Economic Indicators
The collective value of all goods and services produced in a country in a given time period is used to measure different countries’ economies against one another. This measurement is known as:
Gross Domestic Product
The Federal Reserve (The FED) is the banking system for the United States. Part of their duty is to attempt to implement policies which help to stabilize and grow the economy. They have several tools by which to do this. Which of the following is NOT a tool the FED has to help them accomplish this goal?
A) The discount rate
B) Open market operations
C) The reserve requirement
D) Reducing the national debt
D: Reducing the national debt
Which international organization primarily focuses on maintaining international peace and security, as well as promoting friendly relations among nations?
United Nations
Refusing to trade goods with another country as a means to force them to change policies within their country is known as a(n):
A) Embargo
B) Tariff
C) Military sanction
D) Blockade
A) Embargo
Which of the following would involve regulation by the Food and Drug Administration?
A) Establishing the location of nursing homes
B) Setting the qualifications of new doctors
C) Reviewing the side effects of a new cancer treatment
D) Limiting the length of a hospital stay for a new mother
C) Reviewing the side effects of a new cancer treatment
Which of the following is demonstrated by changes in the Consumer Price Index (CPI)?
A) Shortfalls in budgets
B) Rates of inflation over time
C) Increases in taxes
D) Conservation of resources
B) Rates of inflation over time
Open market operations involves which of the following:
A) Buying and selling of stocks on the stock market
B) Buying and selling bonds and treasury bills
C) Creating price ceilings on goods and services
D) Adjusting the interest rates on small business loans
B) Buying and selling bonds and treasury bills
All of the following are goals of the International Red Cross/Red Crescent EXCEPT:
A) Alleviate human suffering
B) Protect human life and health
C) Provide aid to prisoners during armed conflict
D) Provide economic guidance in poor nations
D) Provide economic guidance in poor nations
Which action would the Federal Reserve most likely take to increase the money supply?
A) Raise income taxes
B) Reduce the discount rate
C) Decrease the federal debt
D) Decrease government spending
B) Reduce the discount rate
Which regulatory agency oversees the safety and effectiveness of medical products, including drugs, vaccines, and medical devices?
Food and Drug Administration (FDA)
A period of contraction in the business cycle most likely indicates what?
A) High inflation
B) Economic growth
C) Decreasing Gross Domestic Product (GDP)
D) Increasing Consumer Price Index (CPI)
A) High inflation
Developing a new tax plan in Congress to pay for installing internet connections to homes in rural areas would be an example of:
A) Monetary Policy
B) Command economy
C) Fiscal Policy
D) New Urbanism
C) Fiscal Policy
Which of the following is a goal of the World Trade Organization?
A) Regulate global currency for all member nations
B) Loan money to developing countries to stabilize their currency
C) Provide military intervention during disputes
D) Provide technical training and assistance to developing countries
D) Provide technical training and assistance to developing countries
Which of these examples would require regional cooperation by state governments in the mid-Atlantic region?
A) Raising the property tax in Baltimore City
B) Maintaining the water quality in the Chesapeake Bay.
C)Building a transportation system from Baltimore to Annapolis.
D) Adding lanes to the Chesapeake Bay Bridge.
B) Maintaining the water quality in the Chesapeake Bay.
Which of the following is most likely to occur as a result of increased regulations by the Environmental Protection Agency (EPA)?
A) The cost to businesses will increase to comply with the new regulations
B) There will be a loss of habitat for native species of plants and animals
C) Companies will be less likely to use appropriate means of waste disposal
D) The EPA will lose its authority to enforce laws and apply penalties to lawbreakers Use the scenario below to answer the question.
A) The cost to businesses will increase to comply with the new regulations
. Business are growing and creating new jobs. Purchases by consumers and businesses are increasing. Economists predict that these conditions will continue for some time.
Based on the scenario above, which phase of the business cycles is being described?
A) Expansion
B) Peak
C) Contraction
D) Trough
The amount of funds a bank must hold on in its deposits from its customers in order to meet the demand of withdrawals is known as:
A) Fractional currency
B) Reserve requirement
C) Treasury bonds
D) Discount rate
B) Reserve requirement
Participation in the World Trade Organization (WTO) supports which U.S. foreign policy goal?
A) National Security
B) Concern for Humanity
C) Economic Prosperity
D) Spread of Democracy
C) Economic Prosperity
Which of the following would be an example of regional cooperation?
A) Baltimore County creates a task force to find a new location for a landfill
B) Maryland and Virginia develop policy to address pollution in the Potomac River
C) Baltimore City asks for taxpayers to vote on money to revitalize the Inner Harbor
D) Plans are drawn up to replace the Francis Scott Key bridge on I-695
B) Maryland and Virginia develop policy to address pollution in the Potomac River
Some gas station operators were told by a regulatory agency that their underground gasoline tanks had to be removed and new ones installed. The order was given because the tanks were leaking fuel.
Based on the scenario above, which of these regulatory agencies has the authority to issue the order?
A) Environmental Protection Agency (EPA)
B) Federal Trade Commission (FTC)
C) Food and Drug Administration (FDA)
D) Federal Communications Commission (FCC)
A) Environmental Protection Agency (EPA)
Who is counted in the unemployment rate?
The difference between fiscal policy and monetary policy is:
A) Fiscal policy is established by the president and monetary policy is set by the Federal Reserve
B) Monetary policy controls the dollars circulating and fiscal policy focuses on taxing and government spending
C) Fiscal policy and monetary policy are essentially different terms that mean the same thing
D) Monetary policy involves mandatory spending while fiscal policy focuses on discretionary spending
B) Monetary policy controls the dollars circulating and fiscal policy focuses on taxing and government spending
China has made aggressive military actions off the coast of Japan. Which international organization would be most likely to intervene in this situation?
A) North Atlantic Treaty Organization (NATO)
B) The United Nations (UN)
C) The World Bank
D) The International Red Cross
B) The United Nations (UN)
Why might the government have to spend a greater portion of the budget on Medicare in the future?
A) There will be more elderly citizens entitled to benefits.
B) There will be a larger number of poor people who will qualify.
C) Americans are projected to produce fewer goods and services.
D) Elderly citizens will demand to pay fewer taxes to support the system.
A) There will be more elderly citizens entitled to benefits.
You notice that your neighbor has been bringing home used motor oil from his job as an airplane mechanic at BWI airport and using it to spray on poison ivy plants to kill them in the woods behind your houses. Which regulatory agency should you notify?
A) The Federal Aviation Administration
B) The Federal Transportation Administration
C) The Environmental Protection Agency
D) The Federal Trade Commission
C) The Environmental Protection Agency