AnswersOC27 Economics-2102310-Sem-MeadowsUnit Test

Unit Test — Cumulative exam Answers

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The graph is a marginal cost curve that compares expenses for producing apple pies.According to the graph, the marginal cost begins to increase when the producer makes

Question illustration
t
two pies.
t
three pies.
f
four pies.
f
five pies.
2
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Spending that can change from year to year is known as

A
discretionary spending.
B
deficit spending.
C
mandatory spending.
D
expansionary spending.
3

A factory owner might decide to manufacture shirts in Pakistan instead of the United States because

i
it is less expensive to make shirts there.
i
it is worth paying more for foreign labor.
w
workers in Pakistan are more skilled.
w
workers in Pakistan work fewer hours.
4

One fact about all currency is that it

A
loses value over time.
B
has a changing value.
C
maintains a stable value.
D
grows increasingly valuable.
5

Which group does the Fed serve?

f
financial institutions
c
consumers
g
government bodies
b
bankers
6

producersconsumersgovernmentprices

A
producers
B
consumers
C
government
D
prices
7

Which situation best reflects the concept of free enterprise?

A
Consumers have a choice between two bakeries in a single city block.
B
An agency determines which supplements are safe for people to buy.
C
Local officials set the prices for all the gas stations in a community.
D
The government decides the minimum wage for all airline workers.
8

Which best describes why governments collect taxes?

A
to control the value of currency
B
to keep the government running
C
to ensure surplus funds
D
to fund government programs
9

Which is an example of how a denomination is divisible?

A
An American dollar may equal one-half of one Euro.
B
An American dollar is equal to four quarters.
C
Three American dollars may buy a small snack.
D
Five American dollars may be worth less next year.
10

What is the name of the period when an economy begins to shrink?

r
recession
d
depression
r
recovery
p
peak
11

Which statement explains a way how the Securities and Exchange Commission upholds fair business practices?

T
The SEC makes sure that banks follow federal laws.
T
The SEC tries to limit risk in the financial system.
T
The SEC generally oversees banking practices.
T
The SEC generally oversees financial advisers.
12

A reason that countries trade with each other is

t
to help their neighbors.
t
to get products they cannot produce.
t
to sell goods they do not need.
t
to share excess resources.
13

What is one way employers get employees to participate in a 401k?

A
by requiring them to participate unless they opt out
B
by requiring them to opt in if they want to participate
C
by giving them an annual pay raise
D
by giving them a signing bonus when they participate
14

What term is used to describe an individual's money and personal property?

A
budget
B
income
C
assets
D
finances
15

What might happen if an economy is unable to produce wanted goods and services?

P
People will go without them.
P
People will look elsewhere for them.
P
People will stop wanting them.
P
People will focus on needs instead.
16

What is a major factor in the decline of some occupations, such as those in the textiles and clothing industries?

s
shifting consumer tastes
o
overseas labor costs
c
changing technologies
a
aging populations
17

Which best describes the purpose of recording past income and spending in a budget?

A
to know the historic cost of goods
B
to serve as the basis for future planning
C
to learn why having savings is important
D
to learn why expenditures are likely to increase
18

most

D
Determine whether the ramp complies with state and federal laws about ramp-accessible entrances for schools.
D
Determine whether the ramp allows students using wheelchairs, braces, and crutches to enter the school more easily.
D
Determine whether the ramp leads to similar structures being built at entrances throughout the school building.
D
Determine whether the ramp influences other schools to build similar structures for their students at each entrance.
19

What decisions does the business cycle help businesses make? Choose four answers.whether to stay at old facilities or move to new facilitieswhether to grow or shrink the businesswhether to keep or change productswhether to increase or decrease productionwhether to hire or lay off workerswhether to invest or save money

w
whether to stay at old facilities or move to new facilities
w
whether to grow or shrink the business
w
whether to keep or change products
w
whether to increase or decrease production
w
whether to hire or lay off workers
w
whether to invest or save money
20

Cost-push inflation occurs when

A
consumers begin purchasing more goods.
B
producers need more money to make and distribute goods.
C
the government prints more money and pushes prices up.
D
consumers have more money to spend on goods and services.

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