Jobs Simply

Economic multiple choice questions HELP PLEASE!?

1.Which of the following is NOT one of the economic questions that economic systems must answer? a.What goods should be produced? b.How should the goods be produced? c.What taxes are to be placed on such goods? d.Who are the consumers of the goods? 2.Which of the following is NOT one of the basic economic goals economic systems try to achieve? a.Efficiency b.Security c.Freedom d.Integrity 3.Which is the best example of a market economy? a.The government decides how many melons to grow. b.A local tribe trades hand-made trinkets for tobacco from a neighboring tribe. c.A family visiting a mall buys school clothes. d.A girl trades her doll for a softball mitt. 4.Which of the following is NOT a program that involves cash transfers? a.Workers' compensation b.Social Security c.Food stamps d.Unemployment insurance 5.Which of the following is NOT one of the ways the U.S. Government tries to stabilize the economy? a.ensure that jobs are available for all those who can work b.prevent drastic shifts in prices c.regulate the banking system d.insist on American citizenship for all immigrants 6.Which of the following is the best example of the law of demand? a.As the price of fur coats decreases, more consumers will buy them. b.As the price of fur coats increases, more consumers will buy them. c.As the price of fur coats decreases, people buy more wool jackets. d.As the price of fur coats increases, people buy more leather jackets. 7.Which of the following is the best example of the law of supply? a.As the price of cameras increases, a smaller quantity is produced. b.As the price of cameras decreases, a greater quantity is produced. c.As the price of cameras increases, a greater quantity is produced. d.As the price of cameras decreases, the amount produced will remain constant. 8.Specialization makes the functioning of the economy very inefficient. a.true b.false 9. A demand curve is accurate only as long as there are no changes other than price that could affect the consumer's decision. a.true b.false 10.Most goods are public simply because a private provider could not charge those who benefit nor exclude nonpayers from benefiting. a.true b.false 11.The Sherman Antitrust Act gave the federal government the power to limit trade between states. a.true b.false 12.The government uses antitrust laws and deregulation for the same purpose. a.true b.false 13.Cartels are illegal in the United States. a.true b.false Also if anyone knows the answer to this question the help is greatly appreciated I tried my best finding these answers and my test is 150 questions but these multiple choice questions I just could not get the answer to and this one question here: 14. explain the difference between positive and negative externalities, citing several examples of each. Include in your discussion how the government reacts to each type of externality and why. THANKYOU to all the ones that try and help!

Public Comments

1. I'm sorry, I don't know all of them. The answers without question marks next to them I'm positive of. If I guessed, I'm pretty sure. I finish economics this week, and I have like a 98% in the class. So, if you have no idea whatsoever, it might be to your benefit to consider my guesses. 1. c 2. c? 3. d? 4. c? 5. d 6. a 7. c 8. b? 9. b 10. not even going to guess. 11. a (95% sure) 12. i'm not sure, 13. a 14 I know for sure. Externalities are economic side-effects that either benefit or harm a third party not directly involved in the activity. Examples of externalities: A college campus placed inside of a city Positive externality: College brings more people into the city, therefore the city's economy does well from it (more people to buy in town). Negative externality: Students take all low-income housing. Local low-income families will have more competition finding cheaper housing. A school in a neighborhood. Positive externality: Kids can go to school close to home. Homes close to schools tend to increase in value. Negative externality: Increased traffic makes it more difficult for people living in the neighborhood. Those aren't great examples, but anything like that. Think of things that affect cities, those are usually the easiest to write on. Shopping malls, Franchises, Airports. Also, look at something like a strip mall, and a big company like an Albertson's coming into the strip mall. Positive externality for other business in the strip mall because they now get more business as there are more people in the strip mall going to the Albertson's. Negative externality for pre-existing businesses is that it will be more expensive to have a spot there because the value of the property goes up. Think of how someone outside of a business and its customers is affected by it. Maybe mining in a village. The mining will bring money for villagers, which is a positive externality, but maybe that mining causes their water to become unsanitary or poisoned, that would be a negative externality. Hope this helps. If you have any questions, email me.
2. 1. d (taxes are an economic question, who buys isn't) 2. d (or maybe c) 3. c (it uses money rather than barter) 4. c 5. c 6. a 7. c 8. b 9. a 10. a 11. b (law was to outlaw restraint of trade between states) 12. b (deregulation is to liberalise markets) 13. a 14. An externality is an impact on any party not directly involved in an economic decision. A factory that produces air pollution is an example of a negative externality, a forest plantation might be considered a positive externality as it improves the water quality of a stream that passes through it. An airport will have both positive and negative externalities, noise and air pollution being negative, increased trade for local companies being a positive. A sports stadium increases local trade but also increases traffic congestion, litter and noise. A bypass to a small town decreases noise and air pollution and traffic congestion, but decreases local trade.
3. 1. d (economists care how many units are bought, not who buys them) 2. d (economists care about freedom in consumption decisions, which is why it is not c) 3. c (a cash transaction in which two parties voluntarily participate) 4. c (food stamps offer an in-kind transfer instead) 5. a (the government does not ensure that jobs are available for all who can work - they let the market determine this - which is why there is non-trivial levels of unemployment. They DO attempt to prevent dramatic swings in prices by adjusting interest rates, they DO regulate banks and their deposits. (D) is debatable - they don't require all immigrants to be citizens, although they do require them to have work-visas or green-cards which is why I say it is a) 6. a (price declines, people buy more - demand is downward sloping) 7. c (price increases, supply increases) 8. False - specialization increases efficiency 9. True - Supply and demand curves are drawn holding all else (other than price) constant 10. True 11. True - the act gives the Federal Government jurisdiction over interstate commerce, specifically as it relates to monopolies, etc. 12. True - both are used to add competition to the market (deregulation in cases where regulation led to the monopoly, and anti-trust laws where company practices are leading to a monopoly) 13. True 14. An externality is an impact on a 3rd party that is not directly involved in the transaction. The most common example of a negative externality is pollution since everybody is impacted by pollution even if they are not producing or purchasing the product that led to the pollution. A common example of a positive externality is a garden planted by an individual increases the home-values (and provides enjoyment) for everybody else on the block. Education is another positive externality example - since a well-educated population reduces crime and thus improves the standard of living for people beyond those receiving the education.