AnswersEconomicsBusiness and Government

Business and Government — Test Answers

25 verified answers1 views
1
Free Preview

Which generalization best describes the information provided by this graph?

A
By 2012, the United States had solved its economic problems.
B
The United States had the world’s weakest economy by 2010.
C
In today's economy, a country needs fewer workers to remain strong.
D
The United States faced an economic crisis that started in 2008.
2
Free Preview

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

A
Consumers decide what they need and want to buy, which guides the economy.
B
Individuals seeking their own self interest benefit the economy as a whole.
C
Government sets policy for producers and consumers, which guides the economy.
D
Producers decide what to make for consumers, which guides the economy.
3

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

A
remained consistent over time.
B
started going down in 2010.
C
went up every year since 2008.
D
started going down in 2008.
4

During what years did union membership peak?

A
in 1930 and 1950
B
in 1960 and 1970
C
in 1945 and 1955
D
in 1965 and 1970
5

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

A
Fiscal Policy
B
Government Spending
C
The National Economy
D
The Federal Debt
6

What is the definition of collective bargaining?

A
labor union and employer negotiations about wages and other issues
B
an agreement among a group of factory owners to raise worker wages
C
a written set of guidelines about legal and illegal workplace conditions
D
ongoing salary negotiations between an employee and a factory owner
7

How are government regulations established?

A
Specialized executive agencies respond to a new policy by creating regulations.
B
The courts establish regulations in response to unfair business practices.
C
Business owners agree to create regulations to better compete with one another.
D
Citizens agree on new regulations through annual elections.
8

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

A
Milton Friedman
B
Friedrich Hayek
C
Adam Smith
D
John Keynes
9

How are progressive taxes and regressive taxes similar?

A
Both are types of indirect taxes.
B
Both are considered flat taxes.
C
Both are determined based on income.
D
Both charge high-income individuals more.
10

Which best describes a central bank's primary goals?

A
reducing unemployment and maintaining cash flow
B
managing credit and ensuring the money supply's liquidity
C
controlling stagflation and reducing unemployment
D
limiting inflation and reducing unemployment
11

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

A
His desire to pay high wages.
B
His commitment to improving labor laws.
C
His innovative production methods.
D
His personal wealth.
12

A plan for spending money that balances income with spending and shows how money will be spent is

A
a deficit.
B
a budget.
C
a surplus.
D
an expenditure.
13

What gives the US government the power to collect taxes?

A
laws passed by Congress
B
an executive order
C
common law
D
the Constitution
14

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

A
credit.
B
inflation rates.
C
interest rates.
D
liquidity.
15

Which best describes a central bank's primary role?

A
printing money
B
controlling inflation
C
creating monetary policy
D
increasing credit
16

Governments collect taxes to ensure that

A
citizens contribute to meeting society's needs.
B
there is sufficient money to fund private businesses.
C
politicians get paid in a timely manner.
D
a government program exists for every need that arises.
17

When a government creates a budget, it is seeking a way to

A
cut spending to a bare minimum.
B
spend as much revenue as possible.
C
allocate money to programs and projects.
D
return as much money to taxpayers as possible.
18

What happens if regulatory policies for a business are violated?

A
Fines and sanctions are applied.
B
New business rules are created.
C
Safety classes are mandated.
D
Additional inspections are required.
19

Which statement about the SEC is accurate? SEC- U.S. Securities and Exchange Commission

A
It is an independent agency that regulates finance.
B
It can convict people of crimes without a trial.
C
It is part of the government’s cabinet department.
D
It is associated with the legislative branch.
20

An entrepreneur is someone who

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

Did you find these answers helpful?

More from this Course

Quiz
24 verified answers

Test

Quiz
21 verified answers

Test

Quiz
24 verified answers

Test