AnswersOC27 Economics-2102310-Sem-MeadowsUnit Test

Unit 3A Test Answers

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What is one problem that might commonly occur when one is bartering?

A
Someone wants to trade a valuable item for a less valuable one.
B
Two people have different ideas about the value of an item.
C
Someone wants to barter a good in exchange for a service.
D
Two people want to trade items of equal or nearly equal value.
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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.
83

This is a graph showing price and total output in the short and long run. According to this graph, how does supply behave in the long run?

Question illustration
A
Output remains constant.
B
Output increases.
C
Output cannot be predicted.
D
Output decreases.
84

Which best describes what is represented in the business cycle model?

A
the interactions between producers and consumers
B
the change in production cost
C
macroeconomic trends
D
supply and demand trends
85

Look at the table below showing an example of a checkbook ledger.

Question illustration
A
$761.25
B
$810.30
C
$814.75
D
$1,186.25
86

A currency is a system of money created and used by

A
an individual or a group of people.
B
all people who live in the same era.
C
a nation or region of the world.
D
a town, city, or state within a region.
87

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.
88

This is a graph of the business cycle.Time is measured along the x-axis. What is measured along the y-axis?

Question illustration
A
employment levels
B
prices
C
economic output
D
demand
89

Which investment has the least liquidity?

A
property
B
stocks
C
a savings account
D
a 401k
90

Why might buying a home during a recession be a good decision for some consumers? Choose three answers.Housing prices are down.It is easier to get a mortgage.Less demand means more options for buyers.Less demand means less competition with other buyers.Fewer houses are on the market.

H
Housing prices are down.
I
It is easier to get a mortgage.
L
Less demand means more options for buyers.
L
Less demand means less competition with other buyers.
F
Fewer houses are on the market.
91

What kind of money is a gold certificate considered to be?

A
commodity
B
fiat
C
representative
D
currency
92

Economic growth takes place when a country

A
produces a steady number of automobiles.
B
has a high unemployment rate.
C
measures its gross domestic product (GDP).
D
produces more goods and services.
93

Which best describes secured credit?

A
It is backed by a valuable asset.
B
It carries no risk for the lender.
C
It can be easily obtained.
D
It limits a borrower’s debt.
94

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
95

What would happen if currency in all countries had fewer denominations, i.e. fewer varieties of coins or numbers of bills?

A
People would be more likely to confuse the value of currencies.
B
Exchanging money between countries would be much easier.
C
People could not charge as many different prices for goods.
D
All goods would be more expensive than they currently are.
96

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.
97

Which investor is making a common error?

A
an employee of a popular hardware store who invests only in that company’s stock
B
an employee of a popular software company who invests in many similar companies
C
someone who sells the slumping stock while they are still able to make a profit based on what they paid
D
someone who buys stock in both domestic and more risky international companies
98

Which stage of the business cycle is an economy in when it reaches its low point?

A
Expansion
B
Peak
C
Contraction
D
Trough
99

How is a merchant credit card different from a title loan?

A
A merchant credit card is a secured loan, while a title loan is unsecured.
B
A merchant credit card does not have a fixed interest, while a title loan does.
C
A merchant credit card is an unsecured loan, while a title loan is a secured loan.
D
A merchant credit card requires no payment, while a title loan requires a payment.
100

Which body or group is most able to use money to influence the economy?

A
government
B
suppliers
C
firms
D
producers

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