Economics Exam Honors

Question 1 (Multiple Choice Worth 4 points)

(03.05 MC)

Marginal Cost Analysis Graph

© Jarry1250 2010

Creative Commons Attribution-Share Alike 3.0 Unported

Trevor's company makes fine chocolates. He has figured out how to maximize his profit What letter on the graph represents Trevor's situation?

A B C D

Question 2 (Multiple Choice Worth 4 points)

(03.06 MC)

OccupationSalaryAttorney$77,000Software Engineer$63,000Administrative assistant$33,000Elemetary school teacher$40,000Registered Nurse$53,000Construction project manager$72,000

Which of these is likely true, based on the charted data? Construction project managers are in higher demand than teachers. Registered nurses are more plentiful than administrative assistants. Society values administrative assistants more than software engineers. There are more attorneys than there are registered nurses.

Question 3 (Multiple Choice Worth 4 points)

(05.04 MC)

© 2013 FLVS

Given the data in the chart, which two countries enjoy an absolute advantage in oil production over the United States?

Canada and Venezuela Russia and Canada Saudi Arabia and Venezuela Russia and Saudi Arabia

Question 4 (Multiple Choice Worth 4 points)

(03.04 MC)

Merv's Hardware, a small family-owned store in Middletown, sells a 100-pack of garnet sandpaper for $35. The Home Shoppe, a large retail hardware chain in neighboring Morristown, sells the same product for $29. Based on this scenario, what would you expect Merv's immediate response to be?

Merv will remove his advertisements and rely on word of mouth. Merv will reduce his price to respond to the price competition from the HomeShoppe. The HomeShoppe will initiate non-price competition with Merv. The HomeShoppe will raise its price to respond to the price competition from Merv.

Question 5 (Multiple Choice Worth 4 points)

(03.02 MC)

Marcie wants to work as a freelance editor. She purchases a desk, computer, widescreen monitor, and ergonomic keyboard. What kind of resources are these?

Capital Entrepreneurship Labor Land

Question 6 (Multiple Choice Worth 4 points)

(03.03 MC)

Bill and his wife, Vickie, want to start a company that develops training sessions for corporate clients. They would like to share the decisions, have few start-up costs, and protect their personal assets. Which of these would suit their needs best?

Corporation Limited liability corporation Partnership Sole proprietorship

Question 7 (Multiple Choice Worth 4 points)

(05.02 MC)

In 2011, Cambodia had a GDP of $33.8 billion and a per capita GDP of $2,200. Nearly a third of its people lived below the poverty level, and average life expectancy was 62.5 years. Which of these additional factors would most support the conclusion that Cambodia is a developing economy rather than an emerging economy?

A rapidly increasing GDP Decreasing illiteracy rates Increased foreign investment Lack of basic infrastructure

Question 8 (Multiple Choice Worth 4 points)

(05.02 MC)

http://hillsborough.flvs.net/webdav/assessment_images/educator_econ_v13/06_06A_exam/0606_g13_q2.jpg

© 2013 FLVS

Given the data in the chart, which of the following statements is true?

Australia is more developed than the United States. China and Ecuador are more developed than Australia. India and Namibia are less developed than Russia. The United States is less developed than India.

Question 9 (Multiple Choice Worth 4 points)

(05.05 LC)

To protect consumers from potentially dangerous manufactured goods, the U.S. government is most likely to use which kind of trade barrier?

License Quota Regulation Tariff

Question 10 (Multiple Choice Worth 4 points)

(05.01 MC)

© 2013 FLVS

Which of the following entities would most likely agree with Adam Smith's statement?

Consumer protection agencies who are demanding more government oversight Labor union leaders who are advocating taxes on imports Public utility company that manages regional power supplies Stockholders for a pharmaceuticals company that has a new cancer drug

Question 11 (Multiple Choice Worth 4 points)

(01.06 HC)

© 2013 FLVS

Look at the graph. A bookstore owner increases the price of art books to $25. Which of these would occur?

A higher equilibrium point, because demand and price increased A lower equilibrium point, because the supply will increase A shortage, because the price is lower than equilibrium price A surplus, because the price is higher than equilibrium price

Question 12 (Multiple Choice Worth 4 points)

(01.05 MC)

© 2013 FLVS

In anticipation of a hurricane, demand for tortillas goes up. Oyama's store produces tortillas. Based on the chart, how will Oyama respond to the new demand for tortillas?

Price and quantity supplied will decrease. Price will increase as quantity supplied decreases. Price will decrease as quantity supplied increases. Price and quantity supplied will increase.

Question 13 (Multiple Choice Worth 4 points)

(05.05 MC)

Global Free Trade Zones

Public Domain

Opponents of free trade zones might use this map to argue that free trade

encourages conflict among market and command economies leads to greater mobility among populations organizes nations into regional exclusionary blocs redraws traditional geographic boundaries

Question 14 (Multiple Choice Worth 4 points)

(03.06 MC)

© 2013 FLVS

Sayuri's Asian Café makes the best pot stickers in town. The kitchen's production is usually between 20 and 22 pot stickers per hour. Sayuri buys a new machine to help the team make pot stickers faster. She tracks production over the course of seven days. On which day does the machine make a positive impact on production?

Day 3 Day 4 Day 5 Day 6

Question 15 (Multiple Choice Worth 4 points)

(01.04 MC)

© 2013 FLVS

The bookstore is overstocked with old fantasy novels. It needs to get rid of the novels to make room for newly published fantasy novels. Based on the chart, what could the bookstore do to increase quantity demanded for fantasy novels?

Decrease price on the old fantasy novels. Increase price on the old fantasy novels. Increase shelf space for fantasy novels. Sell preorders of the new fantasy novels.

Question 16 (Multiple Choice Worth 4 points)

(05.03 LC)

Which of the following statements most directly relates to the broad economic goal of freedom?

Allowing parents to choose between public and private schooling for their children, through vouchers Allowing the National Park Service to initiate a program of controlled forest fires to clear undergrowth Increasing funding for space exploration to boost high-tech employment and develop new technologies Increasing income taxes for the rich so that tax money can fund aid for the economically disadvantaged

Question 17 (Multiple Choice Worth 4 points)

(05.02 HC)

Country A has an absolute command economy. Country B has a mixed economy and a population that favors market trade. Both want to increase trade to generate more wealth. Which action would Country B most likely take that Country A would not?

Impose stricter divisions of labor Increase production quotas Loosen certain trade regulation Permit limited private ventures

Question 18 (Multiple Choice Worth 4 points)

(03.04 MC)

Which of these businesses are in monopolistic competition?

Two clothing shops, one selling women's clothing and the other selling kids' clothing Two agricultural producers, each selling a variety of kinds of citrus fruit Two pet stores, one of which sells dog products and the other of which sells bird products Two phone providers, each offering benefits to customers who switch to its service

Question 19 (Multiple Choice Worth 4 points)

(03.06 MC)

Auto Bull's-Eye offers a 10-minute oil change and 30-minute brake check. There are two technicians who perform each of these services. Next week, the shop is offering a discounted oil change. How might this affect the production possibilities curve for next week?

The shop would decrease the brake-check price to eliminate scarcity. The shop would increase worker pay to make up for the opportunity cost of not doing brake checks. The shop would shift production to oil changes and away from brake checks. The shop would shift production to brake checks and away from oil changes.

Question 20 (Multiple Choice Worth 4 points)

(05.06 LC)

Which of the following is a potential benefit of inflation?

Higher unemployment Higher prices Less government revenue More business profits

Question 21 (Multiple Choice Worth 4 points)

(05.04 MC)

© 2013 FLVS

Given the data in the chart above, which of the following trade scenarios is the most efficient?

France produces olive oil; Greece and Italy produce wine. Greece and Italy produce olive oil; France produces wine. Greece and France produce olive oil; Italy produces wine. Italy produces olive oil; France and Greece produce wine.

Question 22 (Essay Worth 4 points)

(03.01 MC)

Entrepreneurs

• An Wang
• Madame C. J. Walker
• Samuel F. B. Morse
• Joseph A. Unanue

Choose one of the entrepreneurs from this list. Write an essay about how your chosen entrepreneur has affected life today. Detail challenges he or she faced and explain how this person embodies one or more characteristics from the HUNT. Present your response in a clear, organized manner and cite examples as needed.

Question 23 (Essay Worth 4 points)

(03.03 MC)

Write a paragraph in response to the following statement: Business organization is a critical part of successful entrepreneurship.