(06.01 MC) Cardinal Comics produces graphic historical novels and retails them through local shops throughout the United States. The publisher maintains an in-house staff of editors and illustrators but contracts out writing, printing, and distribution. Its printer uses domestically recycled paper but imports ink and much of its printing equipment from overseas. Segment B of the circular flow diagram above reflects which part of this scenario? (4 points)

(04.05 MC) © Farcaster 2009Creative Commons Attribution-Share Alike 3.0 Unported Which of the following statements best describes the data shown for 2012 to 2015? (4 points)

(04.04 MC) The country has entered a period of economic growth, but prices are rising too rapidly. To stabilize prices, the Federal Reserve decides to (4 points)

(06.02 LC) A factory lays off workers during a recession. Which of the following would most likely feel a negative externality? (4 points)

(04.04 MC) Economic forecasters predict a long period of job growth and consumer spending. The Federal Reserve is most likely to do which of the following to encourage this expansion? (4 points)

(04.01 MC) A period of economic stability began in the 1980s. In 2001, prices began to increase. In 2007, an economic crisis caused prices to fall. Which of these dates would be considered the peak of this cycle? (4 points)

(02.04 MC) Principal Interest Year 1 Interest Year 10 Interest Year 20 Total Savings After 20 Years $12,000 in Simple Interest Account $12,000 x 5%= $600= $12,600 $12,000 x 5%= $6000= $18,000 $12,000 x 5%= $12000= $24,000 $12,000 + 20 years of simple interest= $24,000 $12,000 in Compound Interest Account $12,000 x 5%= $600= $12,600 ($12,000 + $6,615.94)$18,615.94 x 5%= $19546.74 ($12,000 + $18,323.40)$30,323.40 x 5%= $31,839.57 $12,000 + $20 years of compound interest$31,839.57 Juanita, who lives with her brother, has saved $12,000 for a down payment on her own house. Her financial planner suggests she look for a savings account that offers compound interest accounts. Why should Juanita take this advice? (4 points)

(06.03 MC) A toxic dumping site leaks into a local water supply and prompts a public outcry. The local and then the state government each take actions to clean up the site and to fine the company for damages. Which of the following would be a potential positive externality for the national environment? (4 points)

(04.04 MC) The housing market has collapsed. Banks are becoming very restrictive in their lending practices. Which of the following actions would the Fed most likely take to encourage banks to expand lending to home buyers? (4 points)

(02.06 MC) One bank offers a 4% variable rate loan, while a competitor offers a 3% fixed rate loan over the same period. Assuming no other differences between the loans, a customer should choose the fixed rate loan because (4 points)