AnswersEconomics semester SS3314 ICUnit Test

Unit Test — Unit test Answers

14 verified answers3 views
1
Free Preview

When individuals are looking for jobs but are unable to find work, they are said to be .

Answer not available
2
Free Preview

Which best describes the economic impact of defaulting on bank loans?

A
The economy suffers because banks have less money to loan to others.
B
The economy suffers because people have less money to spend.
C
The economy suffers because businesses are scared to take out loans.
D
The economy suffers because people are scared to take out loans.
3

What advantages does money have over bartered goods? Check all that apply.

A
Money is easy to earn, and bartering takes a lot of work.
B
Money has a set value, and bartered goods do not.
C
Money is more portable than bartered goods.
D
Money is always worth more than bartered goods.
E
Money allows people to easily store value they earn.
4

How do bank loans help the nation’s economy?

T
They ensure consumer spending and confidence.
T
They ensure the success of new businesses.
T
They allow businesses to expand and improve.
T
They allow consumers to quickly pay off debts.
5

best

M
Many people could not buy new homes during a weak economy.
M
Many homes could not sell because housing prices rose too fast.
M
Many homes could not sell because banks charged high interest.
M
Many people could not make home payments during a weak economy.
6

What role does the Federal Reserve play? Check all that apply.Regulate the banking industryLoan money to banksGive individual loansGive corporate loansTransfers any profits to the Treasury

A
Regulate the banking industry
B
Loan money to banks
C
Give individual loans
D
Give corporate loans
E
Transfers any profits to the Treasury
7

Cost-push inflation occurs when

A
consumers begin purchasing more goods.
B
producers need more money to make and distribute goods.
C
the government prints more money and pushes prices up.
D
consumers have more money to spend on goods and services.
8

What is the difference between inflation and deflation?

I
Inflation can result from falling demand and boosts the value of money. Deflation can result from rising demand and reduces the value of money.
I
Inflation can result from rising demand and boosts the value of money. Deflation can result from falling demand and reduces the value of money.
I
Inflation can result from falling demand and reduces the value of money. Deflation can result from rising demand and boosts the value of money.
I
Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boosts the value of money.
9

What is the name of the period when an economy begins to shrink?

r
recession
d
depression
r
recovery
p
peak
10

Read the paragraph.Government officials in Country M have determined that they need to take action to encourage the growth of their economy. To do this, they have introduced an incentive policy that offers citizens free education. This is extended to all individuals who sign a contract agreeing to work within their specific industry for the next ten years.Country M hopes to encourage economic growth by investing in

A
education to reduce unemployment and increase production.
B
new technologies to produce goods that are in great demand.
C
resources that can be traded with other nations.
D
research to develop goods that can be sold on a global scale.
11

What decisions does the business cycle help businesses make? Choose four answers.whether to stay at old facilities or move to new facilitieswhether to grow or shrink the businesswhether to keep or change productswhether to increase or decrease productionwhether to hire or lay off workerswhether to invest or save money

w
whether to stay at old facilities or move to new facilities
w
whether to grow or shrink the business
w
whether to keep or change products
w
whether to increase or decrease production
w
whether to hire or lay off workers
w
whether to invest or save money
12

When individuals are looking for jobs but are unable to find work, they are said to be .

Answer not available
13

private closefactor

A
private
B
close
C
factor
14

What term is used in macroeconomics to describe the total supply and the total demand?

A
capital
B
inflation
C
aggregate
D
equilibrium
15

What are the signs of low inflation? Check all that apply.Demand steadily rises.Demand steadily falls.Prices continue to increase.Prices continue to decrease.The economy grows in a healthy way.The economy stagnates and struggles.

D
Demand steadily rises.
D
Demand steadily falls.
P
Prices continue to increase.
P
Prices continue to decrease.
T
The economy grows in a healthy way.
T
The economy stagnates and struggles.
16

Which is an example of how a denomination is divisible?

A
An American dollar may equal one-half of one Euro.
B
An American dollar is equal to four quarters.
C
Three American dollars may buy a small snack.
D
Five American dollars may be worth less next year.
17

One fact about all currency is that it

A
loses value over time.
B
has a changing value.
C
maintains a stable value.
D
grows increasingly valuable.
18

nominal measurementconsumer price indexannual rateUS Bureau of Labor statistic

A
nominal measurement
B
consumer price index
C
annual rate
D
US Bureau of Labor statistic
19

Which of the following best describes the circular flow model?

A
The model represents the movement of money throughout the economy.
B
The model represents the interactions within sectors.
C
The model represents the flow of goods and services between sectors.
D
The model represents the changing relationships between actors.
20

In the circular flow model, factors of production flow to firms. Which of the following are the primary factors of production? Check all that apply.laborcapitalgoodslandservices

A
labor
B
capital
C
goods
D
land
E
services

Did you find these answers helpful?

More from this Course

Quiz
23 verified answers

Economic Policy