AnswersOC27 Economics-2102310-Sem-MeadowsUnit Test

Unit 4 Test Answers

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21
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Which group does the Fed serve?

A
financial institutions
B
consumers
C
government bodies
D
bankers
22
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Weighing advantages and disadvantages can help a student to

A
identify a problem.
B
make a decision.
C
evaluate a solution.
D
gather information.
23

A country’s gross domestic product divided by its population is called __________.

A
literacy rate
B
national income
C
GDP per capita
D
standard of living
24

Occupational Safety and Health AdministrationEnvironmental Protection AgencyFood and Drug AdministrationSecurities and Exchange Commission

A
Occupational Safety and Health Administration
B
Environmental Protection Agency
C
Food and Drug Administration
D
Securities and Exchange Commission
25

Which of the following statements about developed economies is false?

A
Countries with developed economies are industrialized.
B
Most people work in the primary and secondary sectors.
C
Most people enjoy a high standard of living.
D
GDP per capita is high compared to the countries of the world.
26

Many classical economists such as Adam Smith believed that government should

i
intervene often in the economy.
i
intervene little in the economy.
a
always intervene in the economy.
t
totally control the economy.
27

Which is the last step in the problem-solving process?

A
gathering information
B
evaluating the solution
C
considering options
D
weighing disadvantages
28

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

A
whether to stay at old facilities or move to new facilities
B
whether to grow or shrink the business
C
whether to keep or change products
D
whether to increase or decrease production
E
whether to hire or lay off workers
F
whether to invest or save money
29

Labor unions were certain to advocate for the best interests of workers because

t
the government shut down factories that did not improve work conditions.
t
the top factories were run by owners who wanted to retain their workers.
t
the government required all labor unions to promote workplace reform.
t
the labor unions were created by workers and made up of workers.
30

Which federal regulatory agency would most likely bring a civil suit against a business that broke securities laws?

A
the SEC
B
the FDA
C
OSHA
D
the FDIC
31

Which of the following is not a characteristic of a least-developed economy?

A
most workers are in the tertiary sector
B
a very low GDP per capita
C
a lack of basic resources
D
a high level of poverty
32

A business owner would most likely create a cooperative instead of buying a franchise because

A
cooperatives give majority owners the most control, while franchises make decisions with a parent company.
B
cooperatives make it easy to accumulate supplies, while franchises come with supplier relationships already in place.
C
cooperatives are well financed by members, while franchises must raise large sums of money to launch a business.
D
cooperatives allow all owners to share profits, while franchises are required to share profits with a parent company.
33

Cost-push inflation occurs when

A
consumers begin purchasing more goods.
B
producers need more money to make and distribute goods.
C
the government prints more money and pushes prices up.
D
consumers have more money to spend on goods and services.
34

Which of these are goals of an expansionary policy? Check all that apply.increased available creditdecreased available creditincreased money supplyincreased inflationincreased interest ratesdecreased interest rates

A
increased available credit
B
decreased available credit
C
increased money supply
D
increased inflation
E
increased interest rates
F
decreased interest rates
35

Which body manages the Fed?

A
the Appropriations Committee
B
the Federal Reserve Board
C
the Federal Open Markets Committee
D
the Economic Policy Subcommittee
36

What are the signs of low inflation? Check all that apply.

A
Demand steadily rises.
B
Demand steadily falls.
C
Prices continue to increase.
D
Prices continue to decrease.
E
The economy grows in a healthy way.
F
The economy stagnates and struggles.
37

Which describes an example of the economic system known as free enterprise?

A
People are free to shop around for products, but manufacturers dictate what is available.
B
People are free to shop for the best price on products because there is open competition.
C
Government oversight of business gives people freedom to shop for the best deals.
D
Government regulations ensure that everyone has the freedom to shop for the best deals.
38

This graph shows changes in GDP and the unemployment rate in the United States in recent years.Which statement most accurately describes the trends shown on this graph?

Question illustration
A
When GDP falls, unemployment rises.
B
GDP and unemployment have little to do with each other.
C
When GDP rises, unemployment rises as well.
D
GDP and unemployment rise at times of world crises.
39

To be successful, what must an entrepreneur be willing to invest? Check all that apply.moneyunemploymentpersonal safetytimeconsiderable effort

m
money
u
unemployment
p
personal safety
t
time
c
considerable effort
40

Successful entrepreneurs contribute to the economy by

A
becoming wealthy.
B
expanding markets.
C
encouraging free trade.
D
creating business strategies.

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