____ 16. The Standard & Poor's 500 A. tracks price changes in more than 500 stocks as a measure of the stock market. B. insures stock market investments of $300,000 or less. C. created a system of intranets to help organize over-the-counter stock trading.

____ 17. What is an ADVANTAGE of a sole proprietorship? A. no personal liability B. unlimited access to resources C. sole receiver of profits

____ 18. A time of macroeconomic expansion followed by a time of macroeconomic contraction is A. a business cycle. B. stagflation. C. depression. ____ 19. What is the largest source of income for banks? A. interest charged on loans B. fractional reserve banking C. hedge funds

____ 20. Gross national product (GNP) - __________ is the formula for figuring net national product (NNP). A. income earned by foreign investments in the country B. depreciation of capital equipment C. gross domestic product (GDP)

____ 21. Which economic variable involves businesses increasing the goods and services they produce? A. external shocks. B. interest rates and credit. C. business investment.

____ 22. In which phase of a business cycle does real GDP stop rising? A. peak B. contraction C. expansion ____ 23. Subprime mortgages and foreclosures on home loans triggered the recession of 2008. A. true B. false

____ 24. Which type of unemployment occurs when workers' skills do not meet employers' needs? A. cyclical unemployment B. structural unemployment C. frictional unemployment

____ 25. What is the Over-the-Counter (OTC) stock market? A. trading shares of stock on the floor of a brick-and-mortar exchange building B. trading stocks directly by way of telephone or Email, rather than at an exchange C. the network of corporations that trades stock on the New York Stock Exchange

____ 26. Owners of __________ are usually voting members of a company. A. preferred stock B. common stock

____ 27. Payments of profits that a corporation makes to shareholders are A. royalties. B. bonds. C. dividends.

____ 28. Equilibrium wage is A. the wage rate when the supply of workers equals the demand for workers. B. the typical wage paid to a worker in a particular line of work. C. a comparison of wages for workers in high-risk and low-risk jobs.

____ 29. What is an example of bartering? A. paying cash for a new computer B. buying a stove with a credit card C. trading a wristwatch for a DVD

____ 30. As a labor union leader, Samuel Gompers focused on higher wages, shorter hours, and safe work environments. A. true B. false