12 Economic Questions! Urgent!?

Economic pre-test questions that I wasn't sure of. Need for studying.


1.) Your friend wants to open a clothing shop. A necessary capital resource is a
place to open the shop.
knowledgeable fashion manager.
license to conduct business.
highway billboard for advertising.

2.) When price increases, quantity supplied
stays the same.
decreases.
increases.
becomes zero.

3.) Quantity demanded is the quantity
customers will purchase at a specific point in time.
producers will sell at a specific price.
government demands to be produced.
people will purchase at a specific price.

4.) Assets include a person's
valuable physical goods.
taxes owed for business.
capital investments.
business profits.

5.) An example of a product with a monopolistically competitive market is
oil.
apples.
clothing.
government services.

6.) A job's pay is mostly determined by the
government.
cost of the product.
supply and demand for the work.
personal preferences of the company owner.

7.) Which of the following is not a goal of fiscal policy?
price stability
full employment
economic growth
increase currency

8.) Economists believe that having some inflation is a
healthy sign of economic growth.
warning sign of coming economic decline.
signal to political leaders to increase taxes.
problem only for those living in poverty.

9.) Income tax is an example of
a direct tax.
the cost of banking.
wealth distribution.
a flat tax.

10.) Banks that are members of the Federal Reserve have the benefit of
earning dividends from stock in the Federal Reserve.
voting rights on the Federal Open Market Committee.
appointment rights to the Board of Governors.
priority access to check-clearing services.

11.) A soda company wishes to build a bottling plant in your community. Which externality is most likely to convince lawmakers to allow the company to build their plant?
The plant will place most of the soda in local stores, possibly increasing tax revenue.
The company owners pledge to build a plant that runs on renewable energy sources.
The plant will hire hundreds of workers, encouraging an increase in local business.
The company will need to purchase trucks to deliver the soda bottles to retailers

12.) Adam Smith would most likely oppose a plan for
reducing taxes on the largest corporations.
government bailouts for failing corporations.
eliminating barriers to trade with other countries.
setting a minimum wage for all workers in the country.