AnswersTX-EconomicsUnit Test

Unit Test — Unit test Answers

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21
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Property taxes are usually determined based on

t
the property owner's income.
t
the amount of money invested in the property.
t
the earnings generated by the property.
t
the value of the property.
22
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How did Adam Smith’s economic ideas help the United States establish a free enterprise system? Check all that apply.

A
They led to freedom of choice for consumers and producers.
B
They led to fixed prices for consumers and producers.
C
They led to open competition for consumers.
D
They led to individual ownership of property.
E
They led to more government spending and increased demand.
F
They led to limited choice and communal ownership of property.
23

What is the full name of the US central bank, known as the Fed?

A
the Federal Reserve Bank
B
the Federal Deposit Insurance Corporation
C
the Federal Financial Institution
D
the Federal Bank
24

Entrepreneurs who want to open a franchise

b
buys the rights from the parent company and creates his or her own rules.
b
buy the rights from the parent company and invest in a location approved by the parent company.
i
invest in a location and create a business model for the franchise.
i
invest in a location and develop a trademark for the franchise.
25

Which statement best describes how the Fed responds to recessions?

A
It sells more securities.
B
It charges banks more interest.
C
It increases reserve requirements.
D
It increases the money supply.
26

A regulatory agency that makes sure banks follow federal laws is

A
the FDIC.
B
the FDA.
C
the SEC.
D
the EPA.
27

How are progressive taxes and regressive taxes similar?

A
Both charge high-income individuals more.
B
Both are considered flat taxes.
C
Both generate revenue for public services.
D
Both are types of indirect taxes.
28

Revenue and expenditures are sitting on a balance at the same level.

Question illustration
A
unbalanced
B
balanced
C
deficit
D
surplus
29

A flier outside a community center states that an organization is accepting charitable donations of clothing for families whose homes are damaged by weather.

A
providing jackets during snowstorms
B
sending volunteers to clean parks after windstorms
C
informing the public about potential weather disasters
D
building and maintaining a swimming pool at the center for relief from heat
30

Which characteristic of being an entrepreneur could be seen as both a benefit and a drawback?

A
job security.
B
personal fulfillment.
C
financial risk.
D
a flexible working environment.
31

The most common business organizations in the United States are

p
partnerships.
s
sole proprietorships.
c
corporations.
f
franchises.
32

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.
33

revealregulateprotectconceal

A
reveal
B
regulate
C
protect
D
conceal
34

proportionallyprogressivelyregressively

A
proportionally
B
progressively
C
regressively
35

An entrepreneur is someone who

A
starts and runs a business.
B
is an employee of a business.
C
invents products for other businesses.
D
works for multiple developing businesses.
36

Why did Friedrich Hayek call expansionary spending dangerous?

A
He felt it could lower the money supply and cause deflation.
B
He felt it could lead to inflation and poor decisions by consumers.
C
He felt it could lead to deflation and poor decisions by consumers.
D
He felt it could lower available credit and cause a drop in prices.
37

What role does a fast-food corporation play when it agrees to franchise its business? Select four answers.supply traininglicense a trademarkselect a locationpay associated feessupply advertisingcollect most profits

A
supply training
B
license a trademark
C
select a location
D
pay associated fees
E
supply advertising
F
collect most profits
38

Read the excerpt from an interview with Peter Drucker.Giving money is basically passive. In the parable of the good Samaritan, the important thing is that the Samaritan went back the next day, to make sure that the victim was treated well. He wasn’t just giving money; he was giving care. Lots of people give money; he gave care, he did something. Social entrepreneurs are not satisfied with just giving money. —"A Passion for Performance,” Philanthropy Magazine

A
by spending free time delivering meals to people who are confined to their homes
B
by becoming a paying member of the city’s symphony orchestra
C
by donating money when asked by the cashier at a checkout counter
D
by contributing part of a paycheck to an employer’s campaign for medical research
39

What does deficit spending require a government to do?

l
lay off workers
c
cut taxes
t
take on debt
h
hire more workers
40

How is an excise tax different from a sales tax?

A
An excise tax is not deductible.
A
An excise tax applies to specific products.
A
An excise tax applies only to imported goods.
A
An excise tax is an indirect tax.

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