AnswersOK-Personal Financial Literacy S1 – EDGNTY-83861 26-27Charitable Organizations

Charitable Organizations — Unit test Answers

15 verified answers
1
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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.
2
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Articles of partnership establish

h
how businesses can raise capital.
w
what business taxes are paid.
h
how profits and losses are divided.
w
what is included in a charter.
3

Which body manages the Fed?

t
the Appropriations Committee
t
the Federal Reserve Board
t
the Federal Open Markets Committee
t
the Economic Policy Subcommittee
4

After reading a website article, someone created an organization to protect people’s environmental rights. The organization works closely with corporations to maintain clean air and water for future generations. Fifty-one percent of the organization is funded by contributions and membership.

A
holding hiring fairs for corporate partners
B
conducting lectures on sustainable agriculture
C
having grand openings of aquariums
D
employing healthcare providers for infants
5

The development of many new businesses helps limit

u
unemployment.
t
taxation.
r
revenue.
r
risk.
6

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 operations.
C
It has less money for interest payments.
D
It has less money for withdrawals.
7

Expansionary spending takes place when a government makes the decision to

p
put a freeze on the number of its employees.
r
raise taxes to balance its budget.
r
raise taxes to run a budget surplus.
r
raise spending to stimulate the economy.
8

best

t
to reduce the number of responsibilities
t
to make it easier to raise funds for expansion
t
to move into a more favorable tax bracket.
t
to take advantage of little government oversight.
9

Which best describes a difference between the views of Milton Friedman and John Maynard Keynes on the economy?

A
Friedman said that monetary policy should be used to influence aggregate demand, while Keynes believed the best approach was fiscal policy.
B
Friedman said that fiscal policy should be used to influence aggregate demand, while Keynes believed the best approach was monetary policy.
C
Keynes believed in little government intervention in the economy, while Friedman said government should play an active role.
D
Keynes believed the economy was too complicated to think of aggregates, while Friedman said higher aggregate demand could solve issues.
10

Which best describes why governments collect taxes?

A
to control the value of currency
B
to keep the government running
C
to ensure surplus funds
D
to fund government programs
11

Successful entrepreneurs contribute to the economy by

b
becoming wealthy.
e
expanding markets.
e
encouraging free trade.
c
creating business strategies.
12

Why do people donate to charitable organizations? Choose three answers.to do what is right to support a causeto develop their skillsto earn college creditto spend time with friends

A
to do what is right
B
to support a cause
C
to develop their skills
D
to earn college credit
E
to spend time with friends
13

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

t
the SEC
t
the FDA
O
OSHA
t
the FDIC
14

most likely

c
cooperatives give majority owners the most control, while franchises make decisions with a parent company.
c
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.
c
cooperatives allow all owners to share profits, while franchises are required to share profits with a parent company.
15

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.

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