AnswersEconomicsGovernment Influence and Labor Markets

Practice Test Answers

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1
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What is likely to happen if a new aggregate demand curve moves to the right?

A
Prices would rise, and output would drop in the long run.
B
Prices would rise, and output would drop in the short run.
C
Prices and output would drop, and the equilibrium point will stay the same.
D
Prices and output would rise, and the equilibrium point will change.
2
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The job outlook suggests that the translator field

A
will likely to continue to grow.
B
will likely to continue to shrink.
C
has changed very little over time.
D
tends to be unclear or hard to predict.
3

What is one benefit for US workers who have a college degree rather than a high school diploma?

A
More than 80 percent of jobs require a college degree.
B
Those with a college degree report higher job satisfaction.
C
Most workers with a college degree are immune to layoffs.
D
Those with a college degree earn nearly twice as much as those without college.
6

Which statement best explains paying in cash to cover the costs of an education?

A
It involves completing an application.
B
It requires repayment with interest.
C
It requires the use of savings.
D
It is based on need or achievement.
7

What must businesses do in order to comply with financial regulations and laws?

A
report their revenue and earnings to the government
B
disclose product details to the competition
C
disclose information about sales with the media
D
report details of advertising revenue to managers
8

In which of these ways do governments spend money to meet public needs? Choose four correct answers.

A
by arming the public
B
by building roads and bridges
C
by providing health care
D
by protecting the public
E
by supporting education
9

What is a major factor in the decline of some occupations, such as those in the textiles and clothing industries?

A
aging populations
B
overseas labor costs
C
shifting consumer tastes
D
changing technologies
10

What happens when a bank is required to hold more money in reserve?

A
It has less money for loans.
B
It has less money for interest payments.
C
It has less money for operations.
D
It has less money for withdrawals.
11

Which statement describes how borrowers will most likely benefit when the Fed reduces reserve requirements?

A
Loan requirements will likely be relaxed.
B
Investment opportunities will likely improve.
C
Interest rates will likely decrease.
D
Housing prices will likely decrease.
14

Leah wants to get a home loan from her bank. Which agency would regulate that loan to ensure it is fair?

A
FCC- Federal Communications Commission
B
SEC- U.S. Securities and Exchange Commission
C
FDA- Food and Drug Administration
D
CFPB- Consumer Financial Protection Bureau
15

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?

A
High-income earners use tax laws to their advantage to reduce their tax rates.
B
High-income earners can fight in court for the right to a reduced rate.
C
High-income earners reduce their tax rates through numerous deductions.
D
High-income earners always place their assets overseas to lower their tax rates.
16

High government expenditures can lead to a bigger

A
stimulus.
B
deficit.
C
surplus.
D
revenue.
17

A draft of a presentation

A
is an early version of your presentation.
B
is the next step after research.
C
is a way to organize your notes.
D
is a general plan for your presentation.
20

What can the reader conclude from the graph?

A
A company selling telephones most likely has only a 40 percent chance of surviving for at least four years.
B
A company selling diabetes supplies has only a 60 percent chance of surviving for at least three years.
C
A company offering cleaning services most likely has only a 50 percent chance of surviving for at least eight years.
D
A company offering physical therapy most likely has only an 80 percent chance of surviving for at least two years.

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