Entrepreneurship — Unit test Answers

15 verified answers1 views
1
Free Preview

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
2
Free Preview

Which group does the Fed serve?

f
financial institutions
c
consumers
g
government bodies
b
bankers
4

The development of many new businesses helps limit

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

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
7

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

Successful entrepreneurs contribute to the economy by

b
becoming wealthy.
e
expanding markets.
e
encouraging free trade.
c
creating business strategies.
10

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.
11

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.
12

Spending that can change from year to year is known as

A
discretionary spending.
B
deficit spending.
C
mandatory spending.
D
expansionary spending.
13

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
14

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.
15

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

Did you find these answers helpful?

Entrepreneurship — Unit test Answers — 26-27…