Unit Test — Unit test Answers

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41
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The graph shows how individuals affect economic growth.

Question illustration
A
They work in their own self-interest.
B
They work as part of a unified group.
C
They work to influence the money supply.
D
They work to influence the economy.
42
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A
Contractionary
B
Expansionary
C
Fixed
43

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.
44

Milton Friedman led a new economic school of thought called

A
laissez faire.
B
monetarism.
C
price signaling.
D
the invisible hand.
46

An organization advertises tax deductions for people donating cars. Its radio commercial mentions the founder of the organization and various endangered wildlife.

A
earning a profit for its founder
B
creating a sanctuary for animals
C
running a public service radio station
D
providing rides to people without cars
47

To be successful, an entrepreneur must be willing to invest money, considerable effort, and.

Answer not available
48

A mixed-market economy is best defined as an economy

A
with some government intervention.
B
without government intervention.
C
with some externalities.
D
without corporate compliance.
50

When revenues are higher than expenditures in a budget, that budget

A
shows a deficit.
B
is in balance.
C
must be discarded.
D
shows a surplus.
51

Under a contractionary taxation policy, the government can reduce the deficit by

i
increasing taxes.
r
reducing taxes.
i
increasing spending.
i
increasing inflation.
53

best

r
regressive tax
i
indirect tax
d
direct tax
p
proportional tax
54

Which document determines the number of shares in a company?

A
a stock prospectus
B
an annual bill of rights
C
a corporate charter
D
an annual report
55

What is a potential negative effect of an expansionary policy?

A
decreased borrowing
B
increased interest rates
C
increased inflation
D
decreased available credit
57

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.
58

Which of these details can be found on this kind of informative website? Choose two answers.

A
activities
B
donor list
C
recipients
D
mission statement
E
founding members
59

Gino is writing a paper about the effects of fiscal policies on the economy. Gino is describing a fiscal policy that aims to improve inflation.How does the policy that Gino is describing most likely affect interest rates and unemployment?

A
The policy would most likely increase interest rates and unemployment.
B
The policy would most likely decrease interest rates and unemployment.
C
The policy would most likely increase unemployment but decrease interest rates.
D
The policy would most likely increase interest rates but decrease unemployment.

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