AnswersEconomicsBusiness and Government

Business and Government — Test Answers

25 verified answers2 views
1
Free Preview

Which best describes how individuals help the economy grow?

A
They work as part of a unified group.
B
They work to influence the economy.
C
They work in their own self-interest.
D
They work to influence the money supply.
2
Free Preview

What does the author believe about factory owners?

A
They are stubborn but hardworking.
B
They are greedy and selfish.
C
They earned their privileges.
D
They struggle just as workers do.
3

Which of these would be a good title for this diagram?

A
Fiscal Policy
B
Government Spending
C
The National Economy
D
The Federal Debt
4

During what years did union membership peak?

A
in 1965 and 1970
B
in 1930 and 1950
C
in 1960 and 1970
D
in 1945 and 1955
5

Which best describes the idea behind the "invisible hand"?

A
Producers decide what to make for consumers, which guides the economy.
B
Consumers decide what they need and want to buy, which guides the economy.
C
Government sets policy for producers and consumers, which guides the economy.
D
Individuals seeking their own self interest benefit the economy as a whole.
6

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

A
property rights.
B
investor rights.
C
states' rights.
D
corporate rights.
7

A plan for spending money that balances income with spending and shows how money will be spent is

A
a deficit.
B
a budget.
C
a surplus.
D
an expenditure.
8

Which educational institutions typically cost the most to attend?

A
private colleges
B
community colleges
C
vocational schools
D
public universities
9

What is the definition of collective bargaining?

A
a written set of guidelines about legal and illegal workplace conditions
B
ongoing salary negotiations between an employee and a factory owner
C
labor union and employer negotiations about wages and other issues
D
an agreement among a group of factory owners to raise worker wages
10

When a government creates a budget, it is seeking a way to

A
return as much money to taxpayers as possible.
B
allocate money to programs and projects.
C
cut spending to a bare minimum.
D
spend as much revenue as possible.
11

Regulatory policy requires a balance between protecting safety and

A
protecting states’ rights.
B
protecting constitutional rights.
C
improving environmental conditions.
D
improving corporate profits.
12

An entrepreneur is someone who

A
invents products for other businesses.
B
works for multiple developing businesses.
C
starts and runs a business.
D
is an employee of a business.
13

What led to Henry Ford’s success as an entrepreneur?

A
His desire to pay high wages.
B
His innovative production methods.
C
His personal wealth.
D
His commitment to improving labor laws.
14

Which best describes a central bank's primary role?

A
printing money
B
controlling inflation
C
increasing credit
D
creating monetary policy
15

Which best describes the difference between sole proprietorships and partnerships?

A
Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.
B
Sole proprietors pay taxes only on business profits, while partners do not have to pay taxes on profits.
C
Sole proprietors split profits and share liabilities, while partners keep all profits and have unlimited liability.
D
Sole proprietors share responsibilities, while partners are responsible for only a portion of the business.
16

Governments collect taxes to ensure that

A
a government program exists for every need that arises.
B
there is sufficient money to fund private businesses.
C
politicians get paid in a timely manner.
D
citizens contribute to meeting society's needs.
17

What gives the US government the power to collect taxes?

A
an executive order
B
the Constitution
C
laws passed by Congress
D
common law
18

The most common business organizations in the United States are

A
partnerships.
B
corporations.
C
sole proprietorships.
D
franchises.
19

Economists studying the money supply categorize the status of the money based on

A
credit.
B
interest rates.
C
liquidity.
D
inflation rates.
20

Which statement best defines tuition?

A
Tuition is the price of attending classes at a school.
B
Tuition is aid given to a student by an institution.
C
Tuition is federal money awarded to a student.
D
Tuition is money borrowed to pay for an education.

Did you find these answers helpful?

More from this Course

practice test
18 verified answers

Practice Test