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Economic Policy Answers

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When an economy suffers from low production, a country cannot

A
worry about unemployment.
B
change the tax rate.
C
provide adequate funding for public safety.
D
enjoy a steady rate of economic growth.
2
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A government's monetary policy is its plan to control

A
taxation and spending.
B
prices.
C
workers' wages.
D
the money supply.
3

Country Q has experienced a rapid increase in its unemployment rate and a sharp decline in its GDP.What might policymakers do in the face of these economic indicators?

A
encourage a decrease in purchasing until employment figures increase
B
try to trade with other nations to increase production and create new jobs
C
increase taxes so the government has more money to spend
D
implement controls on wages, forcing employers to pay higher wages
4

Rules ensuring that businesses offer safe products to consumers are part of a nation's

t
trade policy.
m
monetary policy.
r
regulatory policy.
f
fiscal policy.
5

In a free enterprise system, what are the goals of government? Check all that apply.to ensure safety for its citizensto ensure that citizens' needs are metto stay out of all economic decisionsto solve the problem of povertyto prevent citizens from getting richto ensure that the market is fair

A
to ensure safety for its citizens
B
to ensure that citizens' needs are met
C
to stay out of all economic decisions
D
to solve the problem of poverty
E
to prevent citizens from getting rich
F
to ensure that the market is fair
8

Which of these policies would a government take when it comes to employment?

p
paying government employee when they choose to not work
s
seeing that at least a quarter the workforce has a job
w
working toward making unemployment is as low as possible
m
making sure that only skilled workers get jobs
9

The graph shows the number of employed workers in the United States in nonfarm jobs from 2008 to 2013.

Question illustration
T
The United States had the world’s weakest economy by 2010.
I
In today's economy, a country needs fewer workers to remain strong.
B
By 2012, the United States had solved its economic problems.
T
The United States faced an economic crisis that started in 2008.
10

In a free enterprise system, governments address public problems through policy to ensure that

c
citizens' needs are met and protected.
e
economic operations of businesses are controlled.
w
workers earn more than workers in other countries.
t
the nation's level of productivity remains steady.

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Economic Policy Answers — 26-27 Ignite…