AnswersJPS-202526-Arvada West-CO-Economics and Financial Literacy semester-CR-CATSParriottUnit Test

Unit Test — Cumulative exam Answers

0 verified answers
1
Free Preview

What is one example of a closed economy?

A
a barter system that does not rely on money or other currency
B
a restricted system that blocks trade with international partners
C
a trade-based system that encourages the flow of goods and services
D
an old-fashioned system that preserves traditional choices and customs
2
Free Preview

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.
3

Angela is considering buying stock in a popular computer software company whose price has dropped significantly in the last year. Why might this be a wise move for Angela to make?

A
because it is smart to buy when prices are high and sell when prices are low
B
because it is smart to buy when prices are low and sell when prices are high
C
because her investment will be guaranteed by the government if the company fails
D
because the company will rebound because she likes to use the products they sell
4

Emma is trying to decide whether to buy a new laptop. As a student, she has a budget and wants to make sure this is the right financial decision. Which question should she ask herself in determining the opportunity cost of this purchase?

A
What will I have to sacrifice if I buy this laptop?
B
Can I use credit to buy this laptop?
C
Do I need this laptop for my studies?
D
Is there a less costly alternative to buying this laptop?
5

In a competitive market, a computer store offers customers a warranty to help pay for any future damages. This is an example of

A
following a federal regulation.
B
lowering prices for customers.
C
reducing the risk for consumers.
D
creating a new or better product.
6

A low-risk investment might have a high price if

A
it is in great demand.
B
it belongs to a new company.
C
it protects the initial investment.
D
it guarantees profits.
7

Public property is land or goods

A
owned by an individual.
B
owned by the government.
C
used for private businesses.
D
used to gain personal wealth.
8

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.
9

Which economic indicators are used to measure the global economy? Choose four answers.purchasing power paritytrade volumesspending power paritylabor market datagross domestic producttrade deficits and surpluses

A
purchasing power parity
B
trade volumes
C
spending power parity
D
labor market data
E
gross domestic product
F
trade deficits and surpluses
10

Which best describes why governments enact tariffs?

A
to reduce the price of domestic products
B
to discourage consumers from purchasing foreign goods
C
to limit the sale of foreign goods
D
to ensure that domestic producers make a profit
11

What is an example of scarcity

A
an abundance of resources
B
limited resources
C
renewable resources
D
a choice of resources
13

Which best describes one of the primary aims of government fiscal policy?

A
to restrict price changes
B
to put more money into citizens’ hands
C
to generate new investment opportunities
D
to control real interest rates
14

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
15

Which situations are examples of how credit scores determine nonfinancial opportunities for consumers? Check all that apply.an employer determining whether a job candidate is smartan employer hiring someone to handle financial informationan apartment owner gauging whether a tenant might break the rulesan apartment owner determining whether to rent a unit to someonea car insurance company setting rates based on where someone livesa car insurance company predicting the likelihood of future claims

A
an employer determining whether a job candidate is smart
B
an employer hiring someone to handle financial information
C
an apartment owner gauging whether a tenant might break the rules
D
an apartment owner determining whether to rent a unit to someone
E
a car insurance company setting rates based on where someone lives
F
a car insurance company predicting the likelihood of future claims
16

Businesses can use globalization to their advantage by

A
creating trade barriers to other countries.
B
reducing exports to other countries.
C
finding customers in other countries.
D
insourcing jobs in other countries.
17

The chart shows the marginal cost of producing apple pies.This chart demonstrates that the marginal cost

Question illustration
A
initially decreases as production increases.
B
initially increases as production increases.
C
eventually decreases as production increases.
D
eventually increases as production decreases.
18

Which financial tool is most important when planning for your future financial goals?

A
Enrolling in a high interest savings account
B
Creating a budget
C
Mortgaging a house
D
Taking on extra debt
19

Which are affected by the factors of production? Choose three answers.the demand of the itemthe availability of the itemthe cost of the itemthe quality of the itemthe popularity of the item

A
the demand of the item
B
the availability of the item
C
the cost of the item
D
the quality of the item
E
the popularity of the item
20

Which statement best explains a scholarship?

A
A scholarship is federal money awarded to a student.
B
A scholarship is aid given to a student by an institution.
C
A scholarship is money borrowed to pay for an education.
D
A scholarship is the price of attending classes at a school.
21

What is one reason why the government would provide financial assistance to an entrepreneur?

A
to decrease the high rate of failure of new businesses
B
to encourage the invention and development of products
C
to stimulate the economy while decreasing unemployment
D
to limit the amount of personal funds used to start the business

Did you find these answers helpful?