EPF Pretest - Thomas Pierce | Library

1

The opportunity cost of a new public high school is the

1

Which one of the following do economists consider to be an example of capital goods?

1

What is meant by the statement that every economic system faces the problem of scarcity?

1

From an economic point of view, which approach to controlling pollution is most efficient?

1

The essential difference between a command economy and a market economy is that in a market economy:

1

Which is a basic economic question that must be answered by all economic systems?

1

Profits are equal to total:

1

If the government decides to reduce the payroll taxes on the wages and salaries of workers, then there will most likely be:

1

A high school student buys a sweatshirt from a store. The sweatshirt is on sale at a 20 percent discount off the regular price. In this exchange:

1

Specialization and division of labor by nations followed by increased international trade probably would:

1

When there is a shortage of a product in a competitive market, it is usually the case that the:

1

In a competitive market, the price of a product is $5.00. If the government passes a law that sets a minimum price of the product at $6.00, this change will most likely result in:

1

Which would most likely increase the quantity of gasoline sold in a competitive market?

1

In a competitive market, the price of wheat is likely to be increased by:

1

Business firms wish to sell their products at high prices. Households wish to buy products at low prices. In a market economy, this conflict of interest is resolved by:

1

A newspaper reports, 'COFFEE GROWERS' MONOPOLY BROKEN INTO SEVERAL COMPETING FIRMS.' If this is true, we would expect the coffee-growing industry to:

1

In a market economy, the public interest is likely to be served even when individuals pursue their personal economic goals because of:

1

Which characteristic makes the most positive contribution to people's incentive to produce and exchange goods and services in a market economy?

1

Common stocks, limited liability, and unlimited life are basic characteristics of:

1

What primary function is money serving when it is used to buy a ticket to a movie?

1

When commercial banks increase their loans to businesses and consumers, this usually results in:

1

Inflation is an increase in:

1

An increase in real interest rates provides an incentive for people to save:

1

Over time the economic condition that would most likely lead to an increase in worker wages is an increase in:

1

Why do medical doctors generally earn more than farmers?

1

A basic role of entrepreneurs in the economy is to:

1

Which would most likely increase the productivity of labor?

1

How does a nation typically acquire more capital goods and increase productivity?

1

Government (rather than private business) provides national defense because:

1

The tax described in the table below is a:

1

Which statement about tariffs is true?

1

Gross domestic product (GDP) is a measure of:

1

A nation has an international trade deficit when:

1

An economy's potential output at any time is limited by:

1

Which would usually reduce total spending in the economy?

1

An economy will typically experience a decline in its unemployment rate when there is:

1

If your annual income rises by 50% while prices of the things you buy rise by 100%, then your:

1

One reason the federal government might reduce taxes is to:

1

A government budget deficit exists when:

1

Which monetary policy would the Federal Reserve most likely adopt as the economy moves into recession during a period of low inflation?

1

Juan is considering job offers from four companies, each of which will pay him $50,000 a year. If Juan is most interested in his career advancement, at which company would he most likely choose to work?

1

Sadie is a high school graduate who has decided to go to college next year. From a financial decision-making perspective, she has concluded that the...

1

Ruby decided to get a 2-year degree in electronics after graduating high school rather than enter the job market. What is the likely outcome of this decision on Ruby's future income?

1

Which of the following generally increases the wages or salaries that businesses pay their employees?

1

What economic event is most likely to increase the wage or salary of someone working in the home construction industry?

1

Where do most of the payments to Social Security recipients come from?

1

Alex is thinking of buying a five-year-old car from Owen. Owen advertised the car as like new. Which of the following would give Alex the most reliable source of information on how dependable the car might be?

1

Maddie gets a haircut at the hair salon, washes her car at the spray wash, orders coffee at the coffee shop, and gets a flu shot at the drugstore. Which one of her consumer purchases has the most widespread and positive effect on others in her community?

1

A car is priced at $25,000 at two dealerships. Each car has a warranty. One dealership offers a longer warranty on its cars. What will be the likely effect of the longer warranty?

1

The Electronics Shop advertises a TV as costing $100 per month for six months instead of stating that it costs $600. Why would the store use this type of ad?

1

When Desmond buys an expensive product, he spends time getting information about it. But when he buys an inexpensive product, he spends little time getting information on it. Which of the following best explains his economic decision about gathering product information?

1

Most states have 'lemon laws.' These laws protect buyers from

1

Taylor likes to shop. She often purchases expensive things without thinking about the consequences. Taylor's tendency to buy on impulse

1

What is most likely to happen when there is a large and sustained increase in the inflation rate?

1

Noah has $15,000 in his savings account at the major bank in his city. Which of the following best explains why Noah feels his money is safe?

1

What is the primary purpose of an IRA?

1

Which of the following is an advantage of a 401(k) retirement plan over a private savings plan that a worker establishes for retirement?

1

Mia is comparing the terms for credit cards. She always pays on time, but rarely pays off her entire balance. Which of the following features is most important for Mia to consider when selecting a credit card?

1

Collateral for a loan is

1

A new car loan will likely have a higher interest rate if the borrower

1

What does a credit bureau do?

1

Which of the following will most directly affect a credit score?

1

Sara has a bad credit score. One likely consequence is that:

1

Mason is 25 years old. He got into financial problems and had to declare bankruptcy. What will happen to his credit score?

1

Why are mortgage interest rates generally lower than credit card interest rates?

1

Consumers have rights regarding their credit reports that include:

1

Which of the following statements about taxes on financial investments is correct?

1

Suppose a corporation issues two bonds. One bond matures in a year. The other bond matures in ten years. The bond maturing in one year is expected to:

1

Which of the following is the best example of a diversified portfolio?

1

If Corporation XYZ announces profits greater than expected, what is most likely to happen?

1

One way the government helps promote well-functioning financial markets is to ensure investors have

1

The primary responsibility of the Securities and Exchange Commission (SEC) is to

1

Paul paid for auto insurance every year but never had an accident or filed a claim. Did he get anything of value for the money he paid?

1

Kayla has a low tolerance for taking risks because she wants to protect her growing family. She would be expected to choose an insurance policy that has

1

Lucas got a loan from ABC Credit Union to buy a car. Which of these is true about Lucas's decision to buy auto insurance?

1

Which of the following actions by insurance companies encourage policyholders to take fewer risks once they are insured?

1

Maria had a stroke and cannot work at her job as an accountant for at least a year. Which type of insurance would replace her income while she cannot work?

1

Which type of auto insurance would pay for the repair of a cracked windshield caused by a rock hitting it?

1

The primary purpose of life insurance is to

1