University of Nebraska Multiple Choice Economics Questions Hello,This is an economics test which contains 50 multiple choice questions. Please try to get m

University of Nebraska Multiple Choice Economics Questions Hello,This is an economics test which contains 50 multiple choice questions. Please try to get me a good grade, I really need it. The test is attached below. Course Name: Economics
Student: Aryash Chauhan
Course ID: BUSH035061
ID: F68560331
Submittal: 52
Progress Test 2
This progress test covers Unit 3 and Unit 4. Although the progress test is similar in style to the unit evaluations, the
progress test is a closed-book, proctored test. You may not have access to notes or any of the course materials while
you are taking the test. It is important that you do your own work. Select the response that best completes the statement
or answers the question.
____ 1.
A business owned by two or more people with specific division of responsibilities and profits is a sole
proprietorship.
a.
b.
____ 2.
Which agency insures depositors’ accounts?
a.
b.
c.
____ 3.
disposable personal income.
gross domestic product (GDP).
net national product (NNP).
The __________ is the average value of a set of stocks supposed to represent the market as a whole.
a.
b.
c.
____ 7.
means having an objective third party negotiate a labor-management dispute.
occurs when labor leaders meet with management to negotiate a contract.
is an organized work stoppage to gain a concession from management.
Gross national product (GNP) – depreciation of equipment is the formula for figuring
a.
b.
c.
____ 6.
the Fair Labor Standards Act of 1938
the Taft-Hartley Act of 1947
the Civil Rights of 1964
A strike
a.
b.
c.
____ 5.
Federal Deposit Insurance Corporation
Federal Reserve Board of Governors
Consumer’s Savings Bank of Worcester, Massachusetts
Which law outlawed workplace discrimination based on race or gender?
a.
b.
c.
____ 4.
true
false
United States Securities and Exchange Commission
Federal Open Market Committee
Dow Jones Industrial Average
A savings account with $20,000 and an annual interest rate of .04 percent will earn how much simple
interest in one year?
a.
b.
c.
$800
$400
$1,200
____ 8.
Payments of profits that a corporation makes to shareholders are
a.
b.
c.
____ 9.
royalties.
bonds.
dividends.
__________ is(are) the basis for today’s currency system in the United States.
a.
b.
c.
The gold standard
Federal Reserve notes
wildcat banks.
____ 10. Subprime mortgages and foreclosures on home loans triggered the recession of 2008.
a.
b.
true
false
____ 11. Suppose the value of a house increases from $150,000 to $200,000 over a ten-year period even though the
owner does no remodeling or landscaping. What probably caused the price increase?
a.
b.
c.
inflation
deflation
stagflation
____ 12. Dividing a single share of stock into more than one share is called
a.
b.
c.
a stock split.
a brokerage.
a money market.
____ 13. A business franchise is a semi-independent business that pays fees to a parent company and has exclusive
right to sell a good or service within a certain area.
a.
b.
true
false
____ 14. What is gross NATIONAL product (GNP)?
a.
b.
c.
the total dollar value of all goods and services produced within a country
the dollar value of goods produced in a country divided by its population
the annual income earned by a country’s firms and citizens
____ 15. What is an example of bartering?
a.
b.
c.
paying cash for a new sofa
paying for dinner at a restaurant with a credit card
offering to mow someone’s yard if they unclog your sink
____ 16. Liability is
a.
b.
c.
the legal obligation to pay debts.
the amount of profit a partner gets to keep.
authorization from a local government to operate a business.
____ 17. What is a DISADVANTAGE of a sole proprietorship?
a.
b.
c.
full control
full receiver of profit
unlimited personal liability
____ 18. Who is HIGHEST ranking in a typical corporate structure?
a.
b.
c.
department managers
chief executive officer (CEO)
board of directors
____ 19. Offshoring is the practice of hiring part-time workers instead of full-time workers.
a.
b.
true
false
____ 20. The largest source of income for banks is
a.
b.
c.
hedge funds.
interest charged on loans.
fractional reserve banking.
____ 21. Which economic variable involves paying interest for “big ticket” items?
a.
b.
c.
interest rates and credit.
external shocks.
business investment.
____ 22. The __________ tracks price changes in more than 500 stocks as a measure of the stock market.
a.
b.
c.
Standard & Poor’s 500
New York Mercantile Exchange
Chicago Board of Trade
____ 23. Owners of preferred stock receive their dividends BEFORE owners of common stock.
a.
b.
true
false
____ 24. Which option gives you the right to BUY shares of a certain stock at a certain price?
a.
b.
call option
put option
____ 25. __________ is the belief that too much money in circulation causes inflation.
a.
b.
c.
The quantity theory
Fixed income
Poverty rate
____ 26. A prolonged economic contraction generally lasting six to eighteen months is a(n)
a.
b.
c.
trough.
recession.
economic fluctuation.
____ 27. Which type of bond is issued by state and local governments and used to finance projects such as
highways, parks, and schools?
a.
b.
c.
corporate bonds
treasury bonds
municipal bonds
____ 28. In the last one hundred years, the production of manufactured goods in the American economy has
increased.
a.
b.
true
false
____ 29. Aggregate supply is
a.
b.
c.
the loss of value that occurs in capital because of natural wear and tear over time.
the total amount of goods and services in the economy available at all possible price levels.
the total amount of goods and services in the economy that will be purchased at all possible price
levels.
____ 30. What happens in a bull market?
a.
b.
c.
Investors put their money in livestock instead of grain.
Stock prices steadily decline.
Stock prices steadily rise.
____ 31. Equilibrium wage is the wage rate when the supply of workers equals the demand for workers.
a.
b.
true
false
____ 32. Nominal GDP (gross domestic product) is calculated with
a.
b.
c.
current prices.
the previous year’s prices.
constant prices.
____ 33. A __________ occurs when two firms that manufacture the same product join together.
a.
b.
c.
horizontal merger
vertical merger
conglomerate
____ 34. If a corporation issues 1,000 shares of stock, and you buy seven shares, you own __________ of the
corporation.
a.
b.
c.
70 percent
7 percent
7 / 1,000
____ 35. Money as a unit of account means that money holds its value regardless of whether you spend or keep it.
a.
b.
true
false
____ 36. As a labor union leader, Samuel Gompers focused on transferring all factors of production to the
government.
a.
b.
true
false
____ 37. In a general partnership,
a.
b.
c.
all partners always have limited liability.
only one partner must have limited liability.
all partners share equally in liability.
____ 38. The function of NASDAQ is to
a.
b.
c.
maintain and operate the New York Stock Exchange.
insure purchases of stock up to $250,000 dollars.
organize the over-the-counter stock market with automation.
____ 39. The gold standard meant that the value of a dollar was equal to a certain amount of gold, and paper money
could be redeemed for gold.
a.
b.
true
false
____ 40. In which phase of a business cycle does real GDP stop rising?
a.
b.
c.
expansion
trough
peak
____ 41. The Consumer Price Index (CPI) measures the core inflation rate.
a.
b.
true
false
____ 42. Who controls the supply of money in circulation in the United States?
a.
b.
c.
the Internal Revenue Service
Congress
the Federal Reserve
____ 43. Which asset is part of M2 but not M1?
a.
b.
c.
currency
demand deposit
savings deposit
____ 44. Which type of unemployment occurs when workers’ skills do not meet employers’ needs?
a.
b.
c.
cyclical unemployment
structural unemployment
frictional unemployment
____ 45. In recent years, union membership has __________ in the United States.
a.
b.
increased
decreased
____ 46. A time of macroeconomic expansion followed by a time of macroeconomic contraction is a business cycle.
a.
b.
true
false
____ 47. Why is the demand for labor called a derived demand?
a.
b.
c.
It is constant and never changes.
It is derived by a demand for products.
It is highly elastic.
____ 48. You will incur a capital gain if you
a.
b.
c.
sell stock for LESS than you paid for it.
sell stock for MORE than you paid for it.
buy stock with borrowed money.
____ 49. Interest paid on a principal amount and interest previously earned is
a.
b.
c.
compound interest.
a demand deposit.
simple interest.
____ 50. Which characteristic of money means that any two units of money must have the same value?
a.
b.
c.
Money is divisible.
Money is portable.
Money is uniform.
Carefully review your answers on this progress test and make any corrections you feel are necessary. When
you are satisfied that you have answered the questions to the best of your ability, transfer your answers to the
online test submission page in the presence of your proctor.
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University of Nebraska. All rights reserved.

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