352. d. $10,000.
answer
9,090
question
If the CPI was 115 in 2000 and rose to 124 in 2003, what was the total increase in prices as a percentage? a. 3% b. 9% c. 21.1% d. 7.8%
answer
7.8%
question
The interest rate that a bank charges its best business customers is called the a. prime rate. b. federal funds rate. c. discount rate. d. business rate.
answer
prime rate
question
Which of the following would cause the aggregate demand curve to shift to the right? a. an increase in taxes b. a decrease in taxes c. oil prices increase d. oil prices decrease
answer
decrease in taxes
question
The Fed could reduce, or contract, the money supply by a. lowering the reserve requirement. b. All choices are correct. c. raising the federal funds rate. d. buying bonds on the open market.
answer
raising the federal funds rate
question
The highest point in the business cycle is the a. peak. b. contraction. c. expansion. d. trough.
answer
peak
question
Any period of at least 6 months in which real GDP does not grow is a. an expansion. b. a recession. c. a depression. d. two quarters.
answer
recession
question
Which of the following is not a main force behind business fluctuations? a. leading indicators b. external factors c. government activity d. business investment
answer
leading indicators
question
The number of building permits issued for private housing is a/an a. inflationary indicator. b. coincident indicator. c. leading indicator. d. lagging indicator.
answer
leading indicators
question
Which of the following is a commodity money? a. coins b. paper currency c. a negotiable bond d. cattle
answer
cattle
question
If you put money in a certificate of deposit, you are using it as a a. medium of exchange. b. unit of accounting. c. store of value. d. commodity.
answer
store of value
question
United States currency is a. representative money. b. gold reserve money. c. fiat money. d. commodity money.
answer
fiat money
question
An ATM can receive deposits, give out funds, accept payments, and Choose one answer. a. cash checks. b. make loans. c. transfer funds between accounts. d. provide credit ratings.
answer
transfer funds between accounts
question
The measure of money called M1 consists of all currency, all checkable deposits, and Choose one answer. a. mortgages. b. certificates of deposit. c. savings bonds. d. traveler's checks.
answer
travelers checks
question
The Federal Reserve bank was created in 1913 to Choose one answer. a. manipulate the money supply. b. end financial panics. c. insure bank deposits. d. collect taxes.
answer
end financial panics
question
The body of the Fed that determines monetary policy is the Choose one answer. a. Federal Open Market Committee. b. Federal Advisory Council. c. Board of Governors. d. Monetary Advisory Board.
answer
Federal Open Market Committee
question
If the economy were in a recession, the Fed would probably Choose one answer. a. follow a tight money policy. b. seek the advice of the President and his administration. c. follow a loose money policy. d. do nothing.
answer
follow a loose money policy
question
Monetarism is linked with the economist a. John Maynard Keynes. b. Milton Friedman. c. Karl Marx. d. Adam Smith.
answer
Milton Friedman
question
Monetarists believe that a. the Fed should increase the supply of money 3 to 5 percent per year. b. All choices are correct. c. the government should not operate with deficits each year. d. fiscal policy is not effective.
answer
all choices are correct
question
The Federal Reserve followed strict monetarist policy a. in the early 1980s. b. in the late 1990s. c. in the 1960s. d. at its inception in 1913.
answer
1980's
question
Which of the following is not a goal of the federal government? a. protect individual rights b. promote a stable, legal environment for economic activity c. control prices d. promote the general well-being of all citizens
answer
control prices
question
Which of the following is a public good that only the federal government provides? a. roads b. education c. national defense d. law enforcement
answer
national defense
question
A museum is an example of a a. merit good. b. demerit good. c. social insurance program. d. public-assistance program.
answer
merit good
question
The theories of John Maynard Keynes were developed during, and influenced by, a. World War I. b. the Great Depression. c. the presidency of Ronald Reagan. d. the presidency of John F. Kennedy.
answer
the Great Depression
question
Which program pays for health care for low-income or disabled people? a. Social Security b. Medicare c. Medicaid d. Supplement Medical Pay
answer
Medicaid
question
The largest expenditure for the federal government is a. income security, Social Security, and Medicare. b. education. c. transportation. d. national defense.
answer
income security, Social Security and Medicare
question
The largest expenditure for state and local governments is a. education. b. public welfare. c. health and hospitals. d. housing.
answer
education
question
When the leakages and injections of the economy are balanced, it is called a. fiscal policy. b. equilibrium. c. circular regularity. d. a balanced budget.
answer
equilibrium
question
The gas tax is an example of the taxation principle of a. proportional taxation. b. ability-to-pay. c. progressive taxation. d. benefits-received.
answer
benefits-received
question
The cigarette tax is an example of a __________ tax. a. progressive b. regressive c. proportional d. sales
answer
regressive
question
Supporters of fiscal policy believe that unemployment can be reduced by a. increasing trade. b. increasing taxes or reducing government spending. c. decreasing taxes or increasing government spending. d. decreasing trade.
answer
decreasing taxes or increasing government spending.
question
John Maynard Keynes believed that a. the supply of money should not be adjusted by the government. b. manipulating the economy would encourage economically weak businesses. c. the love of money was the root of all evil. d. the government should intervene in the economy by adjusting the amounts that it taxes and spends.
answer
the government should intervene in the economy by adjusting the amounts that it taxes and spends.
question
The percentage of civilian labor force that is without jobs but actively looking for work is called a. the full employment rate. b. underground employees. c. the frictionally unemployed. d. the unemployment rate.
answer
unemployment rate
question
A person between jobs because of a firing, layoff, or voluntary search for a new job is __________ unemployed. a. cyclically b. structurally c. seasonally d. frictionally
answer
frictionally
question
When prices rise due excessive business and consumer demand, it is called a. deflation. b. cost-push inflation. c. stagflation. d. demand-pull inflation.
answer
demand-pull inflation
question
When prices rise due to wage demands and excessive profit motives, it is called a. stagflation. b. deflation. c. cost-push inflation. d. demand-pull inflation.
answer
cost-push inflation
question
When rising prices occur simultaneously with high unemployment, it is called a. stagflation. b. demand-pull inflation. c. hyper-inflation. d. inflated unemployment.
answer
stagflation
question
Money that is removed from the circular flow of income through either saving or taxation is referred to as a a. transfer. b. leakage. c. injection. d. loss of flow.
answer
leakage
question
Supporters of fiscal policy believe that inflation can be reduced by a. increasing trade. b. decreasing trade. c. decreasing taxes or increasing government spending. d. increasing taxes or reducing government spending
answer
increasing taxes or reducing government spending
question
International trade occurs because nations differ in the a. amount and type of labor that is available. b. amount of capital available. c. availability of natural resources. d. All choices are correct.
answer
all choices are correct
question
When a country can produce a product at less cost than another country with the same amount of resources, we say it has a. a comparative advantage. b. a smarter labor force. c. an absolute advantage. d. better technology.
answer
absolute advantage
question
When a country can produce a product at a lower opportunity cost than another country, we say it has a. a comparative advantage. b. a smarter labor force. c. an absolute advantage. d. better technology.
answer
comparative advantage
question
Which of the following is a product that Guatemala has a comparative advantage at producing when compared with the United States? a. computers b. nuclear power plants c. airplanes d. bananas
answer
bananas
question
International trade affects a. only non-skilled workers. b. only people that export goods. c. everyone. d. only people that import goods.
answer
everyone
question
The price of a currency in terms of another currency is called the a. balance of trade. b. dollar valuation. c. balance of exchange. d. exchange rate.
answer
exchange rate
question
The difficulty with a fixed rate of exchange is that a. it caused a gold shortage. b. the economic climate was constantly changing. c. no one knew the value of their currency. d. it caused depreciation.
answer
the economic climate was constantly changing
question
If a country's imports exceed its exports, it has a. a trade deficit. b. a trade surplus. c. an exchange rate problem. d. good importers.
answer
trade deficit
question
For several decades, the United States has had a. a trade surplus. b. a trade deficit. c. balanced trade. d. very little trade.
answer
trade deficit
question
If the value of the dollar drops versus the British pound, a. Americans will import more British goods and export more to Britain. b. Americans will import fewer British goods and export less to Britain. c. Americans will import more British goods and export less to Britain. d. Americans will import fewer British goods and export more to Britain.
answer
Americans will import fewer British goods and export more to Britain
question
If American exporters want more British pounds than the supply of pounds provided by British who want American goods, a. the American dollar will become more expensive in relation to the British pound. b. the American dollar will become less expensive in relation to the British pound. c. it will have no bearing on the value of the American dollar but will increase the value of the British pound. d. it will have no bearing on the value of the British pound but will increase the value of the American dollar.
answer
the American dollar will become less expensive in relation to the British pound.
question
Completely restricting the trade of a particular item is a/an a. quota. b. embargo. c. GATT. d. tariff.
answer
embargo
question
Which of the following is not an argument for free trade? a. protecting national security b. more goods at lower prices c. increasing exports d. improved products
answer
protecting national security
question
Someone who is in the proletariat is a a. worker. b. government official. c. business owner. d. banker.
answer
worker
question
In Karl Marx's vision of communism, a. the free market would reign. b. government would make all decisions. c. the world would have already ended by now. d. there would be no need for government.
answer
there would be no need for government.
question
Which of the following is a characteristic of pure capitalism? a. the basic economic questions are answered by individuals in a decentralized way b. the state owns the means of production c. prices are set by the state d. economic questions are answered by centralized planners
answer
the basic economic questions are answered by individuals in a decentralized way
question
Which of the following is a characteristic of pure socialism? a. taxation is used to redistribute income b. the basic economic questions are answered by individuals in a decentralized way c. prices seek their own level as determined by supply and demand d. private property rights exist and are enforced by law
answer
taxation is used to redistribute income
question
The lack of property right protections and the rule of law have a. had little effect on China's economy. b. helped China's transition to capitalism. c. hindered China's transition to capitalism. d. encouraged foreign investment.
answer
hindered China's transition to capitalism
question
China's slow move toward a capitalist system began a. when the government sold off all its state-owned enterprises. b. with the government leasing land to farmers. c. when the government declared that communism had failed. d. with democratic elections.
answer
with the government leasing land to farmers.
question
China made a big step toward capitalism when in 1999 they joined the a. World Trade Organization. b. General Agreement on Trade and Tariffs. c. United Nations. d. North American Free Trade Agreement.
answer
World Trade Organization.
question
One of the problems of privatization of businesses in Russia was that a. there were not enough workers to fill the demand for labor. b. no one wanted any of the businesses. c. they were sold at bargain-basement prices to insiders. d. western countries took them over and retained the profits
answer
they were sold at bargain-basement prices to insiders.
question
Recently Sweden has drifted toward being more a. socialist. b. fascist. c. capitalist. d. authoritarian socialist.
answer
capitalist
question
The trend in Latin America in the last two decades has been a. more centralized planning. b. more privatization. c. the rise of more authoritarian governments. d. more government acquisition of private businesses.
answer
more privatization.
question
Of all the over 135 nations of the world, how many are considered developed? a. 74 b. 25 c. 125 d. 35
answer
35
question
About what percentage of the world's population lives at a subsistence level? a. 25% b. 5% c. 60% d. 50%
answer
50%
question
According to the graph on page 519 of your textbook, which developing country has the lowest per capita GDP? a. Haiti b. Malaysia c. Italy d. Pakistan
answer
Haiti
question
Which of the following is not a characteristic of a developing nation? a. high literacy rate b. rapid population growth c. poor health conditions d. an agricultural economy
answer
high literacy rate
question
The three stages of economic development occur in what order? a. agricultural stage, manufacturing stage, service stage b. agricultural stage, manufacturing stage, computer stage c. agricultural stage, service stage, manufacturing stage d. manufacturing stage, service stage, agricultural stage
answer
agricultural stage, manufacturing stage, service stage
question
When a nation takes over an industry and forces the firm's owners out of the country, it is called a. privatization. b. nationalization. c. foreign aid. d. economic exile
answer
nationalization
question
Aid given to developing nations that comes in the form of engineers, teachers, and technicians to teach skills is a. technical assistance. b. military assistance. c. economic assistance. d. educational assistance.
answer
technical assistance
question
The United States has given developing nations monetary assistance a. to increase our own national security. b. to expand our markets for exports. c. to enhance the appeal of democracy and prevent Communism from coming to power. d. All choices are correct.
answer
all choices are correct
question
When trade restrictions are used by a developing nation, it a. lowers taxes. b. increases growth. c. retards growth. d. increases trade.
answer
retards growth
question
A vicious cycle of poverty is a a. country that has a high crime rate because it is poor. b. theory that poverty can only be overcome by state planning. c. theory that poverty exists because people are greedy. d. theory that poor nations are poor because they don't invest and save, and that they can't invest and save because they are poor.
answer
theory that poor nations are poor because they don't invest and save, and that they can't invest and save because they are poor.
question
Globalization began when a. NAFTA was enacted. b. the World Trade Organization was created. c. corporations began to enter foreign countries. d. U.S. banks developed worldwide branch networks for loans and foreign exchange trading.
answer
U.S. banks developed worldwide branch networks for loans and foreign exchange trading.
question
When the U.S. stock market falters, other nations' stock markets a. are unaffected. b. also falter. c. benefit. d. are closed as a precaution
answer
also falter
question
The total share of foreign ownership of American industries is about a. 2%. b. 6%. c. 25%. d. 10%.
answer
6%
question
The United States' share of worldwide direct investment is about a. 25%. b. 40%. c. 60%. d. 10%.
answer
40%
question
When firms from different countries work together in a joint venture, it is referred to as a/an a. multinational firm. b. alliance. c. blended deal. d. global venture.
answer
alliance
question
What invention brought about the digital age? a. computers b. the microchip c. television d. the World Wide Web
answer
the microchip
question
E-commerce shifts the balance of power to a. the government. b. Internet providers. c. the customer. d. the business.
answer
the customer
question
The economist Joseph Schumpeter suggested that business cycles are triggered by a. government policy. b. labor strikes. c. innovations. d. capital accumulation.
answer
innovations
question
An example of the difficulty of protecting intellectual property on the Internet would be a. web cams. b. day trading. c. the copying of music from file-sharing services. d. the proliferation of plagiarized papers.
answer
the copying of music from file-sharing services
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New