Question 1

A) Which of the following is considered a natural resource?(1 point)

food products

food products

labor

labor

capital

capital

water

water

Question 2

A) A business produces picnic tables and benches. The business currently produces 20 tables and 10 benches per week. An increase in demand for benches has the business considering a change to 15 tables and 15 benches per week. What is the trade-off the business must make?(1 point)

the difference between the profit of 20 tables and the profit of 15 tables

the difference between the profit of 20 tables and the profit of 15 tables

the difference between the profit of 10 benches and the profit of 15 benches

the difference between the profit of 10 benches and the profit of 15 benches

the choice between the net profit of the new production schedule and the net profit of the old production schedule

the choice between the net profit of the new production schedule and the net profit of the old production schedule

the choice between the cost of the new production schedule and the cost of the old production schedule

the choice between the cost of the new production schedule and the cost of the old production schedule

Question 3

A) A consumer must decide between purchasing a new television or a new computer. If the consumer chooses the television, then what is the opportunity cost of this decision?(1 point)

The opportunity cost is the difference in price between the television and computer.

The opportunity cost is the difference in price between the television and computer.

The opportunity cost is the consumer's benefit from purchasing the computer.

The opportunity cost is the consumer's benefit from purchasing the computer.

The opportunity cost is the consumer's benefit from purchasing the television.

The opportunity cost is the consumer's benefit from purchasing the television.

The opportunity cost is the difference between the benefit from purchasing the television and the benefit from purchasing the computer.

The opportunity cost is the difference between the benefit from purchasing the television and the benefit from purchasing the computer.

Question 4

A) Match the economic system to its definition.(2 points)

Put responses in the correct input to answer the question. Select a response, navigate to the desired input and insert the response. Responses can be selected and inserted using the space bar, enter key, left mouse button or touchpad. Responses can also be moved by dragging with a mouse.

traditional economy

mixed economy

market economy

command economy

an economy where culture determines both the allocation of resources and the production of goods and services

an economy where price signals, resulting from supply and demand forces within the economy, determine the allocation of resources and the production of goods and services

an economy where a central government determines both the allocation of resources and the production of goods and services

an economy that takes elements from both a market economy and a command economy to allocate resources and determine the production of goods and services

Question 5

A) Why does the government oversee the provision of public goods?(1 point)

Public goods are goods and services that are non-excludable and rivalrous. The government must oversee the fair distribution of these goods; otherwise, they would be distributed on a first-come, first-serve basis.

Public goods are goods and services that are non-excludable and rivalrous. The government must oversee the fair distribution of these goods; otherwise, they would be distributed on a first-come, first-serve basis.

Public goods are goods and services that are non-excludable and non-rivalrous; therefore, it is not profitable or in the best interest of private businesses to provide these goods.

Public goods are goods and services that are non-excludable and non-rivalrous; therefore, it is not profitable or in the best interest of private businesses to provide these goods.

Public goods are goods and services that tend to result in negative externalities; therefore, the government must oversee that the provision of these goods and services is limited.

Public goods are goods and services that tend to result in negative externalities; therefore, the government must oversee that the provision of these goods and services is limited.

Public goods and services require resources in production that are scarce; therefore, the government must ensure that production is limited.

Public goods and services require resources in production that are scarce; therefore, the government must ensure that production is limited.

Question 6

A) In the circular flow diagram, what do firms receive from product markets?(1 point)

factors of production

factors of production

money/costs

money/costs

goods and services

goods and services

revenue

revenue

Question 7

A) For a relatively elastic portion of a demand curve, a100% increase in price will be accompanied by _____.(1 point)

a percent increase in quantity demanded less than100%

, a percent increase in quantity demanded less than, 100 percent

a percent increase in quantity demanded greater than100%

a percent increase in quantity demanded greater than, 100 percent

a percent decrease in quantity demanded less than100%

a percent decrease in quantity demanded less than, 100 percent

a percent decrease in quantity demanded greater than100%

a percent decrease in quantity demanded greater than, 100 percent

Question 8

A) If income levels of consumers within a giveneconomy increase, what would happen to the demand curve for cell phones, a normal good, and the demand curve for instant noodles, an inferior good?(1 point)

The demand curve for cell phones would shift to the left, and the demand curve for instant noodles would shift to the right.

The demand curve for cell phones would shift to the left, and the demand curve for instant noodles would shift to the right.

The demand curve for cell phones would shift to the right, and the demand curve for instant noodles would shift to the left.

The demand curve for cell phones would shift to the right, and the demand curve for instant noodles would shift to the left.

The demand curve for cell phones would shift to the right, and the demand curve for instant noodles would remain unchanged.

The demand curve for cell phones would shift to the right, and the demand curve for instant noodles would remain unchanged.

The demand curves would both shift to the right.

The demand curves would both shift to the right.

Question 9

A)

Use the table to answer the question.

# of Workers	Output	Fixed Cost ($)	Variable Cost ($)	Total Revenue ($)
0	0	100	-	-
10	300	100	90	150
20	800	100	290	400
30	1,200	100	490	600
40	1,500	100	670	750

At what output level should a perfectly competitive firm choose to produce at?

(1 point)

The firm should choose to produce 1,500 units of output.

The firm should choose to produce 1,500 units of output.

The firm should choose to produce 800 units of output.

The firm should choose to produce 800 units of output.

The firm should choose to produce 1,200 units of output.

The firm should choose to produce 1,200 units of output.

The firm should choose to produce 300 units of output.

The firm should choose to produce 300 units of output.

Question 10

A) Which of the following is a primary difference between a privately held corporation and a public corporation?(1 point)

Shares of public corporations are traded on stock exchanges.

Shares of public corporations are traded on stock exchanges.

Privately held corporations may issue stock.

Privately held corporations may issue stock.

Shares of privately held corporations are traded on stock exchanges.

Shares of privately held corporations are traded on stock exchanges.

Public corporations may issue stock.

Public corporations may issue stock.

Question 11

A) How do consumer cooperatives increase consumption capabilities and purchasing power of members?(1 point)

Consumer cooperatives are capable of generating a profit which can then be distributed to their members, thus providing members with additional income to increase their consumption capabilities and purchasing power.

Consumer cooperatives are capable of generating a profit which can then be distributed to their members, thus providing members with additional income to increase their consumption capabilities and purchasing power.

Consumer cooperatives offer loans to their members at better rates, which then allows the members greater access to financial resources to increase their consumption and purchasing power.

Consumer cooperatives offer loans to their members at better rates, which then allows the members greater access to financial resources to increase their consumption and purchasing power.

Consumer cooperatives pool their resources together to purchase goods in bulk. By purchasing goods in bulk, the cost of acquiring these goods is reduced for members compared to the normal cost that an individual would face when purchasing the product.

Consumer cooperatives pool their resources together to purchase goods in bulk. By purchasing goods in bulk, the cost of acquiring these goods is reduced for members compared to the normal cost that an individual would face when purchasing the product.

The 501(c)(3) tax code allows consumer cooperatives to receive discounts on their purchases of goods.

The 501(c)(3) tax code allows consumer cooperatives to receive discounts on their purchases of goods.

Question 12

A) What is true about money?(1 point)

Money does not provide a standard unit of measurement.

Money does not provide a standard unit of measurement.

Money maintains purchasing power over time.

Money maintains purchasing power over time.

Money stays at the same value over time.

Money stays at the same value over time.

Money retains the same value permanently.

Money retains the same value permanently.

Question 13

A) 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.(1 point)

The purchasing power currencies issued by state banks varied wildly from state to state.

The purchasing power currencies issued by state banks varied wildly from state to state.

Monetary reserves decreased.

Monetary reserves decreased.

The money supply declined.

The money supply declined.

The amount of loanable funds increased.

The amount of loanable funds increased.

Land was frequently purchased with counterfeit currency.

Land was frequently purchased with counterfeit currency.

Question 14

A) An investor purchased50 shares of stock in a company in 2015. At the time the investor purchased the stock, the value of the stock was priced at$5per share. The investor sold all 50 shares of stock in 2019. The value of the stock at the time of sale was$6.50per share. What is the capital gain the investor earned on this investment?(1 point)

$325

325 dollars

$50

50 dollars

$250

250 dollars

$75

75 dollars

Question 15

A)

Using the expenditure approach, the Real GDP of a given economy was calculated as 250 million dollars in 2019. In 2020, the economy experienced the following:

• An increase of 20 million dollars in consumption.
• A decrease of 5 million dollars in investment.
• An increase of 10 million dollars in government spending.
• The value of all exports decreasedby5 million dollars.
• The value of all importsincreased 15 million dollars.

What is the Real GDP of the given economy in 2020?

(1 point)

235 million dollars

235 million dollars

255 million dollars

255 million dollars

270 million dollars

270 million dollars

295 million dollars

295 million dollars

Question 16

A) Which type of unemployment is the product ofa healthy economy?(1 point)

Unemployment as a result of people moving from one job to another.

Unemployment as a result of people moving from one job to another.

None; unemployment is the result of an unhealthy economy.

None; unemployment is the result of an unhealthy economy.

Unemployment as a result of demand for products and services decreasing.

Unemployment as a result of demand for products and services decreasing.

Unemployment as a result of a mismatch of the skills of workers and the skills needed by employers.

Unemployment as a result of a mismatch of the skills of workers and the skills needed by employers.

Question 17

A) What is true about human capital?(1 point)

Improvements to human capital leads to improvements in the welfare of consumers, but not generally to improvements in productivity.

Improvements to human capital leads to improvements in the welfare of consumers, but not generally to improvements in productivity.

Improvements to human capital leads to improvements in standard of living, but not generally to improvements in productivity.

Improvements to human capital leads to improvements in standard of living, but not generally to improvements in productivity.

Improvements to human capital leads to improvements in productivity and improvements in standard of living.

Improvements to human capital leads to improvements in productivity and improvements in standard of living.

Improvements to human capital leads to improvements in technology, but not generally to improvements in productivity.

Improvements to human capital leads to improvements in technology, but not generally to improvements in productivity.

Question 18

A) How does Medicaid compare to Medicare? Explain.(1 point)

Medicaid is funded by state governments only and provides health coverage based on financial need for people under age 65.Medicare is a federal government health-care insurance program for people 65 years or older.

Medicaid is funded by state governments only and provides health coverage based on financial need for people under age 65.Medicare is a federal government health-care insurance program for people 65 years or older.

Medicaid is funded by state and federal governments and provides health coverage based on financial need.Medicare is a federal government health-care insurance program for people 65 years or older and those with certain disabilities under age 65.

Medicaid is funded by state and federal governments and provides health coverage based on financial need.Medicare is a federal government health-care insurance program for people 65 years or older and those with certain disabilities under age 65.

Medicaid isa state government health-care insurance program for people 65 years or older.Medicare is a federal government health-care insurance program for people with certain disabilities under age 65.

Medicaid isa state government health-care insurance program for people 65 years or older.Medicare is a federal government health-care insurance program for people with certain disabilities under age 65.

Medicaid is funded by the federal government only and provides health coverage based on financial need for people under age 65.Medicare is a state government health-care insurance program for people 65 years or older.

Medicaid is funded by the federal government only and provides health coverage based on financial need for people under age 65.Medicare is a state government health-care insurance program for people 65 years or older.

Question 19

A) Were Social Security and Medicare the largest contributors of revenue for the federal government in Fiscal Year 2019? Explain.(1 point)

No, because corporate income taxes contributed about $1.242 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $230.2 billion.

No, because corporate income taxes contributed about $1.242 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $230.2 billion.

Yes, because Social Security and Medicare taxes made up more than 50% of the revenue in Fiscal Year 2019 with $1.718 trillion.

Yes, because Social Security and Medicare taxes made up more than 50% of the revenue in Fiscal Year 2019 with $1.718 trillion.

No, because individual income taxes contributed about $1.718 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $1.242 trillion.

No, because individual income taxes contributed about $1.718 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $1.242 trillion.

Yes, because Social Security and Medicare taxes contributed about$1.542 trillion in Fiscal Year 2019 while individual income taxes only contributed $1.518 trillion.

Yes, because Social Security and Medicare taxes contributed about$1.542 trillion in Fiscal Year 2019 while individual income taxes only contributed $1.518 trillion.

Question 20

A) What is the discount rate?(1 point)

The discount rate is interchangeable with prime rate, the interest rate at which financial institutions charge to its least-risky, or best, customers.

The discount rate is interchangeable with prime rate, the interest rate at which financial institutions charge to its least-risky, or best, customers.

The discount rate isthe interest rate banks charge each other for overnight and short-term lending.

The discount rate isthe interest rate banks charge each other for overnight and short-term lending.

The discount rate is the interest rate at whichthe Federal Reserve charges to financial institutions on loans issued at the discount window.

The discount rate is the interest rate at whichthe Federal Reserve charges to financial institutions on loans issued at the discount window.

The discount rate is a misnomer, as it is the interest rate at whichfinancial institutions charge to the riskiest of borrowers.

The discount rate is a misnomer, as it is the interest rate at whichfinancial institutions charge to the riskiest of borrowers.

Question 21

A) What monetary policies should the Federal Reserve enact to combat higher inflation rates for consumer goods and services?(1 point)

Enact contractionary monetary policies to increase money supply.

Enact contractionary monetary policies to increase money supply.

Enact expansionary monetary policies to increase the money supply.

Enact expansionary monetary policies to increase the money supply.

Enact contractionary monetary policies to decrease the money supply.

Enact contractionary monetary policies to decrease the money supply.

Enact expansionary monetary policies to decrease the money supply.

Enact expansionary monetary policies to decrease the money supply.

Question 22

A) If Country A uses all of the resources at its disposal, it can produce a maximum of 500 watches or 200 televisions. Within the same time frame, if Country B uses all of its resources, it can produce a maximum of 200 watches or 100 televisions. Which of the following must be true?(1 point)

Country B has the absolute advantage and the comparative advantage in watch production.

Country B has the absolute advantage and the comparative advantage in watch production.

Country A has the absolute advantage and the comparative advantage in watch production.

Country A has the absolute advantage and the comparative advantage in watch production.

Country A has the absolute advantage in watch production, but Country B has the comparative advantage in watch production.

Country A has the absolute advantage in watch production, but Country B has the comparative advantage in watch production.

Country B has the absolute advantage in watch production, but Country A has the comparative advantage in watch production.

Country B has the absolute advantage in watch production, but Country A has the comparative advantage in watch production.

Question 23

A) Which of the following will likely occur if Israel imposes a quota on automobiles imported from the United States?(1 point)

Israeli consumers will purchase more automobiles, and Israeli producers will manufacture more automobiles.

Israeli consumers will purchase more automobiles, and Israeli producers will manufacture more automobiles.

Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture fewer automobiles.

Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture fewer automobiles.

Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture more automobiles.

Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture more automobiles.

Israeli consumers will purchase more automobiles, and Israeli producers will manufacture fewer automobiles.

Israeli consumers will purchase more automobiles, and Israeli producers will manufacture fewer automobiles.

Question 24

A) Which of the following resulted from the recent renegotiation of NAFTA?(1 point)

Agricultural trade was improved across all member nations.

Agricultural trade was improved across all member nations.

A uniform currency was established for all member nations.

A uniform currency was established for all member nations.

Government contracts were offered to all members.

Government contracts were offered to all members.

The economic gap decreased between member nations.

The economic gap decreased between member nations.

Question 25

A) The United Kingdom currently has a trade deficit with New Zealand. If the U.K. pound sterling appreciates relative to the New Zealand dollar, which of the following correctly explains the effect on the trade deficit?(1 point)

The trade deficit will decrease, since an appreciating pound means fewer goods will be imported from New Zealand.

The trade deficit will decrease, since an appreciating pound means fewer goods will be imported from New Zealand.

The trade deficit will decrease, since an appreciating pound means more goods will be imported from New Zealand.

The trade deficit will decrease, since an appreciating pound means more goods will be imported from New Zealand.

The trade deficit will increase, since an appreciating pound means fewer goods will be imported from New Zealand.

The trade deficit will increase, since an appreciating pound means fewer goods will be imported from New Zealand.

The trade deficit will increase, since an appreciating pound means more goods will be imported from New Zealand.

The trade deficit will increase, since an appreciating pound means more goods will be imported from New Zealand.