economics exam- 21 multiple choice

Question 1 (Multiple Choice Worth 4 points)

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Which of these illustrate the divisibility of money?

Question 2 (Multiple Choice Worth 4 points)

(04.02 MC)<object:standard:ss.912.e.2.4>

Public Domain

Which of these is an example of the line marked “Artificial Price”?

Question 3 (Multiple Choice Worth 4 points)

(06.03 MC)<object:standard:ss.912.e.3.4>

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?

Question 4 (Multiple Choice Worth 4 points)

 

(04.02 LC)<object:standard:ss.912.e.2.4>

Which of these keeps prices below equilibrium?

Question 5 (Multiple Choice Worth 4 points)

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© Farcaster 2009
Creative Commons Attribution-Share Alike 3.0 Unported

Which of the following statements best describes the data shown for 2012 to 2015?

Question 6 (Multiple Choice Worth 4 points)

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Why is it in the best interest of the government to regulate natural monopolies?

Question 7 (Multiple Choice Worth 4 points)

(04.03 LC)<object:standard:ss.912.e.2.10>

What is the main function of the Federal Open Market Committee?

Question 8 (Multiple Choice Worth 4 points)

 

(04.05 MC)<object:standard:ss.912.e.1.10>

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?

Question 9 (Multiple Choice Worth 4 points)

(06.02 LC)<object:standard:ss.912.e.2.11>

The city council allocates funds for road repair. Which of the following circumstances would be a positive externality?

Question 10 (Multiple Choice Worth 4 points)

(02.05 MC)<object:standard:ss.912.e.1.14>

Andrew is 17 years old and would like to establish credit history. Which of these would be a good first step for him?

Question 11 (Multiple Choice Worth 4 points)

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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?

Question 12 (Multiple Choice Worth 4 points)

 

(06.03 MC)<object:standard:ss.912.e.2.11>

A livestock ranch decides to expand its operations. Which of the following would be a negative externality for the local environment?

Question 13 (Multiple Choice Worth 4 points)

(002 MC)<object:standard:ss.912.g.3.3>

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?

Question 14 (Multiple Choice Worth 4 points)

 

(04.01 MC)<object:standard:ss.912.e.1.12>

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?

Question 15 (Multiple Choice Worth 4 points)

 

(04.04 MC)<object:standard:ss.912.e.1.11>

If the United States falls into a recession, which action would the Federal Reserve take to encourage employment?

Question 16 (Multiple Choice Worth 4 points)

 

(04.01 MC)<object:standard:ss.912.e.1.12>

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?

Question 17 (Multiple Choice Worth 4 points)

 

(02.06 HC)<object:standard:ss.912.e.1.16>

© 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?

Question 18 (Multiple Choice Worth 4 points)

 

(02.04 MC)<object:standard:ss.912.e.1.14>

Tina has $1,500 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?

Question 19 (Multiple Choice Worth 4 points)

 

(04.04 MC)<object:standard:ss.912.e.1.11>

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?

Question 20 (Multiple Choice Worth 4 points)

(02.04 MC)<object:standard:ss.912.e.1.15>

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?

Question 21 (Multiple Choice Worth 4 points)

(6.01 MC)<object:standard:ss.912.e.2.12>

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?

Question 22 (Essay Worth 4 points)

(06.05 HC)<object:standard:ss.912.e.2.12>

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.