POB 1.01-1.02 QUIZ

1.  Mary makes prearranged equal payments monthly to Progress Energy. Which type of credit did Mary use?

  1. Charge account
  2. Consumer loan
  3. Credit card
  4. Installment credit

2.  What is the market price for a bottle of perfume using the following figures?

  1. $36
  2. $38
  3. $40

3.  In a hypothetical economy, only 40 people were included and 15 pizzas were produced last year at $17 dollars each. This information would be useful for which measurement of economic activities?

  1. Consumer spending
  2. GDP
  3. GDP per capita
  4. Labor activities

4.  A cosmetic company purchased an automatic wrapping machine that wraps a pallet of boxes in 30 seconds. To complete the same task manually, it would take an employee almost 3 minutes. This information would be useful for which measurement of economic activities?

  1. Consumer spending
  2. GDP
  3. GDP per capita
  4. Labor activities

5.  A local large department store reports monthly to the state commerce office its total sales of goods and services. This information would be useful for which measurement of economic activities?

  1. Borrowing
  2. Consumer Spending
  3. Investment activities
  4. Labor activities

6.  Which is an example of a company establishing supply?

  1. Ann Express Shipping Company trains all new managers at its district offices
  2. Pamolive Detergent company produces fewer products.
  3. Reebok footwear company trying to lease a warehouse.
  4. Sears Department Store promotes a family-oriented atomshphere.

7.  Mary is proud of saving over $43,000 in a local bank. She knows that her saving money at the bank will provide funds for others to borrow money. This information would be useful for which measurement of economic activities?

  1. Borrowing
  2. Consumer Spending
  3. Investment Activities
  4. Labor activities
8.  A report covering several quarters about the economy includes that more companies are experiencing record high production and adding new employees. Also, wages and the rate of GDP are increasing significantly. Which phase of the business cycle does this report describe?
  1. Depression
  2. Prosperity
  3. Recession
  4. Recovery

9.  A report covering four quarters about the economy includes that more companies are experiencing less production and reducing the number of employees. Which phase of the business cycle does this report describe?

  1. Depression
  2. Prosperity
  3. Recession
  4. Recovery

10.  Companies located in the Research Triangle Park reported that they have hired many graduates who have earned technology degrees from the local community college. Which resource will the graduates provide for the companies?

  1. Capital
  2. Human
  3. Natural
  4. Service

11.  The U. S. Bureau of Economic Analysis reports total wage and salary compensations for local areas. This information would be useful for which measurement of economic activities?

  1. Borrowing
  2. Consumer spending
  3. GDP
  4. Investment activities

12.  Due to decreasing enrollment in a local school system, fewer teachers as employees are needed. As a result, over 100 teachers were released from their commitments. This information would be useful for which measurement of economic activities?

  1. Consumer spending
  2. GDP
  3. GDP per capita
  4. Labor activities

13.  When a government agency reports annually the total amount spent to pay employees, this information is useful for which measurement of economic activities?

  1. Consumer spending
  2. GDP
  3. GDP per capita
  4. Labor activities

14.  Widgets Unlimited Company examined several options of additional benefits to offer its employees. The company has decided to offer health care insurance. Which part of the economic decision-making process has it performed?

  1. Acting on a choice
  2. Choosing one choice
  3. Defining the problem
  4. Evaluating the advantages and disadvantages

15.  If an economist researches annually the total value of homes built, this information would be useful for which measurement of economic activities?

  1. Consumer spending
  2. GDP
  3. GDP per capita
  4. Labor activities