Unit Test — Cumulative exam

Question 1

Which best describes the economic impact of defaulting on bank loans?

Revolt · Accepted Answer

The economy suffers because banks have less money to loan to others.

Question 2

Read the scenario.Yuri has $100 to spend at the store. He spots a pair of designer jeans with a $98 price tag on them but knows that he can buy three pairs of $30 jeans for about the same price. He still decides to buy the $98 pair.

Revolt · Accepted Answer

conspicuous consumption

Question 3

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

Revolt · Accepted Answer

A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports.

Question 4

Cost-push inflation occurs when

Revolt · Accepted Answer

producers need more money to make and distribute goods.

Question 5

The government of Country C has passed a law protecting the physical safety of factory workers. This is an example of

Revolt · Accepted Answer

regulatory policy.

Unit Test — Cumulative exam Answers

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