Answers26-27 Ignite Economics-KY-EconomicsInvesting and Financial Markets

Investing and Financial Markets — Unit test Answers

15 verified answers4 views
1
Free Preview

Does a depression always follow a recession?

Y
Yes, the trough is always considered a depression.
N
No, a depression is indicated when the recession is exceptionally long.
Y
Yes, for recovery to occur, the trough must be reached.
N
No, the economy could decline quickly and bypass recession.
2
Free Preview

As a result of decreased production, David lost his job designing cars. Which terms can be used to describe David? Select two options.cyclically unemployeddomestically unemployedfrictionally unemployedstructurally unemployedstill employedunemployed

c
cyclically unemployed
d
domestically unemployed
f
frictionally unemployed
s
structurally unemployed
s
still employed
u
unemployed
3

How do consumers’ feelings about the economy help contribute to growth?

P
Positive consumer attitudes influence spending habits.
P
Positive consumer attitudes increase job prospects.
P
Positive consumer attitudes inspire increased production.
P
Positive consumer attitudes can end a depression.
4

The level of investment in markets often indicates

A
the stability of the government.
B
the state of the economy.
C
the success of individual companies.
D
the stability of a currency.
5

best

M
Many people could not buy new homes during a weak economy.
M
Many homes could not sell because housing prices rose too fast.
M
Many homes could not sell because banks charged high interest.
M
Many people could not make home payments during a weak economy.
6

Which best describes the economic impact of defaulting on bank loans?

A
The economy suffers because banks have less money to loan to others.
B
The economy suffers because people have less money to spend.
C
The economy suffers because businesses are scared to take out loans.
D
The economy suffers because people are scared to take out loans.
7

Government officials in Country M have determined that they need to take action to encourage the growth of their economy. To do this, they have introduced an incentive policy that offers citizens free education. This is extended to all individuals who sign a contract agreeing to work within their specific industry for the next ten years.

e
education to reduce unemployment and increase production.
n
new technologies to produce goods that are in great demand.
r
resources that can be traded with other nations.
r
research to develop goods that can be sold on a global scale.
8

Which best describes why investing can be such a challenge?

A
It is impossible to ever earn a return on investments.
B
Investing always requires millions of dollars up front.
C
There are no guaranteed investments.
D
Most investments are insured by the government.
9

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.
10

are debt certificates that are purchased by an investor.

Answer not available
11

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

Answer not available
12

How do bank loans help the nation’s economy?

T
They ensure consumer spending and confidence.
T
They ensure the success of new businesses.
T
They allow businesses to expand and improve.
T
They allow consumers to quickly pay off debts.
13

What advantages does money have over bartered goods? Check all that apply.

A
Money is easy to earn, and bartering takes a lot of work.
B
Money has a set value, and bartered goods do not.
C
Money is more portable than bartered goods.
D
Money is always worth more than bartered goods.
E
Money allows people to easily store value they earn.
14

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.
15

Which is an example of how a denomination is divisible?

A
An American dollar may equal one-half of one Euro.
B
An American dollar is equal to four quarters.
C
Three American dollars may buy a small snack.
D
Five American dollars may be worth less next year.

Did you find these answers helpful?

More from this Course

Quiz
15 verified answers

Unit Test

Quiz
15 verified answers

Unit Test

Quiz
15 verified answers

Unit Test