ECONOMICS GMAS Full Test

Which of the following would be the BEST example for the law of increasing opportunity costs?

If the US Govt purchases a submarine from a company, the govt has made a transaction in the

Higher demand for US exports will typically result in

Goods and services

Structural unemployment...

Entrepreneurship and labor interact in which of the following ways?

In the American economy, the goal of economic equity is MOST connected with

Which of the following is an investment in human capital?

Any point on the PPF

The MOST important factor affecting consumer spending is

How are public goods paid for in the U.S.?

If a nation encourages small businesses, which of the following will likely occur?

What basic economic problem do all nations have in common?

Which of the following is the MOST regressive?

Which of the following is MOST likely to cause wages to increase for US workers?

What is the unit of study in microeconomics?

Loans extended for longer periods of time often involve higher interest rates in order to

Economic system based off of producers making goods that consumers demand.

Which BEST describes the concept of regional specialization?

A type of union org where only workers with the same or similar skills eligible to be members.

Brandon had $5,000 in his saving account when his bank declared bankruptcy.

The government owns the means of production.

If a country invests in research and development, it can expect all of the following EXCEPT

A new mechanical device with a patent has only one producer.

What would cause the supply curve for wheat to shift to the right?

You decide to see a movie instead of going out to eat a meal. What is the opportunity cost?

If the FED buys bonds on the open market

What would cause the Yen to depreciate against the Euro?

Armand is a skilled carpenter from Minnesota. Why can't he work during the winter months?

When economists refer to "demand", they mean which of the following?

The BEST example of a progressive tax in the United States is

What advantage does a market economy have over a traditional economy?

Which of the following is MOST important for economic growth?

Which form of business is easiest to organize but cannot benefit from specialization?

The equilibrium price is $3 for milk. At what price would the government set a price ceiling?

Which of the following will MOST likely lead to inflation?

Kim works on an assembly line. This is an example of

Raising the minimum wage will cause

How did Bill Gates become rich?

What is the primary purpose of the North American Free Trade Agreement?

When aggregate demand exceeds aggregate supply in an economy, you will have

Land, labor, capital, and entrepreneurship payments

The minimum wage is a type of

Prices act as signals in the market because

When government spending is less than government revenue

You receive a bonus of $2000 and put it in a one-year CD with a rate of 5%. Interest earned?

Which groups is LEAST hurt by unanticipated inflation?

The U.S. has the AA in wheat and rice and China has the CA in rice. Who should produce what?

What is a disadvantage of a sole-proprietorship?

If the exchange rate is 1 US Dollar for 1.5095 Canadian, then $100 US dollars is equal to

Country X and Y will not trade shoes and wheat if which of the following is true?

Interdependence and price leadership are characteristics of firms in this market structure.

Who's job is it to control the money supply?

The Fed conducts business with

On Yap Island, large stones are used for money. How is this an example of a medium of exchange?

When the value of money was based on silver, new discoveries of silver were followed by

Which of the following would be a capital investment?

Which of the following is an attempt by a firm to increase the demand for its product?

A tariff can BEST be described as which of the following?

An economy with increasing GDP, low unemployment and low inflation.