ETS MFT BUSINESS EXAM
CERTIFICATION TEST WITH
ACCURATE ANSWERS
◉ Economics: The federal government enacted regulation in the
1960's requiring people to wear seatbelt in their cars. All of the
following resulted from this regulation, EXCEPT: Answer: Fewer
pedestrians were killed in car accidents.
◉ Economics: Which of the following is true regarding the
production possibilities frontier model of the economy? Answer:
Any point along the PPF represents an efficient level of production.
◉ Economics: If the price in a market happens to be above
equilibrium, there will be a _____ in the market, and the price will
tend to _____. Answer: Surplus, drop
◉ Economics: The price elasticity of demand tends to be more
elastic... Answer: At points further up and to the left along the
demand curve
◉ Economics: If a tax imposed on a good and the incidence of the tax
ends up falling more heavily on the buyers than on the sellers, this
,will be because... Answer: Demand is less elastic than supply for that
good
◉ Economics: If the quantity traded in a market is less than the
equilibrium quantity... Answer: The value to consumers for
additional units is greater than the cost to sellers of producing those
units.
◉ Economics: A given tax will cause a bigger deadweight loss if
demand and supply are... Answer: Elastic
◉ Economics: What is a statement is true regarding international
trade? Answer: For the importing country, the gains from
international trade outweigh the losses.
◉ Economics: What statement is true regarding the revenues of a
firm? Answer: The marginal revenue and the average revenue are
equal to the price
◉ Economics: Suppose the price of fish increases, so households
now buy less fish and more chicken. This will cause the... Answer:
CPI to measure more inflation than there really is
, ◉ Economics: The unemployment that results because it takes time
for workers to search for the jobs that best suit their tastes and skills
is called? Answer: Frictional unemployment
◉ Economics: What occurs when the Fed reduces the reserve
requirement? Answer: The money multiplier gets bigger
◉ Economics: In a housing bust what would an economist expect the
price of homes to do? Answer: Make prices go down because of
excess supply
◉ Economics: What does balance of payment (BOP) mean? Answer:
The method countries use to monitor all international monetary
transactions at a specific period of time.
◉ Economics: What is an example events would decrease the supply
of money? Answer: The banks increasing their amount of excess
reserve
◉ Economics: What is money? Answer: A store of value and a
medium of exchange
◉ Economics: What market types describes most modern
economics? Answer: Mixed economy
CERTIFICATION TEST WITH
ACCURATE ANSWERS
◉ Economics: The federal government enacted regulation in the
1960's requiring people to wear seatbelt in their cars. All of the
following resulted from this regulation, EXCEPT: Answer: Fewer
pedestrians were killed in car accidents.
◉ Economics: Which of the following is true regarding the
production possibilities frontier model of the economy? Answer:
Any point along the PPF represents an efficient level of production.
◉ Economics: If the price in a market happens to be above
equilibrium, there will be a _____ in the market, and the price will
tend to _____. Answer: Surplus, drop
◉ Economics: The price elasticity of demand tends to be more
elastic... Answer: At points further up and to the left along the
demand curve
◉ Economics: If a tax imposed on a good and the incidence of the tax
ends up falling more heavily on the buyers than on the sellers, this
,will be because... Answer: Demand is less elastic than supply for that
good
◉ Economics: If the quantity traded in a market is less than the
equilibrium quantity... Answer: The value to consumers for
additional units is greater than the cost to sellers of producing those
units.
◉ Economics: A given tax will cause a bigger deadweight loss if
demand and supply are... Answer: Elastic
◉ Economics: What is a statement is true regarding international
trade? Answer: For the importing country, the gains from
international trade outweigh the losses.
◉ Economics: What statement is true regarding the revenues of a
firm? Answer: The marginal revenue and the average revenue are
equal to the price
◉ Economics: Suppose the price of fish increases, so households
now buy less fish and more chicken. This will cause the... Answer:
CPI to measure more inflation than there really is
, ◉ Economics: The unemployment that results because it takes time
for workers to search for the jobs that best suit their tastes and skills
is called? Answer: Frictional unemployment
◉ Economics: What occurs when the Fed reduces the reserve
requirement? Answer: The money multiplier gets bigger
◉ Economics: In a housing bust what would an economist expect the
price of homes to do? Answer: Make prices go down because of
excess supply
◉ Economics: What does balance of payment (BOP) mean? Answer:
The method countries use to monitor all international monetary
transactions at a specific period of time.
◉ Economics: What is an example events would decrease the supply
of money? Answer: The banks increasing their amount of excess
reserve
◉ Economics: What is money? Answer: A store of value and a
medium of exchange
◉ Economics: What market types describes most modern
economics? Answer: Mixed economy
