AnswersOC27 Economics-2102310-Sem-MeadowsUnit Test

Unit 6 Test Answers

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Who is following the law when it comes to protecting investors’ funds?

A
a financial planner who pitches a risk-free stock
B
a mutual fund advisor who informs investors about risks
C
a broker who sells CDs from nonfinancial institutions
D
a realtor who advertises a can’t-miss land buy
22
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If a borrower provides collateral and fails to repay the loan,

A
the borrower may cancel the loan to get the collateral.
B
the lender can sell the collateral to cover losses.
C
the borrower must buy the collateral back.
D
the lender keeps the collateral in case of late payment.
23

How did NAFTA affect the economies of participating countries?

A
by creating unrestricted trade benefits
B
by raising employment rates and standards of living
C
by creating a balance of exports and imports
D
by increasing the overall volume of production
24

Money for a personal loan is usually issued to the borrower

A
as needed over time.
B
in small sums.
C
in one lump sum.
D
without collateral.
25

Why were savings and loans (S&Ls) originally established?

A
to help people invest in small businesses
B
to help people save money
C
to help people buy homes
D
to help people invest in the stock market
26

A reason that countries trade with each other is

A
to help their neighbors.
B
to get products they cannot produce.
C
to sell goods they do not need.
D
to share excess resources.
27

Most investors approach risky investments by

A
investing the same way that they do with safer investments.
B
investing more money in the stock of unknown companies.
C
investing less money in low- and medium-risk investments.
D
investing less money in high-risk investments.
28

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

A
It requires the use of savings.
B
It requires repayment with interest.
C
It involves completing an application.
D
It is based on need or achievement.
29

An economic incentive is best described as something that

A
benefits producers or consumers when taking action.
B
pushes producers or consumers to act on the government's behalf.
C
motivates producers or consumers to take action.
D
forces producers or consumers to act in a certain way.
30

In developed economies, less-educated workers

A
have more jobs to choose from.
B
are often more highly skilled than other workers.
C
may be outsourced to other nations.
D
can have difficulty finding work.
31

What is one way employers get employees to participate in a 401k?

A
by requiring them to participate unless they opt out
B
by requiring them to opt in if they want to participate
C
by giving them an annual pay raise
D
by giving them a signing bonus when they participate
32

Which statements best explain how globalization offers an advantage to businesses? Choose four answers.

A
Businesses can take advantage of favorable laws to make products cheaply.
B
Businesses can take advantage of favorable taxes to make products cheaply.
C
Businesses can take advantage of new forms of technology to make products cheaply.
D
Businesses can take advantage of new forms of democracy to make products cheaply.
E
Businesses can take advantage of faster technology to make products faster.
33

The graph shows US trade with China from 1990 to 2018.

Question illustration
A
The United States has a trade surplus with China.
B
China’s economy is declining, which has harmed trade.
C
The United States has a trade deficit with China.
D
China’s economy is improving, which has helped trade.
34

A tariff is a type of

A
tax.
B
punishment.
C
subsidy.
D
grant.
35

Which of these statements most accurately describes the use of currencies in different parts of the world?

A
Most countries use the dollar as their currency.
B
Countries in Asia use the euro as their currency.
C
Different countries use different currencies.
D
All countries are required to use the same currency.
36

Emma has decided that she needs to assess the risk and return of buying an extended warranty for her new laptop for school. Which of these practical questions should she ask herself to assess the risk? Select three options.Will the warranty cover the cost of any physical damage?Should I buy a different model?Would it be better for me to buy a desktop computer?Is the cost of replacement less than the cost of the warranty?Is the laptop worth the extra expense of the warranty?

A
Will the warranty cover the cost of any physical damage?
B
Should I buy a different model?
C
Would it be better for me to buy a desktop computer?
D
Is the cost of replacement less than the cost of the warranty?
E
Is the laptop worth the extra expense of the warranty?
37

What are standards designed to do? Check all that apply.

A
protect consumers
B
support domestic industries
C
limit imports
D
ensure safety
E
offer domestic industries an advantage
38

Which best describes the effect negative incentives have on a certain course of action?

A
They make the action impossible.
B
They make the action more profitable.
C
They make the action difficult.
D
They make the action less likely.
39

Interest on an investment is considered

A
financing.
B
a fee.
C
a penalty.
D
profit
40

A factory owner might decide to manufacture shirts in Pakistan instead of the United States because

A
it is less expensive to make shirts there.
B
it is worth paying more for foreign labor.
C
workers in Pakistan are more skilled.
D
workers in Pakistan work fewer hours.

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