Economics Final Part 2

Worldwide, Coca-Cola and PepsiCola dominate the soft-drink market, selling significantly more beverage products than any other producers. This domination by only two producers is BEST described as a(n)

• monopoly.

• oligopoly.

• open market.

• 
  pure competition.

Everyone in Bananatown loves bananas! In fact, sometimes they are willing to take them as a form of payment for goods and services instead of dollars.

Bill, a tourist, sees an opportunity to make some money. He buys up all of the bananas in Banana town and goes home. He stores them in the trunk of his car for 6 months. Bill then goes back to Bananatown, knowing that the people there will be excited to purchase bananas from him. He opens his trunk and realizes that this plan was not well thought out, as all the bananas are rotten mush.

How are bananas successful as a form of money in Bananatown, as described in the scenario?

• 
  It is impossible to use bananas as currency in Bananatown.

• Bananas function as a medium of exchange and store of value, but not as a unit of account.

• 
  Bananas function as a store of value and a unit of account, but not as a medium of exchange.

• Bananas shouldn't be used as a store of value, but they can be used as a unit of account and medium of exchange in Bananatown.

Many companies sell different types of cell phones. Some consumers prefer to use a specific brand because of its different kind of features. This is an example of

• trusts.

• monopoly.

• pure competition.

• monopolistic competition.

Susan has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs twenty dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is

• 
  Brand A

• 
  forty dollars.

• Brand A and Brand C

• 
  Brand B or Brand C depending on the value.

Which nation's economy could best be described as a command economy, where the government determines guidelines for economic development and sets goals for economic production?

• Australia

• China

• 
  India

• Japan

The map shows the how countries throughout the world rank according to the Human Development Index (HDI), which scores countries according to quality of life.

You can tell from the map that, compared to other countries, people in the United States

• have a lesser quality of life than people in Europe.

• enjoy a better quality of life than people in Canada.

• have the same quality of life as people in most countries.

• enjoy a better quality of life than people in most countries.

• enjoy a lower quality of life than people in most of the world.

The diagram shows the circular flow of goods and resources. What is the primary purpose of this chart?

• It shows the relationship between supply and demand.

• It indicates the changing tastes in the product market.

• 
  It shows how households and businesses interact in a market economy.

• It shows the need for government intervention in any economic system.

• It shows how goods, services and money are traded internationally.

If you purchase AT&T stock at $100 a share in August, and each month AT&T stock falls consistently, what would BEST describe the stock market during that time?

• Bear Market

• Bull Market

• Inflated Market

• Deflated Market

Which credit card costs the MOST to use?

• Credit Card #1

• Credit Card #2

• Credit Card #3

• Credit Card #4

A sales tax is considered a ___ Tax because it tends to affect those with low incomes more than it does people with higher incomes.

• Marginal

• Progressive

• Proportional

• Regressive