AnswersCARE_24_25_TX-EconomicsUnit Test

Unit Test — Unit test Answers

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Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers? Select two answers.

A
High school athletes stop shopping there.
B
The inventory of sports socks goes unsold.
C
Sneaker sales were declining before the decision to sell dress shoes.
D
Dress shoes cost less for the store to buy from a supplier.
2
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Read the introduction to an argumentative essay about entrepreneurs and free enterprise.Mary Kay Ash wanted to write a book about women in business. Instead, what transpired was a business plan for Mary Kay, Inc., a cosmetics company. In a free enterprise system, people like Mary Kay Ash have the opportunity to make their own economic decisions and create their own influential businesses.The introduction is effective because it

A
provides a brief background about the essay’s subject.
B
describes the life of a person many readers will know.
C
summarizes the topic and restates the writer’s position.
D
begins the essay with an interesting anecdote or story.
3

How can the government reduce the wealth gap in a mixed market economy?

A
The government can control income levels by placing limits on how much citizens can earn.
B
The government can eliminate minimum wages for workers to account for economic differences.
C
The government can improve education to provide new opportunities for workers in the lower class.
D
The government can tax members of the wealthy class at a lower rate to address differences in income.
4

production possibility curveproduction supply curveproduction opportunity curve

A
production possibility curve
B
production supply curve
C
production opportunity curve
5

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.
6

Study the graph.In what time period did hydroelectric power usage reach its peak?

Question illustration
A
1970–1980
B
1980–1990
C
1990–2000
D
2000–2010
7

Rescooperate Ice Cream Shop recently analyzed their books. They found that in the past year, they made $100,000 selling ice cream and spent $75,000 on supplies and factory space. The remaining $25,000 represents

A
profit.
B
loss.
C
revenue.
D
expense.
8

What are aspects of a free-enterprise system? Check all that apply.Private ownership of property is severely restricted.The government has a lot of power and influence.There are few limits on the use of private property.Consumers make all of their economic choices.Producers make all of their economic choices.

A
Private ownership of property is severely restricted.
B
The government has a lot of power and influence.
C
There are few limits on the use of private property.
D
Consumers make all of their economic choices.
E
Producers make all of their economic choices.
9

A basic concept in economics is that all resources are

A
scarce.
B
allocated.
C
valuable.
D
renewable.
10

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.
11

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.
12

The most common economic system in the world is a

A
closed economy.
B
command economy.
C
mixed market economy.
D
traditional economy.
13

A society decides that it needs to produce more corn to feed the growing population. What must it do before it begins the production process?

a
analyze existing resources, such as water availability
d
determine how people will receive the surplus crops
s
study the profitability of increasing corn production
u
understand who is in a position of authority to produce more
14

best

P
People are able to meet most of their needs.
C
Consumers must pay higher prices for many items.
G
Governments must try to meet the wants of citizens.
E
Economies can work to provide more goods and services.
15

productresourcevaluecost

A
product
B
resource
C
value
D
cost
16

Which nation has a command economy?

A
Cuba
B
Norway
C
South Korea
D
the United States
17

Ricardo works part time at a local computer store. One day, his manager approaches him about moving from cashier to floor supervisor. Ricardo is excited because the promotion comes with a raise; however, the extra work hours would take away from time with his friends and family. In the end, he decides to take the promotion.What is Ricardo’s opportunity cost?

A
losing extra time to spend with his friends and family
B
being able to use the extra money for summer football camp
C
losing the ability to spend any time with his family
D
receiving another promotion in six months
18

Which situation is the best example of competition in an economic system?

A
A restaurant just opened down the block from a movie theater, and the restaurant owner hopes to attract diners after each movie.
B
A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.
C
A store that sells sneakers has offered a special deal to customers from a nearby health club.
D
A federal agency has been created to monitor the production and distribution of food supplements.
19

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.
20

This graph shows the changing unemployment rate in the United States.Based on this graph, what can be concluded about the economy between 1991 and 2008?

Question illustration
A
The economy was getting stronger because unemployment was low.
B
The economy was getting stronger because too many manufacturing jobs were available.
C
The economy was getting weaker because employment was low.
D
The economy was getting weaker because stagflation was occuring.

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