1. Competition can best be described as:
-the right to make or own economic decisions such as choosing your own career
-the struggle among producers for consumers’ business and results in the best product at the lowest price
-an expectation that will encourage people to behave in a certain way
-the concept that people have the right and privilege of owning and controlling their possessions as they wish.

2. Competition can best be described as:
-the right to make or own economic decisions such as choosing your own career
-the struggle among producers for consumers’ business and results in the best product at the lowest price
-an expectation that will encourage people to behave in a certain way
-the concept that people have the right and privilege of owning and controlling their possessions as they wish.

3. greater, lower, lower, greater lower, greater, greater, lower
The ______ the risk in the investment of savings, the ______ the possible return. The ______the risk in the investment of savings, the ______ the possible return.
greater, lower, lower, greater
lower, greater, greater, lower
Lower, lower, greater, greater
Greater, lower, lower, lower

4. greater, lower, lower, greater lower, greater, greater, lower
The ______ the risk in the investment of savings, the ______ the possible return. The ______the risk in the investment of savings, the ______ the possible return.
greater, lower, lower, greater
lower, greater, greater, lower
Lower, lower, greater, greater
Greater, lower, lower, lower

5. If the technology for making communications devices increases, then
The production of cell phones will decrease
The production of cell phones will remain the same
The production of cell phones will increase
Technological advances in the production of cell phones is discouraged by the US government

6. If the technology for making communications devices increases, then
The production of cell phones will decrease
The production of cell phones will remain the same
The production of cell phones will increase
Technological advances in the production of cell phones is discouraged by the US government

7. What role does the US government play in the free enterprise system?
Promote competition, regulate industry, and support stable economic growth
Increase monopolies, fulfilling the needs of selected areas of society
Increasing defense, social security distribution, reduction of work force
Dispersion of education, enforcing taxation, distribution of healthcare

8. What role does the US government play in the free enterprise system?
Promote competition, regulate industry, and support stable economic growth
Increase monopolies, fulfilling the needs of selected areas of society
Increasing defense, social security distribution, reduction of work force
Dispersion of education, enforcing taxation, distribution of healthcare

9. Defense, social security, healthcare
The major categories of federal government expenditures in descending order are….
Defense, social security, healthcare
Social security, defense, interest on the nat’l debt
Defense, education, social security
Social security, healthcare, education

10. Defense, social security, healthcare
The major categories of federal government expenditures in descending order are….
Defense, social security, healthcare
Social security, defense, interest on the nat’l debt
Defense, education, social security
Social security, healthcare, education

11. What is the best title for the list above?
Stop using credit cards pay more than the minimum each month do the math and lay out a plan stick to the plan’s budget
What is the best title for the list above?
Eliminating credit card debt
Accruing credit card debt
Avoiding credit card debt
Becoming a high-risk borrower

12. What is the best title for the list above?
Stop using credit cards pay more than the minimum each month do the math and lay out a plan stick to the plan’s budget
What is the best title for the list above?
Eliminating credit card debt
Accruing credit card debt
Avoiding credit card debt
Becoming a high-risk borrower

13. Which of the following is an example of progressive taxation?
tariffs
Social security tax
Federal income tax
Technological advances in the production of cell phones is discouraged by the US government

14. Which of the following is an example of progressive taxation?
tariffs
Social security tax
Federal income tax
Technological advances in the production of cell phones is discouraged by the US government

15. Peak Expansion Recession Recovery
Which phase of the business cycle would be most closely associated with an economic contraction?
Peak
Expansion
Recession
Recovery

16. Peak Expansion Recession Recovery
Which phase of the business cycle would be most closely associated with an economic contraction?
Peak
Expansion
Recession
Recovery

17. In the recovery phase of a business cycle…
The inflation rate decreases, but productive capacity increases
Employment increases, but output decreases
The inflation rate and productive capacity decrease
Employment and output increase

18. In the recovery phase of a business cycle…
The inflation rate decreases, but productive capacity increases
Employment increases, but output decreases
The inflation rate and productive capacity decrease
Employment and output increase

19. Assuming the total population is 200 million, and labor force is 100 million, and 92 million workers are employed, the unemployment rate is… 4% 6% 8%
10%

20. Assuming the total population is 200 million, and labor force is 100 million, and 92 million workers are employed, the unemployment rate is… 4% 6% 8%
10%

21. Sandy must pay the principal Sandy must pay the principal and interest
Sandy buys a boat and acquires a new boat loan. The loan is for $20K at an interest rate of 6.5% and a term of 4 years. What are her payment responsibilities on the load?
Sandy must pay the principal
Sandy must pay the principal and interest
Sandy must pay the interest for 5 years
Sandy does not have to repay the loan.

22. Sandy must pay the principal Sandy must pay the principal and interest
Sandy buys a boat and acquires a new boat loan. The loan is for $20K at an interest rate of 6.5% and a term of 4 years. What are her payment responsibilities on the load?
Sandy must pay the principal
Sandy must pay the principal and interest
Sandy must pay the interest for 5 years
Sandy does not have to repay the loan.

23. When individuals want to borrow money, creditors judge them by their …
Job history and marital status
Credit score and job history
Where they live
Insurance

24. When individuals want to borrow money, creditors judge them by their …
Job history and marital status
Credit score and job history
Where they live
Insurance

25. Dividends Interest Capital loss Capital gain
The return on investment paid to stockholders out of a corporation’s profits is called…
Dividends
Interest
Capital loss
Capital gain

26. Dividends Interest Capital loss Capital gain
The return on investment paid to stockholders out of a corporation’s profits is called…
Dividends
Interest
Capital loss
Capital gain

27. Is easier to start up than a sole proprietorship
A corporation…
Is easier to start up than a sole proprietorship
Enjoys limited gov’t regulation and the rights to all profits
Has limited life
Has a broader set of means for raising money than sole proprietorship

28. Is easier to start up than a sole proprietorship
A corporation…
Is easier to start up than a sole proprietorship
Enjoys limited gov’t regulation and the rights to all profits
Has limited life
Has a broader set of means for raising money than sole proprietorship

29. What is one important benefit for investing in a mutual fund?
Allows investors to create diversified investment portfolio for retirement
Allows investors to put their money in a guaranteed no risk investment
Allows investors to invest in a single stock or bond
Allows investors to receive dividends on a quarterly basis

30. What is one important benefit for investing in a mutual fund?
Allows investors to create diversified investment portfolio for retirement
Allows investors to put their money in a guaranteed no risk investment
Allows investors to invest in a single stock or bond
Allows investors to receive dividends on a quarterly basis

31. Selling stock will put the corporation on the road to bankruptcy
The Nifty Toy company has decided to incorporate and sell stock in its corporation. Which of the following will this action accomplish?
Selling stock will put the corporation on the road to bankruptcy
Selling stock will raise money, enabling the corporation to grow
Selling stock will raise expectations for more electronics
Selling stock will lower consumer interest in the toys

32. Selling stock will put the corporation on the road to bankruptcy
The Nifty Toy company has decided to incorporate and sell stock in its corporation. Which of the following will this action accomplish?
Selling stock will put the corporation on the road to bankruptcy
Selling stock will raise money, enabling the corporation to grow
Selling stock will raise expectations for more electronics
Selling stock will lower consumer interest in the toys

33. Monopolistic competition Pure competition Imperfect competition
A large number of buyers and sellers, identical products, well informed buyers and sellers, and the ability to enter or leave the business with ease are all characteristics of …
Monopolistic competition
Pure competition
Imperfect competition
monopolies

34. Monopolistic competition Pure competition Imperfect competition
A large number of buyers and sellers, identical products, well informed buyers and sellers, and the ability to enter or leave the business with ease are all characteristics of …
Monopolistic competition
Pure competition
Imperfect competition
monopolies

35. What is a defining characteristic of an oligopoly?
No product differentiation
Complete control over prices
A few sellers in an industry
Few barriers to entering the market

36. What is a defining characteristic of an oligopoly?
No product differentiation
Complete control over prices
A few sellers in an industry
Few barriers to entering the market

37. One risk of being a sole proprietorship is…
Stockholders have little control over operations
Unlimited liability for all debts
Double taxation on profits
Potential for conflict among partners

38. One risk of being a sole proprietorship is…
Stockholders have little control over operations
Unlimited liability for all debts
Double taxation on profits
Potential for conflict among partners

39. Consumer taste or preference Cost of inputs
All of the following are non-price determinants that create changes in demand EXCEPT…
Consumer income
Consumer taste or preference
Cost of inputs
Expectations of future prices or availablilty

40. Consumer taste or preference Cost of inputs
All of the following are non-price determinants that create changes in demand EXCEPT…
Consumer income
Consumer taste or preference
Cost of inputs
Expectations of future prices or availablilty

41. The demand for butter should increase
Assume that consumers consider butter and bread complementary goods. If the price of bread increases by 25%, what will be the expected consequence for butter?
The demand for butter should increase
The demand for butter should decrease
The demand for butter remains the same
The price of butter should decrease

42. The demand for butter should increase
Assume that consumers consider butter and bread complementary goods. If the price of bread increases by 25%, what will be the expected consequence for butter?
The demand for butter should increase
The demand for butter should decrease
The demand for butter remains the same
The price of butter should decrease

43. Which of the following exemplifies monopolistic market structure?
Large number of sellers, substantial barriers to entry, some control over price
One seller, no opportunity to enter the market, complete control over price
Large number of sellers, few barriers to entry, no control over price
A few sellers, substantial barriers to entry, some control over price.

44. Which of the following exemplifies monopolistic market structure?
Large number of sellers, substantial barriers to entry, some control over price
One seller, no opportunity to enter the market, complete control over price
Large number of sellers, few barriers to entry, no control over price
A few sellers, substantial barriers to entry, some control over price.

45. Which of the following is the best title for the list above
Zoning laws ordinances regulating noise building safety and sanitation preservation of historic buildings
Which of the following is the best title for the list above
Gov’t restrictions placed on businesses
Costs and benefits of business property
Monopolistic competition
Economic interdependence

46. Which of the following is the best title for the list above
Zoning laws ordinances regulating noise building safety and sanitation preservation of historic buildings
Which of the following is the best title for the list above
Gov’t restrictions placed on businesses
Costs and benefits of business property
Monopolistic competition
Economic interdependence

47. According to the law of supply…
The quantity of a product supplied will decrease as buyers’ incomes decrease
Producers will not supply a product if there is an opportunity cost attached to acquiring the product
There is a direct relationship between the price of a product and the quantity of the product supplied
There is an inverse relationship between the price of a product and the quantity of the product supplied

48. According to the law of supply…
The quantity of a product supplied will decrease as buyers’ incomes decrease
Producers will not supply a product if there is an opportunity cost attached to acquiring the product
There is a direct relationship between the price of a product and the quantity of the product supplied
There is an inverse relationship between the price of a product and the quantity of the product supplied