AnswersFL-2102310-Economics Adult Credit Course SY2526Unit Test

Unit Test — Unit test Answers

25 verified answers3 views
1
Free Preview

The aggregate is

A
a type of economic system.
B
the total number of goods demanded or supplied.
C
a form of revenue.
D
the total profit made on sales.
2
Free Preview

Which body or group is most able to use money to influence the economy?

A
government
B
suppliers
C
firms
D
producers
3

The circular flow model examines interactions between which two groups?

A
households and firms
B
households and consumers
C
firms and producers
D
firms and government
4

Why are imports, which bring goods into a country, considered a leakage factor?

A
Imports do not generate domestic income.
B
Domestic industry loses ground as imports increase.
C
Imports are taxed heavily, which is a secondary leakage factor.
D
The money paid to producers of imports leaves the country.
5

Which of the following is the least liquid?

A
savings account
B
checking account
C
credit account
D
investment account
6

When might it be important to know a currency’s exchange rate?

A
when planning expenses for an overseas trip
B
when changing money into smaller denominations
C
when preparing to buy something expensive
D
when deciding which college is the best value
7

Which statement best describes how an investor makes money off debt?

A
An investor makes money by issuing bonds.
A
An investor makes money by earning interest.
A
An investor makes money by raising capital.
A
An investor makes money by being repaid for the principal.
8

What is a potential disadvantage of using debit cards when compared to barter and traditional currency?

A
collaborative
B
wide acceptance
C
ease of overspending
D
more privacy and flexibility
9

Exchange rates can indicate economic health by

A
showing exactly how much of each nation’s currency is liquid.
B
revealing how much of each nation’s income goes to savings.
C
showing the relative strength of different nations’ currencies.
D
examining spending patterns across nations and continents.
10

Which of these scenarios involves commodity money?

A
A girl writes a check to her friend for a stack of valuable comic books.
B
A boy starts a lemonade stand and sells each drink for twenty-five cents.
C
A woman offers her neighbor a US silver dollar in exchange for a bicycle.
D
A man buys some T-shirts and pays with a US fifty-dollar bill.
11

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face?

A
The issuer may not raise enough capital.
B
The issuer could refuse to pay dividends.
C
The issuer could go bankrupt.
D
The issuer may not make a profit.
12

Which factors can affect a stock’s price? Check all that apply.

A
market performance
B
the company’s financial health
C
the quantity products produced
D
location of the company
E
the economy
13

Which best describes what generally occurs in financial markets?

A
Debt and loans are traded.
B
Assets are traded.
C
Commodities are traded.
D
Shares are traded.
14

best

T
They both use taxes to support a country’s growth.
T
They both invest money to earn a profit.
T
They both receive capital to use for growth.
T
They both act as angel investors for start-ups.
15

Why must old currency be taken out of circulation when new currency is made?

A
The old currency is more valuable than the new currency.
B
The new currency is much more liquid than the old currency.
C
Too much currency in an economic system will cause inflation.
D
Too much currency in an economic system will create artificial wealth.
16

Which is true about investments and risk?

A
Low-risk investments have a high return over the long run.
B
High-risk investments usually fail.
C
Safe investments are always somewhat profitable.
D
Every investment carries some degree of risk.
17

Capital appreciation refers to

t
the increased value of an asset.
t
the ability to make a profit from owning stock.
t
the distribution of earnings to shareholders.
t
the profitable sale of shares.
18

What is the relationship between aggregate demand and the price level?

A
They are inversely related.
B
They are directly related.
C
They are unrelated.
D
They fluctuate randomly.
19

What gives commodity money its value?

A
a government’s guarantee of its value
B
the type of material with which it is made
C
its rate of exchange in other countries
D
the ability to trade it for a valuable good
20

Which best describes what a market index does?

A
An index measures market performance.
B
An index measures economic trends.
C
An index measures growth.
D
An index measures the performance of a single stock.

Did you find these answers helpful?

More from this Course

Quiz
25 verified answers

Unit Test

Quiz
20 verified answers

Unit Test

Quiz
12 verified answers

Unit Test