Answers26-27 Ignite Economics-KY-EconomicsBusiness Structures

Business Structures — Unit test Answers

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1
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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.
2
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Spending that can change from year to year is known as

A
discretionary spending.
B
deficit spending.
C
mandatory spending.
D
expansionary spending.
3

The diagram shows different types of policies.

Question illustration
T
The Best Economic Policies
G
Government Economic Policies
I
Ineffective Economic Policies
T
The Free Enterprise System
4

Two doctors who join forces in business form a.

Answer not available
5

What term is used in macroeconomics to describe the total supply and the total demand?

c
capital
i
inflation
a
aggregate
e
equilibrium
6

spendingprofitdebtsaving

A
spending
B
profit
C
debt
D
saving
7

What is the difference between inflation and deflation?

I
Inflation can result from falling demand and boosts the value of money. Deflation can result from rising demand and reduces the value of money.
I
Inflation can result from rising demand and boosts the value of money. Deflation can result from falling demand and reduces the value of money.
I
Inflation can result from falling demand and reduces the value of money. Deflation can result from rising demand and boosts the value of money.
I
Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boosts the value of money.
8

What part does interest play in deficit spending?

A
Governments must pay interest on money they borrow when they take on debt.
B
Citizens must pay interest when their governments borrow money.
C
Governments may charge foreign countries interest when they borrow money.
D
Interest is not a factor when a government’s budget is in deficit.
9

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
W
When GDP falls, unemployment rises.
G
GDP and unemployment have little to do with each other.
W
When GDP rises, unemployment rises as well.
G
GDP and unemployment rise at times of world crises.
10

best

a
a tax that charges low-income earners a lower percentage than high-income earners
a
a tax that charges an equal percentage to all
a
a tax that charges earners based on their professions
a
a tax that charges high-income earners a lower percentage than low-income earners
11

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.
12

When individuals are looking for jobs but are unable to find work, they are said to be .

Answer not available
13

Which of the following best describes the circular flow model?

A
The model represents the movement of money throughout the economy.
B
The model represents the interactions within sectors.
C
The model represents the flow of goods and services between sectors.
D
The model represents the changing relationships between actors.
14

nominal measurementconsumer price indexannual rateUS Bureau of Labor statistic

A
nominal measurement
B
consumer price index
C
annual rate
D
US Bureau of Labor statistic
15

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.

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