Question

Today $100 buys less of most goods than it did 10 years ago. This phenomenon is an example of _____.


Select the best answer from the choices provided.
inflation
deflation
a growing GDP
a falling GDP

Answer 1

A

Answer 2

@zynell Thanks

Answer 3

The term inflation refers to _____.


Select the best answer from the choices provided.
the rate at which the economy grows
the amount of money in circulation
the change in value of a certain amount of money
the change in price of one good from one year to the next

Answer 4

@zynell

Answer 5

D

Answer 6

By definition, how does a progressive tax fall on all taxpayers?


Select the best answer from the choices provided.
equally
unequally
lightly
heavily

Answer 7

@Tazmaniadevil

Answer 8

@zynell

Answer 9

unequally

Answer 10

Alan owns a bakery and hears that the Fed is planning to cut its interest rate. Which business plan would make the most sense if Alan agrees with the Fed's economic outlook?


Select the best answer from the choices provided.
Use his cash reserves to expand his bakery because a boom is coming and he can earn more money.
Sell his baking business because he will no longer be able to afford to run it.
Increase the cash reserves he has on hand so he has options if a bust comes.
All answers are correct.

Answer 11

@zynell its the first one ?

Answer 12

I would say so

Answer 13

During a recession, some economists believe the government should increase its spending. Why would they most likely hold this opinion?


Select the best answer from the choices provided.
They believe that government spending creates inflation.
They believe that government spending creates supply.
They believe that government spending creates demand.
They believe that government spending creates taxation.

Answer 14

@zynell

Answer 15

C

Answer 16

Arthur and Janice have three cars but never drive one of them. They plan to sell the one they do not drive when the economy expands next year. Why is this decision likely poor money management?


Select the best answer from the choices provided.
Arthur and Janice are trying to time the market, which may not work.
Arthur and Janice are trying to wait until inflation increases to get more value for their car, but inflation will actually erode the value of the car.
Arthur and Janice think they can avoid taxes by waiting to sell, but they cannot.
Arthur and Janice are hoping for interest rates to rise, but interest rates do not rise during economic expansions.

Answer 17

@zynell

Answer 18

B

Answer 19

The term inflation refers to _____.


Select the best answer from the choices provided.
the rate at which the economy grows
the amount of money in circulation
the change in value of a certain amount of money
the change in price of one good from one year to the next

Answer 20

its D?

Answer 21

@zynell

Answer 22

Yes, d

Answer 23

What currently backs U.S. currency?


Select the best answer from the choices provided.
gold
silver
oil
nothing

Answer 24

@zynell

Answer 25

C, i think

Answer 26

i thought its D

Answer 27

ill check DW

Answer 28

okay

Answer 29

If a state introduces a new tax of 25% on the purchase of automobiles, what is the most likely effect on future automobile sales?


Select the best answer from the choices provided.
increased automobile sales
decreased automobile sales
unchanged automobile sales
varying automobiles sales

Answer 30

@zynell

Answer 31

d

Answer 32

liza is a schoolteacher, and she sees that unemployment is high and prices are falling. Her car is 12 years old and will soon need a lot of repairs and necessary maintenance. She has budgeted and saved so she can afford to buy a car every 10 years. Which course of action makes the most sense?


Select the best answer from the choices provided.
She should wait and buy a car when the economy is booming again.
She should buy a car now while prices are low.
She should not buy a car now because interest rates are probably high.
She should buy a car now because the economy is expanding.

Answer 33

@zynell

Answer 34

B

Answer 35

Alonso reads that interest rates are climbing higher. Which of the following statements is most likely also true?


Select the best answer from the choices provided.
Unemployment levels have been climbing and prices have been falling.
Unemployment levels have been climbing and wages have been rising.
Both stock prices and wages have been climbing.
Prices have been falling, but other indexes have stayed the same.

Answer 36

@zynell

Answer 37

d

Answer 38

Susan would like to buy a house in the near future using the money she will inherit from her grandfather to make the down payment on a loan. Which of the following policies would hurt her the most?


Select the best answer from the choices provided.
The government increases sales tax to balance the budget.
The Fed increases interest rates to slow down a boom.
The government replaces a property tax with a capitation tax.
The Fed decreases interest rates to stop a bust.

Answer 39

@zynell

Answer 40

A

Answer 41

hen unemployment levels are low and prices are high, the market is _____.


Select the best answer from the choices provided.
contracting
in a bust
expanding
stagnant

Answer 42

@zynell

Answer 43

C

Answer 44

your so smart

Answer 45

you were right about oil backing up us currency

Answer 46

oh

Answer 47

The Fed wishes to increase the money supply. Which of the following is most likely to occur as a result of this action?


Select the best answer from the choices provided.
Taxes will fall.
Stocks will increase in value.
Interest rates will rise.
Interest rates will fall.

Answer 48

@zynell

Answer 49

C

Answer 50

are you a teacher?

Answer 51

Nope, why?

Answer 52

you're smart

Answer 53

oh, thanks hun :)

Answer 54

Inflation does not erode the value of _____.


Select the best answer from the choices provided.
savings accounts
municipal bonds
real estate
loans

Answer 55

@zynell

Answer 56

A

Answer 57

Jim is considering going back to school for an additional degree if the job market is bad. Which of the following actions is consistent with Jim's plan?


Select the best answer from the choices provided.
The economy is in a recession, so Jim goes back to school.
The economy is expanding, so Jim goes back to school.
The economy is contracting, so Jim does not go back to school.
The economy is booming, so Jim goes back to school.

Answer 58

@zynell

Answer 59

A

Answer 60

When the amount of money in circulation increases without an increase in the number of goods in an economy, the result is called _____.


Select the best answer from the choices provided.
regressive taxation
inflation
market timing
progressive taxation

Answer 61

@zynell

Answer 62

C

Answer 63

Jon believes that taxes should be proportional. Which of the following candidates should he vote against in upcoming elections if taxes are his only concern?


Select the best answer from the choices provided.
Bob, who wants to raise the sales tax from 5% to 6%
Susan, who wants to lower the sales tax by 2%
Sally, who wants to increase the top income tax bracket by 2%
Arthur, who wants to increase the income tax by 1%

Answer 64

@zynell

Answer 65

Susan

Answer 66

you are really smart do you have the answer key?

Answer 67

Barry is running for mayor and wishes to revamp his city's tax code to make it simpler and more progressive. Which of the following statements is compatible with Barry's plans?


Select the best answer from the choices provided.
Barry should decrease the taxes on property and increase the taxes on cigarettes.
Barry should decrease the taxes on cigarettes and increase the taxes on income earned by the wealthy.
Barry should increase the sales tax and decrease the taxes on property.
Barry should decrease the income tax and increase the sales tax.

Answer 68

nope, sorry

Answer 69

@zynell

Answer 70

B

Answer 71

When the government spends more money than it takes in as revenue, it has _____.


Select the best answer from the choices provided.
a debt
a deficit
inflation
taxation

Answer 72

@zynell

Answer 73

A

Answer 74

its not B?

Answer 75

over a spand of time, yes it would be a deficit, choose that.

Answer 76

i knew lml

Answer 77

Linus's retirement funds are largely invested in traditional bonds. Which economic policy would be most risky for him?


Select the best answer from the choices provided.
The government increases spending on public works to create jobs.
The government increases inflation to encourage lending and business expansion.
The government reduces taxes to encourage consumption.
The government bans COLAs.

Answer 78

@zynell

Answer 79

B

Answer 80

nice smart

Answer 81

thank you

Answer 82

Which of the following activities might be more beneficial when interest rates are falling?


Select the best answer from the choices provided.
lending money
buying a house
buying bonds
retiring

Answer 83

B

Answer 84

Jim is retired and lives off of Social Security payments. How could the national economy affect Jim's income?


Select the best answer from the choices provided.
If the stock market improves, his income will increase.
If the economy contracts, he will find it harder to pay his bills.
Because his income is fixed, it does not matter if the economy expands or contracts.
His income does not depend on the stock market but adjusts for inflation.

Answer 85

C

Answer 86

Susan would like to buy a house in the near future using the money she will inherit from her grandfather to make the down payment on a loan. Which of the following policies would hurt her the most?


Select the best answer from the choices provided.
The government increases sales tax to balance the budget.
The Fed increases interest rates to slow down a boom.
The government replaces a property tax with a capitation tax.
The Fed decreases interest rates to stop a bust.

Answer 87

@zynell

Answer 88

A

Answer 89

omfg you're so smarttttttttttttttttttttttttttttttttt

Answer 90

you should study business

Answer 91

Thanks, maybe I just might.

Answer 92

Inflation does not erode the value of _____.


Select the best answer from the choices provided.
savings accounts
municipal bonds
real estate
loans

Answer 93

im skeptical of 'savings'

Answer 94

i thought it was real estate

Answer 95

A