AnswersEAP-Economics and Personal Finance BUnit Test

Unit Test — Unit test Answers

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What are the cons of a mixed market economy for most citizens? Select four answers.There may be a sizable gap between rich and poor people.It can be very difficult for citizens to start private businesses.Citizens must pay for most basic necessities by themselves.There is no guarantee of steady employment for many citizens.Citizens may pay higher taxes than in other economic systems.Citizens often purchase their own health care and higher education.

A
There may be a sizable gap between rich and poor people.
B
It can be very difficult for citizens to start private businesses.
C
Citizens must pay for most basic necessities by themselves.
D
There is no guarantee of steady employment for many citizens.
E
Citizens may pay higher taxes than in other economic systems.
F
Citizens often purchase their own health care and higher education.
2
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What role do government agencies play in a mixed market economy?

A
They run shipping companies and other sources of distribution.
B
They own farms, factories, and other sources of production.
C
They regulate some aspects of production and distribution.
D
They employ most of the workers in the economic system.
3

In a republic, elected officials create laws to regulate the economy.

A
T
B
F
4

A pure market economy is sometimes called pure

A
a. command economy.
B
socialism.
C
communism.
D
capitalism.
5

Which situation best reflects the concept of free enterprise?

A
Consumers have a choice between two bakeries in a single city block.
B
An agency determines which supplements are safe for people to buy.
C
Local officials set the prices for all the gas stations in a community.
D
The government decides the minimum wage for all airline workers.
6

What are some ways to address unemployment in a market economy? Select three answers.creating new projectsincreasing regulationlowering restrictionsraising more taxespromoting hiring

A
creating new projects
B
increasing regulation
C
lowering restrictions
D
raising more taxes
E
promoting hiring
7

"Everyone’s rights should be protected" is an argument

A
for competition.
B
against competition.
C
for regulation.
D
against regulation.
8

In a command economy, a cotton farm floods after a heavy storm. The repair work most likely will be paid by

A
the private business that operates the farm.
B
the government group that runs the farm.
C
the individual who manages the farm.
D
the family who owns the farm.
9

What are some benefits to private ownership? Select three answers.Private ownership provides offices for government workers.Private ownership provides land or goods for all citizens to use.Private ownership can make it possible for a business to earn money.Private ownership might help a person move to another economic class.Private ownership allows a person to own goods that may increase in value.

A
Private ownership provides offices for government workers.
B
Private ownership provides land or goods for all citizens to use.
C
Private ownership can make it possible for a business to earn money.
D
Private ownership might help a person move to another economic class.
E
Private ownership allows a person to own goods that may increase in value.
10

The government has the right to own all land, buildings, and factories in a

A
closed economy.
B
command economy.
C
mixed market economy.
D
pure market economy.
11

shippinghiringconsuming

A
shipping
B
hiring
C
consuming
12

This graph shows the US unemployment rate from August 2010 to November 2011. This graph could help the US government

Question illustration
A
allocate natural resources.
B
limit production nationwide.
C
make an economic prediction.
D
address a shortage emergency.
13

In a competitive market, an electronics company releases a smartphone that is much faster than older models. This is an example of

A
following a federal regulation.
B
lowering prices for customers.
C
reducing the risk for consumers.
D
creating an innovative product.
14

In the free-enterprise system of the United States, the government

A
makes no economic decisions.
B
makes some economic decisions.
C
makes most economic decisions.
D
makes all economic decisions.
15

How do economists use data? Choose two answers.to follow and predict unemployment ratesto communicate with customers instantlyto ship goods to countries all over the worldto explain trends in production and shippingto apply automation to reduce production costs

A
to follow and predict unemployment rates
B
to communicate with customers instantly
C
to ship goods to countries all over the world
D
to explain trends in production and shipping
E
to apply automation to reduce production costs

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