Praxis practice

A command economy (planned economy/Communist) is characterized by:

• Businesses commanding all aspects of the economy

• A laissez-faire approach by the government

• A moderate amount of government intervention in the economy

• The government controlling nearly all aspects of the economy, including prices & production

In marketing, the demand for a product is directly influenced by:

• Customers' desire for a product

• Customers' ability to obtain a product

• Availability of a product (refers to supply, NOT demand)

• Both A and B

Which of the following is NOT a responsibility of the Securities & Exchange Commission (SEC)?

• Regulating securities

• Investigating insider trading

• Setting interest rates [Federal Reserve is responsible for this]

• Processing applications for initial public offerings (IPOs) of stock

The Sarbanes-Oxley Act of 2002:

• Vastly reduced the financial reporting obligations that corporations face

• Deregulated public utilities

• Was intended to fight corporate & accounting fraud [in the wake of several huge scandals that brought down major U.S. corporations. This bill reformed the rules and regulations governing corporations' financial disclosures, and increased financial reporting obligations.]

• Reduced tariffs on trade among North American countries

An employee earns $2,000.00 per month in gross pay, but pays 9% in federal taxes, 3% for state taxes, and 2% for local taxes. After tax, the company withholds $104.36 for health insurance. What is the employee's net pay?

• $2,000.00

• $1,615.64

• $1,820.00

• $1,720.00

A market in which product availability exceeds demand is called a:

• Free market

• Seller's market

• Buyer's market

• Black market

Which of the following is NOT a part of Maslow's hierarchy of needs?

[Maslow's theory that once people satisfy basic needs like food, water, and physical security, they begin to pursue needs higher up the hierarchy, like social acceptance, self-esteem, and self-actualization.]

• Self-actualization

• Esteem

• Safety

• Supply & demand

Which of the following countries is NOT part of NAFTA?

[Northern American Free Trade Agreement, which is an agreement to encourage trade between 3 countries]

• Mexico

• United States

• Canada

• China

A consumer's credit score is directly influenced by which of the following factors?

• Debt repayment history

• Employment history over the last five years

• Marital status

• Income level

• [a consumer's credit score is directly influenced by the individual's payment history on car & home loans, credit cards, etc.

Upon which organization does the international community primarily rely to deal with claims of unfair protectionism by one country against another?

• North Atlantic Treaty Organization (NATO)

  [**is a military alliance among many North American & European countries]

• World Trade Organization (WTO)

• Organization of Petroleum Exporting Countries (OPEC) [**oil-producting countries that regulate supply & prices]

• International Red Cross (IRC) [international humanitarian organization]