Practice Exam Answers

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1
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Based on the scenario, who is most affected by the situation taking place within Country D?

A
the government, workers, and businesses of Country D
B
the government of Country D
C
the workers of Country D
D
the businesses of Country D
2
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Which of these best describes what the diagram is showing?

A
a budget surplus
B
a plan to balance the budget
C
a balanced budget
D
a budget deficit
3

What can the reader reasonably conclude from information in the graph?

A
Fewer new businesses were started in 2010 than in other years.
B
The opening of new businesses peaked between 2007 and 2008.
C
More new businesses were started in 2006 than in 2005.
D
The number of new businesses remained constant between 2006 and 2009.
5

What decisions does the business cycle help businesses make? Choose four correct answers.

A
whether to grow or shrink the business
B
whether to hire or lay off workers
C
whether to stay at old facilities or move to new facilities
D
whether to increase or decrease production
E
whether to keep or change products
F
whether to invest or save money
6

If the value of the US dollar declines in relation to other currencies, goods imported into the United States will

A
not be allowed to enter the country.
B
become more expensive.
C
become less expensive.
D
remain the same in price.
7

When prices drop the point where supply and demand meet, it results in

A
disequilibrium.
B
coordination.
C
production.
D
equilibrium.
9

What should be included in an informative essay? Choose four correct answers.

A
parenthetical citations
B
emotional language
C
properly cited sources
D
smooth transitions
E
supporting details
10

The highest amount a landlord can charge for rent is an example of

A
an elastic service.
B
a price ceiling.
C
a price floor.
D
an incentive.
12

Which are considered types of credit available to borrowers? Choose four correct answers.

A
personal loans
B
auto loans
C
cash
D
mortgages
E
gift cards
F
credit cards
G
bonds
14

Which is the best question for Joe to ask himself when deciding whether to open a checking or savings account?

A
If I need a loan, will they give it to me?
B
Why am I opening a bank account?
C
Is there an ATM near my home or work?
D
Does the bank offer free checking?
16

A tariff is a type of

A
tax.
B
punishment.
C
grant.
D
subsidy.
18

Which of these statements about opportunity cost are true? Choose three correct answers.

A
It influences consumers.
B
It exists because resources are scarce.
C
It encourages people to spread their resources around.
D
It assists in anticipating profits.
E
It influences producers.
20

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

A
include opinionated words.
B
incorporate unusual stories.
C
use a straightforward approach.
D
add complicated language.
21

The benefits a worker receives from an employer typically include

A
federal grants.
B
medical and dental coverage.
C
the hourly pay rate.
D
interest on student loans.
22

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

A
A trade deficit is when a country loses money on products it makes, while a trade surplus happens when production leads to profits.
B
A trade surplus is when a country produces more than it consumes, while a trade deficit happens when consumption exceeds production.
C
A trade surplus is when a country imports more than it exports, while a trade deficit happens when exports exceed imports.
D
A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports.
23

Motherboards, Inc., manufactures computer parts. The company’s total revenue is

A
the amount the company receives from the sale of all of its computer parts.
B
the amount of money the company earns from selling an individual part.
C
the total wages the company pays workers in its factories and stores.
D
the money the company earns after paying all of its production costs.
24

Which workers are most likely to be in demand in the future?

A
those with construction skills
B
those in manufacturing jobs
C
those in government jobs
D
those with high-tech skills
25

Which of these qualify as variable expenses? Choose three correct answers.

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

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