Stock Markets Exposed

53: True or False: The first development of paper money began in China, probably during the 1500s.?

1: Scarcity is defined as: not having sufficient resources to produce enough to fulfill unlimited subjective wants. not having sufficient resources to fulfill limited subjective wants. having sufficient resources to fulfill unlimited subjective wants. having sufficient resources to fulfill limited subjective wants. 2: A ______ is a market where price is determined by the unregulated interchange of supply and demand. This is in contrast to a _______ where supply, demand, and price are set directly by government. open market, controlled market free market, controlled market open market, closed market free market, closed market 3: ______ is the direct exchange of goods or services without the use of money. consumerism barter economy retail 4: Which of the following is not one of money's main uses? medium of exchange unit of account measure of worth store of wealth 5: The main economic goals of nearly all nations are to promote: economic stability and high employment with a minimum increase in prices. economic growth and high employment with a minimum increase in prices. economic stability and low employment with a maximum increase in prices. economic growth and high employment with a maximum increase in prices. 6: A recession is usually defined in macroeconomics as: a fall of a country's real Gross Domestic Product (GDP) in two or more successive quarters of a year. a fall of a country's real GDP in two or more successive years. a general drop in the real GDP. a severe depression. 7: When the price of oranges rises, it is very likely because the number of oranges demanded at the existing price _____ the number of oranges actually available. is greater than is less than is equal to not enough information 8: The hope for profits and the threat of losses is what forces a business owner in a capitalist economy to produce at the lowest cost and sell what the customers are most willing to pay for. This is an example of: Supply and demand Economic growth The downfall of capitalism Profits as incentives 9: Whether we look at laws, prophetic teachings, psalms; or the gospel of Jesus, we find the constantly reiterated conviction that all oppression, including economic oppression, is _____ the Divine will. contrary to accepted as caused by not enough information 10: Which of the following is not a type of economy? capitalist socialist consumerist feudal 11: Which of the following is not one of three economic commands given by God? The price of land must be fixed. Water must be communal. There must be restrictions put on interest. Profit on food must be forbidden. 12: When large supplies of an item are made, the item's cost will go _____. When very few supplies of the item are made, the price will go _____. When the demand of an item is _____, the price rises. When the demand of an item is _____, the price will go down. down, up, high, low up, down, high, low down, up, low, high up, down, low, high 13: Which of the following is a tragic effect of unemployment? Wife and child abuse increase. Divorce rates go up. Street crime flourishes. All of the above. 14: Economics is the study of: the use of alternative resources which have multiple uses. the use of available resources which have multiple uses. the use of scarce resources which have alternative uses. the use of scare resources which have very few uses. 15: __________ comes from the concept of specialization. Private business Communism Division of labor Supply and demand 16: If a shipwrecked sailor on a desert island is capable of either catching 10 fish or harvesting 5 coconuts in one day, then the opportunity cost of producing one coconut is ____ fish. one two three five 17: The two main Ingredients of the U.S. Economy are: natural resources and land land and labor natural resources and labor land and money 18: The American free enterprise system emphasizes: public ownership. private ownership. both public and private ownership. not enough information. 19: Usually the short term goal of open market operations is to: create more jobs. achieve a specific long term interest rate target. achieve a specific short term interest rate target. increase stock market values. 20: During the 1870-1920 period the industrialized nations set up _______, with one of the last being the Federal Reserve in 1913. credit unions gold reserves central banking systems private banking systems 21: When used as part of a commodity money system, which of the following is not a function of paper currency? to reduce the danger of transporting gold to reduce the possibility of debasement of coins to avoid the reduction in circulating medium to hoarding and losses to avoid the decrease in value of precious stones 22: The gold standard, in theory, limits the power of governments to cause _______ by excessive issue of paper currency. price inflation unemployment wealth and poverty stagflation 23: In practice all types of monetary policy involve modifying the amount of base currency in circulation. This process of changing the liquidity of base currency is called _______. seignority interest rate adjustment open market operations none of the above 24: An anti-trust law is a policy or action that seeks to: promote monopolistic powers within a market. curtail monopolistic powers within a market. protect monopolistic mergers from discrimination. protect small business owners from dishonest dealings. 25: _____ is the act of converting a publicly operated enterprise into a privately owned and operated entity. Shares formerly owned by the government, as well as management control, are sold to the public. Specialization Merging Monopolizing Privatization 26: Approximately ____ of all above-ground gold is held in reserves by central banks. 10% 25% 50% 85% 27: The Industrial Revolution began in Europe in the _______________, and it quickly spread to the United States. late 19th and early 20th centuries late 18th and early 19th centuries late 17th and early 18th centuries mid 20th century 28: The "Gilded Age" of the second half of the 19th century was the epoch of: gilds. mergers. tycoons. automobiles. 29: A person who takes the risk of organizing and operating a new business venture is called a: tycoon. sole proprietor. entrepreneur. corporation. 30: What did America experience in the 1920's? An economic boom An economic bust A long bull market A long bear market 31: October 24, 1929, the day when 13 million shares were sold is now known as: Black Monday Black Tuesday Black Thursday Black Friday 32: In America, during the _____, the number of workers providing services grew until it equaled and then surpassed the number who produced goods. 1930s 1950s 1970s 1990s 33: Stagflation is a situation in which a nation's economy is characterized by relatively: high price inflation and low rates of economic growth. low price inflation and high rates of unemployment. high rates of economic growth and low price inflation. low unemployment rates and high rates of economic growth. 34: Communism is an economic theory which stresses that the control of the means of producing economic goods in a society should reside in the hands of those who: have the biggest economic advantage. invest their labor for production. have the most education. are elected to office by the public. 35: In a typical ________ arrangement, a successful company authorizes an individual or small group of entrepreneurs to use its name and products in exchange for a percentage of the sales revenue. wholesale franchising marketing corporate 36: Which of the following does not form a true statement by correctly completing the sentence? Large businesses are important to the overall economy because they are better equipped to: conduct research and develop new goods. offer more varied job opportunities and greater job stability. offer higher wages and better health and retirement benefits. provide the goods and services wanted by the surrounding community. 37: In general, government antitrust officials see a threat of monopoly power when a company gains control of ________ of the market for a commodity or service. 25% 30% 66.6% 90% 38: Which of the following is not one of the roles of the Environmental Protection Agency (EPA)? sets and enforces tolerable limits of pollution cleans up polluted streams, rivers, and marshes establishes timetables to bring polluters into line with standards has the authority to coordinate and support research and anti-pollution efforts 39: Which of the following are not practiced market strategies? Buying on margin Selling short Selling long Options 40: ________ is an economic policy or doctrine that opposes government interference in or regulation of business or commerce beyond what is necessary for a free-enterprise system to regulate itself. Communism Laissez-faire Fiscal policy Free-enterprise policy 41: Which of the following is not a method that corporations use to raise capital? issuing bonds or preferred stock selling common stock borrowing and using profits selling goods and services directly to the public 42: Monetary base is defined as: currency in circulation. currency in circulation plus foreign debts owed. currency in circulation plus banks' required and excess deposits at the central bank. bank's required and excess deposits at the central bank. 43: A policy is referred to as _______ if it reduces the size of the money supply or raises the interest rate. An _______ policy increases the size of the money supply, or decreases the interest rate. contractionary, expansionary expansionary, contractionary fiscal, monetary monetary, fiscal 44: Governments spend money on a wide variety of things. Which of the following is not a way in which these expenditures can be funded? Taxation of the population Seignorage, the benefit from printing money Borrowing money from another country, resulting in a foreign deficit Borrowing money from the population, resulting in a fiscal deficit 45: When products become more expensive over time, ______ is occurring. deflation inflation stagflation none of the above 46: A(n) _____ is an economic disadvantage, such as lower efficiency or higher costs. diseconomy noneconomy net loss unexpected loss 47: Keynesian economics is an economic theory based on the ideas of 20th century British economist John Maynard Keynes. Keynesian economics promotes a ________, where both the state and the private sector play an important role. fixed economy mixed economy socialist economy communist economy 48: Because economics is a study of ______, it deals with incentives and their consequences. cause and effect profits and losses wealth and social status money and will power 49: In 1652, the _______ became the first American colony to make coins. Roanoke Colony Plymouth Colony Massachusetts Bay Colony New Hampshire Colony 50: Which of the following is not directly affected by the quantity of money in a country? the level of prices the quality of service the rate of economic growth the amount of employment 51: True or False: Prices not only ration existing supplies, they also act as powerful incentives to cause supplies to rise or fall in response to changing demand. True False . . 52: True or False: Money is defined as anything that is generally accepted by people in exchange for the things they sell or the work they do. True False . . 53: True or False: The first development of paper money began in China, probably during the 1500s. True False . . 54: True or False: Typically, price controls are imposed in order to keep prices from rising to the levels that they would reach in response to supply and demand. True False . . 55: True or False: In the normal course of events, people's demand for housing space stays the same over a lifetime. True False . . 56: True or False: During the Great Depression of the 1930s, agricultural price support programs led to vast amounts of food being deliberately destroyed. True False . . 57: True or False: When a supermarket chain buys $10,000 worth of bread, it gets its money back much faster than when a piano dealer buys $10,000 worth of pianos. True False . . 58: True or False: The cost of producing a given product or service remains the same despite the volume being produced. This is what economists call "economies of scale." True False . . 59: True or False: Both profit and losses force businesses to change with changing conditions or find themselves losing out to competitors who spot the new trends earlier or who understand their implications better. True False . . 60: True or False: The advantage of a command economy is that vast amounts of knowledge about the needs and wants of the consumer do not ever have to be brought together, but are coordinated automatically by prices that convey what numerous people want. True False . . 61: True or False: The amount of profit left after a business pays for its employees, utility expenses, raw materials, parts, labor, and other expenditures is the gross profit. True False . . 62: True or False: Cost is the difference between what consumers pay and what the products cost to produce and distribute. True False . . 63: True or False: All oppression, including economic oppression, is contrary to the Divine will, provoking God to wrath and agony over his children's treatment of one another. True False . . 64: True or False: In the Bible, not only is the desire for riches condemned, but those who already are wealthy are described as barely able to enter the kingdom, if at all. True False . . 65: True or False: During the Great Depression, the American unemployment rate reached as high as 53%. True False . . 66: True or False: Poverty is the condition for more than twenty-five million Americans, one in eight people, including one-sixth of the nation's children. True False . . 67: True or False: Capitalism is an economic system based on public ownership of the means of production. True False . . 68: True or False: The Gross Domestic Product represents the total goods produced inland by domestic and foreign companies. True False . . 69: True or False: Money does not have to be involved to make a decision be economic. True False . . 70: True or False: The cost of producing an automobile is fundamentally the same whether you are producing 100 cars a year or 100,000 cars a year. True False . . 71: True or False: The biblical writers sensed that the economic order can easily slip into an unjust distribution of wealth, and they sought means to right the balance and to structure society so that there would be a more equitable sharing of wealth. True False . . 72: True or False: Wholesale is the purchase of individual items at a higher price, whereas retail is the purchase of large quantities of goods at a lower price. True False . . 73: True or False: The quality of available labor -- how hard people are willing to work and how skilled they are -- is at least as important to a country's economic success as the number of workers. True False . . 74: True or False: Most economists agree with returning to a gold standard. True False . . 75: True or False: In the United States, the Federal Reserve can only directly set the discount rate; it engages in open market operations to alter the federal funds rate. True False . . 76: True or False: By the end of 1999, the American economy had grown continuously since March 1991, the longest peacetime economic expansion in history. True False . . 77: True or False: A particular strength of larger businesses is their ability to respond quickly to changing economic conditions. They often know their customers personally and are especially suited to meet local needs. True False . . 78: True or False: Telephone companies, like electric utilities, are considered to be natural monopolies. True False . . 79: True or False: What early colonial prosperity in America there was resulted primarily from basket-weaving. True False . . 80: True or False: On Monday, October 19, 1987, the value of stocks plummeted on markets around the world, eclipsing even the famous October 1929 market crash. True False . .

Public Comments

1. Just sitting here chuckling at your chutzpah.
2. Do your own work. http://inventors.about.com/od/mstartinventions/a/money.htm