Select the best answer.

Your _____ history will determine if you are able to purchase somebig-ticket items.

insurance

banking

credit

income

2.

Select the best answer.

Who was the major obstacle to the spread of banking in Europe during the 1500s?

the Roman Catholic Church

peasants

the King

Vikings

merchants

3.

Select the best answer.

What is the importance of Karl Marx and Friedrich Engels?

They were part of the British Labour Party after World War I and pushed for amixed economic system

They were instrumental in creating the basic ideas of a market economy.

They wrote books describing the difficult lives of those in a traditional economicsystem in rural Vietnam.

They preached the idea that capitalism was inherently flawed and that society will only improve when the workers take control of the economy.

They invented the rst measurement of economic performance.

4.

Select the best answer.

Karl Marx and Friedrich Engels believed that ________ was(were) wrong and thatworkers should control the economy.

labor parties

socialism

communism

capitalism

5.

Select the best answer.

The Federal Reserve bank responsible for beginning all Fed policy is based out of ___.

New York

San Francisco

Richmond

Dallas

Cleveland

6.

What was NOT a part of Hamilton's economic plan?

creation of a national bank

passage of a tax on alcohol (whiskey)

paying off all debt plus interest

creation of a new set of bank notes

passage of a tariff

7.

Select the best answer.

Goods are sold for illegally high prices in _____ markets outside ofgovernment supervision.

parallel

socialist

black

international

8.

Select the best answer.

Which is NOT a component of the free enterprise system?

competition

freedom from all government involvement

private property

the pursuit of profit

the right to choose

9.

Select the best answer.

One benefit of banks is that individuals create large pools of ________.

interest

forclosures

capital

transactions

10.

Select the best answer.

The importance of the right to private property is the ability to ___.

create social status

call property your own

contribute to political campaigns

make profit in the sale or operation of private property

have a place to call home

11.

Which of these would NOT add to the GDP of the United States?

a Japanese-based television company in San Jose, California

a Mexican-based fast food restaurant in Little Rock, Arkansas

an American-based car company in Mobile, Alabama

an American-based investment rm in Switzerland

12.

Match the U.S. Presidents with the statements.

This Antifederalist feared that there wasinherent danger in a large government.

When the Great Depression began, he wasPresident of the United States.

He expanded the government's power toempower labor unions, protect consumers,and fight trusts.

As a Federalist, he argued for a largergovernment.

This President and his New Deal programswere most responsible for the growth ofpublic works in U.S. history.

Herbert Hoover

Thomas Jefferson

Theodore Roosevelt

Alexander Hamilton

Franklin Roosevelt

13.

Select the best answer.

The Phillips Curve highlights the relationship between ___.

the unemployment rate and real GDP

the ination and unemployment rates

the real wage rate and the price of natural resources

the ination rate and net exports

the wage rate and real GDP

14.

Select the best answer.

The amount of a good or service that producers are willing and able to provide to consumersis ______.

an account

a stockpile

supply

demand

15.

Select the best answer.

_______ life insurance will only pay a benefit if the insured person dieswithin a certain time period.

Term

Whole

Generational

Stage

16.

Select the best answer.

A(n) ________ loan must be repaid after a student finishes attending college.

commercial

federal

auto

mortgage

17.

Select the best answer.

A(n) ___ occurs when a business increases its facilities and workforce by the samepercentage and output increases by a larger margin while costs decrease.

economy of scale

explicit cost

fixed cost

negative marginal return

diseconomy of scale

18.

Select the best answer.

Which answer is NOT a factor that can change demand?

natural and man-made disasters

income

expectations

buyers and price

tastes and preferences

19.

Match the types of unemployment with the statements.

---------loss of jobs congruent with the business cycle and itsuctuations

----------the result of natural turnover of workers entering andleaving the work force or changing jobs for reasonsother than being fired or laid off

-----------Changes in technology or competition make some jobsobsolete or require employees to have new skills to dothe job.

----------unemployment rate when the economy is at full employment

-----------the result of losing work associated with a particulartime of the year

cyclical unemployment

natural unemployment rate

structural unemployment

frictional unemployment

seasonal unemployment

20.

Select the best answer.

Which type of relationship do the two factors of the Phillips Curve have?

adjacent

symbiotic

inverse

complementary

parallel

21.

Select the best answer.

A(n) ______ might be used to prevent unhealthy products from entering acountry.

embargo

prohibition

precept

injunction

22.

Select the best answer.

When one company can offer a product at a lower price than other companies dueto some advantage, it is said that it can create a ___.

cartel

business-created monopoly

legal monopoly

natural monopoly

scenario of perfect competition

23.

Select the best answer.

In October 2010, the amount of money held by individuals and companies was$987.1 billion; checkable deposits owed by individuals and companies were $567.3billion; money market funds were $1.045 trillion; savings deposits were $562.3 billion;time deposits were $324.2 billion.

What was the M1 amount in October 2010?

$543.2 billion

$3.55 trillion

$2.32 trillion

$983.2 billion

$1.55 trillion

24.

Select the best answer.

Which of these represents things you miss out on when you decide to spend yourmoney on something else?

opportunity cost

scarcity

debt

rational choice

economic perspective

25.

Select the best answer.

The concept of a double coincidence of wants is the instrumental part of ___.

capitalism

communism

self-interest

the proletariat

the barter system

26.

Select the best answer.

The quality change effect is a _____ that can impact the consumerprice index.

resource

cycle

discount determinant

bias

Match the concepts with the statements.

---------This investment was created to helpinvestors pool money and benefit fromprofessional money managers.

-------This is offered by banks to help smallbusinesses begin or expand.

--------A basket of investments can be traded justlike stocks.

-------This type of loan charges the same rateand payments for the life of the loan.

-------Individuals with earned income use thisto make tax-deferred investments forretirement.

standard fixed-rate loan

commercial loan

individual retirement account

exchange-traded fund

mutual funds

Select the best answer.

The new federal ______ goes into effect each year on October 1st.

recess

amendments

tax rate

budget

30.

Choose the best answer.

The Free Application for Federal Student Aid is the best way to pursue _______aid for college expenses.

private

individual school

state

federal

31.

Select the best answer.

The Articles of _____ was the rst constitution of the United States that gavemore power to the states and left the federal government weak.

Constitution

Democracy

Confederation

Colonialism

32.

Select the best answer.

A change of price of one good that affects demand for a similar good is the_____ effect.

escalation

progression

substitution

inflation

33.

Select the best answer.

Which answer is NOT characteristic of a command economic system?

a totalitarian style of government

government forbidding ownership of private property and resources

a limited availability of goods

encouragement of the pursuit of wealth

34.

Select the best answer.

An example of ___ is increasing government spending.

property rights

a balanced budget

expansionary fiscal policy

competition

contractionary fiscal policy

35.

Select the best answer.

The federal government has insured ___ loans since they were created as part of aNew Deal program.

standard fixed-rate

flexible-rate

VA

FHA

36.

Select the best answer.

President Andrew Jackson wanted to get rid of the Bank of the United Statesbecause ___.

it had lost over $5 million over the last two years

it was not answerable to the public and had become too powerful

it was making the United States weak in the face of foreign threats

Nicholas Biddle had publicly ridiculed President Jackson

the bank president, Nicholas Biddle, was corrupt

37.

Select the best answer.

A(n) ______ traded company issues shares of ownership throughstock offerings.

locally

privately

government

publicly

40.

Select the best answer.

What aspect of government spending recently increased greatly in the spring of 2010?

education spending

military defense spending

welfare spending

foreign aid spending

healthcare spending

41.

Select the best answer.

The _____ price is the point where quantity demanded and quantitysupplied are equal.

equilibrium

variable

maximum

minimal

42.

An increase in demand for a good related to an increase in income is characteristic of a(n)_____ good.

inferior

normal

luxury

necessity

44.

Select the best answer.

A worker leaving a rural job as crop prices decline during an economic downturn isan example of ___ unemployment.

cyclical

seasonal

frictional

structural

45.

Select the best answer.

Which of these is the purpose of the circular ow model?

to tell the government when to place more money into circulation

to emphasize the need for more government control over the economy

to highlight who owes whom money in the form of taxes

none of these

to show the ow of money throughout the economy

46.

Choosethe best answers.

_____student loans do not have to be repaid until after a studentfinishes attending college.

Commercial

Consumer

Federal

Mortgage

47.

Select the best answer.

A medium of _______ is something accepted in return for a goodor service.

exchange

quality

account

valuation

48.

Select the best answer.

Which of the following would most likely be subject to a sin tax?

sports purchases

televisions

candy

furniture

automobiles

49.

Select the best answer.

_______ is a period when the economy and GDP begin to improve and grow.It is characterized by lower unemployment, an increase in consumption and investment, andbanks willing to loan money.

Demand

Expansion

Domestication

Advancement

50.

Select the best answer.

The wages paid to employees are an example of a(n) _____ cost.

implicit

taxable

deferred

explicit