Unit Test — Unit test Answers

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The diagram shows different types of policies.

Question illustration
A
The Best Economic Policies
B
Government Economic Policies
C
Ineffective Economic Policies
D
The Free Enterprise System
2
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Successful entrepreneurs contribute to the economy by

A
becoming wealthy.
B
expanding markets.
C
encouraging free trade.
D
creating business strategies.
3

Labor unions were certain to advocate for the best interests of workers because

A
the government shut down factories that did not improve work conditions.
B
the top factories were run by owners who wanted to retain their workers.
C
the government required all labor unions to promote workplace reform.
D
the labor unions were created by workers and made up of workers.
4

Which group does the Fed serve?

A
financial institutions
B
consumers
C
government bodies
D
bankers
5

To be successful, what must an entrepreneur be willing to invest? Check all that apply.

A
money
B
unemployment
C
personal safety
D
time
E
considerable effort
6

Which federal regulatory agency would most likely bring a civil suit against a business that broke securities laws?

A
the SEC
B
the FDA
C
OSHA
D
the FDIC
7

Among the changes that labor reformers wanted after the Industrial Revolution was

A
more jobs for untrained workers.
B
a ban on child factory workers.
C
jobs for women factory workers.
D
equal pay for owners and workers.
8

Which statement explains a way how the Securities and Exchange Commission upholds fair business practices?

A
The SEC makes sure that banks follow federal laws.
B
The SEC tries to limit risk in the financial system.
C
The SEC generally oversees banking practices.
D
The SEC generally oversees financial advisers.
9

[BLANK]

A
producers
B
consumers
C
government
D
prices
10

Which best describes a difference between the views of Milton Friedman and John Maynard Keynes on the economy?

A
Friedman said that monetary policy should be used to influence aggregate demand, while Keynes believed the best approach was fiscal policy.
B
Friedman said that fiscal policy should be used to influence aggregate demand, while Keynes believed the best approach was monetary policy.
C
Keynes believed in little government intervention in the economy, while Friedman said government should play an active role.
D
Keynes believed the economy was too complicated to think of aggregates, while Friedman said higher aggregate demand could solve issues.
11

When a government decides to limit the number of goods that can be sold to another nation, that government is creating

A
monetary policy.
B
trade policy.
C
fiscal policy.
D
regulatory policy.
12

Which of these are goals of an expansionary policy? Check all that apply.

A
increased available credit
B
decreased available credit
C
increased money supply
D
increased inflation
E
increased interest rates
F
decreased interest rates
13

Many classical economists such as Adam Smith believed that government should

A
intervene often in the economy.
B
intervene little in the economy.
C
always intervene in the economy.
D
totally control the economy.
14

The development of many new businesses helps limit

A
unemployment.
B
taxation.
C
revenue.
D
risk.
15

[BLANK]

A
Occupational Safety and Health Administration
B
Environmental Protection Agency
C
Food and Drug Administration
D
Securities and Exchange Commission

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