AnswersEDGE 2025-2026 EconomicsCareer Preparedness BTest

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1
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The aggregate is

A
a type of economic system.
B
the total number of goods demanded or supplied.
C
a form of revenue.
D
the total profit made on sales.
2
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Rabia does not currently have a job, but declined a job offer because she feels her skills merit better pay and a better position. Which terms can be used to describe Rabia? Select two options.cyclically unemployeddomestically unemployedfrictionally unemployedstructurally unemployedstill employedunemployed

A
cyclically unemployed
B
domestically unemployed
C
frictionally unemployed
D
structurally unemployed
E
still employed
F
unemployed
3

Hyperinflation can occur when

A
consumers begin purchasing more goods.
B
producers need more money to make and distribute goods.
C
companies raise prices to pass on costs to consumers.
D
the government prints a ton of money in order to pay off its debt.
4

Which best describes the purpose served by economic models within an economic system?

A
Models identify patterns.
B
Models determine the business cycle.
C
Models control change.
D
Models define global demand.
5

There are five stages in a recession. 1. job loss2. falling production3. falling demand (occurs twice)4. peak production In which order do these stages occur?

4
4, 3, 2, 1, 3
3
3, 2, 1, 3, 4
4
4, 3, 2, 3, 1
4
4, 2, 3, 1, 3
6

Which describes a factor that limits economic growth?

A
making investments
B
developing technology
C
engaging in trade
D
having low internal demand
7

Typically, high inflation is a sign of

A
a healthy economy because it results from a fall in production costs.
B
a healthy economy because it results from a rise in consumer interest.
C
a struggling economy because wages cannot keep up with the increase in prices.
D
a struggling economy because it results from a fall in consumer interest.
8

Which event most likely explains renewed demand in a recovery period?

C
Consumers choose to save more and spend less.
E
Economic policy renews consumer confidence and demand.
P
Producers decrease prices to prompt demand and recovery.
P
Production decreases to prompt increased demand.
9

best

t
the interactions between producers and consumers
t
the change in production cost
m
macroeconomic trends
s
supply and demand trends
10

losegain

A
lose
B
gain
11

The circle graph shows the GDP in Germany for 2012.Which sector of Germany’s economy had the highest GDP?

Question illustration
A
agriculture
B
industry
C
services
D
technology
12

The map shows GDP per capita in the United States for a given year.What conclusion can someone draw from the map?

Question illustration
A
States with the highest per capita GDP tend to be in the South.
B
Alaska has the lowest per capita GDP of any state.
C
States with the lowest per capita GDP tend to be in the South.
D
Florida has a higher per capita GDP than New York.
13

Which unemployment rate do most economists consider to be acceptable in the United States?

A
0 percent
B
5 percent
C
10 percent
D
20 percent
14

Which of the following is a characteristic of prosperity in the peak phase of the business cycle?

s
stagnant prices
h
high levels of production
a
ambivalence about the economy
r
reduced incomes
15

The graph shows data for the years 2010 through 2012.Which might be a better title for this graph?

Question illustration
A
Total Exports for the United States and China
B
Trade Between China and the United States
C
Unemployment in the United States and China
D
The History of International Trade
16

The graph shows unemployment rates in the United States in recent years.Which statement is the most accurate explanation of the information on the graph?

Question illustration
A
Unemployment rates rise and fall in predictable patterns.
B
Unemployment will never again be as high as it was in 2010.
C
The United States suffered an economic downturn starting in 2009.
D
The United States does not have to worry about unemployment.
17

When production is very high but demand is very low, it can lead to

a
a recession.
a
a recovery.
p
prosperity.
t
the peak.
18

Jim lost his job in a car assembly factory to a robot and his skills will no longer be needed. Which terms can be used to describe Jim? Select two options.cyclically unemployeddomestically unemployedfrictionally unemployedstructurally unemployedstill employedunemployed

A
cyclically unemployed
B
domestically unemployed
C
frictionally unemployed
D
structurally unemployed
E
still employed
F
unemployed
19

Stagflation occurs when high inflation combines with

A
high unemployment and a low level of production.
B
low unemployment and a high level of production.
C
a drop in buying power and a rise in workers’ wages.
D
a rise in buying power and a drop in workers’ wages.
20

To help encourage economic growth, a country can

A
stop selling goods to other countries.
B
invest in research and development.
C
lay off unneeded workers.
D
lower requirements for education.

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