EOCT ReviewEOCT Review

Questions to help you all ace the EOCT!!Questions to help you all ace the EOCT!!

1. Kim works on an automobile assembly line. Kim’s job illustrates a production process that relies on

A autonomous work groupsB team decision makingC quality circlesD division of labor

1. Kim works on an automobile assembly line. Kim’s job illustrates a production process that relies on

A autonomous work groupsB team decision makingC quality circlesD division of labor

2. The minimum wage is a type of:

A price floorB comparable worthC price ceilingD marginal price

2. The minimum wage is a type of:

A price floorB comparable worthC price ceilingD marginal price

3. What would you conclude about an economy characterized by increasing real gross domestic product (GDP), low unemployment, and increasing inflationary pressures?

A This economy is in a slowdown. B The government needs to address the

unemployment problem.C This economy is in the expansion phase

of a business cycle.D The Federal Reserve should expand themoney supply.

3. What would you conclude about an economy characterized by increasing real gross domestic product (GDP), low unemployment, and increasing inflationary pressures?

A This economy is in a slowdown. B The government needs to address the

unemployment problem.C This economy is in the expansion phase

of a business cycle.D The Federal Reserve should expand themoney supply.

4.Which of these is MOST likely to lead to inflation?

A an increase in the costs of productionB reduced prices for goods and servicesC an increase in the aggregate supply of goods and servicesD the application of price ceilings

4.Which of these is MOST likely to lead to inflation?

A an increase in the costs of productionB reduced prices for goods and servicesC an increase in the aggregate supply of goods and servicesD the application of price ceilings

5. An individual decides to pay $8 to see a movie instead of buying an $8 meal.

What is the opportunity cost of the movie?

A the satisfaction missed by not eating the mealB the $8 paid to see the movieC the time spent watching the movieD the satisfaction received by going to the Movie

5. An individual decides to pay $8 to see a movie instead of buying an $8 meal.

What is the opportunity cost of the movie?

A the satisfaction missed by not eating the mealB the $8 paid to see the movieC the time spent watching the movieD the satisfaction received by going to the Movie

6. Armand is a skilled carpenter who lives in Minnesota. He builds homes from April to November. Which of the following has the greatest impact on why Armand’s company shuts down for the winter?

A economic slowdown from December to MarchB extreme weather conditionsC cost of building materialsD shortage of labor

6. Armand is a skilled carpenter who lives in Minnesota. He builds homes from April to November. Which of the following has the greatest impact on why Armand’s company shuts down for the winter?

A economic slowdown from December to MarchB extreme weather conditionsC cost of building materialsD shortage of labor

7. The table represents the number of bushels of wheat and rice that the United States and China can produce in one day (numbers are in thousands).

Wheat Rice

United States 50 35China 40 30

7. The table represents the number of bushels of wheat and rice that the United States and China can produce in one day (numbers are in thousands).

Wheat Rice

United States 50 35China 40 30

7. CONTINUED Which of these conclusions can be drawn from the data?A The United States has an absolute advantage in the

production of wheat, and China has an absolute advantage in the production of rice.

B The United States has an absolute advantage in the production of rice, and China has an absolute advantage in the production of wheat.

C China has an absolute advantage in the production of both wheat and rice.

D The United States has an absolute advantage in the production of both and wheat and rice.

7. CONTINUED Which of these conclusions can be drawn from the data?A The United States has an absolute advantage in the

production of wheat, and China has an absolute advantage in the production of rice.

B The United States has an absolute advantage in the production of rice, and China has an absolute advantage in the production of wheat.

C China has an absolute advantage in the production of both wheat and rice.

D The United States has an absolute advantage in the production of both and wheat and rice.

8. A tariff can BEST be described as which of the following?

A a tax on an imported goodB a limit on the amount of importsC government payments to domestic producers to help them compete in world markets

D a law that sets a limit on the amount of a good that can be imported

8. A tariff can BEST be described as which of the following?

A a tax on an imported goodB a limit on the amount of importsC government payments to domestic producers to help them compete in world markets

D a law that sets a limit on the amount of a good that can be imported

9. Prices act as signals in the market

because:

A prices indicate to sellers the types of goods and services to offer for saleB prices can determine dividends for businessesC high prices for goods and services signal a healthy economy

D entrepreneurs become motivated as prices rise

9. Prices act as signals in the market

because:

A prices indicate to sellers the types of goods and services to offer for saleB prices can determine dividends for businessesC high prices for goods and services signal a healthy economy

D entrepreneurs become motivated as prices rise

11. When the Federal Reserve buys government securities on the open market, what effect does this action have on the nation’s money supply and aggregate demand?

Money Supply Aggregate DemandA increases increasesB increases decreasesC decreases increasesD decreases decreases

11. When the Federal Reserve buys government securities on the open market, what effect does this action have on the nation’s money supply and aggregate demand?

Money Supply Aggregate DemandA increases increasesB increases decreasesC decreases increasesD decreases decreases

12. When the U.S. government purchases asubmarine from a company, the government has made a major transaction in the

A factor marketB public marketC product marketD foreign exchange market

12. When the U.S. government purchases asubmarine from a company, the government has made a major transaction in the

A factor marketB public marketC product marketD foreign exchange market

13. What is the primary purpose of the North American Free Trade Agreement (NAFTA)?A to reduce trade barriers among the United States, Canada, and MexicoB to decrease quotas but increase tariffs among the member countriesC to establish trade policy between the member countries and the rest of the world

D to counter the establishment of the European Union

13. What is the primary purpose of the North American Free Trade Agreement (NAFTA)?A to reduce trade barriers among the United States, Canada, and MexicoB to decrease quotas but increase tariffs among the member countriesC to establish trade policy between the member countries and the rest of the world

D to counter the establishment of the European Union

14. Amanda decided to open a carpet cleaning business. She hired ten employees, rented a small commercial office with storage, and took out a business loan to buy three vans and carpet cleaning equipment. Two of Amanda’s employees ordered supplies and processed the paperwork; oneemployee was responsible for marketing and the rest actually cleaned carpets. After one year, Amanda’s Carpet Cleaning cleared $40,000 after expenses.

14. Amanda decided to open a carpet cleaning business. She hired ten employees, rented a small commercial office with storage, and took out a business loan to buy three vans and carpet cleaning equipment. Two of Amanda’s employees ordered supplies and processed the paperwork; oneemployee was responsible for marketing and the rest actually cleaned carpets. After one year, Amanda’s Carpet Cleaning cleared $40,000 after expenses.

Which of the following BEST representscapital investment?

A renting commercial office space

B marketing the business

C purchasing carpet cleaning equipment

D hiring ten employees

Which of the following BEST representscapital investment?

A renting commercial office space

B marketing the business

C purchasing carpet cleaning equipment

D hiring ten employees

15. What is the unit of study in microeconomics?

A individual businesses and householdsB inflation and recessionC national consumption and expendituresD imports and exports

15. What is the unit of study in microeconomics?

A individual businesses and householdsB inflation and recessionC national consumption and expendituresD imports and exports

16. The idea that producers make goods that consumers like and are willing to pay for is a principle of which of the following economic systems?

A traditionalB commandC marketD socialism

16. The idea that producers make goods that consumers like and are willing to pay for is a principle of which of the following economic systems?

A traditionalB commandC marketD socialism

17. Which of the following is primarily responsible for the control of the money supply?

A the United States TreasuryB the Federal Reserve SystemC the Federal Deposit Insurance CorporationD the Comptroller of the Currency

17. Which of the following is primarily responsible for the control of the money supply?

A the United States TreasuryB the Federal Reserve SystemC the Federal Deposit Insurance CorporationD the Comptroller of the Currency

18. Which of the following is MOST likely to cause wages to increase for United States workers?A an increase in interest ratesB an increase in the value of the dollarC an increase in worker productivityD an increase in retirement rate among United States workers

18. Which of the following is MOST likely to cause wages to increase for United States workers?A an increase in interest ratesB an increase in the value of the dollarC an increase in worker productivityD an increase in retirement rate among United States workers

19. Sharon decided to open a dry-cleaning business. She borrowed some money from her sister and took a loan from a bank. She hired one helper. What is a disadvantage of Sharon’s business as described?

A no separation of ownership and controlB ease of organizing the firmC unlimited liabilityD double taxation

19. Sharon decided to open a dry-cleaning business. She borrowed some money from her sister and took a loan from a bank. She hired one helper. What is a disadvantage of Sharon’s business as described?

A no separation of ownership and controlB ease of organizing the firmC unlimited liabilityD double taxation

20. Brandon had $5,000 in his saving account when his bank declared bankruptcy. Which of the following is true?A Brandon’s savings will be transferred to an Individual Retirement Account.B Some of Brandon’s savings will be returned to him after the bank’s assets are sold off.C Brandon’s savings will be lost due to thebankruptcy.D Brandon’s savings will be protected by the FDIC.

20. Brandon had $5,000 in his saving account when his bank declared bankruptcy. Which of the following is true?A Brandon’s savings will be transferred to an Individual Retirement Account.B Some of Brandon’s savings will be returned to him after the bank’s assets are sold off.C Brandon’s savings will be lost due to thebankruptcy.D Brandon’s savings will be protected by the FDIC.

21. Countries X and Y will NOT trade shoes and wheat if which of the following is true?

A Country X can produce more shoes and wheat than can country YB Country Y can produce enough shoes and wheat to satisfy the demand of its publicC The opportunity costs of producing shoes and wheat are the same in both countriesD The opportunity cost of producing shoes is greater in country X than it is in country Y

21. Countries X and Y will NOT trade shoes and wheat if which of the following is true?

A Country X can produce more shoes and wheat than can country YB Country Y can produce enough shoes and wheat to satisfy the demand of its publicC The opportunity costs of producing shoes and wheat are the same in both countriesD The opportunity cost of producing shoes is greater in country X than it is in country Y

22. Higher demand for U.S. exports will typically result in

A an increase in the international value of the dollarB an increase in the international value of foreign currenciesC an increase in the trade deficit of the United StatesD an increase in the price of foreign-produced goods in U.S. markets

22. Higher demand for U.S. exports will typically result in

A an increase in the international value of the dollarB an increase in the international value of foreign currenciesC an increase in the trade deficit of the United StatesD an increase in the price of foreign-produced goods in U.S. markets

23. When economists refer to “demand” they mean which of the following?

A how much satisfaction buyers receive from a purchaseB how much consumers will purchase at different pricesC how much sellers will supply at a particular priceD how much people want the product if it is free

23. When economists refer to “demand” they mean which of the following?

A how much satisfaction buyers receive from a purchaseB how much consumers will purchase at different pricesC how much sellers will supply at a particular priceD how much people want the product if it is free

24. People against raising the minimum wage argue that when a legal minimum wage is established above the equilibrium wage in the labor marketA there will be an increase in unemploymentB the quantity of labor demanded by firms will increaseC the quantity of labor supplied will decreaseD employers will have an incentive to use more labor and less capital

24. People against raising the minimum wage argue that when a legal minimum wage is established above the equilibrium wage in the labor marketA there will be an increase in unemploymentB the quantity of labor demanded by firms will increaseC the quantity of labor supplied will decreaseD employers will have an incentive to use more labor and less capital

25. What basic economic problem do both higher-income nations and lower-income nations have in common?A too many unskilled laborersB lack of capital goodsC too much governmentD scarcity of resources

25. What basic economic problem do both higher-income nations and lower-income nations have in common?A too many unskilled laborersB lack of capital goodsC too much governmentD scarcity of resources

26. Which of the following is MOST important for economic growth?A efficient use of resourcesB ample tax revenuesC availability of resourcesD a large labor force

26. Which of the following is MOST important for economic growth?A efficient use of resourcesB ample tax revenuesC availability of resourcesD a large labor force

27. Which of the following is an attempt by a firm to increase the demand for its product?A the imposition of a price ceiling on the productB an advertising strategy designed to change consumer tastes and preferencesC a marketing strategy to make the good scarce and therefore more expensiveD a production strategy to flood the market with the good or service

27. Which of the following is an attempt by a firm to increase the demand for its product?A the imposition of a price ceiling on the productB an advertising strategy designed to change consumer tastes and preferencesC a marketing strategy to make the good scarce and therefore more expensiveD a production strategy to flood the market with the good or service

28. When the value of money was based on its silver content, new discoveries of silver were frequently followed by periods of

A recessionB recoveryC shortageD inflation

28. When the value of money was based on its silver content, new discoveries of silver were frequently followed by periods of

A recessionB recoveryC shortageD inflation

29. The Federal Reserve System conducts itsbusiness directly with

A the government and banksB stock markets and bond marketsC individuals and firmsD product markets and factor markets

29. The Federal Reserve System conducts itsbusiness directly with

A the government and banksB stock markets and bond marketsC individuals and firmsD product markets and factor markets

30. Entrepreneurship and labor interact in which of the following ways?A Entrepreneurship makes decisions about the use of labor.B Labor makes decisions about the use of entrepreneurship.C Both entrepreneurship and labor receive payment in the form of interest.D Both entrepreneurship and labor receive payments in the form of rent.

30. Entrepreneurship and labor interact in which of the following ways?A Entrepreneurship makes decisions about the use of labor.B Labor makes decisions about the use of entrepreneurship.C Both entrepreneurship and labor receive payment in the form of interest.D Both entrepreneurship and labor receive payments in the form of rent.

31. In the American economy, the goal of economic equity is MOST connected withA giving participants a fair chance to succeedB restoring laissez-faire capitalismC creating limits on corporate profitsD subsidizing businesses that would otherwise fail

31. In the American economy, the goal of economic equity is MOST connected withA giving participants a fair chance to succeedB restoring laissez-faire capitalismC creating limits on corporate profitsD subsidizing businesses that would otherwise fail

32. On the island of Yap, large circular stones are used for money. The main reason why this type of money serves its function as a medium of exchange is because it is

A very portableB highly divisibleC accepted as paymentD prized in foreign transactions

32. On the island of Yap, large circular stones are used for money. The main reason why this type of money serves its function as a medium of exchange is because it is

A very portableB highly divisibleC accepted as paymentD prized in foreign transactions

33. Which of the following situations BEST illustrates the concept of regional specialization?

A cattle ranching in ConnecticutB evergreen nurseries in FloridaC grape vineyards in CaliforniaD pineapple plantations in Idaho

33. Which of the following situations BEST illustrates the concept of regional specialization?

A cattle ranching in ConnecticutB evergreen nurseries in FloridaC grape vineyards in CaliforniaD pineapple plantations in Idaho

34. In the U.S., how are public goods paid for?A Private firms collect fees from their employees.B Non-profit organizations collect charitable donations from people.C The government collects tax revenues from individuals and firms.D Corporations make profits from selling goods and services.

34. In the U.S., how are public goods paid for?A Private firms collect fees from their employees.B Non-profit organizations collect charitable donations from people.C The government collects tax revenues from individuals and firms.D Corporations make profits from selling goods and services.

35. Which form of business organization is easiest to organize but is LEAST able to benefit from specialization?

A sole proprietorshipB partnershipC limited partnershipD corporation

35. Which form of business organization is easiest to organize but is LEAST able to benefit from specialization?

A sole proprietorshipB partnershipC limited partnershipD corporation

36. Firm X has developed a new mechanical device and has patented all of the key components used in its production. As the sole producer of this device, Firm X is a

A geographic monopolyB natural monopolyC technological monopolyD government monopoly

36. Firm X has developed a new mechanical device and has patented all of the key components used in its production. As the sole producer of this device, Firm X is a

A geographic monopolyB natural monopolyC technological monopolyD government monopoly

37. Of the following groups, the one hurt the LEAST by unanticipated inflation isA workers who have cost-of-living adjustments in their labor contractsB people who have saved money in accounts with a fixed interest rateC banks that have made long term, fixed rate mortgage loansD consumers who buy goods and services at prevailing market prices

37. Of the following groups, the one hurt the LEAST by unanticipated inflation isA workers who have cost-of-living adjustments in their labor contractsB people who have saved money in accounts with a fixed interest rateC banks that have made long term, fixed rate mortgage loansD consumers who buy goods and services at prevailing market prices

38. Country X is currently investing heavily in research and development (R&D), mainly in the areas of information and communications technologies. All of the following are predictable results of these investments EXCEPTA future economic growthB future increases in labor productivityC the creation of labor-intensive industriesD the creation of advanced capital goods

38. Country X is currently investing heavily in research and development (R&D), mainly in the areas of information and communications technologies. All of the following are predictable results of these investments EXCEPTA future economic growthB future increases in labor productivityC the creation of labor-intensive industriesD the creation of advanced capital goods

39. The MOST important factor affecting consumer spending is

A the level of current consumer debtB the amount of assets held by consumers such as homes, cars, stocks, or bonds

C the expectations of consumers of what the economy will be in the futureD the level of current consumer income

39. The MOST important factor affecting consumer spending is

A the level of current consumer debtB the amount of assets held by consumers such as homes, cars, stocks, or bonds

C the expectations of consumers of what the economy will be in the futureD the level of current consumer income

40. The BEST example of a progressive tax in the

United States is

A the federal excise tax on gasolineB the Social Security taxC the federal personal income taxD state sales taxes

40. The BEST example of a progressive tax in the

United States is

A the federal excise tax on gasolineB the Social Security taxC the federal personal income taxD state sales taxes

41. If a nation encourages entrepreneurship, then which of the following is likely to occur?

A very little change in overall production of goods and servicesB the development of many new products and process methodsC fewer applications to the United States Patent OfficeD a decline in the number of new businesses started

41. If a nation encourages entrepreneurship, then which of the following is likely to occur?

A very little change in overall production of goods and servicesB the development of many new products and process methodsC fewer applications to the United States Patent OfficeD a decline in the number of new businesses started

42. Which of the following is an example of an investment in human capital?

A A company builds a new factoryB A state puts in a new highwayC A person goes to collegeD A country builds new schools

42. Which of the following is an example of an investment in human capital?

A A company builds a new factoryB A state puts in a new highwayC A person goes to collegeD A country builds new schools

43. In the year 2000, Microsoft founder Bill Gates was the world’s richest person. The origins of Gates’ vast financial fortune stemmed from his:A inherited wealthB entrepreneurial skillsC experience in human relationsD concern for the natural environment

43. In the year 2000, Microsoft founder Bill Gates was the world’s richest person. The origins of Gates’ vast financial fortune stemmed from his:A inherited wealthB entrepreneurial skillsC experience in human relationsD concern for the natural environment

44. The BEST example of structuralunemployment in an economy is someone:A between jobs or entering the work forceB out of work due to a change in the business cycleC out of work due to a seasonal downturn in businessD whose job skills do not match the economy’s needs

44. The BEST example of structuralunemployment in an economy is someone:A between jobs or entering the work forceB out of work due to a change in the business cycleC out of work due to a seasonal downturn in businessD whose job skills do not match the economy’s needs

45. The payments for land, labor, capital, and entrepreneurial ability respectively are

A rent, profit, wages, and interestB profits, wages, interest, and rentC rent, wages, interest, and profitD wages, rent, profit, and interest

45. The payments for land, labor, capital, and entrepreneurial ability respectively are

A rent, profit, wages, and interestB profits, wages, interest, and rentC rent, wages, interest, and profitD wages, rent, profit, and interest

46. Which of the following is true about a shareholder in a corporation?A A shareholder is part owner of that business.B A shareholder may not share in the earnings of that corporation.C A shareholder may not transfer his share to another party without permission.D A shareholder is liable for any debts accumulated by that corporation.

46. Which of the following is true about a shareholder in a corporation?A A shareholder is part owner of that business.B A shareholder may not share in the earnings of that corporation.C A shareholder may not transfer his share to another party without permission.D A shareholder is liable for any debts accumulated by that corporation.

47. In which economic system does the government own the means ofproduction?

A traditionalB mixedC marketD command

47. In which economic system does the government own the means ofproduction?

A traditionalB mixedC marketD command

48. Eric received a $2,000 bonus from his employer. He deposited the entire amount in a one-year certificate of deposit with a simple interest rate of 5%. When the CD matured, how much interest had Eric earned?A $10B $20C $50D $100

48. Eric received a $2,000 bonus from his employer. He deposited the entire amount in a one-year certificate of deposit with a simple interest rate of 5%. When the CD matured, how much interest had Eric earned?A $10B $20C $50D $100

49. A market economy has an advantage over a traditional economy in that the market economy

A controls prices and wagesB fixes incomes of consumersC limits the profits of large corporationsD adjusts to consumer demands over time

49. A market economy has an advantage over a traditional economy in that the market economy

A controls prices and wagesB fixes incomes of consumersC limits the profits of large corporationsD adjusts to consumer demands over time

50. When aggregate demand exceeds aggregate supply in an economy, the MOST immediate result is

A inflationB deflationC unemploymentD a budgetary surplus

50. When aggregate demand exceeds aggregate supply in an economy, the MOST immediate result is

A inflationB deflationC unemploymentD a budgetary surplus

51. Which of the following determines the division of the economy’s output among groups and individuals in a market system?

A the incomes of individualsB labor unions through collective bargainingC marketing departments within firmsD federal and state laws

51. Which of the following determines the division of the economy’s output among groups and individuals in a market system?

A the incomes of individualsB labor unions through collective bargainingC marketing departments within firmsD federal and state laws

52. Which of the following is an example of a microeconomic decision?A whether to increase or decrease the money supplyB whether to increase or decrease taxesC how to reduce the unemployment rateD how many hours an employee should work each week

52. Which of the following is an example of a microeconomic decision?A whether to increase or decrease the money supplyB whether to increase or decrease taxesC how to reduce the unemployment rateD how many hours an employee should work each week

53. In which market structure does a firm have greatest control over its product’s price?

A perfect competitionB monopolyC oligopolyD monopolistic competition

53. In which market structure does a firm have greatest control over its product’s price?

A perfect competitionB monopolyC oligopolyD monopolistic competition

54. If the federal government is attempting to encourage spending by consumers and businesses, a fiscal policy BEST serving this purpose would beA decreasing taxesB decreasing government spendingC reducing the investment tax creditD balancing the budget

54. If the federal government is attempting to encourage spending by consumers and businesses, a fiscal policy BEST serving this purpose would beA decreasing taxesB decreasing government spendingC reducing the investment tax creditD balancing the budget

55. The power of labor unions in the United States is based onA the principle of mutual advantageB their ability to bargain collectivelyC the fact that most unions are closed shopsD the principle of comparative advantage

55. The power of labor unions in the United States is based onA the principle of mutual advantageB their ability to bargain collectivelyC the fact that most unions are closed shopsD the principle of comparative advantage

56. Which of the following taxes is MOST regressive?

A the federal income taxB a sales tax on foodC a luxury taxD the corporate income tax

56. Which of the following taxes is MOST regressive?

A the federal income taxB a sales tax on foodC a luxury taxD the corporate income tax

57. In a market economy, how are the basic economic questions of what, how, and for whom to produce answered?A by using a nation’s social customs and traditionsB by using a combination of traditional and command economiesC by the individuals and firms in the nation’s marketplaceD by the nation’s federal and/or local Governments

57. In a market economy, how are the basic economic questions of what, how, and for whom to produce answered?A by using a nation’s social customs and traditionsB by using a combination of traditional and command economiesC by the individuals and firms in the nation’s marketplaceD by the nation’s federal and/or local Governments

58. Interdependence and price leadership are characteristics of firms in what kind of market structure?A monopolyB oligopolyC monopolistic competitionD perfect competition

58. Interdependence and price leadership are characteristics of firms in what kind of market structure?A monopolyB oligopolyC monopolistic competitionD perfect competition

59. Which of the following results when federal government expenditures are less than the federal government’s total receipts?

A a trade surplusB a federal budget deficitC a negative balance of paymentsD a federal budget surplus

59. Which of the following results when federal government expenditures are less than the federal government’s total receipts?

A a trade surplusB a federal budget deficitC a negative balance of paymentsD a federal budget surplus

60. Loans extended for longer periods of time often involve higher interest rates in order to

A compensate the lender for greater riskB compensate the buyer for using savings to make a purchaseC encourage consumers to buy durable goods for extended periods of timeD encourage savings

60. Loans extended for longer periods of time often involve higher interest rates in order to

A compensate the lender for greater riskB compensate the buyer for using savings to make a purchaseC encourage consumers to buy durable goods for extended periods of timeD encourage savings

61. The Federal Reserve wants to reduce the money supply. This could be accomplished by doing all of the following EXCEPT:

A decrease the discount rateB increase the reserve requirementC sell securities on the open marketD make banks hold a reserve for all

types of deposits

61. The Federal Reserve wants to reduce the money supply. This could be accomplished by doing all of the following EXCEPT:

A decrease the discount rateB increase the reserve requirementC sell securities on the open marketD make banks hold a reserve for all

types of deposits

62. What problem might policy makers be trying to address MOST if they increase funding for training programs covering skills such as computer repair, programming, and networking?

A frictional unemploymentB structural unemploymentC cyclical unemploymentD seasonal unemployment

62. What problem might policy makers be trying to address MOST if they increase funding for training programs covering skills such as computer repair, programming, and networking?

A frictional unemploymentB structural unemploymentC cyclical unemploymentD seasonal unemployment

63. Monetary policies the Federal Reserve can adopt include all of the following EXCEPT:

A Raising the discount rateB Buying government bondsC Lowering the reserve

requirementD Raising personal income tax

63. Monetary policies the Federal Reserve can adopt include all of the following EXCEPT:

A Raising the discount rateB Buying government bondsC Lowering the reserve

requirementD Raising personal income tax

64. If unemployment rate is rising and GDP is falling, the fiscal policy that the federal government should most likely follow is:

A decreasing taxesB decreasing spendingC decreasing the money supplyD decreasing the reserve

requirement

64. If unemployment rate is rising and GDP is falling, the fiscal policy that the federal government should most likely follow is:

A decreasing taxesB decreasing spendingC decreasing the money supplyD decreasing the reserve

requirement

65. Over the course of one year, the Japanese Yen depreciates relative to the British pound. Of the following, who would benefit the most from this occurrence?

A British consumers of British goodsB British consumers of Japanese goodsC Japanese consumers of Japanese goodsD Japanese consumers of British goods

65. Over the course of one year, the Japanese Yen depreciates relative to the British pound. Of the following, who would benefit the most from this occurrence?

A British consumers of British goodsB British consumers of Japanese goodsC Japanese consumers of Japanese goodsD Japanese consumers of British goods

66. A tariff placed on foreign steel imports represents:

A trade barrierB balance of paymentC subsidy to domestic producersD an increase in domestic

production

66. A tariff placed on foreign steel imports represents:

A trade barrierB balance of paymentC subsidy to domestic producersD an increase in domestic

production

67. Those in favor of protectionist trade policies would most likely:

A support a reduction in tariffB call for fewer import restrictionsC cite the need to preserve

domestic industriesD believe that restrictions harm

consumers

67. Those in favor of protectionist trade policies would most likely:

A support a reduction in tariffB call for fewer import restrictionsC cite the need to preserve

domestic industriesD believe that restrictions harm

consumers

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70. A man has $100 and hopes to invest this money and receive 10 times the amount ($1000) back by the end of 5 years. To best accomplish this, the person should:

A place the money in a savings and loan account

B deposit the money in a commercial bank account

C purchase $100 worth of stock in a start up company

D buy $50 worth of bonds and invest $50 in a mutual fund

70. A man has $100 and hopes to invest this money and receive 10 times the amount ($1000) back by the end of 5 years. To best accomplish this, the person should:

A place the money in a savings and loan account

B deposit the money in a commercial bank account

C purchase $100 worth of stock in a start up company

D buy $50 worth of bonds and invest $50 in a mutual fund

71. While delivering the mail, the postman gets struck in the arm by a passing car. He then spins once and hits the ground, briefly blacking out. An ambulance takes him to the hospital, and after x-rays and other tests are done, the doctor states that no other bones were broken, and no permanent damage was done.

Which of the following types of insurance would be most beneficial for the postman as a result of the accident:

A Auto B disability C health D life

71. While delivering the mail, the postman gets struck in the arm by a passing car. He then spins once and hits the ground, briefly blacking out. An ambulance takes him to the hospital, and after x-rays and other tests are done, the doctor states that no other bones were broken, and no permanent damage was done.

Which of the following types of insurance would be most beneficial for the postman as a result of the accident:

A Auto B disability C health D life

72. On which of the following do people pay a regressive tax:

A their earned incomeB Interest on their savings

accountsC Stocks purchased for

investmentsD Goods purchased for their

personal use

72. On which of the following do people pay a regressive tax:

A their earned incomeB Interest on their savings

accountsC Stocks purchased for

investmentsD Goods purchased for their

personal use

73. Which factor most often has the greatest role in determining the amount of money that workers earn during their careers?

A their credit worthinessB the size of the business for which

they workC the location of the business for

which they workD their educational level

73. Which factor most often has the greatest role in determining the amount of money that workers earn during their careers?

A their credit worthinessB the size of the business for which

they workC the location of the business for

which they workD their educational level

74. A woman is considering purchasing a new lawn mower that costs $120.While employed, the woman does not currently have enough money in her account to pay for this item. Which of the following financial institutions would be most likely to help her buy the lawn mower?

A payday loan company B credit union

C savings and loanD commercial bank

74. A woman is considering purchasing a new lawn mower that costs $120.While employed, the woman does not currently have enough money in her account to pay for this item. Which of the following financial institutions would be most likely to help her buy the lawn mower?

A payday loan company B credit union

C savings and loanD commercial bank

75. An assembly line can increase a factory’s productivity because it allows workers to:

A diversify their skillsB focus on a specific taskC put in overtime hours on the jobD use a wide range of knowledge

75. An assembly line can increase a factory’s productivity because it allows workers to:

A diversify their skillsB focus on a specific taskC put in overtime hours on the jobD use a wide range of knowledge

76. The nation of Weldon needs to build a new dam to control flooding near its largest city. If Weldon is a PURELY market economy, then these new improvements will MOST likely be left up to:

A governmentB the individuals who are willing to pay for the

new damC anyone who would benefit from the damD owners of the property on which the dam

would be built

76. The nation of Weldon needs to build a new dam to control flooding near its largest city. If Weldon is a PURELY market economy, then these new improvements will MOST likely be left up to:

A governmentB the individuals who are willing to pay for the

new damC anyone who would benefit from the damD owners of the property on which the dam

would be built

77. Opportunity cost is best described as the:

A most expensive resource used in production

B Sum of all production costsC Value of the best alternative

forgone when a choice is madeD Monetary value of all

alternatives forgone when a choice is made

77. Opportunity cost is best described as the:

A most expensive resource used in production

B Sum of all production costsC Value of the best alternative

forgone when a choice is madeD Monetary value of all

alternatives forgone when a choice is made

78. Alex and Dylan mow and trim lawns. Currently, each man mows and trims lawns by himself but the process takes a long time.They would MOST LIKELY improve their efficiency if:

A Alex and Dylan mow a lawn and then trim it together

B Alan mows a lawn while Dylan trims the same lawn.

C Alex trims Dylan’s lawn, while Dylan trims Alex’ lawn.

D Alex and Dylan reduce the number of lawns they mow and trim.

78. Alex and Dylan mow and trim lawns. Currently, each man mows and trims lawns by himself but the process takes a long time.They would MOST LIKELY improve their efficiency if:

A Alex and Dylan mow a lawn and then trim it together

B Alan mows a lawn while Dylan trims the same lawn.

C Alex trims Dylan’s lawn, while Dylan trims Alex’ lawn.

D Alex and Dylan reduce the number of lawns they mow and trim.

79. Which term is a COMMAND economic system most closely associated with?

A entrepreneurshipB absolute advantageC perfect competitionD governmental regulation

79. Which term is a COMMAND economic system most closely associated with?

A entrepreneurshipB absolute advantageC perfect competitionD governmental regulation

80. A corporation MOST often seeks to increase its profit and expand the size of its operation by:

A issuing stockB joining an oligopolyC becoming a monopolyD Controlling the money supply

80. A corporation MOST often seeks to increase its profit and expand the size of its operation by:

A issuing stockB joining an oligopolyC becoming a monopolyD Controlling the money supply

81. Organizers of many high- interest sporting events such as the Super Bowl and World Series usually set ticket prices lower than the equilibrium price, citing fairness to the public as their reason.

What names do economists give to the resulting set price and disequilibrium situation?

A price ceiling, surplusB price ceiling, shortageC price floor, shortageD price floor, surplus

81. Organizers of many high- interest sporting events such as the Super Bowl and World Series usually set ticket prices lower than the equilibrium price, citing fairness to the public as their reason.

What names do economists give to the resulting set price and disequilibrium situation?

A price ceiling, surplusB price ceiling, shortageC price floor, shortageD price floor, surplus

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83 83

84. If Johnny had a car accident, before his insurance policy would pay for repairs he would have to pay his deductible which is:

A. The amount he is legally bound to pay for his debts

B. The monthly amount paid to his insurance company for his policy coverage

C. The amount of expenses that must be paid out of pocket before an insurer will cover any expenses

D. The percentage of each visit the patient must pay

84. If Johnny had a car accident, before his insurance policy would pay for repairs he would have to pay his deductible which is:

A. The amount he is legally bound to pay for his debts

B. The monthly amount paid to his insurance company for his policy coverage

C. The amount of expenses that must be paid out of pocket before an insurer will cover any expenses

D. The percentage of each visit the patient must pay

Circular Flow ChartCircular Flow Chart

85. What does the upper half of the Figure “1,” represent?a. the factor market c. the product marketb. the command market d. the free market

85. What does the upper half of the Figure “1,” represent?a. the factor market c. the product marketb. the command market d. the free market

Circular Flow ChartCircular Flow Chart

86. What does “2” represent?a. wages for labor c. payments for

goodsb. goods and services d. labor for firms

86. What does “2” represent?a. wages for labor c. payments for

goodsb. goods and services d. labor for firms

GOOD LUCK!!!GOOD LUCK!!!