AnswersAA - F26 Personal Finance and EconomicsUnit Test

Unit Test — Unit test Answers

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21
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Venya and Kari own a flower shop that specializes in custom bouquets. Wanting to expand into selling potted plants, they create a production possibility chart to assess whether the potted plants are a good idea. Study their chart:

Question illustration
2
25
3
30
5
50
7
75
22
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How would a manufacturer benefit by using fewer scarce resources?

A
The product would be less expensive to produce.
B
The product would better satisfy consumer needs.
C
The product would be popular and readily available.
D
The product would provide a more satisfactory profit.
23

A reward or punishment that encourges people to behave in a certain way is called a(n)

A
want.
B
price ceiling.
C
equilibrium price.
D
incentive.
24

Technology can help governments handle economic emergencies, such as

A
the reliance on automation.
B
crop and resource shortages.
C
the fall of the unemployment rate.
D
instant sales and communication.
25

What restriction would the government impose in a closed economy?

T
The government would prohibit trade with other nations.
T
The government would set the prices for imported goods.
T
The government would preserve traditional customs only.
T
The government would prevent private ownership of property.
26

What is one way a command economy affects the lives of private citizens?

A
Citizens cannot make most economic decisions.
B
Citizens can only work in factories or on farms.
C
Citizens must pay for their own health care.
D
Citizens have limited access to education.
27

How does scarcity determine the economic value of an item?

A
by the amount of goods that are produced
B
by the capital required to build the factory
C
by the unlimited wants of the consumers
D
by the resources consumed in production
28

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

Question illustration
A
how the government will address unemployment.
B
which industries are most in need of workers.
C
how many people will be out of work in the next year.
D
why producers might hire fewer workers in the future.
29

The goal of a market economy is to

A
sustain self-sufficiency.
B
preserve traditional customs.
C
create equality within a society.
D
promote free economic choices.
30

While revising an argumentative essay, a writer should

A
include anecdotes and personal “I” statements.
B
focus on including opinions more than evidence.
C
make sure each paragraph has a clearly stated point.
D
make the writing friendly and informal, engaging readers.
31

Which of the following has the largest impact on opportunity cost?

A
consumer wants
B
tight deadlines
C
consumer needs
D
limited resources
32

How has information technology impacted the economy? Choose three answers.

A
It has allowed economists to better predict how resources should be allocated.
B
It has assisted governments to make better economic policy decisions.
C
It has become more difficult for businesses to identify when shortages will occur.
D
It has steadily increased the amount of time to share data between locations.
E
It has expanded growth and outlook in information technology careers.
33

The market for which item generally involves pure competition?

A
cola
B
corn
C
jeans
D
ice cream
34

The lowest amount a manufacturer can pay factory workers is an example of

A
an incentive.
B
a price floor.
C
a price ceiling.
D
an elastic service.
35

A basic concept in economics is that all resources are

A
scarce.
B
allocated.
C
valuable.
D
renewable.
36

Which question can most help a writer revise an argumentative essay?

A
What is the topic to be addressed?
B
What is the main purpose of the essay?
C
Do details provide support for the claim?
D
Which subject will help explain the position?
37

The graph shows the price of a good compared to the quantity supplied.This graph demonstrates how

Question illustration
A
the amount produced slightly changes with the price.
B
the amount produced greatly changes with the price.
C
the amount consumed slightly changes with the price.
D
the amount consumed greatly changes with the price.
38

How do lower prices tend to affect demand?

A
They tend to increase the availability of a product.
B
They tend to decrease the availability of a product.
C
They tend to increase the interest in a product.
D
They tend to decrease the interest in a product.
39

[BLANK]

A
1.00
B
.50
C
.25
D
1.25
40

Read this prompt for an argumentative essay.A free enterprise system provides individuals the opportunity to make their own economic decisions without restrictions from the government. It allows the supply and demand of consumers to determine the success or failure of an economic endeavor. It also requires entrepreneurs to rise or fall on their own without government support. Do you believe this type of economic system is more or less helpful, and why? Write an argumentative essay that explains your position.What will be the topic of the essay?

A
the role of government
B
the rise of entrepreneurs
C
the free enterprise system
D
the command economy system

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