Question 1

Social Security tax is regressive to the person making less than the cut off rate.

Accepted Answer

A) True 
 B)False

Question 2

When Bill Gates developed MS- DOS and founded Microsoft to market this product,he was using a

Accepted Answer

A)  natural resource.
B)  human resource.
C)  entrepreneurial resource.
D)  capital resource.

Question 3

Which of the following is not a form of taxes that governments use?

Accepted Answer

A)  proposed taxes
B)  proportional taxes
C)  regressive taxes
D)  progressive taxes
E)  All of the above are forms of taxes that governments use.

Question 4

The classroom on a college campus is an example of a

Accepted Answer

A)  capital resource.
B)  natural resource.
C)  entrepreneurial resource.
D)  human resource.

Question 5

Human beings have wants and desires for goods and services.They also have financial means with which to pay for them.

Accepted Answer

A)  limited;unlimited
B)  limited;limited
C)  unlimited;unlimited
D)  unlimited;limited

Question 6

Changing the supply of money to expand or contract economic activity is

Accepted Answer

A)  judicial policy.
B)  presidential policy.
C)  congressional policy.
D)  monetary policy.
E)  legislative policy.

Question 7

If the Fed purchases $10,000 in government securities it will have the effect of

Accepted Answer

A)  increasing the money supply.
B)  having no effect on the money supply.
C)  changing the money supply,but the direction is not clear.
D)  decreasing the money supply.
E)  unable to tell with the information provided.

Question 8

In order to increase the money supply,the Fed will sell government securities.

Accepted Answer

A) True 
 B)False

Question 9

There are several markets in the United States.The market where corn,wheat,soybeans,and oil are exchanged is the

Accepted Answer

A)  retail market.
B)  commodity market.
C)  real estate market.
D)  financial market.
E)  none of the above.

Question 10

Which of the following is an example of financial capital?

Accepted Answer

A)  a desk in a classroom
B)  a share of stock issued by IBM
C)  an electric plant used by your local utility to generate electricity
D)  a delivery truck used by Federal Express
E)  All of the above are examples of economic capital.

Question 11

A tree in a forest is an example of

Accepted Answer

A)  entrepreneurial resource.
B)  human resource.
C)  natural resource.
D)  capital resource.

Question 12

Jane Smith made $30,000 last year and paid $8,400 in taxes.What percentage of her income did Jane pay in taxes?

Accepted Answer

A)  2) 8%
B)  3) 57%
C)  7) 2%
D)  28%
E)  72%

Question 13

Wheat,soybeans,oil and gold are commodities.

Accepted Answer

A) True 
 B)False

Question 14

First National Bank is the central bank of the United States.

Accepted Answer

A) True 
 B)False

Question 15

John Gates made $25,000 last year and paid $2,500 in taxes.What percentage of his income did John pay in taxes?

Accepted Answer

A)  1%
B)  9%
C)  10%
D)  90%
E)  impossible to calculate with the information provided

Question 16

Finance is any transaction where money is exchanged for goods and services.

Accepted Answer

A) True 
 B)False

Question 17

The supply of money saved includes all of the following except

Accepted Answer

A)  savings accounts in banks.
B)  money market mutual funds in brokerage houses.
C)  demand deposits in banks.
D)  stocks held for investors by brokerage houses.
E)  All of the above represent money which is saved.

Question 18

As the price of an item increases,the quantity of the item provided to the market place will increase,ceteris paribus.

Accepted Answer

A) True 
 B)False

Question 19

The law of demand states that as the price of an item falls,the quantity demanded will decrease,ceteris paribus.

Accepted Answer

A) True 
 B)False

Question 20

A local computer manufacturer hires an additional worker and pays $10.00 per hour for an eight- hour day.The worker is capable of assembling 3 computers an hour.The firm sells each computer for $1,500.What is the marginal physical product of this worker?

Accepted Answer

A)  $10.00 per hour
B)  3 computers per hour
C)  $1,500 per unit produced
D)  $80.00 per day

Exam 1: Financial and Economic Concepts

Finance is any transaction where money is exchanged for goods and services.

Correct AnswerverifiedShow Answer

Changing the supply of money to expand or contract economic activity is

Correct AnswerverifiedShow Answer

There are several markets in the United States.The market where corn,wheat,soybeans,and oil are exchanged is the

Correct AnswerverifiedShow Answer

The supply of money saved includes all of the following except

Correct AnswerverifiedShow Answer

When Bill Gates developed MS- DOS and founded Microsoft to market this product,he was using a

Correct AnswerverifiedShow Answer

As the price of an item increases,the quantity of the item provided to the market place will increase,ceteris paribus.

Correct AnswerverifiedShow Answer

John Gates made $25,000 last year and paid $2,500 in taxes.What percentage of his income did John pay in taxes?

Correct AnswerverifiedShow Answer

Which of the following is not a form of taxes that governments use?

Correct AnswerverifiedShow Answer

A tree in a forest is an example of

Correct AnswerverifiedShow Answer

If the Fed purchases $10,000 in government securities it will have the effect of

Correct AnswerverifiedShow Answer

A local computer manufacturer hires an additional worker and pays $10.00 per hour for an eight- hour day.The worker is capable of assembling 3 computers an hour.The firm sells each computer for $1,500.What is the marginal physical product of this worker?

Correct AnswerverifiedShow Answer

The classroom on a college campus is an example of a

Correct AnswerverifiedShow Answer

Jane Smith made $30,000 last year and paid $8,400 in taxes.What percentage of her income did Jane pay in taxes?

Correct AnswerverifiedShow Answer

The law of demand states that as the price of an item falls,the quantity demanded will decrease,ceteris paribus.

Correct AnswerverifiedShow Answer

Human beings have wants and desires for goods and services.They also have financial means with which to pay for them.

Correct AnswerverifiedShow Answer

Which of the following is an example of financial capital?

Correct AnswerverifiedShow Answer

Wheat,soybeans,oil and gold are commodities.

Correct AnswerverifiedShow Answer

In order to increase the money supply,the Fed will sell government securities.

Correct AnswerverifiedShow Answer

Social Security tax is regressive to the person making less than the cut off rate.

Correct AnswerverifiedShow Answer

First National Bank is the central bank of the United States.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified