AnswersJPS-202526-Arvada West-CO-Economics and Financial Literacy semester-CR-CATSParriottUnit Test

Unit Test — Cumulative exam Answers

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1
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Why are utilities, such as electricity and water, examples of natural monopolies?

A
The cost of production restricts competition in the market.
B
There are limited natural resources to meet demand.
C
Consumers only trust known companies to provide these essentials.
D
There is no need for alternative options.
2
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Successful entrepreneurs contribute to the economy by

A
becoming wealthy.
B
expanding markets.
C
encouraging free trade.
D
creating business strategies.
3

An economic incentive is best described as something that

A
benefits producers or consumers when taking action.
B
pushes producers or consumers to act on the government's behalf.
C
motivates producers or consumers to take action.
D
forces producers or consumers to act in a certain way.
4

Which statements best explain how globalization offers an advantage to businesses? Choose four answers.Businesses can take advantage of favorable laws to make products cheaply.Businesses can take advantage of favorable taxes to make products cheaply.Businesses can take advantage of new forms of technology to make products cheaply.Businesses can take advantage of new forms of democracy to make products cheaply.Businesses can take advantage of faster technology to make products faster.

A
Businesses can take advantage of favorable laws to make products cheaply.
B
Businesses can take advantage of favorable taxes to make products cheaply.
C
Businesses can take advantage of new forms of technology to make products cheaply.
D
Businesses can take advantage of new forms of democracy to make products cheaply.
E
Businesses can take advantage of faster technology to make products faster.
5

What are standards designed to do? Check all that apply.protect consumerssupport domestic industrieslimit importsensure safetyoffer domestic industries an advantage

A
protect consumers
B
support domestic industries
C
limit imports
D
ensure safety
E
offer domestic industries an advantage
6

Why is pure competition considered an unsustainable system?

A
Price differentiation is often too minimal to matter.
B
Few barriers exist to entry, meaning that the market inevitably floods.
C
Consumers cannot distinguish between products.
D
Producers cannot make a profit if they keep dropping their prices.
8

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
9

How did NAFTA affect the economies of participating countries?

A
by creating unrestricted trade benefits
B
by raising employment rates and standards of living
C
by creating a balance of exports and imports
D
by increasing the overall volume of production
10

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

A
creating new projects
B
increasing regulation
C
lowering restrictions
D
raising more taxes
E
promoting hiring
11

A tariff is a type of

A
tax.
B
punishment.
C
subsidy.
D
grant.
12

Which of these qualify as variable expenses? Choose three answers.clothing purchasesloan paymentmonthly groceriesapartment rentmedical bills

A
clothing purchases
B
loan payment
C
monthly groceries
D
apartment rent
E
medical bills
13

A pure market economy is sometimes called pure

A
a. command economy.
B
socialism.
C
communism.
D
capitalism.
14

grossdiscretionarynet

A
gross
B
discretionary
C
net
15

Opportunity cost means that something needs to be

A
replenished.
B
given up.
C
ignored.
D
paid for.
16

Interest on an investment is considered

A
financing.
B
a fee.
C
a penalty.
D
profit
17

In which way do producers try to differentiate themselves in monopolistic competition?

A
price
B
advertising
C
product features
D
image
18

In a competitive market, an electronics company releases a smartphone that is much faster than older models. This is an example of

A
following a federal regulation.
B
lowering prices for customers.
C
reducing the risk for consumers.
D
creating an innovative product.
19

In a republic, elected officials create laws to regulate the economy.

A
T
B
F
20

The graph shows US trade with China from 1990 to 2018.

Question illustration
A
The United States has a trade surplus with China.
B
China’s economy is declining, which has harmed trade.
C
The United States has a trade deficit with China.
D
China’s economy is improving, which has helped trade.
21

The best reason to record income at the top of a budget is

A
to easily add expenses to it.
B
to know how much money is available.
C
to avoid spending too much money.
D
to see that is is more important than expenses.

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