Answers26-27 Ignite Economics-KY-EconomicsEntrepreneurship

Entrepreneurship — Unit test Answers

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1
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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.
2
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Among the changes that labor reformers wanted after the Industrial Revolution was

m
more jobs for untrained workers.
a
a ban on child factory workers.
j
jobs for women factory workers.
e
equal pay for owners and workers.
3

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.
4

What circumstances during the early days of industrialization led to a need for reform? Check all that apply.Factory equipment was dangerous to operate.There were too few capable workers to fill positions.There was little government regulation of workplaces.A typical work shift might be twelve to sixteen hours long.It was very expensive to keep factories running.

F
Factory equipment was dangerous to operate.
T
There were too few capable workers to fill positions.
T
There was little government regulation of workplaces.
A
A typical work shift might be twelve to sixteen hours long.
I
It was very expensive to keep factories running.
5

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.
6

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.
7

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
8

Successful entrepreneurs contribute to the economy by

b
becoming wealthy.
e
expanding markets.
e
encouraging free trade.
c
creating business strategies.
9

Two doctors who join forces in business form a.

Answer not available
10

The development of many new businesses helps limit

u
unemployment.
t
taxation.
r
revenue.
r
risk.
11

producersconsumersgovernmentprices

A
producers
B
consumers
C
government
D
prices
12

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.
13

Which statement explains a way how the Securities and Exchange Commission upholds fair business practices?

T
The SEC makes sure that banks follow federal laws.
T
The SEC tries to limit risk in the financial system.
T
The SEC generally oversees banking practices.
T
The SEC generally oversees financial advisers.
14

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.

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Entrepreneurship — Unit test Answers — 26-27…