AnswersFL-2106010-MJ Civics B-CRUnit Test

Unit Test — Unit test Answers

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Which example shows why producers cannot always control the number of goods they supply?

A
Company A decides to offer a wider range of skateboards, so it increases production and raises some prices.
B
Company B decides to increase production of its new product and raises the price because the product is selling so well.
C
Company C is having trouble hiring enough workers to keep its production lines operating at the normal level.
D
Company D would like to introduce a new product, so it conducts research to determine the best price and the quantities to produce.
2
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Which best describes scarcity?

A
the idea that resources, wants, and needs are all unlimited
B
the idea that resources should fulfill unlimited needs and wants
C
the idea that land, labor, and capital are limited
D
the idea that land, labor, and capital are unlimited
3

Miguel Alvarez owns a horse ranch. He trains horse for rodeos and for work on cattle ranches. As a rancher, he uses different factors of production.

A
the pasture where the horses graze
B
the saddles he buys to train his horses
C
the wind energy he generates on his ranch
D
the ranch hands he hires to train his horses
4

Why is decentralization of power an important part of capitalism and a free-market economy?

A
It strengthens companies by helping them form alliances.
B
It keeps any one company from becoming a monopoly.
C
It makes it illegal for companies to gain too much power.
D
It prevents workers from asking companies for raises.
5

Review the graph.

Question illustration
A
a supply curve
B
a supply schedule
C
a demand curve
D
a demand schedule
6

What is the typical annual inflation rate?

A
1–4 percent
B
4–8 percent
C
8–12 percent
D
12–16 percent
7

Review the diagram.

Question illustration
A
Each branch represents several decisions that a person could make.
B
Each branch represents a decision that leads to other choices.
C
Each branch represents a different person making a decision.
D
Each branch represents the correct choice a person could make.
8

Why is bartering not used globally on a large scale to meet the needs of people and populations?

A
It would require the value of goods and services to be standardized.
B
It can be used only during times of crisis.
C
It has been replaced by time banks as a way to exchange goods and services.
D
It requires too many different kinds of coins and paper money.
9

Review the diagram.

Question illustration
A
one example of deflation
B
the circular flow of income
C
the changing cost of living
D
one cause of hyperinflation
10

Which economic system is most likely to have a single communist political party?

A
traditional economy
B
market economy
C
command economy
D
mixed-market economy
11

Which shirt would most likely be the most expensive?

A
a mass-produced cotton shirt
B
one shirt signed by a famous rapper
C
one shirt out of two-thousand concert T-shirts
D
a mass-produced silk shirt
12

What is the cause of demand-pull inflation?

A
Prices rise due to high consumer interest.
B
Prices rise after production costs increase.
C
Prices rise due to a drop in product supply.
D
Prices rise in response to a cost-of-living increase.
13

Rubber is a raw material used to manufacture tires. Several US tire companies import rubber from South America. Rubber comes from trees that grow in tropical areas. During this year’s hurricane season, several strong storms damaged many South American forests. As a result, there is less rubber available than in previous years.

A
The price of tires will decrease due to the cost of rubber going up.
B
The price of tires will decrease due to the cost of rubber going down.
C
The price of tires will increase due to the cost of rubber going up.
D
The price of tires will increase due to the cost of rubber going down.
14

Local officials in a small town are discussing a proposal to construct an outdoor stage in central downtown. They agree to survey individuals, organizations, and businesses in the community before they make a decision.

A
Different community groups might value the proposal differently.
B
The officials need all community members to agree on the proposal.
C
Different community groups’ opinions are valued more than others.
D
The officials need all community members to contribute to the project.
15

Following a natural disaster, Congress provided assistance for people in the affected area. How did the money from the government most likely affect demand?

A
It did not affect demand.
B
It increased demand.
C
It decreased demand.
D
It made demand disappear.

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