Economics

Question 1

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?

 

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Question 2

In 2011, Cambodia had a GDP of $33.8 billion and a per capita GDP of $2,200. Nearly a third of its people lived below the poverty level, and average life expectancy was 62.5 years. Which of these additional factors would most support the conclusion that Cambodia is a developing economy rather than an emerging economy?

 


 

Question 8 (Multiple Choice Worth 4 points)

(05.02 MC)
http://hillsborough.flvs.net/webdav/assessment_images/educator_econ_v13/06_06A_exam/0606_g13_q2.jpg
Bar graph titled GDP per capita. The United States GDP is at 48,000. Australia at 41,000. China at 8,400. Ecuador at 8,500. India at 3,700. Namibia at 7,500. Russia at 16,700.
© 2013 FLVS

Given the data in the chart, which of the following statements is true?

 


 

Question3

To protect consumers from potentially dangerous manufactured goods, the U.S. government is most likely to use which kind of trade barrier?

 


 

Question 4

Adam Smith wrote in The Wealth of Nations, Book II, Chapter 2, In general, if any branch of trade, or any division of labour, be advantageous to the public, the freer and more general the competition, it will always be the more so.
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Which of the following entities would most likely agree with Adam Smith’s statement?

 


 

Question 5

Graph with x axis labeled in 500 unit increments from 0 to 3000. Y axis is labeled with prices 0 to 30 dollars in increments of 5. A blue supply line starts at 500, 5 and ascends at an angle upward to 2500, 25. A red line demand starts at 500, 25 and drops at an angle down to 2500, 5.
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Look at the graph. A bookstore owner increases the price of art books to $25. Which of these would occur?

 


 

Question 6

Graph titled Quantity Supplied versus Price. The x axis is labeled in 500 unit increments from 0 to 3000. Y axis goes from 0 to 0.30 dollars in increments of 0.05. A blue line starts at 500, 0.05 and ascends at an angle upward to 2500, 0.25.
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In anticipation of a hurricane, demand for tortillas goes up. Oyama’s store produces tortillas. Based on the chart, how will Oyama respond to the new demand for tortillas?

 


 

Question7

Global Free Trade Zones

Map indicates the following free trade zones NAFTA is Canada, Mexico, and the U.S. EU-CARICOM includes Europe, Caribbean islands, and South American countries DR-CAFTA includes the U.S., Central American countries, and Caribbean islands; ALADI is most of South America, Cuba, and Mexico; EEA/EUCZ/CEFTA includes Greenland and most of Europe CISFTA is made of former Soviet states GAFTA is in the Arabian Peninsula and North Africa ECOWAS for West Africa CEMAC for some countries in Africa AFTZ includes all African except members of ECOWAS and CEMAC SAFTA is for Himalayan nations APTA includes India, China, and South Asia ASEAN includes Southeast Asia, China, South Korea, and Japan SPARTECA is Australia and Pacific Islands and AANZFTA is for countries in the South West Pacific and Southeast Asia.
Public Domain

Opponents of free trade zones might use this map to argue that free trade

 


 

Question 8

Two column chart. Headings are Day and Pot stickers per hour. Data as follows 1, 20 2, 22 3, 21 4, 10 5, 15 6, 50 and 7, 55.
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Sayuri’s Asian Café makes the best pot stickers in town. The kitchen’s production is usually between 20 and 22 pot stickers per hour. Sayuri buys a new machine to help the team make pot stickers faster. She tracks production over the course of seven days. On which day does the machine make a positive impact on production?

 


 

Question 9

Graph titled Quantity Demanded versus Price, with x axis labeled in 10 unit increments from 0 to 70. Y axis is labeled with prices 0 to 60 dollars, in increments of 10. A blue line starts at 5, 50 and drops at an angle down to 60, 10.
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The bookstore is overstocked with old fantasy novels. It needs to get rid of the novels to make room for newly published fantasy novels. Based on the chart, what could the bookstore do to increase quantity demanded for fantasy novels?

 


 

Question10

Which of the following statements most directly relates to the broad economic goal of freedom?

 


 

Question 11

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?

 


 

Question 12

Which of these businesses are in monopolistic competition?

 


 

Question 13

Auto Bull’s-Eye offers a 10-minute oil change and 30-minute brake check. There are two technicians who perform each of these services. Next week, the shop is offering a discounted oil change. How might this affect the production possibilities curve for next week?

 


 

Question 14

Which of the following is a potential benefit of inflation?

 


 

Question 15

A table with title: Hours to Produce One Liquid Unit. Greece produces olive oil in 35 worker hours and wine in 60 worker hours. France produces olive oil in 35 worker hours and wine in 45 worker hours. Italy produces olive oil in 35 worker hours and wine in 45 worker hours. There is a blank column for each country titled additional worker hours to produce wine instead of olive oil.
© 2013 FLVS

Given the data in the chart above, which of the following trade scenarios is the most efficient?

 

Question 16

Write a paragraph in response to the following statement: Business organization is a critical part of successful entrepreneurship.