|
When the government runs a budget deficit, what must it eventually do in order to pay back its debt? |
have a budget surplus |
|
What does enforcing consumer-protection regulations involve? |
government oversight of the production process |
|
Match each company, organization, or agency with the correct label. |
A)Consumer advocacy publication B)Consumer protection agency C)Competition regulator |
|
Which of these inspires consumer confidence, increases purchases, and speeds up the flow of investment and wages in the circular flow of the free-market system? |
consumer-protection regulations |
|
Which of these gives companies an anticompetitive impulse? |
the profit motive |
|
What unfair business practice do cartels use? |
price fixing |
|
Match each unfair business practice with an example of its use. |
C) A group of music companies agrees to charge $20 for CDs A)A large furniture maker charges a price below production cost in order to eliminate small competitors. B)A coffee maker falsely claims that its drinks reduce the incidence of heart attacks. |
|
What is one benefit of consumer-protection regulations? |
greater consumer confidence |
|
What is one way that consumer-advocacy groups help protect consumers? |
by providing product information |
|
Match each type of restriction with one of its effects. |
C)Stability B)Regulation of union activities A)Higher prices for consumers |
|
What is one economic effect of environmental- protection laws? |
higher prices for consumers |
|
Which of these is an example of a land-use law? |
a town zones an area for residental buildings only |
|
Compulsory education restricts whose freedom? |
parents |
|
Freedom of expression is limited by what? |
censorship |
|
Country A would have absolute advantage over Country B in the production of computers under what circumstance? |
companies in Country A can produce computers at a lower cost |
|
Why don’t many developing countries benefit from the spread of free trade? |
they have weak domestic industries |
|
Why do central banks play an important role in the global economy? |
they set each country’s monetary policies |
|
Why do protective tariffs lead to reduced international trade? |
protective tariffs increase the price of goods and limit the sale of those goods |
|
How does the WTO promote global free trade? |
by creating multilateral trade agreements |
|
Why has globalization led to some job loss in the US? |
labor costs are lower in other countries |
|
Match each international organization with its purpose. A)Bank for international settlements (BIS) Reduce poverty |
C,D,A,B |
|
Match each practice with an example of its use. A)Offshoring The IMF requires a loan recipient to privatize its oil industry. |
D,C,B,A |
|
How has globalization contributed to the recent increase of international terrorism? |
the downsides of globalization affect many people who often feel they have nowhere to turn other than violence |
|
What does the World Bank hope will result from loans it makes to developing countries? |
an improved climate for foreign investment |
|
The global economy can have specialized production because of what? |
the international division of labor |
|
Match each type of country with one of its central features. A)Developed High level of productive capacity |
A,C,D,B |
|
Why has globalization led to an increasing income gap between rich and poor countries? |
countries with well-established infrastructure and productive capacities have more competitive industries |
|
What is the PRIMARY reason that globalization leads to greater global pollution? |
environmental protection is expensive, and reduces a company’s competitiveness in the global market |
|
Country X would have a comparative advantage in the production of cotton under what circumstance? |
Country X didn’t have to give up a more profitable form of production in order to grow cotton |
|
What is one reason why some people are critical of globalization? |
it leads to increased damage to the environment |
|
How has globalization helped work against human rights violations around the world? |
Improved global communications brings these abuses to the world’s attention |
|
Why does interdependence bring economic growth? |
interdependence enables specialized production, which is more efficient |
|
What was the result of developed countries extracting resources from their colonies? |
there was a one-way flow of wealth favoring the colonizers |
|
Why does globalization give countries an incentive to reduce wages for their workers? |
lower production costs help lure foreign investment |
|
What has been the main drawback of globalization in the US? |
wage reductions |
|
Why does the IMF impose conditions on its loans? |
to help manage the economies of struggling countries |
|
When an insurance policy covers replacement value, a loss results in a settlement that pays for what? |
brand new items to replace the items lost |
|
What does liability insurance cover? |
the medical and car repair bills for anyone else involved in an accident you caused |
|
Economists measure the personal satisfaction someone gets from consuming goods and services with the concept of what? |
utility |
|
Which of the following are techniques that companies use to influence consumer demand for their goods and services? Check all that apply. |
creating images of consumption on popular TV shows, getting people in movies to use their products, turning luxuries into necessities |
|
Which of the following best states the purpose of branding? |
to associate a specific product with quality and popularity |
|
Which of the following describes a situation in which the price of a good would fall? |
a new technology allows producers to increase supply very quickly |
|
Which of the following is the best example of a fungible good? |
potatoes |
|
Which of the following best explains why goals are necessary for making allocation decisions? |
the available resources cannot be used to pursue every goal that each individual has |
|
Economics is about allocating resources to produce and distribute which of the following? |
goods and services |
|
Which of the following is an example of an allocation decision? |
coal is set aside to burn as heating fuel |
|
The internet enables people to make better economic decision because they can do which of the following? |
get the information that is necessary for making good choices |
|
Which of the following goals does the government pursue in a socialist economic system? |
equity |
|
Which of the following must be a feature of an activity for it to be a game? |
a set of rules |
|
Which of the following economic indicators would be useful for figuring out whether the economy is growing quickly or slowly? |
GDP |
|
Which of the following best explains why resources need to be allocated in the game of economics? |
there aren’t enough resources to produce all of the goods and services that everyone wants |
|
Which of the following is another term for a planned economy? |
socialist system |
|
Which of the following is one of the benefits e-commerce brings to consumers? |
shipping gifts is easy |
|
Because calculations of cost and benefit are subjective, they can be described as which of the following? |
vary from one person to another |
|
Which of the following describes a situation where the goal of security is being pursued? |
the government establishes a retirement program for its citizens |
|
Which of the following is not an economic goal? |
victory |
|
Which of the following describes the purpose of doing a cost-benefit analysis? |
to make a decision that maximizes benefits |
|
Which of the following results from the fact that costs and benefits are based on personal preferences? |
both monetary and non-monetary factors are taken into account |
|
Which of the following best explains why the government makes and enforces laws in a free-market system? |
laws against theft, fraud, and coercion are needed to protect free choice |
|
The gross domestic product would increase significantly if which of the following occurred? |
consumption doubled |
|
Which of the following questions must be answered in order to turn resources into products? |
how should production be organized |
|
A country’s economy is stagnating when the GDP is doing which of the following? |
neither rising nor falling |
|
Technological advancement can come from improved devices or new what? |
method |
|
Match the technological improvement with the benefit it brings. _____more efficient distribution _____improved communication _____faster transportation |
A,B,C |
|
E-commerce is an online form of which of the following? |
retail sales |
|
Consumers directly benefit from greater productivity because of which of the following? |
goods and services are produced faster and can be sold more cheaply |
|
Because the choices of consumers influence producers and the choices of producers also influence consumers, the free-market system has which of the following? |
a circular flow of influences |
|
Match the descriptions of different economic systems with their correct name. ____mixed economy |
B,C,A |
|
Which of the following is a reason why peer pressure influences consumers? |
people often compare themselves to others |
|
Which of the following best describes how consumers let producers know what they want to buy and how much they’re willing to pay? |
the purchases consumers make indicate their desires to producers |
|
In the game of economics,which player has the role of providing goods and services? |
producers |
|
Which of the following statements best explains why producers conduct market research? |
knowing what consumers want helps producers make more money |
|
Which of the following helps producers figure out what consumers want? |
market research |
|
Match the role and the example. ____factory owner |
B,C,A |
|
Which of the following is necessary for hiring workers and organizing production? |
businesses |
|
Match. ____choosing a red/black sweater because they’re school colors |
A,C,B |
|
In Economics,workers are both producers and which of the following? |
consumers |
|
In the game of economics, producers get the information they need to determine how much people are willing to pay for a good or service from which of the following? |
consumers |
|
Which of the following best describes the main purpose of a budget? |
to plan income and expenses |
|
Which of the following best explains the main purpose of short-term planning? |
to meet fixed expenses and allow for discretionary spending |
|
Which of the following does culture contribute to the preferences and behaviors of consumers? |
values and beliefs |
|
Which of the following best explains why considering opportunity costs is a rational thing for consumers to do? |
what you sacrifice for a decision is one of the non-monetary costs of many choices |
|
Which of the following best describes the purpose of a budget? |
to plan income and expenses |
|
Which of the following is an essential part of making a rational choice? |
doing cost-benefit analysis |
|
Advertising is the main source of revenue for which of the following? |
media companies |
|
Consumers influence the decisions of producers in which of the following ways? |
through the purchasing decisions they make |
|
Which of the following is the market structure of the media industry? |
oligopoly |
|
Which of the following best demonstrates how successful Google has been at establishing a well-known brand? |
the word google has been added to the dictionary |
|
Which of the following is measured by utility? |
the satisfaction a person gets from consumption |
|
Budgeting helps consumers reach their financial goals by helping them to do which of the following? |
keeps their expenses below their income |
|
Which of the following business types is most likely to use the bricks and clicks business model? |
clothing sellers |
|
Which of the following statements best explains why some people get life insurance and others don’t? |
different people are willing to face different kinds of risks |
|
Which of the following best states the main difference between a monopoly and an oligopoly? |
oligopolies involve more than one company while monopolies involve only one |
|
Which of the following statements best exaplins the purpose of market research? |
market research helps producers earn more profits |
|
The purpose of branding is to do which of the following? |
create a positive association |
|
Which of the following generates revenue for google? |
sale of advertisements |
|
Which of the following explains why companies spend money on advertising? |
companies want to influence consumer behavior through advertising |
|
A corporation gives out its profits as dividends paid to its ________. |
stockholders |
|
Google’s business model is the most similar to that used by companies in which industry? |
media |
|
Which of the following best states the main difference between a monopoly and pure competition? |
a monopoly involves no competition at all while pure competition involves a high level of competition |
|
In a free-market system, the profit motive motivates producers to do which of the following? |
minimize cost and maximize revenue |
|
Which of the following best explains why some people consider it foolish to gamble while other people like to gamble? |
gambling involves too much risk for some people |
|
Which of the following best explains why the media is characterized by an oligopolistic market structure? |
centralization of ownership has led to an industry controlled by a few large companies |
|
Which of the following actions provides the most help for making a rational choice? |
engaging in finacial planning |
|
Which of the following is one important difference between a general partnership and a limited partnership? |
every partner in a general partnership is fully responsible for the business debts |
|
Which of the following is an advantage corporations enjoy over partnerships? |
the owners of a corporation don’t have to work together to make all of the business decisions |
|
Because of the unlimited liability of all partners, a general partnership most closely resembles which other business type? |
sole proprietorship |
|
Match each business model with the advantage it brings. ____attractive prices for basic product |
B,A,C |
|
The way a company does business is driven by which of the following? |
its business model |
|
Which of the following is an advantage of partnerships over sole proprietorships? |
partnerships generally have more money to invest in starting or expanding a business |
|
Which of the following distinguishes Google’s business model from most other businesses? |
its relaxed corporate culture |
|
The business decisions of a corporation are made by whom? |
a board of directors |
|
Match each type of business with its purpose ____to benefit a special cause |
C,B,A |
|
The Google business model is driven by the sale of which of the following? |
advertisements |
|
The owner of a sole proprietorship has _______ liability. |
unlimited |
|
Country A would hve absolute advantage over Country B in the production of computers under what circumstance? |
companies in Country A can produce computers at a lower cost |
|
What is the purpose of a checkbook register? |
to keep track of the amount of money in your checking account |
|
Banks pay their customers interest on the money in their accounts or what reason? |
that money earns interest when the bank loans it out |
|
Put the steps in the corrct order to show how a budget is made. |
1)calculate income 2)total up spending 3)categorize expenses 4)determine if spending is below income 5)reduce expenses in flexible categories to save or increase savings |
|
Why is a checking account more convenient than a savings account? |
it’s easier to spend the money in a checking account |
|
How do flexible expenses differ from fixed expenses? |
flexible expenses vary over time |
|
The purpose of a budget is to do what? |
make sure expenses are below income |
|
Match each of the fees associated with a checking account with the way to avoid paying them. ____don’t use bank machines at banks other than your own |
B,A,C,D |
|
Which of these can most easily be removed from a budget if spending is higher than income? |
discretionary spending |
|
How are credit unions similar to banks? |
they both give out loans |
|
Once all necessary expenses have been removed from your budget, what can you do if your expenses still exceed your income? |
work overtime or get another job |
|
Match each of these credit card terms with its correct description. _____number of days to run a balance before fees or interest are charged |
B,A,D,C |
|
Match each fee below with the situation where a credit card would get charged. ____you use a new credit card to pay off the $2,000 you owe on another credit card |
A,D,B,C |
|
Which of these describes how a fixed-rate mortgage works? |
the monthly payment on a fixed-rate mortgage never changes |
|
What is one of the advantages of getting a government-sponsored mortgage instead of a conventional mortgage? |
government mortgages charge lower interest rates than conventional mortgages |
|
Why is it important to maintain a good credit history? |
so that they have an easier time getting loans and credit cards |
|
Which of these credit card features would be best for customers who think they might not be able to pay their balance at the end of each month? |
a low annual percentage rate |
|
Which of these provides a bank with collateral on a car loan? |
the car itself |
|
Which of these makes a student loan different from other tyeps of loans? |
students don’t have to provide any collateral to get a student loan |
|
What does leasing a car involve? |
renting the car for a specific period of time and paying for its depreciation |
|
What is one advantage of using a credit card to make purchases? |
you can buy something now and pay for it later |
|
Small-claims court is a place for which of the following? |
people to resolve financial differences |
|
Match each retail term with the correct definition. ____money that can be used to make purchases only at a particular store |
A,B,D,C |
|
Why should consumers look for products that have a warranty? |
it protects them in case the product is defective |
|
How has the internet helped boycotters? |
it enables boycotters to organize and publicize their activities more easily |
|
How can the government promote socially responsible production? |
by passing environmental-protection regulations |
|
Which of these is a renewable resource? |
trees |
|
Consumers can use lobbying to accomplish what? |
to get the government to pass new laws |
|
Which of these is a procedure that quantifies the personal value of a purchase? |
the purchase price is calculated as a certain number of working hours |
|
Socially responsible consumers prefer to buy from companies that use what? |
renewable resources |
|
How can the news media help protect consumers? |
by investigating and exposing bad products and business practices |
|
Why do some auto insurance customers want medical coverage for their policies? |
to avoid having to pay for hospital bills resulting from an accident they cause |
|
Which of these describes the costs and benefits of getting a mortgage? |
mortgages enable people to buy houses but result in large interest payments |
|
Why does attending college involve an opportunity cost? |
the money spent on tuition cannot be invested in another way |
|
Why do consumers have influence over politicians? |
politicians rely on the votes of consumers to keep them in office |
|
Which of these is an example of luxury spending? |
travel |
|
Because subjective decisions are based on a person’s unique values and beliefs, economic decisions ________________________. |
vary from person to person |
|
Which of these credit card features would be best for customers who want to pay off the balance on a high- interest credit card? |
low fees for balance transfers |
|
What do banks pay to their savings account customers? |
interest |
|
What makes a checking account more convenient than a savings account? |
you can spend your money without having to withdraw cash first |
|
A boycott would not be successful under what circumstance? |
most consumers didn’t stay away from the company |
|
What makes a credit card more convenient than a debit card? |
it can be used to buy things without immediate payment |
|
What does a lease outline? |
obligations of renters and landlords |
|
Match each type of insurance with a situation in which it would be useful. a)life insurance ____when you cause a car accident that injures other people |
D,C,B,A |
|
What provides collateral to receive a car loan? |
the car |
|
Which of these shows how a loan is paid by listing the principle and interest associated with each payment? |
an amortization table |
|
What’s the main reason to use a personal budget? |
to stay out of debt |
|
What is the grace period on a credit card? |
the number of days the customer can wait to pay for purchases without being charged interest |
|
Under what circumstances do people have to make a co-pay? |
when they go to a doctor because of an illness |
|
Which of these makes it easier for a person to get a credit card? |
a good credit history |
|
Which of the following does not protect consumers? |
a boycott |
|
What is most similar to a brand-name product? |
a generic product |
|
Why might a company respond to a letter-writing campaign launched by a group of concerned consumers? |
the letters contain a veiled threat that economic pressure could follow |
|
Which of these would a socially responsible company use? |
renewable resources |
|
Match each fee or payment with the type of account or insurance it’s associated with. ____mortgage |
D,C,B,A |
|
Put the steps in order to show how budget is made. |
1)calculate income 2)write down expenses 3)compare expenses and income 4)reduce expenses if necessary |
|
Match each company, organization, or agency with the correct label. ____consumer advocacy publication |
A,B,C |
|
Which of these gives companies an anti competitive impulse? |
the profit motive |
|
What does the enforcement of antitrust laws do? |
speeds up the flow of capital and wages |
|
Match each good with the type of goods it represents. ____individual good |
C,A,B |
|
Why does the free-market system require government regulation? |
producers are driven by the profit motive to work against competition |
|
What does price fixing involve? |
a group of companies agreeing on a particular price to charge for their products |
|
The government might enact a price floor in order to accomplish what? |
protect producers |
|
Match each role with the action performed by people playing that role. ____provide individual goods |
B,C,A |
|
Sort the statements below into the correct order in which the federal budget is prepared. |
1)the president writes a preliminary budget proposal 2)congress decides on the details of the budget 3)the president signs spending bills into law |
|
What is the purpose of freezing someone’s assets? |
to reduce crime |
|
Why does the government need to collect taxes? |
to ensure competition and protect consumers |
|
Match each type of restriction with an example of its use. ____requiring that money laundering be reported |
C,A,B |
|
Match each type of tax with an example of its use. A)sales tax ____7% charged on the purpose of all non-necessary goods |
A,C,B |
|
Which merit good does the US government provide through a payroll tax? |
health care |
|
Government corporations can be described as which of the following? |
independently run |
|
Which of these is an example of a trade restriction? |
a tariff on imported cars |
|
Environmental-protection laws limit what? |
the exploitation of natural resources |
|
Environmental-protection laws can be bad for the economy because they may do what? |
increase unemployment |
|
Politicians approve pork barrel spending for what purpose? |
to win political support |
|
Why do government regulations lead to higher prices for consumers? |
producers pass along the costs of compliance |
|
Match each current trend with one of its economic effects. A)improved communication ____facilitates less expensive international trade |
C,B,D,A |
|
Choose the pair of phrases that correctly completes this sentence: taxes are charged ________ while tariffs are charged _______. |
internally;on imports |
|
What is the reasoning behind forcing people to pay taxes in a free-market economy? |
to provide revenues for government programs needed to protect the free market |
|
What is the difference between an income tax and a payroll tax? |
income taxes are used for a wide variety of government activities while payroll taxes pay for specific programs |
|
What is the effect of an import tariff charged on a particular good? |
the price paid by consumers is increased |
|
Which of the following best explains why Amazon can sell books more cheaply than local bookstores? |
amazon is able to buy all or most of the books printed by a publisher |
|
Which of the following comes after a period of recovery in the business cycle? |
a boom |
|
Which of the following is one of the main factors driving prices for goods and services upward? |
production costs increase so that producers need to charge more to make a profit |
|
Which of the following best explains why a large company can undersell small retailers? |
large companies can negotiate better prices with wholesalers |
|
Which of the following best explains the standard of living? |
how much an average person can afford to buy |
|
Which of the following is an exogenous factor that affects the business cycle? |
natural disasters |
|
Which of the following best describes the economic effect that results when the government increases interest rates and restricts the lending of money? |
borrowing money becomes more expensive and there is less investment in production |
|
Which of the following best explains how trade enables greater specialization among producers? |
trade allows people to focus on on kind of production and trade for their other needs |
|
Which of the following best explains the purpose of protectionist trade policies such as tariffs and subsidies? |
they allow producers to sell their products more cheaply than foreign competitors |
|
Match effect with cause ____ specialization |
C,A,B |
|
Which of the following is one of the major factors determining the level of wages? |
the law of supply and demand |
|
Which of the following was not an economic effect of colonization? |
global economic development |
|
When does one country have a comparative advantage over another country? |
when the opportunity cost of its production is lower |
|
Match each of the items below with its definition. ____ the ability to produce more cheaply |
A,B,C,D |
|
Which of the following does not promote increased international trade and economic growth? |
high tariffs |
|
Match each current trend with the advantage it provides for the global economy. A)improved communication ____ facilitates international business and trade |
A,B,D,C |
|
Which of these is required for specialization to take place? |
a division of labor |
|
What limits specialization in the global economy? |
trade barriers |
|
The increasing interconnectedness of peoples and countries around the world is known as what? |
globalization |
|
What is one of the downsides of increasing economic interdependence? |
loss of control over the national economy |
|
Which of the following accurately describes a shortage? |
consumer demand for a certain car is greater than the number of cars that can be produced |
|
Which of the following gives people access to both high-paying jobs and more living space? |
the suburbs |
|
Which of the following results from the fact that housing is expensive and time-consuming to build? |
the supply of housing is inelastic |
|
Immigration can result in a general decrease in wages because it does which of the following? |
increases the supply of labor |
|
Which of the following is a trait of public goods? |
non-excludability |
|
Which of the following housing decisions provides a person with both housing and an investment? |
buying a single-family home |
|
Which of the following is the cause of demand-pull inflation? |
consumers want more and more goods and services |
|
Which of the following actions can a union take to get an employer to submit to collective bargaining? |
call a strike |
|
Which of the following best explains why unions give workers more power in contract negotiations? |
employers can’t fine an entire union because of the difficulty of replacing every worker |
|
What happens when unemployment increases during a recession? |
the recession worsens into a depression |
|
When either prices go down or income goes up, there is an increase in which of the following? |
the standard of living |
|
Match each type of policy with the example that best fits its definition. ____ a high tax on cars imported from other countries |
A,B,C |
|
Which of the following is located at the point where the supply and demand curves intersect? |
the equilibrium price |
|
A factory laying off a lot of workers in a town is most likely to lead to which of the following? |
a buyer’s market |
|
The selling price of houses would be most likely to decrease if there were first a decrease in which of the following? |
construction worker’s wages |
|
Which of the following best describes the effect of a tariff on the import of cars from a foreign country? |
foreign cars become more expensive |
|
In which of the following situations would the price of a good be most likely to increase? |
an increase in production costs results from a rise in wages |
|
Which of the following results from a large company’s ability to take advantage of economies of scale? |
the company can offer goods more cheaply than smaller retailers |
|
What is the most direct result of free trade supplying productive resources to areas where they’re most needed? |
enhanced efficiency |
|
Which of the following occurs when someone buys a third winter coat? |
decreasing marginal utility |
|
Which of the following accurately describes a situation in which consumers have elastic demand? |
people give up eating pasta and bread because they want to lose weight |
|
Which of the following best explains one of the restrictions on producers that keeps the labor market from being a completely free market? |
workers don’t always have the education required to perform certain jobs |
|
Which of the following is an example of a fiscal policy? |
raising taxes in order to cover a budget deficit |
|
Which of the following results of globalization has led to wage cuts for workers in the U.S.? |
outsourcing |
|
Which of the following best explains what happens when a currency is pegged to the U.S. dollar? |
the value of the pegged currency goes up and down depending on the exchange rate of the U.S. dollar |
|
Order the bond types below from lowest to highest risk of default |
US treasury bonds, corporate bonds, junk bonds |
|
Which of the following best explains what happens in the currency exchange market? |
money is bought and sold using other types of money |
|
Which of the following best explains what happens when currency traders buy on margin? |
they borrow money from their broker in order to make a larger currency purchase |
|
When a market is volatile, it is described by which of the following? |
changes quickly and to great extremes |
|
Which of the following is not a commodity? |
corn dogs |
|
Which of the following best explains what a forward contract is? |
a contract to deliver a particular commodity to a buyer sometime in the future |
|
Which of the following best explains why a bondholder is similar to a bank? |
bondholders loan money to bond issuers just as banks loan money to customers |
|
Which of the following best describes why banks aren’t allowed to loan out all of their deposits at once? |
if banks loaned out all of their deposits, it would be impossible to meet customer’s demands for withdrawals |
|
Which of the following most accurately explains why fiat money has no value in itself? |
fiat money has only a single use as a medium of exchange |
|
Which of the following accurately describes how lowering the required reserve ratio increases the money supply? |
when the required reserve ratio is lowered, banks can loan out more money |
|
Which of the following best explains why the money supply is decreased when the government issues bonds? |
the purchase of bonds reduces the bond buyer’s bank accounts |
|
Which of the following accurately explains what an exchange rate of 1:20 between the Canadian dollar and Japanese yen means? |
it takes only one Canadian dollar to buy twenty Japanese yen |
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Which of the following best describes the most likely effect of the Fed lowering the discount rate on overnight loans? |
an increase in the money supply |
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A company that wanted to increase its capital through debt financing could trade in which of the following markets? |
bond market |
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Which of the following accurately describes socially responsible investing? |
when investors buy into companies with ethical practices they support |
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Technical analysis of the stock market focuses on which of the following? |
overall trends in the market |
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A business is unlikely to be able to secure a bank loan to fund its operations without which of the following? |
a stable operating history |
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Because venture capitalists (VCs) are usually looking for high returns in a short period of time, startup companies that wish to secure venture capital funding need to do which of the following? |
present the VC with an exit strategy |
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Which of the following best explains how bondholders and banks serve a similar function? |
they are both holders of someone else’s debt |
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Which of the following accurately explains the difference between the stock market and the commodity market? |
Ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market |
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Before the development of money as a medium, goods and services were exchanged through a ________ system. |
barter |
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Buying on margin involves what? |
traders borrowing money from their brokers |
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Which of the following describes a condition that is least favorable for conducting an IPO? |
a recession |
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Which of the following is an example of a businessman making an investment? |
he contributes money to a partnership |
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Put the items below into the correct order to show the process by which individuals have their federal income tax collected. |
paycheck withholding, tax return filing, tax payment or refund |
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Which of these is an example of tax on wealth? |
real estate tax |
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What are Normal Trade Relations? |
a treaty to create favorable trade terms between two nations |
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What’s the purpose of income tax brackets? |
to enable the progressive taxation of income |
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Taxes are charged __________ while tariffs are charged ________ ____________. |
internally; on imports |
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Why must public goods be provided by the government instead of the free market? |
public goods are non-excludable, so they suffer from a free-rider problem |
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What does "pork barrel" spending achieve? |
it helps politicians win support from their voters |
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What does a budget reveal about a government? |
its financial priorities and goals |
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What makes government contracts unique? |
they create obligations normally applied to government agencies |
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What is one way that the government cannot prevent a budget deficit? |
selling stocks |
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Who has to approve the budget of the U.S. government? |
congress |
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What is one difference between government agencies and government contractors? |
government agencies are in the public sector while government contractors are in the private sector |
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Match each sample good with the type of good it represents. ____individual good |
C,A,B |
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Match each organization with its correct relationship to the government. ____ government corporation |
B,C,A |
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Put the following steps into the correct order, from start to finish, to show how the budget of the federal government is created. |
3,4,1,2 |
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What is done with the costs of complying with consumer- protection regulations? |
eventually passed on to consumers in the form of higher prices |
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Match each type of government action with its purpose. ____ to control the population |
C,A,B |
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