Question 1

A union has negotiated a contract that states the following: work up to 40 hours per week will be paid at a base rate of $10 per hour. All work in excess of 40 hours, but less than 48 hours will be paid at a rate equal to 1 1 times the base rate. Any work in excess of 48 hours will be paid at double 2
Time. This pay scale agrees with

Accepted Answer

A)   the law of supply.
B)   ceteris paribus.
C)   the law of demand.
D)   the law of supply and demand.
E)   can't tell with the information provided.

Question 2

In market transactions, when one party wins, the other usually feels as though he or she lost.

Accepted Answer

A) True 
 B)False  False

Question 3

The users of funds in the United States are

Accepted Answer

A)   governments.
B)   households.
C)   businesses.
D)   all of the above.
E)   none of the above.

Question 4

There are several markets in the United States. The market where stocks, bonds, and money are exchanged is the

Accepted Answer

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

Question 5

When a college hires a professor, they are employing a(n)

Accepted Answer

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

Question 6

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

Accepted Answer

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

Question 7

The supply of money saved includes all of the following EXCEPT

Accepted Answer

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

Question 8

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)   a delivery truck used by Federal Express
D)   an electric plant used by a local utility to generate electricity
E)   all of the above

Question 9

Table 1 -1. Supply and Demand for Personal Computers
 
-Refer to Table 1 -1. At a market price of $1,600, there will be

Accepted Answer

A)   a shortage of 2,000 computers.
B)   neither a surplus nor a shortage of computers as the market is in equilibrium at this price.
C)   a surplus or a shortage of 2,000 computers.
D)   a surplus of 2,000 computers.

Question 10

A local computer manufacturer hires an additional worker and pays $10.00 per hour for an 8 -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

Question 11

The highest value surrendered when a decision is made is

Accepted Answer

A)   economic cost.
B)   marginal cost.
C)   opportunity cost.
D)   absolute cost.
E)   capital cost.

Question 12

Which of the following is included in Gross Income?

Accepted Answer

A)   profit made by an entrepreneur
B)   interest earned on savings accounts
C)   wages and tips
D)   rental income on property
E)   all of the above

Question 13

The stocks and bonds issued by a corporation are the economic capital resources of the corporation.

Accepted Answer

A) True 
 B)False

Question 14

When the supply of money saved exceeds the demand for money, then banks will

Accepted Answer

A)   increase interest rates to attract more savers.
B)   lower interest rates to discourage savers.
C)   put money on sale by making loans more attractive.
D)   both A and B above.
E)   both B and C above.

Question 15

The primary savers of funds in the United States are

Accepted Answer

A)   governments.
B)   households.
C)   businesses.
D)   all of the above.
E)   none of the above.

Question 16

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

Accepted Answer

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

Question 17

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  False

Question 18

Table 1 -1. Supply and Demand for Personal Computers
 
-Refer to Table 1 -1. At a market price of $1,700, there will be

Accepted Answer

A)   a surplus or a shortage of 2,000 computers.
B)   a shortage of 2,000 computers.
C)   a surplus of 2,000 computers.
D)   neither a surplus nor a shortage of computers as the market is in equilibrium at this price.

Question 19

An organized effort where goods and services are freely exchanged is known as a

Accepted Answer

A)   government.
B)   market.
C)   religion.
D)   business.

Question 20

The classroom on a college campus is an example of a(n)

Accepted Answer

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

Exam 1: Finance and Economic Concepts

Correct Answer
verified

In market transactions, when one party wins, the other usually feels as though he or she lost.

Correct Answer
verified
False

The users of funds in the United States are

Correct Answer
verified

There are several markets in the United States. The market where stocks, bonds, and money are exchanged is the

Correct Answer
verified

When a college hires a professor, they are employing a(n)

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

Correct Answer
verified
D

The supply of money saved includes all of the following EXCEPT

Correct Answer
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Which of the following is an example of financial capital?

Correct Answer
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Table 1 -1. Supply and Demand for Personal Computers -Refer to Table 1 -1. At a market price of $1,600, there will be

Correct Answer
verified

A local computer manufacturer hires an additional worker and pays $10.00 per hour for an 8 -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 Answer
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The highest value surrendered when a decision is made is

Correct Answer
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Which of the following is included in Gross Income?

Correct Answer
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The stocks and bonds issued by a corporation are the economic capital resources of the corporation.

Correct Answer
verified

When the supply of money saved exceeds the demand for money, then banks will

Correct Answer
verified

The primary savers of funds in the United States are

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified
False

Table 1 -1. Supply and Demand for Personal Computers -Refer to Table 1 -1. At a market price of $1,700, there will be

Correct Answer
verified

An organized effort where goods and services are freely exchanged is known as a

Correct Answer
verified

The classroom on a college campus is an example of a(n)

Correct Answer
verified

Exam 1: Finance and Economic Concepts

Correct AnswerverifiedShow Answer

In market transactions, when one party wins, the other usually feels as though he or she lost.

Correct AnswerverifiedFalse

The users of funds in the United States are

Correct AnswerverifiedShow Answer

There are several markets in the United States. The market where stocks, bonds, and money are exchanged is the

Correct AnswerverifiedShow Answer

When a college hires a professor, they are employing a(n)

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

The supply of money saved includes all of the following EXCEPT

Correct AnswerverifiedShow Answer

Which of the following is an example of financial capital?

Correct AnswerverifiedShow Answer

Table 1 -1. Supply and Demand for Personal Computers -Refer to Table 1 -1. At a market price of $1,600, there will be

Correct AnswerverifiedShow Answer

A local computer manufacturer hires an additional worker and pays $10.00 per hour for an 8 -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 highest value surrendered when a decision is made is

Correct AnswerverifiedShow Answer

Which of the following is included in Gross Income?

Correct AnswerverifiedShow Answer

The stocks and bonds issued by a corporation are the economic capital resources of the corporation.

Correct AnswerverifiedShow Answer

When the supply of money saved exceeds the demand for money, then banks will

Correct AnswerverifiedShow Answer

The primary savers of funds in the United States are

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

Correct AnswerverifiedFalse

Table 1 -1. Supply and Demand for Personal Computers -Refer to Table 1 -1. At a market price of $1,700, there will be

Correct AnswerverifiedShow Answer

An organized effort where goods and services are freely exchanged is known as a

Correct AnswerverifiedShow Answer

The classroom on a college campus is an example of a(n)

Correct AnswerverifiedShow Answer

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False

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D

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False

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