Answers26-27 Ignite Economics-KY-EconomicsInflation and Stagflation (continued)

Economic Policy Answers

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In a free enterprise system, governments address public problems through policy to ensure that

A
citizens' needs are met and protected.
B
economic operations of businesses are controlled.
C
workers earn more than workers in other countries.
D
the nation's level of productivity remains steady.
2
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A government's monetary policy is its plan to control

A
taxation and spending.
B
prices.
C
workers' wages.
D
the money supply.
3

Read the scenario.The citizens of Country D have noticed that the average prices of most goods within their nation have begun to rise. At the same time, employers are not raising wages at the same rate. The combination of these challenges has resulted in a decrease in overall demand, causing a decline in GDP.

A
the government of Country D
B
the enterprises of Country D
C
the businesses of Country D
D
the workers of Country D
5

Read the scenario.The citizens of Country D have noticed that the average prices of most goods within their nation have begun to rise. At the same time, employers are not raising wages at the same rate. The combination of these challenges has resulted in a decrease in overall demand, causing a decline in GDP.

A
unemployment
B
stagflation
C
high production
D
high wages
6

What is a primary economic goal of governments?

A
reducing income inequality
B
maximizing individual freedoms
C
advancing technological innovation
D
protecting natural resources
7

Which of these policies would a government take when it comes to employment?

A
paying government employee when they choose to not work
B
seeing that at least a quarter the workforce has a job
C
working toward making unemployment is as low as possible
D
making sure that only skilled workers get jobs
8

Which statements describe a free enterprise system? Check all that apply.

A
Citizens can own property.
B
The government employs all workers.
C
Supply and demand drives production.
D
Consumers and producers make their own decisions.
E
Citizens can accumulate wealth.
F
The government sets prices and wages.
9

When an economy suffers from low production, a country cannot

A
worry about unemployment.
B
change the tax rate.
C
provide adequate funding for public safety.
D
enjoy a steady rate of economic growth.
10

The diagram shows a challenge for government policy-makers.

Question illustration
A
A country’s needs are more important than its ideals.
B
The most important aspect of economic policy is citizens' safety.
C
Economic policy must reach a balance between needs and ideals.
D
Private property is somewhat less important than fairness.
11

In a free enterprise system, what are the goals of government? Check all that apply.to ensure safety for its citizensto ensure that citizens' needs are metto stay out of all economic decisionsto solve the problem of povertyto prevent citizens from getting richto ensure that the market is fair

A
to ensure safety for its citizens
B
to ensure that citizens' needs are met
C
to stay out of all economic decisions
D
to solve the problem of poverty
E
to prevent citizens from getting rich
F
to ensure that the market is fair
12

The graph shows the number of employed workers in the United States in nonfarm jobs from 2008 to 2013.

Question illustration
A
The United States had the world’s weakest economy by 2010.
B
In today's economy, a country needs fewer workers to remain strong.
C
By 2012, the United States had solved its economic problems.
D
The United States faced an economic crisis that started in 2008.
13

The graph shows the number of employed workers in the United States in nonfarm jobs from 2008 to 2013.

Question illustration
A
remained consistent over time.
B
started going down in 2008.
C
went up every year since 2008.
D
started going down in 2010.
14

A line graph titled Number of Employed workers in nonfarm jobs, 2008 to 2013 shows years on the x axis from 2008 to 2009 and millions of employed workers on the y axis, from 105 to 117. Line starts at 116 on February 1, 2008, to 112 on November 1, 2008, to 107 on August 1, 2009.

Question illustration
A
low production
B
inflation
C
budget deficit
D
unemployment
15

Country Q has experienced a rapid increase in its unemployment rate and a sharp decline in its GDP.What might policymakers do in the face of these economic indicators?

A
encourage a decrease in purchasing until employment figures increase
B
try to trade with other nations to increase production and create new jobs
C
increase taxes so the government has more money to spend
D
implement controls on wages, forcing employers to pay higher wages

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