Economics Q2 W6 Test Review

Which of these terms is an example of a public good?

Hint: It does not cost the consumer any money

• copyrighted music

• satellite radio

• movie theater

• street light

Advantages of this business type are that the owner is its own boss and it gets to keep all the profits.

• Partnership

• Corporation

• Franchise

• Sole Proprietorship

Which term completes the list?

The Five Stages of         ?        

1. Growth
2. Peak
3. Recession
4. Trough
5. Recovery

• Economic Downturns

• the Annual Budget

• Fiscal Policy

• the Business Cycle

Which change would LEAST impact a worker's productivity?

• The worker's education level increases.

• The number of workers employed increases.

• The worker's attitude and motivation improves.

• The amount of capital goods available increases.

Use the information to answer the question. 

In the early 1800s, entrepreneurs searching for a place to build a textile mill looked for four factors: the availability of inexpensive land, a large town nearby to supply labor, a fast-moving water source to supply energy, and a large river or seaport for transporting finished goods.

Which concern would be LEAST important in determining an industry’s location in the United States today?

• means for transporting goods

• accessibility to a highly populated area

• fast-moving water source

• availability of inexpensive land

Which item is an example of commodity money?

• gold bullion

• credit card

• dollar bill

• personal check

Which function of money allows transactions to occur without barter?

• store of value

• unit of account

• medium of exchange

• standard of deferred payment

Which economic indicator BEST shows that deflation is occurring?

• ceilings imposed on state budget amounts

• a decrease in interest rates due to home foreclosures

• regulations placed on private manufacturers

• a decline in prices due to the lack of consumer spending

Use the diagram below to answer the question. 

How would the flows in this diagram MOST likely be affected by higher personal income tax rates?

• Line 1 would increase

• Line 2 would decrease

• Line 3 would decrease

• Line 4 would increase

In complete sentences give at least two examples of EACH the costs and benefits of owning property.