Question 2 (Multiple Choice Worth 4 points)
(05.03 LC) Which of the following statements reflects the broad economic goal of equity?
Congress increasing funding for space exploration in order to boost high-tech employment and develop new technologies
Removing funding from public universities that refuse to accept women, minorities, or economically disadvantaged applicants as students
The National Park Service maintaining a program of controlled fires to burn off undergrowth and keep wildfires from happening
The president speaking about economic opportunities in giving better trade status to countries with command economies
Question 3 (Multiple Choice Worth 4 points)
(05.05 MC) Global Free Trade Zones Public Domain Supporters of free trade zones would most likely argue that this map demonstrates how free trade
breaks down barriers among nations
encourages the spread of industrialization
expands national boundaries
reduces the influence of command economies
Question 4 (Multiple Choice Worth 4 points)
(03.04 MC) The Starfire Coffee chain was the only coffee-shop chain and meeting place in many American cities for more than 12 years. People paid $5 for a mug of peppermint coffee and the experience of sitting in front of a roaring fire, chatting with friends. Twelve years after Starfire’s appearance, a similar coffee-shop chain, Reindeer Brews, entered the marketplace. Reindeer charges $3 for a mug of hot cocoa and a similar community experience. How would you characterize this scenario?
Non-price competition in a monopolistic market
Non-price competition in a purely competitive market
Price competition in a monopolistically competitive market
Price competition in a purely competitive market
Question 5 (Multiple Choice Worth 4 points)
(01.04 MC) © 2013 FLVS A game store sells the latest Dungeoncrawl game at the suggested retail value. Initially, the game sells well, until a combination of bad reviews and word of mouth reduce demand drastically. What should the store do to sell the remaining Dungeoncrawl games?
Buy more Dungeoncrawl games from the supplier.
Increase the price to increase demand.
Keep the price the same until demand goes up again.
Reduce the price until the games are sold.
Question 6 (Multiple Choice Worth 4 points)
(05.04 MC) © 2013 FLVS Based on this chart, which statement is true?
Saudi Arabia has an absolute advantage over the other countries in lumber production.
Russia has an absolute advantage over the other countries in oil production.
The United States has a comparative advantage over Russia in oil production.
Venezuela has a comparative advantage over Canada in oil production.
Question 7 (Multiple Choice Worth 4 points)
(03.02 MC) Niall wants to expand his science-fiction webzine to provide academic articles on science used in science fiction. He hires four new articles editors, as well as a copy editor. He also replaces his old webmaster. Niall is increasing which resource?
Question 8 (Multiple Choice Worth 4 points)
(03.05 MC) Marginal Cost Analysis Graph © Jarry1250 2010 Creative Commons Attribution-Share Alike 3.0 Unported Trevor’s company makes fine chocolates. He has figured out how to maximize his profit. What letter on the graph represents Trevor’s situation?
Question 9 (Multiple Choice Worth 4 points)
(03.06 MC) © 2013 FLVS Sayuri’s Asian Café makes the best pot stickers in town. Sayuri tracks her production over the course of seven days. What would explain the low production on days 4 and 5?
A new hire was being trained to make pot stickers.
Sayuri bought a better pot sticker machine.
The chef increased his pot sticker production.
Sayuri lowered the price of her pot stickers.
Question 10 (Multiple Choice Worth 4 points)
(05.02 HC) Country A has an absolute command economy. Country B has a mixed economy and a population that favors market trade. Both want to increase trade to generate more wealth. Which action would Country B most likely take that Country A would not?
Impose stricter divisions of labor
Increase production quotas
Loosen certain trade regulation
Permit limited private ventures
Question 11 (Multiple Choice Worth 4 points)
(03.04 MC) Which of these businesses are in monopolistic competition?
Two clothing shops, one selling women’s clothing and the other selling kids’ clothing
Two agricultural producers, each selling a variety of kinds of citrus fruit
Two pet stores, one of which sells dog products and the other of which sells bird products
Two phone providers, each offering benefits to customers who switch to its service
Question 12 (Multiple Choice Worth 4 points)
(05.01 MC) © 2013 FLVS Given this statement, Adam Smith would be most likely to oppose
encouraging trade competition
getting rid of trade tariffs
removing farm subsidies
using taxes to help failing banks
Question 13 (Multiple Choice Worth 4 points)
(05.02 MC) © 2013 FLVS Given the data in the chart, which of the following statements is true?
Australia is more developed than the United States.
China and Ecuador are more developed than Australia.
India and Namibia are less developed than Russia.
The United States is less developed than India.
Question 14 (Multiple Choice Worth 4 points)
(05.04 MC) © 2013 FLVS Given the data in the chart above, which of the following statements is true?
France has a comparative advantage in olive oil production.
Greece has an absolute advantage in wine and olive oil production.
Greece has a comparative advantage in wine production.
Italy has an absolute advantage in wine and olive oil production.
Question 15 (Multiple Choice Worth 4 points)
(05.05 LC) Diplomatic relations have broken down between the United States and another nation. To punish the other nation for treaty violations, the U.S. government bans all trade with that nation. This is an example of which kind of trade barrier?
Question 16 (Multiple Choice Worth 4 points)
(03.03 MC) Bill and his wife, Vickie, want to start a company that develops training sessions for corporate clients. They would like to share the decisions, have few start-up costs, and protect their personal assets. Which of these would suit their needs best?
Limited liability corporation
Question 17 (Multiple Choice Worth 4 points)
(01.06 HC) © 2013 FLVS Look at the graph. A medical device company is selling a new diagnostic tool at the equilibrium price of $15. The company hires a marketing firm to run an advertising campaign to publicize recent positive findings regarding the effectiveness of the tool. Based on the graph, what would be the result?
A new equilibrium point, because the demand would increase
A shortage, because the price is higher than equilibrium price
A surplus, because the price is higher than equilibrium price
Selling fewer devices, because demand would decrease
Question 18 (Multiple Choice Worth 4 points)
(03.06 MC) Rod has a business making silver and gold jewelry charms in the shapes of molecules. He has five metalsmiths who work for him. One week, his production possibilities curve shifts inward. What could explain this shift?
A prominent actor begins displaying one of Rod’s jewelry charms.
Rod hires two new metalsmiths, and they increase his production.
The price of gold decreases, allowing Rod to increase his gold supply.
Two metalsmiths catch a viral infection and take sick days.
Question 19 (Multiple Choice Worth 4 points)
(05.06 LC) Which of the following is a potential benefit of inflation?
Less government revenue
More business profits
Question 20 (Multiple Choice Worth 4 points)
|Elemetary school teacher||$40,000|
|Construction project manager||$72,000|
Based on the charted data, which of these statements is true?
An elementary school teacher is in higher demand than a registered nurse.
Society values registered nurses more than construction project managers.
Being an attorney requires more education than being an administrative assistant.
There are more construction project managers than elementary school teachers.
Question 21 (Multiple Choice Worth 4 points)
Price and quantity supplied will decrease.
Price will increase as quantity supplied decreases.
Price will decrease as quantity supplied increases.
Price and quantity supplied will increase.
Question 22 (Essay Worth 4 points)
(03.01 MC) Entrepreneurs
· An Wang
· Madame C. J. Walker
· Samuel F. B. Morse
· Joseph A. Unanue
Choose one of the entrepreneurs from this list. Write an essay about how your chosen entrepreneur has affected life today. Detail challenges he or she faced and explain how this person embodies one or more characteristics from the HUNT. Present your response in a clear, organized manner and cite examples as needed.