Answers2526 Full 2102320 Economics HONORS NEW CREDITUnit Test

Unit Test — Cumulative exam Answers

25 verified answers
1
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An exchange rate table makes it easy to compare the

A
different currency denominations used by a single country.
B
cost to produce the currency used by a single country.
C
value of the currencies for two or more countries.
D
unemployment rates for two or more countries.
2
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What term is used in macroeconomics to describe the total supply and the total demand?

c
capital
i
inflation
a
aggregate
e
equilibrium
3

How do consumers’ feelings about the economy help contribute to growth?

P
Positive consumer attitudes influence spending habits.
P
Positive consumer attitudes increase job prospects.
P
Positive consumer attitudes inspire increased production.
P
Positive consumer attitudes can end a depression.
4

The highest amount a landlord can charge for rent is an example of

a
an incentive.
a
a price floor.
a
a price ceiling.
a
an elastic service.
5

Why were savings and loans (S&Ls) originally established?

A
to help people invest in small businesses
B
to help people save money
C
to help people buy homes
D
to help people invest in the stock market
6

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

r
recession
d
depression
r
recovery
p
peak
7

Weighing advantages and disadvantages can help a student to

i
identify a problem.
m
make a decision.
e
evaluate a solution.
g
gather information.
8

This graph shows changes in GDP and the unemployment rate in the United States in recent years.Which statement most accurately describes the trends shown on this graph?

Question illustration
W
When GDP falls, unemployment rises.
G
GDP and unemployment have little to do with each other.
W
When GDP rises, unemployment rises as well.
G
GDP and unemployment rise at times of world crises.
9

When applying for credit, what information should borrowers research? Check all that apply.feesgovernment regulationsinterest ratesintroductory ratesrequired repayments

f
fees
g
government regulations
i
interest rates
i
introductory rates
r
required repayments
10

Most investors approach risky investments by

A
investing the same way that they do with safer investments.
B
investing more money in the stock of unknown companies.
C
investing less money in low- and medium-risk investments.
D
investing less money in high-risk investments.
11

Motherboards, Inc., manufactures computer parts. The company’s total revenue is

t
the money the company earns after paying all of its production costs.
t
the total wages the company pays workers in its factories and stores.
t
the amount of money the company earns from selling an individual part.
t
the amount the company receives from the sale of all of its computer parts.
12

If the value of the US dollar declines in relation to other currencies, goods imported into the United States will

A
not be allowed to enter the country.
B
become less expensive.
C
remain the same in price.
D
become more expensive.
13

What should be included in an informative essay? Check all that apply.properly cited sourcesemotional languageparenthetical citationssmooth transitionssupporting details

A
properly cited sources
B
emotional language
C
parenthetical citations
D
smooth transitions
E
supporting details
14

How easily an investment can be exchanged for cash is known as

d
diversification.
r
risk.
l
liquidity.
r
return.
15

Many classical economists such as Adam Smith believed that government should

i
intervene often in the economy.
i
intervene little in the economy.
a
always intervene in the economy.
t
totally control the economy.
16

most likely

Question illustration
T
The marginal cost will most likely decrease to $1.00
T
The marginal cost will most likely increase to $2.00
T
The marginal revenue will most likely decrease to $8.00.
T
The marginal revenue will most likely increase to $12.00.
17

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.
18

The development of many new businesses helps limit

u
unemployment.
t
taxation.
r
revenue.
r
risk.
19

Which of the following best describes the circular flow model?

A
The model represents the movement of money throughout the economy.
B
The model represents the interactions within sectors.
C
The model represents the flow of goods and services between sectors.
D
The model represents the changing relationships between actors.
20

Which of the following are considered needs? Choose three answers.foodInternetcell phoneresidencetelevisionwater

f
food
I
Internet
c
cell phone
r
residence
t
television
w
water

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