ACTUAL Exam Questions and CORRECT
ANSWERS
scarcity - CORRECT ANSWER- ✔✔Besides its utility, what else determines the value of a
good by a consumer?
property rights - CORRECT ANSWER- ✔✔What is basic component of capitalism besides
limited government, freedom of enterprise, and competition?
equilibrium - CORRECT ANSWER- ✔✔When supply of good increases, what tends to
decrease?
traditional - CORRECT ANSWER- ✔✔Which economic system bases production of goods
on customs and habits?
command - CORRECT ANSWER- ✔✔Which economic system is regulated by the public
sector?
free enterprise - CORRECT ANSWER- ✔✔Which economic system is guided by the choices
made by the private sector?
Sherman Act - CORRECT ANSWER- ✔✔What was one of the first antitrust laws enacted in
the United States?
total cost - CORRECT ANSWER- ✔✔What is the sum cost of all the factors of production
used in making goods?
standardized parts - CORRECT ANSWER- ✔✔Besides division of labor and automatic
conveyance, what composes the "American system" of mass production?
transaction account - CORRECT ANSWER- ✔✔A checking account is what type of
account?
, CD - CORRECT ANSWER- ✔✔What type of account guarantees a certain interest rate and
has a specified maturity date?
measure of value - CORRECT ANSWER- ✔✔What function of money allows people to
compare the worth of one good with that of another good?
GDP - CORRECT ANSWER- ✔✔What is the value of all finished goods and services
produced within a country during a year's time?
oligopoly - CORRECT ANSWER- ✔✔What type of market model is dominated by only a
few firms?
monopolistic competition - CORRECT ANSWER- ✔✔What type of market model provides
differentiated products?
perfect competition - CORRECT ANSWER- ✔✔What type of market model results in firms
that are price takers?
monopoly - CORRECT ANSWER- ✔✔What type of market model results when there is only
one supplier of a good for which there is no substitute?
bonds - CORRECT ANSWER- ✔✔What is one of the safest ways to invest in a corporation?
NAFTA - CORRECT ANSWER- ✔✔What agreement among the United States, Canada, and
Mexico encouraged free trade encouraged?
WTO - CORRECT ANSWER- ✔✔What organization holds a policy of "most-favoured
nation"?
IMF - CORRECT ANSWER- ✔✔What was originally established to monitor currency
exchange?