What increases when productivity increases?
a) Gross Domestic Product ***
b) interest rates on loans
c) national unemployment rates
d) interest rates on savings
"Deepak's city has grown quite a lot over the past ten years. The city council has been discussing the need for a second fire department so that one would serve the Northern part of the city and the other would serve the Southern part. The city doesn't have much room in the budget, so some people have suggested privatizing the fire department. However, others argue that it's critical, that this would not work, and that it should be a public service."
Why would it be best for the new fire department to be provided as a public service?
a) Fire departments are too expensive for Entrepreneurs to provide
b) Demand for the fire department is greater than it's supply
c) the service should remain unlimited and accesible to all ***
d) not many people are interested in using the service
Which of these is a source of only federal tax revenue?
a) payroll taxes***
b) property taxes
c) sales taxes
d) income taxes
Which type of investment are stocks?
a) lending
b) ownership
c) cash equivalent***
d) interest
eddie has a credit card on which he makes monthly payments and tries not to carry a balance. What kind of credit is this?
(there are two answers)
a) non-revolving
b) revolving ***
c) secured
d) unsecured
e) flexible ***
what is a regular car payment an example of?
a) fixed expense ***
b) variable expense
c) interest
d) ownership investment
I'd appreciate it if you guys didn't just tell me i'm wrong. Can you tell me which is right and why?
Thanks.
#4 is wrong. The others are right.
Would it be Unsecured and non-revolving?
I count that as the fifth question, and you were right the first time. You should number your questions so we don't get confused. The one you are, I believe, in error on is the one about stock ownership.
Sure! I'll be happy to explain the correct answers to your questions.
1. What increases when productivity increases?
The correct answer is a) Gross Domestic Product (GDP). When productivity increases, it means that more goods or services are being produced in a given amount of time, resulting in higher economic output. This is measured by GDP, which represents the total value of goods and services produced within a country. Therefore, when productivity increases, GDP also increases.
2. Why would it be best for the new fire department to be provided as a public service?
The correct answer is c) the service should remain unlimited and accessible to all. Fire departments are essential public services that ensure the safety and well-being of the entire community. By keeping the fire department as a public service, it ensures that everyone, regardless of their financial means, has equal access to emergency firefighting services.
3. Which of these is a source of only federal tax revenue?
The correct answer is d) income taxes. Income taxes are collected by the federal government and are a significant source of revenue for funding various federal programs and services. Payroll taxes, property taxes, and sales taxes, on the other hand, may be levied by both federal and state/local governments.
4. Which type of investment are stocks?
The correct answer is b) ownership. Stocks represent ownership shares in a company. When individuals invest in stocks, they become shareholders, which means they have a claim to a portion of the company's assets and earnings.
5. Eddie has a credit card on which he makes monthly payments and tries not to carry a balance. What kind of credit is this?
The correct answers are b) revolving and e) flexible. Revolving credit refers to a credit account that allows you to borrow up to a certain limit, make payments, and then borrow again. In the case of Eddie's credit card, he can make monthly payments and use his available credit repeatedly. The term "flexible" also applies because Eddie has the flexibility to borrow on an ongoing basis and manage his payments based on his needs.
6. What is a regular car payment an example of?
The correct answer is a) fixed expense. A regular car payment, such as a loan or lease payment, is typically fixed, meaning the amount remains the same each month. It is a predetermined cost that does not vary, unlike a variable expense that may change from month to month.
I hope this explanation helps! Let me know if you have any more questions.