AnswersContemporary American Democracy B Q2 - CMSD IU1Cumulative Exam

Cumulative Exam — Cumulative exam Answers

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1
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Demand-pull inflation occurs when

A
the price of goods rises suddenly and extremely fast.
B
consumers begin purchasing more goods.
C
producers need more money to make and distribute goods.
D
the government prints more money and pushes prices up.
2
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Why is the slow growth that can result from a contractionary policy a positive effect?

A
It can increase loan interest rates.
B
It can decrease available credit.
C
It can increase the money supply.
D
It can decrease inflation.
3

Embargoes, quotas, and standards are tools that countries use

A
to reduce exports.
B
to punish other countries.
C
to restrict imports.
D
to raise prices of domestic goods.
4

The primary purpose of a conclusion in an informative essay is to

A
provide clear examples.
B
refer back to the thesis.
C
offer supporting details.
D
cite sources effectively.
5

If Country A is an agricultural country and Country B has many cities and factories, it would make sense for

A
both countries to set up car manufacturing plants.
B
Country A to specialize in growing corn while Country B specializes in making cars.
C
Country A to specialize in making cars while Country B specializes in growing corn.
D
both countries to compete in growing more corn.
6

When the government injects money into the economy, consumers may have more disposable income, which may lead to

A
higher unemployment.
B
higher production.
C
lower production.
D
increases in taxes.
7

Which of these is not a main advantage for a business joining a cooperative?

A
Lower costs for purchasing supplies
B
Pooling products for better selling prices
C
Sharing costs for needed services
D
Having a larger vote than smaller companies
8

Who was Adam Smith?

A
He was a philosopher who promoted the idea of free enterprise.
B
He was an economist who spoke against the market economy.
C
He was an official who ran an important government agency.
D
He was a producer who operated a factory in Scotland.
9

indexesquotesfuturestrades

A
indexes
B
quotes
C
futures
D
trades
10

The law of supply states that as the price of a good declines, the quantity supplied of that good

A
remains the same.
B
decreases.
C
increases.
D
disappears.
11

What is an example of scarcity

A
an abundance of resources
B
limited resources
C
renewable resources
D
a choice of resources
12

Economists can use new technology to

A
study data and patterns.
B
create and apply automation.
C
improve production and shipping.
D
increase demand and consumption.
13

An extended recessionary period is indicative of

A
a depression.
B
the start of a recovery.
C
a growing economy.
D
the end of a recession.
14

Which occurs during disequilibrium? Check all that apply.Supply and demand meet.Supply is less than demand.Supply and demand set prices.Supply is greater than demand.Supply and demand set production.

A
Supply and demand meet.
B
Supply is less than demand.
C
Supply and demand set prices.
D
Supply is greater than demand.
E
Supply and demand set production.
15

Corporate taxes are a type of

A
income tax.
B
property tax.
C
sales tax.
D
excise tax.
16

When does government regulate producers in a mixed-market economy?

A
always
B
as needed
C
as requested
D
never
17

A mixed-market economy is one in which

A
the government has complete control.
B
there are strict limits on economic choice.
C
the government makes no regulations.
D
there is competition and free enterprise.
18

Which best describes what happens to a corporation after its founders retire?

A
It shuts down operations.
B
It transfers to new owners.
C
It continues in business.
D
It sells out to shareholders.
19

People who oppose labor unions believe that unions

A
keep more qualified workers from being hired.
B
create more new jobs than workers can fill.
C
make many businesses more competitive.
D
encourage employers to reduce salaries.
20

Which situation is an example of comparative advantage in an international market?

A
Country A decides to grow extra potatoes so they have more to export, while Country B does not grow potatoes to export.
B
Factories in Country A and Country B produce the same number of tablet computers. Country A’s factories could be used instead to build more laptops than the factories in Country B.
C
Country A invests in a new technology while Country B chooses to invest in education.
D
Country A can produce 100 units of rice per acre of farmland, while Country B can only produce 70 units of rice per acre of farmland using the same resources.

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