Weekly Review Quiz as of 2014-05-01
Economics: Micro
Cotton's Crown Threatened by Manmade Fibers
by Alexandra Wexler
04/24/2014
http://online.wsj.com/news/articles/SB10001424052702304049904579516282130809074
1. The Wall Street Journal reports that cotton prices have stayed high in recent years in large part
because
a) European wealth has been rising, thus increasing the continent’s demand for clothing.
b) Chinese wealth has been rising, thus increasing the country’s demand for clothing.
*c) China has been stockpiling the fiber.
d) the world’s population has been increasing.
e) U.S. cotton farmers have been selling land to real estate developers.
2. in clothing manufacturing, the shift away from cotton and toward synthetic fibers started to
accelerate
a) as health-conscious consumers turned to clothing that wicks sweat
b) as the federal ethanol standards tightened.
* c) during the 2008 financial crisis.
d) during the high inflation period of the late 1980s.
e) as U.S. ethanol standards ratcheted up
AT&T Has Approached DirecTV About Possible Acquisition
by Shalini Ramachandran and Thomas Gryta
05/01/2014
http://online.wsj.com/news/articles/SB10001424052702304178104579534673724368360
3. The Wall Street Journal reports that AT&T has approached DirecTV about a possible
acquisition of the satellite-TV firm. The acquisition of DirecTV could give AT&T new ways to
a) lower its costs of laying cable.
b) deliver telephone service.
* c) deliver mobile and broadband video.
d) price bundled options.
e) implement innovations that benefit wireless and broadband customers.
4. The central issue in an AT&T-DirecTV merger reviews by the Justice Department and Federal
Communications Commission is likely to be
a) the quality of service.
b) net neutrality.
c) competition in the landline telephone market.
d) competition in the wireless market
* e) competition in the broadband market.
Student-Debt Forgiveness Plans Skyrocket, Raising Fears Over
Costs, Higher Tuition
by Josh Mitchell
04/22/2014
http://online.wsj.com/news/articles/SB10001424052702303887804579503894256072308
5. The Obama administration has proposed in its latest budget released last month to cap debt on
student loans eligible for forgiveness at $57,500 per student. The move reflects concerns in the
administration over the risk that promising huge debt forgiveness could make
a) only graduates with fewer private sector job opportunities turn to public service and social
work.
b) too many graduates push into public service positions.
c) too many students choose to go to college.
* d) borrowers and schools less disciplined about costs.
e) taxpayers who subsidize these programs vote Republican.
The Saturday Essay. The World's Resources Aren't Running Out
by Matt Ridley
04/26/2014
http://online.wsj.com/news/articles/SB10001424052702304279904579517862612287156
6. The Intergovernmental Panel on Climate Change's recent forecast that temperatures would
rise by 3.7 to 4.8 degrees Celsius compared with preindustrial levels by 2100 was based on
several assumptions: little technological change, an end to the 50-year fall in population growth
rates, not much improvement in the energy efficiency of the economy, and
a) only a tripling of per-capita income.
* b) an increase in the disparity of per-capita income between rich and poor countries
c) increases in the populations of poor countries and reductions in the populations of wealthy
countries.
d) no changes in the regulations of carbon emissions.
e) the inability of the planet to regulate global temperatures.
Texas to Pay $10,000 for Each Toyota Job
by Mike Ramsey and Joseph B. White
04/29/2014
http://online.wsj.com/news/articles/SB10001424052702303939404579529672654374090
7. The Wall Street Journal reports that a challenge for Toyota Motor Corp. in moving operations
from California and Kentucky to Texas will be
a) mollifying labor unions.
* b) avoiding a brain drain.
c) adapting to a new regulatory environment.
d) training new low-skilled employees.
e) keeping wages at market levels.
8. The chief economist for the Center for Automotive Research is quoted in the Wall Street
Journal as saying, “I don’t think it is a big secret that outside of the IT and entertainment industry,
that California is ________ place of doing business.”
a) too much of an overregulated, high-cost
* b) an ideal
c) a politically divisive
d) a miserable
e) a private enterprise friendly
Knockoffs Thrive on Alibaba's Taobao
by Kathy Chu and Laurie Burkitt
04/28/2014
http://online.wsj.com/news/articles/SB10001424052702304049904579517642158573008
9. Alibaba Group's Taobao is one of the world's largest shopping sites, with seven million sellers
offering 800 million items. But ahead of Alibaba's high-profile initial public offering in the U.S.,
critics say it needs to address the problem of rampant counterfeit goods. Analysts and brands say
it is nearly impossible to pin down the scale of the problem on Taobao, due to
a) the unwillingness of the company and the Chinese government to share data about counterfeit
goods.
b) the unwillingness of the company, but not the Chinese government to share data about
counterfeit goods.
c) the unwillingness of the Chinese government, but not the company to share data about
counterfeit goods.
d) the lack of concern in China about counterfeiting.
* e) the massive number of goods for sale and the difficulties of detection and authentication.
10. Alibaba Group says it spends more than 100 million yuan ($16.1 million) yearly fighting
counterfeit goods—particularly on Taobao, its biggest shopping site. The Wall Street Journal
reports that some foreign brands and analysts say that fakes on Taobao in some cases
a) draws attention to authentic brands.
b) does not harm authentic brands.
* c) cost more than authentic products to produce.
d) are produced alongside authentic products.
e) is a growing problem.