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TCI Newest
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1
The three fundamental economic questions are what to produce, ___________, and for whom.
when
where
how
why
2
Which of these would most likely increase the supply of soccer balls?
a transportation strike
an increase in the supply of tennis balls
a decrease in the price of raw materials
a government excise tax
3
What is the best title for the list below?
Entrepreneur
Laborer
Investor
Capitalist
4
Which kind of economy is most common today?
mixed
market
command
traditional
5
In a market with perfect competition, how are prices determined?
by cultural ideals of fairness
by government regulation
by supply and demand
by agreement among producers
6
Which of these situations best illustrates market equilibrium?
Everyone who wants or needs soap can easily afford to buy it.
The price of soap does not vary much from week to week.
The amount of soap made matches the amount of soap that people want to buy.
Soap production ensures a good profit for the manufacturer.
7
In the circular flow model, which of these is a factor payment?
the check someone writes to buy groceries
the hourly wage a store pays to a clerk
the monthly mortgage on a house
the credit card charge for ordering games online
8
Why are tradeoffs necessary?
People want different things.
Every product has flaws
Advertisers promote products.
Resources are limited.
9
How do state and local governments typically generate revenue to pay for education, police, & fire protection services?
property and sales taxes
corporate and business taxes
payroll and insurance taxes
lotteries and municipal bonds
10
The main function of a bank is to bring together
officers and customers.
cash and currency.
savers and borrowers.
risk and reward
11
Most sales taxes are regressive because
poor spend larger proportion income on taxable goods and services than rich
wealthy pay less tax on a purchase than poor ppl would pay on the same item
most people can't afford such luxury goods as yachts, furs & diamonds
taxable purchases are capped at $50,000 a year.
12
Food stamps, the Earned Income Tax Credit, and unemployment insurance are examples of
regulatory capture.
negative externalities.
natural monopolies.
income redistribution.
13
In which market structure do producers have the most market power?
monopolistic competition
perfect competition
monopoly
oligopoly
14
The majority of economists support
trade restrictions.
import quotas.
free trade.
trade embargoes.
15
Which term best describes the fact that we depend on others to produce most of the goods and services we want?
division of technology
economic interdependence
commercial productivity
absolute advantage
16
Quantity demanded moves along the demand curve in response to changes in
preferences.
income.
price.
expectations.
17
Econ of scale affect the market for electric power in a community because it costs more for 2 companies so there is 1.
True
False
18
Which of these has the most responsibility for monetary policy?
United States Congress
Department of the Treasury
New York Stock Exchange
Federal Reserve Board
19
Which scenario best illustrates the law of diminishing marginal utility?
A new toy is less fun to a kid with many than to a kid with just a few.
A collector of China figurines is eager to get a new one.
Someone who doesn't listen to music does not care about getting a new CD.
A car breaks down more o8en as it gets older.
20
What does it mean to say that Jen has a comparative advantage over Julian for weeding people’s gardens?
Jen weeds more quickly than Julian does.
Jen's opportunity cost for weeding is lower than Julian's.
Jen's expertise at weeding is greater than Julian's.
Jen can charge more for weeding than Julian can.
21
An attempt to influence another country’s politics is the most common motive for which form of protectionism?
embargo
voluntary restraint
protective tariff
quota
22
What is the advantage of investing in a mutual fund compared to buying a single stock?
The government regulates mutual funds, but not stocks.
Mutual funds guarantee principal.
Diversification reduces risk.
Mutual funds bring higher returns.
23
The U.S. Patent and Trademark Office was established to protect
public use property.
corporate property.
inherited property.
intellectual property.
24
Which service is counted as a U.S. export?
A Dutch family hosts a high school student from the United States.
A German student pays tuition to attend college in the United States.
A U.S. business traveler stays at a hotel in Australia.
A French movie aDracts large crowds at U.S. theaters.
25
A decline in economic activity over a period of at least six months is called a
depression.
recession.
panic.
contraction.
26
Which statement is the best example of thinking at the margin?
John has six shirts and is trying to decide whether to buy a seventh.
Mary observes that the average cost of shoes is higher than last year.
Jane wants to buy a car but decides she cannot afford the insurance.
David decides to volunteer this summer instead of working for pay.
27
Which of these is the best example of an externality?
You decide to stop snacking between meals.
Your new bicycle goes faster than you expected.
Your shoe store stops selling your favorite style.
You enjoy looking at your neighbor's garden.
28
What will happen to the demand for swim wear in a clothing store when blizzards keep customers at home?
The demand curve shifts to the right.
The demand curve shifts to the left.
The demand curve becomes flatter.
The demand curve becomes steeper.
29
Which of these terms is most closely related to tradeoffs?
incentives
scarcity
markets
margin
30
Which event in Florida and California would most likely shift the supply curve for orange juice to the le8?
an influx of new low-wage workers
an early frost accompanied by ice storms
evidence that citrus fruit strengthens bones
rise of mango juice as a popular breakfast drink
31
In the summer picnic season, a sharp rise in the price of burgers may lead to an increase in demand for
relish.
buns
hot dogs.
ketchup.
32
Which of these taxes is the leading source of revenue for the federal government?
inheritance taxes
corporate income taxes
payroll taxes
individual income taxes
33
Establishment of which regulatory agency is associated with a 60 percent drop in workplace fatalities since 1971?
Consumer Product Safety Commission
Environmental Protection Agency
Occupational Safety and Health Administration
National Highway Traffic Safety Administration
34
Which is the best example of specialization?
An assistant in a tailoring shop only replaces zippers.
An online clothing outlet offers customized monograms.
A surf shop lowers the price on swimsuits.
A dry cleaner spends extra time on grease spots.
35
When Amy returns a good library book without finishing it so she won’t have to pay a late fee, what is her opp. cost?
paying the fee
finishing the book
reading a different book
paying for something else
