econ quiz online portfolio packet 2/16

Question 1

approximately how much more do americans produce and earn than in 1750?

Answer 1

30x

Question 2

what are two main reasons why americans produce and earn much more than in 1750?

Answer 2

1. knowledge and technological abilities have grown; 2. in 1750 people directly produced their items, and nowadays we purchase them from others

Question 3

what chinese agricultural policy is described in the online portfolio, and what impact did it have on chinese society?

Answer 3

peasants could have their own little bit of land, which enabled them to produce much much more

Question 4

what are three ways that regulation can limit exchange and the functioning of markets, according to the text?

Answer 4

1. restrict entry; 2. bribery/unfair favoring; 3. imposition of price control stifles trade

Question 5

a country that it took less than 5 days to open a business in 2015

Answer 5

Singapore

Question 6

when is investment productive and beneficial to society, and when is it not?

Answer 6

it is beneficial when money is invested. investing money = getting money back out, and if you don’t invest money you won’t get any out

Question 7

how does the online portfolio describe the situation of sugar growers and agricultural subsidies?

Answer 7

sugar growers gain more money because the government pays them to keep growing; if sugar came from other countries it would be much cheaper

Question 8

define/describe the concept of “crowding out”

Answer 8

government antipoverty transfers crowd out private charitable efforts

Question 9

identify four provisions from the US Constitution and precisely how they connect to economics

Answer 9

1. article 1, section 8; 2. 10th amendment; 3. article 1, section 10; 4. 5th amendment

Question 10

graph a per-unit tax on supply when demand is inelastic, and describe what took place in the graph

Answer 10

big change in price, small change in quantity

Question 11

offer a mathematic example of a regressive tax and explain why it is so

Answer 11

if i make $100 and pay $10, my rate is 10%. if my friend makes $1000 and pays $20, their rate is less than 10% which makes it a regressive tax rate.

Question 12

identify exactly two of the four characteristics a tax should have

Answer 12

a tax system should be 1. fair; and 2. stable

Question 13

in what year did the boston tea party take place?

Answer 13

1773

Question 14

if the market basket cost $500 in the base period and $300 in the current period calculate the CPI for this period. (SHOW WORK!)

Answer 14

$300 / $500 x 100 = 60

Question 15

what happened to the CPI in 2008?

Answer 15

the CPI rose 0.1%