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which of these keeps prices below equilibrium?

Question 1 (Multiple Choice Worth 4 points)

(01.07 MC)<object:standard:ss.912.e.1.13>

Which of these illustrate the divisibility of money?


Question 2 (Multiple Choice Worth 4 points)

A supply and demand graph, showing quantity on the x axis and price is on y axis. Red supply line S rises up and to the right from 0,0 in positive x and y directions. Blue demand line D descends from x axis origin and upper range of y axis in positive x, negative y direction. A line marked Artificial Price extends from the y axis, roughly one third of the way up from the x axis and below the equilibrium point where S and D lines intersect. The intersection of the Artificial Price line with the S line is marked Quantity Supplied. The intersection of the Artificial Price line with the D line is marked Quantity Demanded.

(04.02 MC)<object:standard:ss.912.e.2.4>


Public Domain

Which of these is an example of the line marked “Artificial Price”?


Question 3 (Multiple Choice Worth 4 points)

(06.03 MC)<object:standard:ss.912.e.3.4>

Sixty-five nations sign a treaty pledging caps on industrial emissions and the development of renewable resource energy production. Which of the following would be a long-term positive externality for global health?


Question 4 (Multiple Choice Worth 4 points)

(04.02 LC)<object:standard:ss.912.e.2.4>

Which of these keeps prices below equilibrium?


Question 5 (Multiple Choice Worth 4 points)

Bar graph entitled 2010 Budget Projected Deficits and Debt Increases. X axis spans years 2007 through 2015. Y axis labeled Billions of Dollars, spanning o to 3,000, in increments of 500. Blue bars note Budget Deficit. Red bars note National Debt Increases. For 2007, blue is 200 billion dollars, and red is 500 billion dollars. For 2008, blue is 450 billion dollars, and red is 1,250 billion dollars. For 2009, blue is 1,750 billion dollars, and red is 2,750 billion dollars. For 2010, blue is 1,150 billion dollars, and red is 1,400 billion dollars. For 2011, blue is 900 billion dollars, and red is 1,200 billion dollars. For 2012, blue is 600 billion dollars, and red is 900 billion dollars. For 2013, blue is 550 billion dollars, and red is 900 billion dollars. For 2014, blue is 600 billion dollars, and red is 950 billion dollars. For 2015, blue is 650 billion dollars, and red is 975 billion dollars.

(04.05 MC)<object:standard:ss.912.e.2.9>


© Farcaster 2009
Creative Commons Attribution-Share Alike 3.0 Unported

Which of the following statements best describes the data shown for 2012 to 2015?


Question 6 (Multiple Choice Worth 4 points)

(04.02 MC)<object:standard:ss.912.e.2.6>

Why is it in the best interest of the government to regulate natural monopolies?


Question 7 (Multiple Choice Worth 4 points)

(04.03 LC)<object:standard:ss.912.e.2.10>

What is the main function of the Federal Open Market Committee?


Question 8 (Multiple Choice Worth 4 points)

(04.05 MC)<object:standard:ss.912.e.1.10>

Economists warn that the nation is slipping into a recession. Which fiscal policies will the federal government most likely take to help the economy grow?


Question 9 (Multiple Choice Worth 4 points)

(06.02 LC)<object:standard:ss.912.e.2.11>

The city council allocates funds for road repair. Which of the following circumstances would be a positive externality?


Question 10 (Multiple Choice Worth 4 points)

(02.05 MC)<object:standard:ss.912.e.1.14>

Andrew is 17 years old and would like to establish credit history. Which of these would be a good first step for him?


Question 11 (Multiple Choice Worth 4 points)

(04.05 MC)<object:standard:ss.912.e.2.9>

Imagine the federal government has a national debt of $10.2 trillion. Congress’s budget for the coming year includes spending projections of $4.2 billion. Tax revenue projects $3.8 billion. Which will be the most likely consequence?


Question 12 (Multiple Choice Worth 4 points)

(06.03 MC)<object:standard:ss.912.e.2.11>

A livestock ranch decides to expand its operations. Which of the following would be a negative externality for the local environment?


Question 13 (Multiple Choice Worth 4 points)

Map showing Tennessee and bordering states, Alabama, Mississippi, Georgia, South Carolina, North Carolina, Virginia, West Virginia, Kentucky, Illinois, Missouri, and Arkansas. Region served by Tennessee Valley Authority includes all of Tennessee and parts of Kentucky, Virginia, North Carolina, Georgia, Mississippi, and Alabama. Forty seven dams are spread throughout region, but concentrated in eastern Tennessee. There are three nuclear power plants, two south of Knoxville, Tennessee, and one near Huntsville, Alabama. There are 19 fossil fuel plants throughout region, the majority in western Tennessee, Mississippi, and southwestern Kentucky.

(06.02 MC)<object:standard:ss.912.g.3.3>

Tennessee Valley Authority (TVA) Sites
Red = water dams
Purple = nuclear power plants
Orange = fossil fuel power plants


Public Domain

Study the map above. Who would object to negative externalities related to the use of renewable and nonrenewable resources in the map?


Question 14 (Multiple Choice Worth 4 points)

(04.01 MC)<object:standard:ss.912.e.1.12>

Following U.S. involvement in the Korean War and the related period of low unemployment and rising prices, the Federal Reserve intervened to curb growth and decrease inflation. At what point in the business cycle did the Federal Reserve take action?


Question 15 (Multiple Choice Worth 4 points)

(04.04 MC)<object:standard:ss.912.e.1.11>

If the United States falls into a recession, which action would the Federal Reserve take to encourage employment?


Question 16 (Multiple Choice Worth 4 points)

(04.01 MC)<object:standard:ss.912.e.1.12>

A period of economic stability began in the 1980s. In 2001, prices began to increase. In 2007, an economic crisis caused prices to fall. Which of these dates would be considered the peak of this cycle?


Question 17 (Multiple Choice Worth 4 points)

Pie chart titled Holly's Hamburgers 2013 Budget. Data are: Rent 30 percent, Supplies 25 percent, Payroll 15 percent, Misc 5 percent, Utilities 10 percent, Repairs 5 percent Training 5 percent Advertising 5 percent.

(02.06 HC)<object:standard:ss.912.e.1.16>


© 2013 FLVS

After creating the 2013 budget for her hamburger restaurant, Holly realizes that she will need to spend 10 percent on training because of a change in food-handling laws. Which of these could represent the numbers in Holly’s new budget?


Question 18 (Multiple Choice Worth 4 points)

(02.04 MC)<object:standard:ss.912.e.1.14>

Tina has $1,500 that she will use to buy a car in four months. In the meantime, she would like to invest it to earn more money. Which of these would yield the greatest return in her time frame?


Question 19 (Multiple Choice Worth 4 points)

(04.04 MC)<object:standard:ss.912.e.1.11>

Economic forecasters predict a long period of job growth and consumer spending. The Federal Reserve is most likely to do which of the following to encourage this expansion?


Question 20 (Multiple Choice Worth 4 points)

(02.04 MC)<object:standard:ss.912.e.1.15>

As an eighth grader, Marliss wins an art competition, and her prize is one thousand dollars. She wants to invest the money for her college fund. Which of these would be a good option?


Question 21 (Multiple Choice Worth 4 points)

Circular flow chart showing connectivity, with blue arrows, from Government to Product Market and Household, from Product Market to Household, Business and Rest of World; from Household to Government and Financial Market, from Business to Factor Market and Product Market, from Factor Market to Rest of World and Household, from Rest of World to Product Market and Factor Market. Letter A marks arrow from Government to Product Market. Letter B marks arrow from Product Market to Business. Letter C marks arrow from Business to Product Market. Letter D marks arrow from Household to Government.

(06.01 MC)<object:standard:ss.912.e.2.12>


© 2013 FLVS

Cardinal Comics produces graphic historical novels and retails them through local shops throughout the United States. The publisher maintains an in-house staff of editors and illustrators but contracts out writing, printing, and distribution. Its printer uses domestically recycled paper but imports ink and much of its printing equipment from overseas. Segment B of the circular flow diagram above reflects which part of this scenario?


Question 22 (Essay Worth 4 points)

Circular flow chart showing connectivity, with blue arrows, from Government to Product Market and Household, from Product Market to Household, Business and Rest of World, from Household to Government and Financial Market; from Business to Factor Market and Product Market, from Factor Market to Rest of World and Household, from Rest of World to Product Market and Factor Market.

(06.05 HC)<object:standard:ss.912.e.2.12>


© 2013 FLVS

Look at the circular flow diagram. Choose and define an environmental issue. Using the diagram as a guide, explain how the environmental issue you chose affects the relationship between product market and rest of world.

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