Unit Test — Cumulative exam Answers

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1
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John has a large apple orchard. He has decided to bake pies and sell them at the local farmer’s market. Which best describes John’s use of economics?

A
John is using available and renewable resources.
B
John is relying on inexpensive labor costs to improve profits.
C
John is using resources to produce both goods and services.
D
John is assuming consumers will have limited need for his product.
2
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Companies report people to credit agencies if they

A
fail to pay their bills on time.
B
borrow too much money.
C
fail to use different types of credit.
D
use large amounts of credit at once.
5

elasticityqualitytimequantity

A
elasticity
B
quality
C
time
D
quantity
8

Which body manages the Fed?

t
the Appropriations Committee
t
the Federal Reserve Board
t
the Federal Open Markets Committee
t
the Economic Policy Subcommittee
9

Occupational Safety and Health AdministrationEnvironmental Protection AgencyFood and Drug AdministrationSecurities and Exchange Commission

A
Occupational Safety and Health Administration
B
Environmental Protection Agency
C
Food and Drug Administration
D
Securities and Exchange Commission
10

best

M
Many people could not buy new homes during a weak economy.
M
Many homes could not sell because housing prices rose too fast.
M
Many homes could not sell because banks charged high interest.
M
Many people could not make home payments during a weak economy.
11

Land is considered a resource because it

A
is always available to use.
B
is used to produce things.
C
costs little or nothing to use.
D
requires labor to be useful.
12

A tariff is a type of

t
tax.
p
punishment.
s
subsidy.
g
grant.
13

Which describes the difference between a trade surplus and a trade deficit?

A
A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports.
B
A trade surplus is when a country imports more than it exports, while a trade deficit happens when exports exceed imports.
C
A trade surplus is when a country produces more than it consumes, while a trade deficit happens when consumption exceeds production.
D
A trade deficit is when a country loses money on products it makes, while a trade surplus happens when production leads to profits.
15

A chart that shows the connection between consumer demand and price is a

A
market schedule.
B
market curve.
C
demand curve.
D
demand schedule.
16

W-2W-41040

A
W-2
B
W-4
C
1040
17

Opportunity cost means that something needs to be

r
replenished.
g
given up.
i
ignored.
p
paid for.
18

four

B
Businesses can take advantage of favorable laws to make products cheaply.
B
Businesses can take advantage of favorable taxes to make products cheaply.
B
Businesses can take advantage of new forms of technology to make products cheaply.
B
Businesses can take advantage of new forms of democracy to make products cheaply.
B
Businesses can take advantage of faster technology to make products faster.
19

Which is the best question for Joe to ask himself when deciding whether to open a checking or savings account?

A
Is there an ATM near my home or work?
B
Does the bank offer free checking?
C
If I need a loan, will they give it to me?
D
Why am I opening a bank account?

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