22 question economics exam- 21 multiple choice – 1 short answer

due at 6:30 p.m. eastern time
(01.07 MC)
Which of these illustrate the divisibility of money?
Carlos uses five dollars in cash and $10.45 in credit to pay for dinner.Esperanza exchanges a one dollar bill for four quarters.Jose carries coins and bills in his wallet.The one dollar bill in Mia’s pocket stayed intact in the laundry.
(04.02 MC)
Public Domain
Which of these is an example of the line marked Artificial Price?
Farm subsidiesMarket priceMinimum wageRent controls
(06.03 MC)
Sixty-five nations sign a treaty pledging caps on industrial emissions and the development of renewable resource energy production. Which of the following would be a long-term positive externality for global health?
Increased land allocation for wind farmsLower rates of childhood asthmaMore manufacturing of vaccinesReduction of vitamin deficiencies in children
(04.02 LC)
Which of these keeps prices below equilibrium?
Minimum pricePrice floorMinimum-wage lawsRent-control laws
(04.05 MC)
Farcaster 2009
Creative Commons Attribution-Share Alike 3.0 Unported
Which of the following statements best describes the data shown for 2012 to 2015?
Spending and tax rates will both decrease.Spending and tax rates will remain about the same.Spending will decrease relative to tax revenue.Tax revenues will increase relative to spending.
(04.02 MC)
Why is it in the best interest of the government to regulate natural monopolies?
To allow multiple suppliers access to the marketTo gain a share of the profits of the monopolyTo keep costs to a minimum for consumersTo prevent surplus goods and services
(04.03 LC)
What is the main function of the Federal Open Market Committee?
Extend loans to consumers.Oversee administration of financial regulations.Set monetary policy to promote economic growth.Write laws governing finance and trade.
(04.05 MC)
Economists warn that the nation is slipping into a recession. Which fiscal policies will the federal government most likely take to help the economy grow?
Lower taxes and decrease spendingLower taxes and increase spendingRaise taxes and decrease spendingRaise taxes and increase spending
(06.02 LC)
The city council allocates funds for road repair. Which of the following circumstances would be a positive externality?
Citizens spend less money repairing punctured and torn tires.Gas stations throughout the city reduce fuel prices.Municipal taxes increase to fund added services.Traffic flow in the city improves.
(02.05 MC)
Andrew is 17 years old and would like to establish credit history. Which of these would be a good first step for him?
Apply for as many credit cards as possible.Ask a parent or guardian to cosign for a no-fee credit card.Ask to borrow a parent’s credit card.Find a low-interest unsecured credit card.
(04.05 MC)
Imagine the federal government has a national debt of $10.2 trillion. Congress’s budget for the coming year includes spending projections of $4.2 billion. Tax revenue projects $3.8 billion. Which will be the most likely consequence?
The national debt will decrease.The national debt will increase.Personal incomes will go down.Unemployment programs will be cut.
(06.03 MC)
A livestock ranch decides to expand its operations. Which of the following would be a negative externality for the local environment?
Higher property taxesLess land for developmentLess use of renewable resourcesMore groundwater pollution
(06.02 MC)
Tennessee Valley Authority (TVA) Sites
Red = water dams
Purple = nuclear power plants
Orange = fossil fuel power plants
Public Domain
Study the map above. Who would object to negative externalities related to the use of renewable and nonrenewable resources in the map?
Business owners forced to relocate when property is seizedFamilies who lose power during a stormLocal officials who collect taxes for energy usageWorkers who undergo training for new high-wage positions
(04.01 MC)
Following U.S. involvement in the Korean War and the related period of low unemployment and rising prices the Federal Reserve intervened to curb growth and decrease inflation. At what point in the business cycle did the Federal Reserve take action?
ContractionExpansionPeakTrough
(04.04 MC)
If the United States falls into a recession which action would the Federal Reserve take to encourage employment?
Buy government securitiesIncrease reserve requirementsRaise federal funds and prime ratesSell government securities
(04.01 MC)
A period of economic stability began in the 1980s. In 2001 prices began to increase. In 2007 an economic crisis caused prices to fall. Which of these dates would be considered the peak of this cycle?
1980199020012007
(02.06 HC)
2013 FLVS
After creating the 2013 budget for her hamburger restaurant Holly realizes that she will need to spend 10 percent on training because of a change in food-handling laws. Which of these could represent the numbers in Holly’s new budget?
Repairs 3%; Rent 27%Misc 10%; Payroll 10%Advertising 3%; Misc 2%Utilities 5%; Misc 5%
(02.04 MC)
Tina has $1500 that she will use to buy a car in four months. In the meantime she would like to invest it to earn more money. Which of these would yield the greatest return in her time frame?
Money market accountRoth IRASavings accountSavings bonds
(04.04 MC)
Economic forecasters predict a long period of job growth and consumer spending. The Federal Reserve is most likely to do which of the following to encourage this expansion?
Increase federal funds rateKeep the discount rate lowSell government securitiesMaintain high reserve requirements
(02.04 MC)
As an eighth grader Marliss wins an art competition and her prize is one thousand dollars. She wants to invest the money for her college fund. Which of these would be a good option?
A savings bondAn IRAFuturesStocks
(06.01 MC)
2013 FLVS
Cardinal Comics produces graphic historical novels and retails them through local shops throughout the United States. The publisher maintains an in-house staff of editors and illustrators but contracts out writing printing and distribution. Its printer uses domestically recycled paper but imports ink and much of its printing equipment from overseas. Segment B of the circular flow diagram above reflects which part of this scenario?
Consumers purchase graphic historical novels from local shops.Publisher maintains an in-house staff of editors.Cardinal Comics contracts out writing printing and distribution.Printer uses domestically recycled paper.
(06.05 HC)
2013 FLVS
Look at the circular flow diagram. Choose and define an environmental issue. Using the diagram as a guide explain how the environmental issue you chose affects the relationship between product market and rest of world.