Competition can best be described as:

• -the right to make or own economic decisions such as choosing your own career

• -the struggle among producers for consumers’ business and results in the best product at the lowest price

• -an expectation that will encourage people to behave in a certain way

• -the concept that people have the right and privilege of owning and controlling their possessions as they wish.

Competition can best be described as:

• -the right to make or own economic decisions such as choosing your own career

• -the struggle among producers for consumers’ business and results in the best product at the lowest price

• -an expectation that will encourage people to behave in a certain way

• -the concept that people have the right and privilege of owning and controlling their possessions as they wish.

The ______ the risk in the investment of savings, the ______ the possible return. The ______the risk in the investment of savings, the ______ the possible return.

• greater, lower, lower, greater• lower, greater, greater, lower• Lower, lower, greater, greater• Greater, lower, lower, lower

The ______ the risk in the investment of savings, the ______ the possible return. The ______the risk in the investment of savings, the ______ the possible return.

• greater, lower, lower, greater• lower, greater, greater, lower• Lower, lower, greater, greater• Greater, lower, lower, lower

If the technology for making communications devices increases, then

• The production of cell phones will decrease• The production of cell phones will remain the

same• The production of cell phones will increase• Technological advances in the production of

cell phones is discouraged by the US government

If the technology for making communications devices increases, then

• The production of cell phones will decrease• The production of cell phones will remain the

same• The production of cell phones will increase• Technological advances in the production of

cell phones is discouraged by the US government

What role does the US government play in the free enterprise system?

• Promote competition, regulate industry, and support stable economic growth

• Increase monopolies, fulfilling the needs of selected areas of society

• Increasing defense, social security distribution, reduction of work force

• Dispersion of education, enforcing taxation, distribution of healthcare

What role does the US government play in the free enterprise system?

• Promote competition, regulate industry, and support stable economic growth

• Increase monopolies, fulfilling the needs of selected areas of society

• Increasing defense, social security distribution, reduction of work force

• Dispersion of education, enforcing taxation, distribution of healthcare

The major categories of federal government expenditures in descending order are….

• Defense, social security, healthcare• Social security, defense, interest on the nat’l

debt• Defense, education, social security• Social security, healthcare, education

The major categories of federal government expenditures in descending order are….

• Defense, social security, healthcare• Social security, defense, interest on the nat’l

debt• Defense, education, social security• Social security, healthcare, education

Stop using credit cardspay more than the minimum each monthdo the math and lay out a planstick to the plan’s budget

What is the best title for the list above?• Eliminating credit card debt• Accruing credit card debt• Avoiding credit card debt• Becoming a high-risk borrower

Stop using credit cardspay more than the minimum each monthdo the math and lay out a planstick to the plan’s budget

What is the best title for the list above?• Eliminating credit card debt• Accruing credit card debt• Avoiding credit card debt• Becoming a high-risk borrower

Which of the following is an example of progressive taxation?

• tariffs• Social security tax• Federal income tax• Technological advances in the production of

cell phones is discouraged by the US government

Which of the following is an example of progressive taxation?

• tariffs• Social security tax• Federal income tax• Technological advances in the production of

cell phones is discouraged by the US government

Which phase of the business cycle would be most closely associated with an economic contraction?

• Peak• Expansion• Recession• Recovery

Which phase of the business cycle would be most closely associated with an economic contraction?

• Peak• Expansion• Recession• Recovery

In the recovery phase of a business cycle…

• The inflation rate decreases, but productive capacity increases

• Employment increases, but output decreases• The inflation rate and productive capacity

decrease• Employment and output increase

In the recovery phase of a business cycle…

• The inflation rate decreases, but productive capacity increases

• Employment increases, but output decreases• The inflation rate and productive capacity

decrease• Employment and output increase

Assuming the total population is 200 million, and labor force is 100 million, and 92 million workers are

employed, the unemployment rate is…

• 4%• 6%• 8%• 10%

Assuming the total population is 200 million, and labor force is 100 million, and 92 million workers are

employed, the unemployment rate is…

• 4%• 6%• 8%• 10%

Sandy buys a boat and acquires a new boat loan. The loan is for $20K at an interest rate of 6.5% and a term of 4 years. What are her payment responsibilities on

the load?• Sandy must pay the principal• Sandy must pay the principal and interest• Sandy must pay the interest for 5 years• Sandy does not have to repay the loan.

Sandy buys a boat and acquires a new boat loan. The loan is for $20K at an interest rate of 6.5% and a term of 4 years. What are her payment responsibilities on

the load?• Sandy must pay the principal• Sandy must pay the principal and interest• Sandy must pay the interest for 5 years• Sandy does not have to repay the loan.

When individuals want to borrow money, creditors judge them by their …

• Job history and marital status• Credit score and job history• Where they live• Insurance

When individuals want to borrow money, creditors judge them by their …

• Job history and marital status• Credit score and job history• Where they live• Insurance

The return on investment paid to stockholders out of a corporation’s profits is called…

• Dividends• Interest• Capital loss• Capital gain

The return on investment paid to stockholders out of a corporation’s profits is called…

• Dividends• Interest• Capital loss• Capital gain

A corporation…

• Is easier to start up than a sole proprietorship• Enjoys limited gov’t regulation and the rights

to all profits• Has limited life• Has a broader set of means for raising money

than sole proprietorship

A corporation…

• Is easier to start up than a sole proprietorship• Enjoys limited gov’t regulation and the rights

to all profits• Has limited life• Has a broader set of means for raising money

than sole proprietorship

What is one important benefit for investing in a mutual fund?

• Allows investors to create diversified investment portfolio for retirement

• Allows investors to put their money in a guaranteed no risk investment

• Allows investors to invest in a single stock or bond

• Allows investors to receive dividends on a quarterly basis

What is one important benefit for investing in a mutual fund?

• Allows investors to create diversified investment portfolio for retirement

• Allows investors to put their money in a guaranteed no risk investment

• Allows investors to invest in a single stock or bond

• Allows investors to receive dividends on a quarterly basis

The Nifty Toy company has decided to incorporate and sell stock in its corporation. Which of the following will

this action accomplish?

• Selling stock will put the corporation on the road to bankruptcy

• Selling stock will raise money, enabling the corporation to grow

• Selling stock will raise expectations for more electronics

• Selling stock will lower consumer interest in the toys

The Nifty Toy company has decided to incorporate and sell stock in its corporation. Which of the following will

this action accomplish?

• Selling stock will put the corporation on the road to bankruptcy

• Selling stock will raise money, enabling the corporation to grow

• Selling stock will raise expectations for more electronics

• Selling stock will lower consumer interest in the toys

A large number of buyers and sellers, identical products, well informed buyers and sellers, and the

ability to enter or leave the business with ease are all characteristics of …

• Monopolistic competition• Pure competition• Imperfect competition• monopolies

A large number of buyers and sellers, identical products, well informed buyers and sellers, and the

ability to enter or leave the business with ease are all characteristics of …

• Monopolistic competition• Pure competition• Imperfect competition• monopolies

What is a defining characteristic of an oligopoly?

• No product differentiation• Complete control over prices• A few sellers in an industry• Few barriers to entering the market

What is a defining characteristic of an oligopoly?

• No product differentiation• Complete control over prices• A few sellers in an industry• Few barriers to entering the market

One risk of being a sole proprietorship is…

• Stockholders have little control over operations

• Unlimited liability for all debts• Double taxation on profits• Potential for conflict among partners

One risk of being a sole proprietorship is…

• Stockholders have little control over operations

• Unlimited liability for all debts• Double taxation on profits• Potential for conflict among partners

All of the following are non-price determinants that create changes in demand EXCEPT…

• Consumer income• Consumer taste or preference• Cost of inputs• Expectations of future prices or availablilty

All of the following are non-price determinants that create changes in demand EXCEPT…

• Consumer income• Consumer taste or preference• Cost of inputs• Expectations of future prices or availablilty

Assume that consumers consider butter and bread complementary goods. If the price of bread increases by 25%, what will be the expected consequence for

butter?• The demand for butter should increase• The demand for butter should decrease• The demand for butter remains the same• The price of butter should decrease

Assume that consumers consider butter and bread complementary goods. If the price of bread increases by 25%, what will be the expected consequence for

butter?• The demand for butter should increase• The demand for butter should decrease• The demand for butter remains the same• The price of butter should decrease

Which of the following exemplifies monopolistic market structure?

• Large number of sellers, substantial barriers to entry, some control over price

• One seller, no opportunity to enter the market, complete control over price

• Large number of sellers, few barriers to entry, no control over price

• A few sellers, substantial barriers to entry, some control over price.

Which of the following exemplifies monopolistic market structure?

• Large number of sellers, substantial barriers to entry, some control over price

• One seller, no opportunity to enter the market, complete control over price

• Large number of sellers, few barriers to entry, no control over price

• A few sellers, substantial barriers to entry, some control over price.

Zoning lawsordinancesregulating noisebuilding safety and sanitationpreservation of historic buildings

Which of the following is the best title for the list above

• Gov’t restrictions placed on businesses• Costs and benefits of business property• Monopolistic competition• Economic interdependence

Zoning lawsordinancesregulating noisebuilding safety and sanitationpreservation of historic buildings

Which of the following is the best title for the list above

• Gov’t restrictions placed on businesses• Costs and benefits of business property• Monopolistic competition• Economic interdependence

According to the law of supply…

• The quantity of a product supplied will decrease as buyers’ incomes decrease

• Producers will not supply a product if there is an opportunity cost attached to acquiring the product

• There is a direct relationship between the price of a product and the quantity of the product supplied

• There is an inverse relationship between the price of a product and the quantity of the product supplied

According to the law of supply…

• The quantity of a product supplied will decrease as buyers’ incomes decrease

• Producers will not supply a product if there is an opportunity cost attached to acquiring the product

• There is a direct relationship between the price of a product and the quantity of the product supplied

• There is an inverse relationship between the price of a product and the quantity of the product supplied