Question 1 (1 point)
Which type of unemployment is the product of a healthy economy?
a
Unemployment as a result of a mismatch of the skills of workers and the skills needed by employers.
b
Unemployment as a result of demand for products and services decreasing.
c
None; unemployment is the result of an unhealthy economy.
d
Unemployment as a result of people moving from one job to another.
d. Unemployment as a result of people moving from one job to another.
Question 2 (2 points)
What impacts did the decentralization of the U.S. banking system during the Free Banking Era have on the currency in the United States? Select the two correct answers.
a
Monetary reserves decreased.
b
The amount of loanable funds increased.
c
Land was frequently purchased with counterfeit currency.
d
The money supply declined.
e
The purchasing power currencies issued by state banks varied wildly from state to state.
b. The amount of loanable funds increased.
e. The purchasing power currencies issued by state banks varied wildly from state to state.
Question 3 (1 point)
For a relatively elastic portion of a demand curve, a 100%100% increase in price will be accompanied by _____.
a
a percent decrease in quantity demanded greater than 100%
b
a percent increase in quantity demanded less than 100%
c
a percent increase in quantity demanded greater than 100%
d
a percent decrease in quantity demanded less than 100%
d. a percent decrease in quantity demanded less than 100%
Which of the following is a primary difference between a privately held corporation and a public corporation?
a
Shares of privately held corporations are traded on stock exchanges.
b
Privately held corporations may issue stock.
c
Public corporations may issue stock.
d
Shares of public corporations are traded on stock exchanges.
d. Shares of public corporations are traded on stock exchanges.
Question 6 (1 point)
Which of the following is a fixed expense?
a
rent
b
movie tickets
c
gasoline
d
groceries
a. rent
What monetary policies should the Federal Reserve enact to combat higher inflation rates for consumer goods and services?
a
Enact expansionary monetary policies to decrease the money supply.
b
Enact expansionary monetary policies to increase the money supply.
c
Enact contractionary monetary policies to decrease the money supply.
d
Enact contractionary monetary policies to increase money supply.
c. Enact contractionary monetary policies to decrease the money supply.
Were Social Security and Medicare the largest contributors of revenue for the federal government in Fiscal Year 2019? Explain.
a
Yes, because Social Security and Medicare taxes made up more than 50% of the revenue in Fiscal Year 2019 with $1.718 trillion.
b
No, because individual income taxes contributed about $1.718 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $1.242 trillion.
c
Yes, because Social Security and Medicare taxes contributed about $1.542 trillion in Fiscal Year 2019 while individual income taxes only contributed $1.518 trillion.
d
No, because corporate income taxes contributed about $1.242 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $230.2 billion.
c. Yes, because Social Security and Medicare taxes contributed about $1.542 trillion in Fiscal Year 2019 while individual income taxes only contributed $1.518 trillion.
What is true about money?
a
Money does not provide a standard unit of measurement.
b
Money maintains purchasing power over time.
c
Money retains the same value permanently.
d
Money stays at the same value over time.
b. Money maintains purchasing power over time.
Julianne has a serious health condition that makes her unable to work for an extended period of time. Which type of insurance would provide security for Julianne's finances during this time?
a
automobile insurance
b
property insurance
c
disability insurance
d
health insurance
c. disability insurance
Using the expenditure approach, the Real GDP of a given economy was calculated as 250 million dollars in 2019. In 2020, the economy experienced the following:
An increase of 20 million dollars in consumption.
A decrease of 5 million dollars in investment.
An increase of 10 million dollars in government spending.
The value of all exports decreased by 5 million dollars.
The value of all imports increased 15 million dollars.
What is the Real GDP of the given economy in 2020?
a
255 million dollars
b
235 million dollars
c
270 million dollars
d
295 million dollars
a. 255 million dollars
Explanation:
Real GDP in 2020 = [C (2020) – C (2019)] + [I (2020) – I (2019)] + [G (2020) – G (2019)] + [X (2020) – M (2020)]
Real GDP in 2020 = [(20 – 0) + (0 – (-5)) + (10 – 0) + (0 – 15)] + 250
Real GDP in 2020 = (20 + 5 + 10 – 15) + 250
Real GDP in 2020 = 20 + 250
Real GDP in 2020 = 270
Therefore, the real GDP of the given economy in 2020 is 255 million dollars.
Why does the government oversee the provision of public goods?
a
Public goods and services require resources in production that are scarce; therefore, the government must ensure that production is limited.
b
Public goods are goods and services that are non-excludable and non-rivalrous; therefore, it is not profitable or in the best interest of private businesses to provide these goods.
c
Public goods are goods and services that tend to result in negative externalities; therefore, the government must oversee that the provision of these goods and services is limited.
d
Public goods are goods and services that are non-excludable and rivalrous. The government must oversee the fair distribution of these goods; otherwise, they would be distributed on a first-come, first-serve basis.