AnswersTX-EconomicsUnit Test

Unit Test — Unit test Answers

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What must an entrepreneur assume when starting a business?

t
that the correct location guarantees success
t
that every product has a customer who wants it
t
that clever market strategies may still fail to sell a product
t
that raising funds is the most difficult step in starting a business
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When researching online for nonprofit organizations she might want to support, Annabel comes across a group called Artists in Training. The information on the website includes a list of middle schools that have received funds from the organization.

A
to sponsor illustrations of children’s books
B
to create landscape art on playgrounds
C
to support sixth-grade art curriculums that have no funding
D
to train artists how to teach continuing education for adults
63

Under an expansionary taxation policy, the government tries to stimulate economic growth by

A
reducing deficits.
B
reducing taxes.
C
reducing demand.
D
reducing spending.
64

A graph titled Total U S Government Spending as Percentage of G D P from 1990-2012 has year on the x-axis and percentage of G D P on the y-axis, from 15 to 30 percent in increments of 5. The percentage of G D P is lowest at 18 percent in 2001 and highest at 25 percent in 2009.

Question illustration
h
half of GDP.
1
100 percent of GDP.
o
one quarter of GDP.
o
one tenth of GDP.
65

What facts about each organization should they include in their research to make sure it matches their goals? Choose three answers.

A
activities
B
donor list
C
recipients
D
mission statement
E
founding members
66

Who was known as the "Father of Economics,” whose ideas of free markets inspired classical economic thinkers?

A
John Keynes
B
Milton Friedman
C
Friedrich Hayek
D
Adam Smith
67

A pie chart titled Federal Government Spending in 2010 is shown. Education and health and human services has the largest piece, and veteran apostrophe s affairs has the smallest piece.

Question illustration
l
labor and transportation
v
veterans' affairs
e
education/health and human services
i
international assistance
68

Federal Reserve interest federal fundsloan interest

A
Federal Reserve interest
B
federal funds
C
loan interest
69

Which best describes a central bank's primary role?

A
controlling inflation
B
increasing credit
C
printing money
D
creating monetary policy
70

What was the main effect of entrepreneurship in China?

A
Poverty noticeably declined.
B
Foreign investment declined.
C
New products were invented.
D
Product exports exceeded imports.
71

An entrepreneur must accept being accountable for the failure of the company because the entrepreneur is

A
part of the management team.
B
responsible for organizing the business.
C
expected to contribute positively to society.
D
expected to dedicate the most hours to the business.
72

What gives the US government the power to collect taxes?

A
the Constitution
B
laws passed by Congress
C
an executive order
D
common law
73

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
74

Which can be considered disadvantages of sole proprietorships and partnerships?

A
Partnerships require many people to write a charter, while sole proprietorships require one person to write a charter.
B
Sole proprietorships require one person to know complicated tax laws, while partnerships require many people to know the rules.
C
Partnerships require one person to do many things, while sole proprietorships require many people to weigh in on decisions.
D
Sole proprietorships require one person to do many things, while partnerships require many people to weigh in on decisions.
75

Which action is an example of a service provided by an international organization receiving charitable donations?

A
organizing campaigns for politicians
B
taking direction from government officials
C
promoting government initiatives to help the poor
D
working with large corporations on trade policies to increase profits
76

Which are examples of sole proprietorships? Check all that apply.lawyers working for a corporationdoctors in a partnershipindependent workersfranchise restaurants in a partnershiptax preparer working his own businessfreelance writers

l
lawyers working for a corporation
d
doctors in a partnership
i
independent workers
f
franchise restaurants in a partnership
t
tax preparer working his own business
f
freelance writers
77

Which best describes the difference between sole proprietorships and partnerships?

S
Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.
S
Sole proprietors share responsibilities, while partners are responsible for only a portion of the business.
S
Sole proprietors split profits and share liabilities, while partners keep all profits and have unlimited liability.
S
Sole proprietors pay taxes only on business profits, while partners do not have to pay taxes on profits.
78

Isabella wants to do something for others around the holidays. She fills three boxes with things she does not need, and donates them anonymously to a nonprofit organization that provides for families who can no longer live in their homes.

A
the time of year
B
the donor’s age
C
a direct request for contributions
D
a personal connection to an issue
79

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.
80

What is one way for an entrepreneur to decrease risk?

b
by mimicking popular products
b
by maintaining personal flexibility
b
by creating a strong business strategy
b
by developing reliable sources for materials

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