GA Economics Review

Which factor MOST directly affects the amount of money borrowers must repay to lenders?

• A. the inflation rate

• B. the employment rate

• C. the annual percentage rate

• D. the currency exchange rate

In a market economy, if the price of a good increases, the quantity demanded by consumers and the quantity supplied by producers will change in which of the following ways?

1st: Quantity Demanded by Consumers

2nd: Quantity Supplied by by Producers

• increase increase

• increase decrease

• decrease increase

• decrease decrease

Mary decides to produce and sell apple juice. She leases an apple orchard and renovates her kitchen to produce and bottle the apple juice. Mary hires three employees. Two employees will maintain the apple orchard and bottle the juice, and one will market the apple juice using the Internet.

In the manufacture and sale of the apple juice, what factor of production does Mary represent?

• land

• labor

• capital

• entrepreneurship

Use this table to answer the question. Average Annual Exchange Rate of $1 U.S. to the European Euro Year Exchange Rate

2000 1.87

2001 1.63

2002 1.47

2003 1.34

Based on the table, which development MOST LIKELY occurred between 2000 and 2003?

• The United States increased tariffs on European nations that used the euro in international trade.

• The United States increased its money supply to encourage the export of goods to nations that used the European euro.

• U.S. exporters found it increasingly difficult to find markets in nations that used the European euro.

• European consumers who used the euro purchased U.S. exports at increasingly lower prices.

How will price levels and employment MOST LIKELY be affected by increases in government spending?

• Price Levels increase

  increases Employment

• Price Levels increase

  decreases Employment

• Price Levels decrease

  increases Employment

• Price Levels decrease

  decreases Employment

The economic term scarcity relates MOST directly to a situation in which

• A. individuals lack money needed to purchase goods

• B. businesses lack customers needed to make a profit

• C. employees lack experience needed to earn a promotion

• D. manufacturers lack raw materials needed to satisfy demand

Marta and Shanika open their own computer repair shop and agree to share the decision-making, the profits, and the risks. Marta will manage their parts inventory and all the accounting duties. Shanika will work out front to meet customers when they drop off and pick up their computers. Marta will work on desktop computers, while Shanika will repair laptops.

Marta and Shanika’s arrangement is an example of

• A. competition

• B. specialization

• C. incorporation

• D. consumption

Which role does money have in economic systems?

• A. a good to consume

• B. a medium of exchange

• C. a measure of satisfaction

• D. a resource for production

Which of these describes a characteristic of a monopoly?

• A. few barriers of entry

• B. rarely affected by government regulations

• C. strong control over price

• D. face strong competition for customers

A recent high school graduate has never searched for a job before. He does not know what he is qualified to do. He turns down a job at a factory, hoping for better-paying work.

What kind of unemployment is he experiencing?

• A. cyclical

• B. frictional

• C. structural

• D. seasonal