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Business and Government — Test Answers

25 verified answers
1
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Which best describes how individuals help the economy grow?

A
They work as part of a unified group.
B
They work to influence the economy.
C
They work in their own self-interest.
D
They work to influence the money supply.
2
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What does the author believe about factory owners?

A
They are stubborn but hardworking.
B
They are greedy and selfish.
C
They struggle just as workers do.
D
They earned their privileges.
3

Which population grew the most between 1970 and 2014?

A
Asian
B
Hispanic
C
African American
D
white
4

Based on the maps, what voting shift occurred in 2008 in North Carolina?

A
Voters overwhelmingly supported the Republican candidate over the Democratic one.
B
Counties supporting the Republican candidate increased in the western part of the state.
C
Voters’ support became more evenly split between candidates of both parties.
D
Support for the Democratic candidate decreased significantly.
5

What course of action might a government take to respond to the downturn revealed in this graph?

A
reducing the size of its armed forces
B
laying off unnecessary workers
C
decrease taxes to increase consumers' money supply
D
encouraging people to travel overseas
6

The best conclusion that can be drawn from the graph is that the number of nonfarm jobs

A
went up every year since 2008.
B
remained consistent over time.
C
started going down in 2010.
D
started going down in 2008.
7

During what years did union membership peak?

A
in 1930 and 1950
B
in 1965 and 1970
C
in 1945 and 1955
D
in 1960 and 1970
8

Which of these would be a good title for this diagram?

A
The Federal Debt
B
Government Spending
C
Fiscal Policy
D
The National Economy
9

Which generalization best describes the information provided by this graph?

A
The United States faced an economic crisis that started in 2008.
B
By 2012, the United States had solved its economic problems.
C
The United States had the world’s weakest economy by 2010.
D
In today's economy, a country needs fewer workers to remain strong.
10

Which best describes the idea behind the "invisible hand"?

A
Individuals seeking their own self interest benefit the economy as a whole.
B
Consumers decide what they need and want to buy, which guides the economy.
C
Government sets policy for producers and consumers, which guides the economy.
D
Producers decide what to make for consumers, which guides the economy.
11

Economists studying the money supply categorize the status of the money based on

A
inflation rates.
B
interest rates.
C
liquidity.
D
credit.
12

Which best describes a central bank's primary role?

A
creating monetary policy
B
controlling inflation
C
increasing credit
D
printing money
13

Who was known as the "Father of Economics,” whose ideas of free markets inspired classical economic thinkers?

A
John Keynes
B
Adam Smith
C
Milton Friedman
D
Friedrich Hayek
14

Letterfront Bookstore has been the top bookseller in the city for the past 20 years. In the last five years, the bookstore has seen stiff competition from the smaller bookstores in the city. How did this affect consumer behavior when purchasing books?

A
Sellers will see a rise in book sales due to competition.
B
Sellers will raise the price of books to make more profits.
C
Consumers have to pay more to buy books from Letterfront Bookstore.
D
Consumers have many options when purchasing books.
15

What gives the US government the power to collect taxes?

A
the Constitution
B
common law
C
an executive order
D
laws passed by Congress
16

What happens if regulatory policies for a business are violated?

A
Safety classes are mandated.
B
Fines and sanctions are applied.
C
New business rules are created.
D
Additional inspections are required.
17

What is the definition of collective bargaining?

A
a written set of guidelines about legal and illegal workplace conditions
B
an agreement among a group of factory owners to raise worker wages
C
labor union and employer negotiations about wages and other issues
D
ongoing salary negotiations between an employee and a factory owner
18

An entrepreneur is someone who

A
works for multiple developing businesses.
B
is an employee of a business.
C
invents products for other businesses.
D
starts and runs a business.
19

What led to Henry Ford’s success as an entrepreneur?

A
His personal wealth.
B
His desire to pay high wages.
C
His innovative production methods.
D
His commitment to improving labor laws.
20

How might consumers respond if an Internet service-providing company lowers the price of its services due to increased competition?

A
The subscription of the service will stop due to lower costs.
B
The demand for the service will decrease irrespective of lower costs.
C
The government will intervene to raise prices in response to the competition.
D
The subscription of the service will likely grow due to lower costs.

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