AnswersEconomics - BJackson 25-26Unit Test

Unit Test — Cumulative exam Answers

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1
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The graph shows the percentage changes in the investment rate and the gross domestic product (GDP) between 2008 and 2012.

Question illustration
A
can show if the economy is growing or shrinking.
B
occur only when the economy is shrinking.
C
occur only when the economy is growing.
D
have no relation to changes to the GDP.
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

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.
4

The factors of production attempt to instill the idea that resources are

e
expensive.
s
scarce.
u
unlimited.
n
needed.
5

most likely

t
the private business that operates the farm.
t
the government group that runs the farm.
t
the individual who manages the farm.
t
the family who owns the farm.
6

What is one cost of avoiding insurance?

A
falling into debt if faced with a serious problem
B
not benefitting from insurance deductibles
C
not being able to purchase a car or home
D
facing increased probability of accidents
7

What are some ways to address unemployment in a market economy? Select three answers.creating new projectsincreasing regulationlowering restrictionsraising more taxespromoting hiring

c
creating new projects
i
increasing regulation
l
lowering restrictions
r
raising more taxes
p
promoting hiring
8

Which group does the Fed serve?

A
financial institutions
B
consumers
C
government bodies
D
bankers
9

What part does interest play in deficit spending?

A
Governments must pay interest on money they borrow when they take on debt.
B
Citizens must pay interest when their governments borrow money.
C
Governments may charge foreign countries interest when they borrow money.
D
Interest is not a factor when a government’s budget is in deficit.
10

When individuals are looking for jobs but are unable to find work, they are said to be .

Answer not available
11

Which best describes why investing can be such a challenge?

A
It is impossible to ever earn a return on investments.
B
Investing always requires millions of dollars up front.
C
There are no guaranteed investments.
D
Most investments are insured by the government.
12

How do bank loans help the nation’s economy?

T
They ensure consumer spending and confidence.
T
They ensure the success of new businesses.
T
They allow businesses to expand and improve.
T
They allow consumers to quickly pay off debts.
13

best

t
to reduce the number of responsibilities
t
to make it easier to raise funds for expansion
t
to move into a more favorable tax bracket.
t
to take advantage of little government oversight.
14

Which is a kind of federal payroll tax?

A
medicare tax
B
sales tax
C
property tax
D
progressive tax
15

What circumstances during the early days of industrialization led to a need for reform? Check all that apply.Factory equipment was dangerous to operate.There were too few capable workers to fill positions.There was little government regulation of workplaces.A typical work shift might be twelve to sixteen hours long.It was very expensive to keep factories running.

F
Factory equipment was dangerous to operate.
T
There were too few capable workers to fill positions.
T
There was little government regulation of workplaces.
A
A typical work shift might be twelve to sixteen hours long.
I
It was very expensive to keep factories running.
16

Articles of partnership establish

h
how businesses can raise capital.
w
what business taxes are paid.
h
how profits and losses are divided.
w
what is included in a charter.
17

Expansionary spending takes place when a government makes the decision to

p
put a freeze on the number of its employees.
r
raise taxes to balance its budget.
r
raise taxes to run a budget surplus.
r
raise spending to stimulate the economy.
18

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.
19

What are the basic types of resources used by producers? Choose three answers.capitallaborvaluescarcityland

c
capital
l
labor
v
value
s
scarcity
l
land
20

Which of the following would be a producer?

A
someone owning a book store
B
someone shopping in a grocery store
C
someone putting gas in a car
D
someone waiting in line at a bank

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