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- 1. Multiple-choice2 minutes1 ptWhich noncompeting category of labor tends to include the highest-paid workers?unskilled laborskilled laborprofessional laborsemiskilled labor
- 2. Multiple-choice30 seconds1 ptwhich of the following lists economic systems in order from least to most flexible?free market, command, socialismsocialism, command, free marketfree market, socialism, commandcommand, socialism, free market
- 3. Multiple-choice30 seconds1 ptYou can easily carry money in a pocket or purse. This reflects what characteristic of money?limited supplydurabilitylegal tenderportability
- 4. Multiple-choice30 seconds1 ptDave gets a job at a grocery store, which pays him an hourly wage in exchange for his labor. Dave is participating inhuman capitalthe factor marketthe product marketentrepreneurship
- 5. Multiple-choice30 seconds1 ptHow many distinct factors of production do economists recognize3421
- 6. Multiple-choice30 seconds1 ptWhich of the following descriptions best explains the meaning of opportunity cost?the risk associated with producing a new itemthe initial cost of starting a new business. the cost of business failurethe cost of choosing one alternative over another
- 7. Multiple-choice30 seconds1 ptA business run by a single person is asole proprietorshiplimited liability coporationcorporationpartnership
- 8. Multiple-choice30 seconds1 ptOn a supply and demand graph, the demand curve generally does what?slopes up and then downslopes downslopes down and then upslopes up
- 9. Multiple-choice30 seconds1 ptWhich of the following statements best describes the purpose of the production possibilities curve?It shows which products are most profitable.It identifies all possible combinations of goods and services an economy can produce.It identifies trends in production.It predicts the future production of a nation.
- 10. Multiple-choice30 seconds1 ptThe economic system of the United States is considered atraditional economycommand economyfree market capitalist economysocialist economy
- 11. Multiple-choice30 seconds1 ptInflation characterized by rising input costs, especially energy and organized labor, which drive up the cost of products for manufacturers is called _____.hyperinflationcreeping inflationcost-push inflationdemand-pull inflation
- 12. Multiple-choice30 seconds1 ptWhich of the following best expresses the idea that higher education often results in higher earnings?fact-findingsignaling theorythe theory of negotiated wagesthe market theory of wage determination
- 13. Multiple-choice30 seconds1 ptWhich of these would most likely positively affect a nation’s GDP?an increase in the number of non-market salesa steady growth of that nation’s underground economya government-managed restructuring of the airline industrya government contract with a large private firm for road constructions
- 14. Multiple-choice30 seconds1 ptIn the mythical country Alpha, an entrepreneur has introduced a new technology that makes manufacturing twice as efficient as before. How is this likely to affect the production possibilities frontier?It would expand the frontier.It would not change the frontier.It would make the frontier smaller.It would change the shape of the frontier.
- 15. Multiple-choice30 seconds1 ptWhich of these is an example of an intermediate product?a new computer monitor sold alonea secondhand computer monitor sold alonea computer monitor packaged as part of a new computer systema computer monitor that has been broken and needs replacement
- 16. Multiple-choice30 seconds1 ptEconomics is best defined as the study of how societies deal withthe problem of scarcitythe paradox of wealth.the division of laborthe factors of production
- 17. Multiple-choice30 seconds1 ptWhat are M1 and M2fiat moniescurrencyspeciemoney supplies
- 18. Multiple-choice30 seconds1 ptWhich of the following is not a cause of inflation?excessive monetary growthwage-price spiralnone of thesedemand-push
- 19. Multiple-choice30 seconds1 ptWhich of the following is an advantage of sole proprietorship?The owner makes all the decisionsThe owner keeps all the profits.There are almost no requirements to start up a sole proprietorship.All of the above statements are true.
- 20. Multiple-choice30 seconds1 ptFactors that can cause a change in supply includeall of the aboveincreases in the number of sellers and market expectations.increased or decreased government subsidies.technology and government regulations.
- 21. Multiple-choice30 seconds1 ptChanges in quantity demanded and changes in price have a(n) _____ relationship.inverseindirectpositiveneutral
- 22. Multiple-choice30 seconds1 ptThe government document that grants permission to establish a corporation is called acharterlimited liability agreement.stock certificate.partnership agreement.
- 23. Multiple-choice30 seconds1 ptA decline in real GDP lasting at least two quarters or more is called a ____.recessionbusiness fluctuationpeakbusiness cycle
- 24. Multiple-choice30 seconds1 ptWhich of the factors of production involves taking risks and combining resources to produce a good or service?landlaborcapitalentrepreneurship
- 25. Multiple-choice30 seconds1 ptWhich of the following states an advantage of a traditional economy?Property rights are based on tradition.There's no bureaucracy to interfere with organizing the economy.Everyone knows exactly what their function is.Creativity and original thought are rewarded.
- 26. Multiple-choice30 seconds1 ptMarkets in the free enterprise system are seldom regulated byentrepreneursthe governmentconsumersbusinesses
- 27. Multiple-choice30 seconds1 ptPure competition and monopoly _____should not be compared.are the sameare almost the sameare opposites
- 28. Multiple-choice30 seconds1 ptWhich of the following is a basic characteristic of money?all of theseportabilitydurabilitydivisibility
- 29. Multiple-choice30 seconds1 ptthe four factors of production are land, labor, capital, andthe governmentinfaltionentrepreneursfranchises
- 30. Multiple-choice30 seconds1 ptWhat effect would a bumper crop (a larger than normal crop yield) most likely have on the price of that crop?decreaseequilibriumno effectincrease
- 31. Multiple-choice30 seconds1 ptWhich of these is most closely associated with opportunity cost?consumerismentrepreneursproductivitytrade-offs
- 32. Multiple-choice30 seconds1 ptIn what type of economy does the government decide whether houses or apartments will be built?marketcommandtraditionalmixed
- 33. Multiple-choice30 seconds1 ptA sudden rise in the price of cotton raises the price of clothing and household products. This is an example ofdemand-pull inflation.excessive monetary growthcost-push inflation.wage-price spiral.
- 34. Multiple-choice30 seconds1 ptIf a shoe company pays a professional athlete to wear shoes it makes, it is an example of _____imperfect competitionproduct differentiationnonprice competitionall of the above
- 35. Multiple-choice30 seconds1 ptWhich of these is the most likely to create a shortage of an item?a price floora fixed pricea market pricea price ceiling
- 36. Multiple-choice30 seconds1 ptA period of recovery from a recession is known as _____.an econometric modela troughan expansiona peak
- 37. Multiple-choice30 seconds1 ptWhich of these best describes the influence of high prices on the behavior of producers?They are an incentive for producers to produce moreThey encourage producers to modify their supply schedules.They are an incentive for producers to buy less.They have no significant overall effect on producer behavior
- 38. Multiple-choice30 seconds1 ptWhich of the following is one of the three functions of money?store of valuedivisibilityportabilityscarcity
- 39. Multiple-choice30 seconds1 ptUnder perfect competition, what sets the equilibrium price in the market?nonprice competitiona monopolysupply and demandthe government
- 40. Multiple-choice30 seconds1 ptWhich market structure is defined by a single producer?monopolyoligopolymonopolistic competitionpure competition
- 41. Multiple-choice30 seconds1 ptIn discussing taxes, which is the opposite of regressive?progressiveflatvalue-addedalternative
- 42. Multiple-choice30 seconds1 ptWhich type of tax is levied on specific items or services, including gasoline and telephone services?excise taxestate taxcustoms dutygift tax
- 43. Multiple-choice30 seconds1 ptWhy is a demand curve downward sloping?because it shows how increasing incentives changes demandbecause of the natural elasticity of the marketbecause it reflects the desire, ability, and willingness of consumersbecause quantity demanded increases as price decreases
- 44. Multiple-choice30 seconds1 ptA franchise isa temporary investment through stock ownership in a company’s successful business model.a temporary investment through leasing or renting a company’s successful business model.a temporary investment through a limited partnership in a start-up businessa temporary investment through a general partnership in a start-up business.
- 45. Multiple-choice30 seconds1 ptWhich would an economist consider a likely substitute for coffee?waterteadonutschicken
- 46. Multiple-choice30 seconds1 ptWhen a nation’s total output increases over time, the nation is experiencingan expansion of the possibilities curve.economic growth.economic interdependence.a decrease in gross domestic product.
- 47. Multiple-choice30 seconds1 ptThe Federal Deposit Insurance Corporation (FDIC) was created toinsure banks if a customer doesn't make enough deposits.insure customers' money against inflation.allow customers to make deposits at federal banksinsure customer deposits if a bank fails.
- 48. Multiple-choice30 seconds1 ptquilibrium is reached when what occurs?quantity supplied equals quantity demandedthere is no change in the quantity suppliedprice increasesprices are inelastic
- 49. Multiple-choice30 seconds1 ptHow are economic transactions shaped in a traditional economy?The three basic questions of production do not arise in this type of economy.Elders and ancestors make certain that things are done in specific ways.Each community decides as a group for whom the group will produce.Individuals form networks within which they buy, sell and trade as they choose.
- 50. Multiple-choice30 seconds1 ptWhich of the following describes demand-pull inflation?the last stage before monetary collapsethe economy cannot produce quickly enough for all sectors, and shortages occura 1 to 3 percent rise in prices over the course of a yearrising costs in energy which cause higher prices of products
- 51. Multiple-choice30 seconds1 ptWhen the price of something increases, the quantity demanded ____reversesincreasesdecreasesremains unchanged
- 52. Multiple-choice30 seconds1 ptThe dollar value of all final goods, services, and structures produced in a country in a year is known asGross National Product.profit motivefranchiseGross Domestic Product
- 53. Multiple-choice30 seconds1 ptWhich person would not be included in the civilian labor force?a government employee who works in Indianaa sixteen-year-old customer service representativean accountant who works on contractan army general who works in Washington, D.C.
- 54. Multiple-choice30 seconds1 ptThe terms proportional, progressive, and regressive refer tocriteria for effective taxes.types of taxes.principles of taxation.goals of tax reform
- 55. Multiple-choice30 seconds1 ptWhich of these economic systems have the least in common?market economy and capitalismcommand economy and capitalismcommand economy and socialismfree-enterprise economy and market economy
- 56. Multiple-choice30 seconds1 ptThe most comprehensive measure of a nation’s wealth is provided by itsgross domestic productTINSTAAFL ratingproduct possibilities curve.capital goods
- 57. Multiple-choice30 seconds1 ptWhat condition differentiates a market of pure competition from one of monopolistic competition?competitionproductspricefirms
- 58. Multiple-choice30 seconds1 ptIn the economic term oligopoly, the word part olig- probably meansfewoneallsingle
- 59. Multiple-choice30 seconds1 ptwhich of the following best identifies the incidence of the individual income tax?frequenceyworkerscorporationwages
- 60. Multiple-choice30 seconds1 ptWhich would an economist consider a likely complement for coffee?donutsteawaterchicken
- 61. Multiple-choice30 seconds1 ptWhich of these is the best description of a normal supply curve?Its slope goes up when the diagram is read from right to left.Its slope is completely horizontal.Its slope goes up when the diagram is read from left to right.Its slope is mostly horizontal, with occasional vertical fluctuations.
- 62. Multiple-choice30 seconds1 ptUnder the market theory of wage determination, what happens when the demand for a skill is high, but the supply of workers with that skill is low?Employers are likely to negotiate with unions to find workers with the needed skill.Employers are likely to seek workers among applicants with advanced degrees.The pay rate for that skill decreases.The pay rate for that skill increases
- 63. Multiple-choice30 seconds1 ptWhen the general level of prices rises, the economy is experiencing ____.constructionstagflationdeflationinflation
- 64. Multiple-choice30 seconds1 ptWhich of the these is most likely to create a surplus of an item?a fixed prica price floora market pricea price ceiling
- 65. Multiple-choice30 seconds1 ptWhy are intermediate products excluded from macroeconomic calculations of GDP?because those products are goods, not servicesbecause their value is included in that of the final productbecause the GDP is a measure of market output on a local levelbecause the GDP is a measure of market output on a national level
- 66. Multiple-choice30 seconds1 ptWhich of the following is included in the unemployment rate?people who hold only part-time jobspeople who are too frustrated to look for workthe jobless who made an effort to find a job during the past monthall of the above
