AnswersAcademy - Economics and Personal FinanceUnit Test

Unit Test Answers

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As a result of decreased production, David lost his job designing cars. Which terms can be used to describe David? Select two options.cyclically unemployeddomestically unemployedfrictionally unemployedstructurally unemployedstill employedunemployed

c
cyclically unemployed
d
domestically unemployed
f
frictionally unemployed
s
structurally unemployed
s
still employed
u
unemployed
3

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
4

Which statement explains a way how the Securities and Exchange Commission upholds fair business practices?

T
The SEC makes sure that banks follow federal laws.
T
The SEC tries to limit risk in the financial system.
T
The SEC generally oversees banking practices.
T
The SEC generally oversees financial advisers.
5

The EPA tries to balance protecting business interests with protecting

f
food.
a
air.
c
consumer products.
m
medical devices.
6

What type of school does the term “higher education” refer to?

e
elementary schools
m
middle schools
h
high schools
g
graduate schools
7

Opportunity cost means that something needs to be

r
replenished.
g
given up.
i
ignored.
p
paid for.
8

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
9

Cost-push inflation occurs when

A
consumers begin purchasing more goods.
B
producers need more money to make and distribute goods.
C
the government prints more money and pushes prices up.
D
consumers have more money to spend on goods and services.
10

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

Answer not available
11

What decisions does the business cycle help businesses make? Choose four answers.whether to stay at old facilities or move to new facilitieswhether to grow or shrink the businesswhether to keep or change productswhether to increase or decrease productionwhether to hire or lay off workerswhether to invest or save money

w
whether to stay at old facilities or move to new facilities
w
whether to grow or shrink the business
w
whether to keep or change products
w
whether to increase or decrease production
w
whether to hire or lay off workers
w
whether to invest or save money
12

In which of the following ways do governments spend money to meet public needs? Check all that apply.by protecting the publicby arming the publicby providing health careby supporting educationby building roads and bridges

b
by protecting the public
b
by arming the public
b
by providing health care
b
by supporting education
b
by building roads and bridges
13

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.
14

most likely

Question illustration
T
The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, decreasing the profit earned for each pie.
T
The marginal costs will continue to fall, decreasing the total cost, while the marginal revenue remains the same, increasing the profit earned for each pie.
T
The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, increasing the profit earned for each pie.
T
The marginal costs will continue to fall, decreasing the total cost, while the marginal revenue remains the same, decreasing the profit earned for each pie.
15

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
16

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.
17

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.
18

This graph shows the US unemployment rate from August 2010 to November 2011. This graph could help the US government

Question illustration
a
allocate natural resources.
l
limit production nationwide.
m
make an economic prediction.
a
address a shortage emergency.
19

US federal income tax is progressive by law, but which best explains why wealthy individuals can often pay far less in taxes than the top tax rate?

H
High-income earners can fight in court for the right to a reduced rate.
H
High-income earners reduce their tax rates through numerous deductions.
H
High-income earners use tax laws to their advantage to reduce their tax rates.
H
High-income earners always place their assets overseas to lower their tax rates.
20

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.

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