Edmentum PLATO Economics Post Test Unit 4: Regulations 100% Pass

Edmentum PLATO Economics Post Test Unit 4: Regulations 100% Pass Select the correct location on the graph. Indicate the point where a monopoly will set its price. Select the dot on the blue line, ABOVE the dot where marginal cost = marginal revenue. GoGo Gas and Fab Fuel are among the few large producers of gasoline in the country. Along with other large producers, they have formed a formal organization to control the output and price of gasoline in that country. What is such an organization called? cartel Which statement is false? A. A monopoly sells lower-quality products at higher prices than in a perfect competition. B. Natural monopolies are necessary to avoid wasteful duplication of resources. C. Collusion is legal in the United States, but cartels are not. D. The start-up costs in a monopolistically competitive industry are low. E. Homogeneous products leave consumers with no choice. Collusion is legal in the United States, but cartels are not. Match each economic term with its description. Monopoly: There is a single seller in the market. Oligopoly: Every company in this market structure is aware of the actions of the other companies. Perfect Competition: There are no barriers to entry in the market. Collusion: Three companies secretly enter into a price agreement. When the value of a country's currency falls, the currency is _____________, so one unit of that currency can buy ___________ units of other currency. depreciating, fewer The United States can produce 200 pillows in one week, while Spain and France produce 150 and 100 pillows, respectively, in one week. On the other hand, Spain can produce 10 televisions in one week, while the United States and France produce only 5 and 4 televisions, respectively. __________________ has an absolute advantage in producing pillows, and __________________ has an absolute advantage in producing televisions. The United States, Spain Match the correct economic term with each scenario. A country or individual concentrates all its productive efficiency on producing limited goods: SPECIALIZATION Lisa can produce more pens than Tim with the same number of inputs: ABSOLUTE ADVANTAGE One unit of currency buys more units of another currency than it did previously: CURRENCY APPRECIATION A company contracts with another company to design its website: OUTSOURCING Ria is an Indian student who was admitted to a US university. Her annual tuition is $42,000. She has to pay her tuition fees in US dollars. She needs to calculate how many Indian rupees she will need to buy one dollar. The dollar to rupee exchange rate is 63.76 and rupee to dollar exchange rate is 0.015. How many Indian rupees will Ria need to buy one dollar? A. 50.00 rupees B. 56.00 rupees C. 63.76 rupees D. 76.63 rupees 63.76 rupees At a trade meeting, country A and country B, which are trade partners, agree to remove trade barriers to stimulate economic growth. They sign ______________ agreement stating that tariffs on all goods will be removed. Some groups in country B protest the agreement because they think it will lead to excessive ____________________ in some industries, which will threaten ______________ companies and jobs. a free trade, competition, domestic Which statement shows that the agreement between the fictional nations of Ziberia and Deerkey is a free trade agreement? Until the twentieth century, the nations of Ziberia and Deerkey practiced protectionism for many of their key industries. Both nations changed their status from developing to developed economies in the twenty-first century. Both nations were producing massive amount of goods, which necessitated expanded export markets. Therefore, the heads of state met in Ziberia's capital city and began negotiating a trade agreement. Both nations promised to adhere to international labor standards. The nations agreed to remove tariffs on all agricultural goods and to phase out other tariffs in five years. They set a goal to create three million jobs in the two countries. Another clause in the agreement required the nations to ensure ethical treatment of livestock according to international animal welfare standards The nations agreed to remove tariffs on all agricultural goods and to phase out other tariffs in five years. Which sentences about the European Union (EU) are true? EU nations that use the euro lose control over interest rates. EU citizens need a passport to travel within the EU. The EU is an economic union of European nations. EU nations are ruled by an elected monarch. EU nations use a common currency called euro. 1, 3, and 5: EU nations that use the euro lose control over interest rates. The EU is an economic union of European nations. EU nations use a common currency called euro. Why do nations practice protectionism? to prevent loss of jobs and livelihoods to improve relations with other nations to encourage growth of new industries to give consumers more choices to retaliate against unfair trade practices 1, 3, and 5: to prevent loss of jobs and livelihoods to encourage growth of new industries to retaliate against unfair trade practices