Economics/Finance 47-69

1.

1 point

59. Which of the following statements is true regarding fiscal policies.:

All federal programs are affected by fiscal policy changes except for national defense.

Expansionary fiscal policy involves taking measures that decrease government spending.

It often takes several months for the economy to feel the effects of fiscal policy changes.

the government usually implements contractionary fiscal policies when it wants to increase.

2.

1 point

60. What action is most likely to slow a rapid inflation rate?

Raising taxes

Increasing government spending

Correcting interest rates

Converting monetary systems

3.

1 point

48. The federal regulatory agency that prohibits businesses from using misleading comparative prices such as, "Special-$4.98; Elsewhere-$7.98" when the item is being sold by other stores for $4.98 if the

National Bureau of Standards (NBS)

Food and Drug Administration (FDA)

Federal Trade Commission (FTC)

Interstate Commerce Commission (ICC).

4.

1 point

55. What is the role of the Federal Reserve System in relation to the US Economy?

Controls the nation's gross domestic product

Sets the nation's fiscal policies

Serves as the central bank in the United States

Oversees the federal taxation process for the US.

5.

1 point

63. Who is responsible for providing a quality of work life that fosters productivity?

Customers

Businesses

Unions

Employees

6.

1 point

62. Research and development programs can increase productivity by

Trying to prevent conflicts between employees.

offering workers the option of flextime

discovering better methods of production

offering "perks" to improve the work-life quality.

7.

1 point

69. Based on the following information, calculate the marginal cost of producing each item: total cost is $35,000 with zero quantity produced, and $589,900 with eight employees producing 275 items.

$2,190

$2,145

$2,000

$2,016

8.

1 point

56. To stimulate a sluggish economy, the Federal Reserve System is likely to implement actions that will

limit labor union negotiations

provide tax incentives

decrease interest rates

affect international trade barriers

9.

1 point

54. During periods of rapid inflation, the nominal demand for money tends to

remain consistent

decrease

increase

fluctuate slightly

10.

1 point

52. What situation usually occurs when monetary policies are implemented to decrease the money supply?

It becomes easier to purchase stocks.

Unemployment rates decrease

It is more difficult to obtain credit.

Businesses make operational improvements

11.

1 point

64, Which of the following is not an advantage of labor specialization:

Increased production rates

Increased worker efficiency

Increased interdependency

Simplified training workers

12.

1 point

50. In the United States, public schools are usually funded by

tax-exempt donations

tariffs on imported goods

corporate taxes

local property taxes

13.

1 point

66. Union and management officials are meeting next to negotiate the terms and conditions that will be provided to employees. The process is known as

binding arbitration

collective bargaining

picketing

boycotting

14.

1 point

49. Which of the following products are mostly likely to be subject to sales tax:

Shoes, milk, and inherited items

MP3 players, sweaters, and books

Light bulbs, homes and prescription drugs

School supplies , land , and candy

15.

1 point

51. What type of monetary policy involves increasing the amount of money in circulation?

Recessive

Tight

Progressive

Loose

16.

1 point

65. Jim is a chef. This is an example of specialization by

stage of production

trade or profession

task

depth

17.

1 point

53. Under what conditions will the demand for money usually rise?

When businesses purchase more government bonds.

When consumer spending drops.

When investment transaction costs increase.

When private sector production remains consistent.

18.

1 point

Economics/Finance-CPAS Study Materials

47. Which of the following is a true statement about minimum-wage laws:

They specify the lowest wage businesses can pay workers

They are intended to prevent the use of child labor

They are an example of government monetary policy.

They require businesses to offer equal pay for equal work.

19.

1 point

57. The primary purpose of fiscal policy is to

expand businesses into new markets

control the money supply

accelerate business cycles.

stabilize the economy

20.

1 point

61. To reduce the chance of investigations and orders to cease production, businesses should

purchase the most up-to-date technology available

specialize

adhere to government regulations

lobby members of Congress

21.

1 point

58. To change fiscal policy, governments need to evaluate their taxation rates and

technology needs.

intellectual property

judicial system

spending practices

22.

1 point

68. Why are unions a powerful force in business?

They require more employees t be hired than are actually needed to complete a job.

They encourage nonstriking employees to work for striking employees.

They enable management to close business temporarily during labor conflicts.

They increase the bargaining power of workers.

23.

1 point

67. Which of the following is an advantage to workers of having a union represent them:

Democratic votes on issues

Payment of union dues

Fair treatment of employees

Payment of wages during strikes