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John Maynard Keynes developed new economic theories in response to the

A
first and second world wars.
B
economic boom of the 1950s.
C
stock market crash of 1929.
D
Great Depression of the 1930s.
23
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Read the format of an outline for an informative essay. 1. _____________________ A. Thesis statement 2. Subtopic body sentence A. Evidence B. Evidence 3. Subtopic body sentence A. Evidence B. Evidence Which item would best fill in the blank space?

A
Subtopic
B
Introduction
C
Conclusion
D
Evidence
24

What is the role of the three questions of economics?

A
to determine quality and cost
B
to assess product profitability
C
to aid in production decisions
D
to offset a poor economy
25

What is the best definition of profit?

A
Profit is the possible income from producing an additional item.
B
Profit is the additional income gained from selling an additional good.
C
Profit is the financial gain from business activity minus expenses.
D
Profit is the price of producing one additional unit of a good.
26

The higher a country’s gross domestic product (GDP), the more likely it is that the country

A
has high inflation.
B
is wealthy.
C
has little debt.
D
is developed.
27

What is one example of a closed economy?

A
a barter system that does not rely on money or other currency
B
a trade-based system that encourages the flow of goods and services
C
an old-fashioned system that preserves traditional choices and customs
D
a restricted system that blocks trade with international partners
28

Which best describes how advertising influences consumer choice in an oligopoly?

A
Advertising informs brand knowledge.
B
Advertising undermines competition.
C
Advertising alerts consumers to price reductions.
D
Advertising coaxes people to buy new products.
29

Which best describes why governments enact tariffs?

A
to reduce the price of domestic products
B
to ensure that domestic producers make a profit
C
to limit the sale of foreign goods
D
to discourage consumers from purchasing foreign goods
30

An income is measured as

A
an amount received in a specific period: weekly, biweekly, or yearly.
B
all money received, including gifts, in the course of a year.
C
all money saved during a year’s time.
D
an amount spent in one week’s time.
31

Besides the actual mortgage payment, which also factors into the monthly payment on a home?

A
repair costs
B
property taxes
C
renters' insurance
D
down payment
32

What is one reason why the government would provide financial assistance to an entrepreneur?

A
to stimulate the economy while decreasing unemployment
B
to encourage the invention and development of products
C
to limit the amount of personal funds used to start the business
D
to decrease the high rate of failure of new businesses
33

To create the proper style for an argumentative essay, a writer should

A
incorporate slang words.
B
provide clear statements.
C
add personal statements.
D
include vague language.
34

Why is the slow growth that can result from a contractionary policy a positive effect?

A
It can increase the money supply.
B
It can decrease available credit.
C
It can decrease inflation.
D
It can increase loan interest rates.
35

Economists use changes in GDP to measure

A
the causes of unemployment.
B
any economic growth or shrinkage.
C
the balance of trade with other countries.
D
the distances between cities.
36

Which occurs during disequilibrium? Choose two correct answers.

A
Supply is greater than demand.
B
Supply and demand set production.
C
Supply is less than demand.
D
Supply and demand set prices.
E
Supply and demand meet.
37

Who was Adam Smith?

A
He was an economist who spoke against the market economy.
B
He was a producer who operated a factory in Scotland.
C
He was a philosopher who promoted the idea of free enterprise.
D
He was an official who ran an important government agency.
38

Which organization created a shared economy?

A
World Trade Organization
B
Association of Southeast Asian Nations
C
European Union
D
North American Free Trade Agreements
39

Which public-safety regulations target the protection of workers as the central focus?

A
regulations for equal-opportunity
B
regulations for advertising
C
regulations for pollution
D
regulations for business-activity
40

People who oppose labor unions believe that unions

A
keep more qualified workers from being hired.
B
create more new jobs than workers can fill.
C
encourage employers to reduce salaries.
D
make many businesses more competitive.
41

How do trade agreements help the countries involved?

A
by decreasing trade barriers
B
by restricting imports
C
by accelerating production
D
by expanding tax revenues

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