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.