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

Unit Test — Cumulative exam Answers

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22
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In a mixed market economy, what is a typical way the government can reduce unemployment?

A
The government can pay for projects to create work.
B
The government can control new factories to provide jobs.
C
The government can create new farm fields to hire workers.
D
The government can raise taxes to encourage employment.
23
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Look at the following chart.

Question illustration
A
analyzing the climate to see which fruit would grow better.
B
studying the profitability of growing apples versus oranges.
C
researching what competitors are doing.
D
choosing to grow both fruit varieties or only apples.
24

When entrepreneurs develop new products, other companies also experience growth because they

A
immediately copy the successful product.
B
create many companion products.
C
try to develop their own products.
D
attempt to improve the product.
25

Which organization created a shared economy?

A
European Union
B
World Trade Organization
C
North American Free Trade Agreements
D
Association of Southeast Asian Nations
26

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.
27

Most often, an insurance deductible must be fulfilled

A
when sharing the cost of a payout.
B
before insurance payouts begin.
C
when signing up for an insurance plan.
D
after a company has paid a claim.
28

How do trade agreements help the countries involved?

A
by restricting imports
B
by accelerating production
C
by expanding tax revenues
D
by decreasing trade barriers
29

Compound interest is usually better than simple interest because it pays

A
interest on the principal and the interest earned in each period.
B
interest on the entire principal rather than the interest in each period.
C
more, as it is matched by an employer’s 401k contribution.
D
more often throughout the year rather than once a year.
30

The graph shows a demand curve with the price of a good compared to the quantity demanded.What does this graph demonstrate?

Question illustration
A
the amount of microwaves produced increases the price
B
the amount of microwaves produced decreases the price
C
the price decreases with a larger quantity demanded
D
the price increases with a larger quantity demanded
31

It costs Cool Clothes Company $15 to produce one pair of jeans, but they needed to discontinue production of shirts to focus on jeans. For this company, the $15 is the _______, and discontinuation of shirt production is considered their __________.

A
opportunity cost; production cost
B
production cost; resource cost
C
production cost; opportunity cost
D
resource cost; production cost
32

What is the best definition of profit?

A
Profit is the possible income from producing an additional item.
B
Profit is the price of producing one additional unit of a good.
C
Profit is the additional income gained from selling an additional good.
D
Profit is the financial gain from business activity minus expenses.
33

Jacob is considering buying a new car. Which nonrenewable resource should influence the decision?

A
labor
B
water
C
minerals
D
petroleum
34

Savings should be treated as another type of

A
gross income.
B
net income.
C
tax.
D
expenditure.
35

What is the role of the three questions of economics?

A
to assess product profitability
B
to aid in production decisions
C
to offset a poor economy
D
to determine quality and cost
36

The graph below shows the value of the US dollar versus the Canadian dollar.

Question illustration
A
October 2012.
B
November 2012.
C
February 2013.
D
March 2013.
37

What is a way victims of identity theft in Florida can track activity on their credit report?

A
by giving lenders permission to access credit history
B
by canceling all of their credit and bank cards
C
by contacting their lenders on a daily basis
D
by placing a security freeze on their reports
38

If it becomes less expensive to travel overseas from the United States, American tourists will benefit from the fact that

A
tourist sites are getting crowded and dirty.
B
the US dollar has become stronger.
C
prices of foreign goods are rising.
D
the US dollar has declined in value.
39

Insurance offers consumers

A
protection from the costs of unplanned events.
B
a guarantee that a business will succeed.
C
income to help start a new business venture.
D
full reimbursement after business setbacks.
40

How does a socialist government with a command economy manage its economy?

A
The government lets producers set wages for workers.
B
The government owns all homes and other forms of housing.
C
The government allows consumers to make their own choices.
D
The government controls factories and other forms of production.
41

An income is measured as

A
all money received, including gifts, in the course of a year.
B
an amount spent in one week’s time.
C
an amount received in a specific period: weekly, biweekly, or yearly.
D
all money saved during a year’s time.

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