Answers26-27 Ignite Economics-KY-EconomicsEntrepreneurship

Entrepreneurship — Unit test Answers

25 verified answers1 views
1
Free Preview

feestaxesinsuranceinterest

A
fees
B
taxes
C
insurance
D
interest
2
Free Preview

best

l
limiting inflation and reducing unemployment
r
reducing unemployment and maintaining cash flow
c
controlling stagflation and reducing unemployment
m
managing credit and ensuring the money supply's liquidity
3

What is the main goal in creating the federal budget?

A
managing businesses and increasing spending on all programs
B
deciding how to manage the government’s tax revenue and expenditures
C
finding a way to allow the economy to run on its own
D
finding a way to slow down rapid economic growth
4

What is the definition of collective bargaining?

A
ongoing salary negotiations between an employee and a factory owner
B
an agreement among a group of factory owners to raise worker wages
C
a written set of guidelines about legal and illegal workplace conditions
D
labor union and employer negotiations about wages and other issues
5

Which is a function of regulatory agencies?

e
encouraging business compliance
c
creating legislation for businesses
e
encouraging negative externalities
c
creating new business opportunities
6

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.
7

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.
8

proportionallyprogressivelyregressively

A
proportionally
B
progressively
C
regressively
9

Which best describes a central bank's primary role?

A
controlling inflation
B
increasing credit
C
printing money
D
creating monetary policy
10

Read the graph.

Question illustration
A
A company selling telephones most likely has only a 40 percent chance of surviving for at least four years.
B
A company offering physical therapy most likely has only an 80 percent chance of surviving for at least two years.
C
A company offering cleaning services most likely has only a 50 percent chance of surviving for at least eight years.
D
A company selling diabetes supplies has only a 60 percent chance of surviving for at least three years.
11

Government regulation is intended to

A
encourage producers to take negative actions.
B
discourage producers from taking harmful actions.
C
encourage producers to follow the Constitution.
D
discourage producers from making a profit.
12

Governments collect taxes to ensure that

t
there is sufficient money to fund private businesses.
c
citizens contribute to meeting society's needs.
p
politicians get paid in a timely manner.
a
a government program exists for every need that arises.
13

Spending that is required by law is known as

d
discretionary spending.
d
deficit spending.
m
mandatory spending.
e
expansionary spending.
14

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.
15

A purpose of government regulation in a mixed-market economy is to protect

A
property rights.
B
corporate rights.
C
monetary rights.
D
states' rights.
16

How do corporations raise money and resources to expand? Select THREE answers.They request a bank loan.They raise franchise fees.They cash in dividends.They agree to sell stocks.They issue bonds.

T
They request a bank loan.
T
They raise franchise fees.
T
They cash in dividends.
T
They agree to sell stocks.
T
They issue bonds.
17

A government might enact expansionary spending when it is trying to

A
increase aggregate demand for goods.
B
decrease aggregate demand for goods.
C
slow an economic expansion.
D
lower a budget deficit.
18

Franchises are attractive to business owners because

t
they have a proven business model.
t
they are typically inexpensive to buy.
t
they get to keep all profits.
t
they come with very little risk.
19

producersconsumersgovernmentprices

A
producers
B
consumers
C
government
D
prices
20

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.

Did you find these answers helpful?

More from this Course

Quiz
25 verified answers

Unit Test

Quiz
25 verified answers

Unit Test

Quiz
25 verified answers

Unit Test