Olivier
2010-12-07 13:58:35 UTC
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04.07 Module Four Exam
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Question 1 (Multiple Choice Worth 3 points)
[04.01]
Use this image to answer the following question. In the business cycle phase marked “D,” economists expect the
inflation rate to begin dropping.
unemployment rate to start falling.
consumer sales rate to decrease.
banks to seek government aid.
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Question 2 (Multiple Choice Worth 3 points)
[04.01]Imagine that the unemployment rate increases to record levels. The economy is in
recession.
expansion.
a peak.
a summit.
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Question 3 (Multiple Choice Worth 3 points)
[04.01]The inflation rate is decreasing and unemployment is rising. The economy is likely in
recession.
expansion.
a peak.
a trough.
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Question 4 (Multiple Choice Worth 3 points)
[04.01]
Use this image to answer the following question. In the business cycle phase marked “C,” economists expect the
government to act to encourage economic growth.
government to act to slow economic growth.
inflation rate to start dropping dramatically.
unemployment rate to begin rising dramatically.
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Question 5 (Multiple Choice Worth 3 points)
[04.01]Which stage of the business cycle has the highest inflation rate?
expansion
peak
contraction
trough
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Question 6 (Multiple Choice Worth 3 points)
[04.02]The best reason to regulate road paving is to
reduce the cost of materials.
hire the most dedicated workers.
get the work done as quickly as possible.
ensure quality work on all paved roads.
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Question 7 (Multiple Choice Worth 3 points)
[04.02]The best reason to regulate bridge construction is to
ensure safety standards are met.
reduce the number of bridges the public has to fund.
eliminate multiple bridges in one area because they are not pleasing to the eye.
minimize route options because different bridges often confuse drivers.
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Question 8 (Multiple Choice Worth 3 points)
[04.02]The state legislature asks you to analyze several product markets for natural monopoly qualities. The legislature wishes to regulate one of the products to provide safer, more efficient, and standard quality to its citizens. Which product do you recommend?
road sign construction
camping facilities
automobile sales
house cleaning
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Question 9 (Multiple Choice Worth 3 points)
[04.02]An example of a natural monopoly product is
a hair salon.
a board game.
airplane manufacturing.
highway construction.
question 10 (Multiple Choice Worth 3 points)
[04.03]The Federal Reserve includes twelve
governing bodies.
regional banks.
member offices.
city officials.
Question 11 (Multiple Choice Worth 3 points)
[04.03]The part of the Federal Reserve with the most impact on the money supply is the
Federal Open Market Committee.
Federal Reserve Regional Bank.
Board of Governors.
Member Banks.
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Question 12 (Multiple Choice Worth 3 points)
[04.03]You have an account with Wells Fargo®. You cashed a check from your job on payday and requested newly minted currency. What Federal Reserve structure provides new currency to your bank?
Federal Open Market Committee
Federal Reserve Regional Bank
Board of Governors
Member Bank
Question 13 (Multiple Choice Worth 3 points)
[04.03]You have an account with Bank of America®. What is your bank’s role in the Federal Reserve?
Non-member Deposit