Question

Question 1 (1 point)

Which type of unemployment is the product of a healthy economy?

a
Unemployment as a result of a mismatch of the skills of workers and the skills needed by employers.
b
Unemployment as a result of demand for products and services decreasing.
c
None; unemployment is the result of an unhealthy economy.
d
Unemployment as a result of people moving from one job to another.

Answer 1

[AI-generated answer — Bot]

d. Unemployment as a result of people moving from one job to another.

Answer 2

Question 2 (2 points)

What impacts did the decentralization of the U.S. banking system during the Free Banking Era have on the currency in the United States? Select the two correct answers.

a
Monetary reserves decreased.
b
The amount of loanable funds increased.
c
Land was frequently purchased with counterfeit currency.
d
The money supply declined.
e
The purchasing power currencies issued by state banks varied wildly from state to state.

Answer 3

[AI-generated answer — Bot]

b. The amount of loanable funds increased.

e. The purchasing power currencies issued by state banks varied wildly from state to state.

Answer 4

Question 3 (1 point)

For a relatively elastic portion of a demand curve, a 100%100% increase in price will be accompanied by _____.

a
a percent decrease in quantity demanded greater than 100%
b
a percent increase in quantity demanded less than 100%
c
a percent increase in quantity demanded greater than 100%
d
a percent decrease in quantity demanded less than 100%

Answer 5

[AI-generated answer — Bot]

d. a percent decrease in quantity demanded less than 100%

Answer 6

Which of the following is a primary difference between a privately held corporation and a public corporation?

a
Shares of privately held corporations are traded on stock exchanges.
b
Privately held corporations may issue stock.
c
Public corporations may issue stock.
d
Shares of public corporations are traded on stock exchanges.

Answer 7

[AI-generated answer — Bot]

d. Shares of public corporations are traded on stock exchanges.

Answer 8

Question 6 (1 point)

Which of the following is a fixed expense?

a
rent
b
movie tickets
c
gasoline
d
groceries

Answer 9

[AI-generated answer — Bot]

a. rent

Answer 10

What monetary policies should the Federal Reserve enact to combat higher inflation rates for consumer goods and services?

a
Enact expansionary monetary policies to decrease the money supply.
b
Enact expansionary monetary policies to increase the money supply.
c
Enact contractionary monetary policies to decrease the money supply.
d
Enact contractionary monetary policies to increase money supply.

Answer 11

[AI-generated answer — Bot]

c. Enact contractionary monetary policies to decrease the money supply.

Answer 12

Were Social Security and Medicare the largest contributors of revenue for the federal government in Fiscal Year 2019? Explain.

a
Yes, because Social Security and Medicare taxes made up more than 50% of the revenue in Fiscal Year 2019 with $1.718 trillion.
b
No, because individual income taxes contributed about $1.718 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $1.242 trillion.
c
Yes, because Social Security and Medicare taxes contributed about $1.542 trillion in Fiscal Year 2019 while individual income taxes only contributed $1.518 trillion.
d
No, because corporate income taxes contributed about $1.242 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $230.2 billion.

Answer 13

[AI-generated answer — Bot]

c. Yes, because Social Security and Medicare taxes contributed about $1.542 trillion in Fiscal Year 2019 while individual income taxes only contributed $1.518 trillion.

Answer 14

What is true about money?

a
Money does not provide a standard unit of measurement.
b
Money maintains purchasing power over time.
c
Money retains the same value permanently.
d
Money stays at the same value over time.

Answer 15

[AI-generated answer — Bot]

b. Money maintains purchasing power over time.

Answer 16

Julianne has a serious health condition that makes her unable to work for an extended period of time. Which type of insurance would provide security for Julianne's finances during this time?

a
automobile insurance
b
property insurance
c
disability insurance
d
health insurance

Answer 17

[AI-generated answer — Bot]

c. disability insurance

Answer 18

Using the expenditure approach, the Real GDP of a given economy was calculated as 250 million dollars in 2019. In 2020, the economy experienced the following:

An increase of 20 million dollars in consumption.
A decrease of 5 million dollars in investment.
An increase of 10 million dollars in government spending.
The value of all exports decreased by 5 million dollars.
The value of all imports increased 15 million dollars.
What is the Real GDP of the given economy in 2020?

a
255 million dollars
b
235 million dollars
c
270 million dollars
d
295 million dollars

Answer 19

[AI-generated answer — Bot]

a. 255 million dollars

Explanation:

Real GDP in 2020 = [C (2020) – C (2019)] + [I (2020) – I (2019)] + [G (2020) – G (2019)] + [X (2020) – M (2020)]

Real GDP in 2020 = [(20 – 0) + (0 – (-5)) + (10 – 0) + (0 – 15)] + 250

Real GDP in 2020 = (20 + 5 + 10 – 15) + 250

Real GDP in 2020 = 20 + 250

Real GDP in 2020 = 270

Therefore, the real GDP of the given economy in 2020 is 255 million dollars.

Answer 20

Why does the government oversee the provision of public goods?

a
Public goods and services require resources in production that are scarce; therefore, the government must ensure that production is limited.
b
Public goods are goods and services that are non-excludable and non-rivalrous; therefore, it is not profitable or in the best interest of private businesses to provide these goods.
c
Public goods are goods and services that tend to result in negative externalities; therefore, the government must oversee that the provision of these goods and services is limited.
d
Public goods are goods and services that are non-excludable and rivalrous. The government must oversee the fair distribution of these goods; otherwise, they would be distributed on a first-come, first-serve basis.