Charitable Organizations — Unit test Answers

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21
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most likely

B
Borrowing will decrease.
I
Interest rates will decrease.
I
Investing will decrease.
I
Inflation will decrease.
22
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The Food and Drug Administration sets standards for

A
advertising.
B
product labeling.
C
the environment.
D
traffic safety.
23

How are Bill Gates and Henry Ford similar? Check all that apply.

A
They both streamlined factory production.
B
They both became wealthy and successful.
C
They both helped better the lifestyles of others.
D
They both developed products that filled a human need or needs.
E
They both founded a company when they were very young.
24

[BLANK]

A
Contractionary
B
Expansionary
C
Fixed
26

Which statement describes how borrowers will most likely benefit when the Fed reduces reserve requirements?

A
Loan requirements will likely be relaxed.
B
Interest rates will likely decrease.
C
Housing prices will likely decrease.
D
Investment opportunities will likely improve.
27

Milton Friedman argued that consumers are more likely to alter their behavior based on

A
changes in the unemployment rate.
B
short-term changes in the economy.
C
long-term changes in the economy.
D
changes in the inflation rate.
28

An entrepreneur conducted many experiments in a project without success. What characteristic must this person have to succeed?

A
a dedication to hard work
B
a willingness to admit failure
C
an ability to learn from mistakes
D
an assumption of responsibility
29

Read the graph.

Question illustration
A
Fewer new businesses were started in 2010 than in other years.
B
The opening of new businesses peaked between 2007 and 2008.
C
More new businesses were started in 2006 than in 2005.
D
The number of new businesses remained constant between 2006 and 2009.
30

Cooperatives save members money by

p
purchasing supplies and services as a group.
s
securing financing from banks as a group.
c
charging more to sell their products as a group.
s
sharing all profits democratically as a group.
31

What led to Henry Ford’s success as an entrepreneur?

A
His personal wealth.
B
His innovative production methods.
C
His commitment to improving labor laws.
D
His desire to pay high wages.
33

John Maynard Keynes believed that governments should increase spending in order to

A
increase prices.
B
increase supply.
C
decrease demand.
D
increase demand.
34

A disadvantage of forming a partnership is that owners

A
can find it tougher to start and stop a business.
B
can find it more difficult to get a bank loan.
C
are only responsible for their own finances.
D
are fully responsible for their partners' losses.
35

Which are results of regulation in a mixed-market economy? Check all that apply.

A
compliance with laws
B
advantages for producers
C
control of markets
D
advantages for government
E
control of externalities
36

Franchising is typically done by

A
cooperatives.
B
partnerships.
C
LLC
D
corporations.
37

An entrepreneur would most likely be a

A
low risk taker.
B
spontaneous person with an unclear vision.
C
person who works well alone.
D
person who has a brief work week.
39

The graph shows an early economic theory known as the "invisible hand."

Question illustration
A
Producers decide what to make for consumers, which guides the economy.
B
Individuals seeking their own self interest benefit the economy as a whole.
C
Government sets policy for producers and consumers, which guides the economy.
D
Consumers decide what they need and want to buy, which guides the economy.
40

What is one purpose of writing a business plan before entering the market?

A
to prove that the new company will be successful
B
to show that the enterprise is realistically based
C
to have a useful tool when applying for funding
D
to differentiate the new company from the competition

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Charitable Organizations — Unit test Answers…