AnswersEAP-Economics and Personal Finance BCumulative Exam

Cumulative Exam — Cumulative exam Answers

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Aggregate supply is best described as the

A
total output of all products and services.
B
point of equilibrium.
C
nation’s real gross national product.
D
excess supply in the market.
42
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What are the two steps a producer can take to gain an absolute advantage?Produce more goods.Use high-quality resources.Produce more expensive goods.Use fewer resources.Produce high-quality goods.Use local resources.

A
Produce more goods.
B
Use high-quality resources.
C
Produce more expensive goods.
D
Use fewer resources.
E
Produce high-quality goods.
F
Use local resources.
43

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.
44

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.
45

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.
46

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
47

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.
48

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.
49

What do the indicators used by economists reveal?

A
changes in production and demand
B
changes in employment levels
C
changes in prices
D
changes in the health of an economy
50

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

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