Economics Final Part 1

Over a three year period, the United States experienced an increase in the real GDP, low inflation, and a declining unemployment rate. For this period, the United States

• 
  was in an economic trough.

• was in a stagnant economic period.

• appeared to be entering a recession.

• was in the middle of an economic boom.

• 
  was dealing with contractionary monetary policies.

Based on the graph, which of these statements is TRUE?

• 
  Investors who want low risk should invest in bonds.

• A certificate of deposit is a riskier investment than a bond.

• Money in a stock-based mutual fund grows as fast as in a bond.

• Money in stocks have both high risk and high potential return.

The federal government uses government spending and tax rates to help control recessions and encourage economic activity. This is called

• A

  fiscal policy.

• monetary policy.

• 
  supply-side economics.

• open market operations.

Based on the map you can conclude that MOST countries in Africa are

• advanced countries.

• developed countries.

• 
  not developed countries.

• 
  industrialized countries.

• 
  service industry countries.

What is generally the reason for a company to issue bonds?

• 
  It promotes good will with the public.

• It serves as a means to raise revenue.

• 
  It raises the value of their stock for the stockholders.

• It prevents them from having to reveal their financial statements.

How has increasing globalization affected the auto industry in the U.S.?

• The U.S. auto industry grew from insignificant to world dominance.

• The U.S. auto industry declined as competition from other countries increased.

• 
  The U.S. industry has maintained their market share as globalization increased.

• The U.S. auto industry was destroyed by globalization and is no longer competition.

A supporter of free trade would support all of these actions EXCEPT

• 
  reducing quotas.

• 
  reducing tariffs.

• imposing subsidies.

• eliminating embargoes

Samuel has decided to wait one year after high school graduation to begin college. He thinks he might be interested in becoming a computer engineer, like his father, but is not completely sure. How could Samuel BEST spend his time before he begins college to ensure he chooses the most fitting college major for his goals?

• He should travel the world, so he can decide where he wants to move after college graduation.

• 
  He should spend time with friends and family, allowing him to refocus before beginning school again.

• 
  He should work full time as a restaurant server, saving as much money as possible before starting school.

• He should intern where his father works, to determine if he is truly interested in computer engineering.

The Consumer Price Index (CPI) measures

• the amount of consumer confidence within the economy.

• the average prices of a few consumer goods and services in the market basket.

• the average of the prices paid by consumers for a fixed market basket of goods and services.

• 
  the average of the costs paid by businesses to produce a fixed market basket of consumer goods and services.

• 
  the amount of money people pay each month to purchase good they require to live at a certain standard of living

Which of these individuals is classified as unemployed?

• 
  a computer programmer who retired early at age 47

• 
  a recent college graduate looking for his first job

• a laid-off factory worker who has given up looking for a new job

• a barista who works as at a coffee shop 20 hours a week but would like to increase their hours

• a 15-year-old high school student who is searching unsuccessfully for a summer job as a lifeguard