Economics Basics Unit Test
*Me just taking my time and asking each question individually on Questions LLC*
Here are the correct answers as of Semester B 2023:
1.) A & D
2.) D
3.) C
4.) A
5.) C
6.) B
7.) D
8.) C
9.) A
10.) B
11.) A
12.) D
13.) C
14.) A
15.) A
16.) B
17.) C
18.) A
19.) D
20.) A & D
21.) A
22.) B
23.) B
24.) C
25.) B & D
26.) D
27.) A
You're welcome God bless have a good day :D
these are for the 28 question ones. 11/7/2023 as in typing this =) (this is for those who had a hard time finding the answers to review their test like i did)
1. D
2. A
3. D
4. A
5. C & D
6. A
7. C
8. D
9. C
10. D
11. B
12. C
13. D
14. C
15. C
16. B
17. C
18. C
19. C
20. C
21. B
22. B
23. C
24. D
25. B
26. D
27. A
28. C
all of these are correct except for 1. A, D, AND C. and 4. C
The event that would most likely lead to a rise in interest rates for home mortgages is when the prices of homes for sale in a certain city rise by a great deal. Answer: A.
can we get the written ones?
can we get the written ones for the 28 question one?
I apologize, but there are only 27 questions in the original post. There is no question number 28.
What is the main advantage of using money instead of bartering?
A.
Things that people usually trade have very little value to anyone.
B.
Not all countries use the same types of money in their economies.
C.
Money comes in many different values to pay for goods and services.
D.
People do not have to have a good or a service that another person wants.
The main advantage of using money instead of bartering is that people do not have to have a good or a service that another person wants. Answer: D.
Which of these events would most likely lead to a rise in interest rates for home mortgages?
A.
The prices of homes for sale in a certain city rise by a great deal.
B.
Many new lenders begin offering home mortgages.
C.
Home sales increase greatly for several months in a row.
D.
The average time needed to sell a house doubles.
4 /
Jayden opens a savings account with $100.00. His account earns 4% simple interest annually. How much money will be in his account one year later if he makes no deposits or withdrawals?
A.
$96.00
B.
$100.00
C.
$104.00
D.
$148.00
Jayden's account will have $104.00 after one year, as he earns 4% interest on his original balance of $100.00:
$100.00 x 0.04 = $4.00 (interest earned after one year)
$100.00 + $4.00 = $104.00
Therefore, the answer is C. $104.00.
Rohan has $100.00 that he wants to save in a bank. Bank A offers two types of savings accounts. One has a 5% simple interest rate, and the other has a 4.8% compound interest rate. Bank B also offers two types of savings accounts. One has a 3% simple interest rate, and the other has a 4% compound interest rate.
Use the passage to answer the question.
Which account should Rohan choose in order to earn the most interest after leaving the account open for 5 years?
A.
Bank A simple interest account
B.
Bank A compound interest account
C.
Bank B simple interest account
D.
Bank B compound interest account
To calculate how much interest Rohan would earn with each account after five years, we can use the following formulas:
Simple Interest = Principal x Rate x Time
Compound Interest = Principal x (1 + Rate)^Time - Principal
For Bank A's simple interest account:
Interest = $100.00 x 0.05 x 5 = $25.00
Total Amount = $100.00 + $25.00 = $125.00
For Bank A's compound interest account:
Interest = $100.00 x (1 + 0.048)^5 - $100.00 = $29.36
Total Amount = $100.00 + $29.36 = $129.36
For Bank B's simple interest account:
Interest = $100.00 x 0.03 x 5 = $15.00
Total Amount = $100.00 + $15.00 = $115.00
For Bank B's compound interest account:
Interest = $100.00 x (1 + 0.04)^5 - $100.00 = $21.94
Total Amount = $100.00 + $21.94 = $121.94
Therefore, the account that Rohan should choose in order to earn the most interest after leaving the account open for 5 years is Bank A's compound interest account, option B, which would result in a total amount of $129.36.
What is the most likely effect on a person's income if he or she has little education and few skills?
A.
The person's income will vary greatly.
B.
The person will earn a high income.
C.
The person's income will decline over time.
D.
The person will earn a low income.
The most likely effect on a person's income if he or she has little education and few skills is that the person will earn a low income. Answer: D.
Which of these is a non-monetary positive incentive for entrepreneurs?
A.
the need to hire and train workers
B.
the risks of starting a new enterprise
C.
the satisfaction of creating new products
D.
the responsibilities of running a business
The non-monetary positive incentive for entrepreneurs is the satisfaction of creating new products. Answer: C.
Which of these people is an example of an entrepreneur?
A.
Malia started selling jewelry she made in an online store.
B.
Liam found a summer job walking dogs in his neighborhood.
C.
Pavel worked hard to learn to speak a foreign language.
D.
Ophelia took classes in painting and drawing at an art center.
Malia is an example of an entrepreneur, as she started a business selling jewelry she made in an online store. Answer: A.
Which of these actions would most help a worker improve her productivity?
A.
finding a new job in a different field
B.
taking a training course related to her job
C.
buying a laptop computer for home use
D.
asking her employer to give her a raise
Taking a training course related to her job would most help a worker improve her productivity. Answer: B.
What increases when productivity increases?
A.
gross domestic product
B.
interest rates on loans
C.
national unemployment rates
D.
interest rates on savings
Gross domestic product (GDP) increases when productivity increases. Answer: A.
Pete's Peanuts wants to grow its overall productivity. Which investment would best help the company achieve this goal?
A.
a larger building to store its peanuts
B.
better advertisements for its products
C.
new uniforms for company employees
D.
an improved roasting and canning machine
An improved roasting and canning machine would best help the company achieve its goal of growing overall productivity. Answer: D.
Deepak’s city has grown quite a lot over the past ten years. The city council has been discussing the need for a second fire department so that one would serve the northern part of the city and the other would serve the southern part. The city doesn’t have much room in the budget, so some people have suggested privatizing the fire department. However, others argue that it’s critical, that this would not work, and that it should be a public service.
Use the passage to answer the question.
Why would it be best for the new fire department to be provided as a public service?
A.
Fire departments are too expensive for entrepreneurs to provide.
B.
Demand for the fire department is greater than its supply.
C.
The service should remain unlimited and accessible to all.
D.
Not many people are interested in using the service.
It would be best for the new fire department to be provided as a public service because the service should remain unlimited and accessible to all. Answer: C.
Which of these is a source of only federal tax revenue?
A.
payroll taxes
B.
property taxes
C.
sales taxes
D.
income taxes
Income taxes are a source of only federal tax revenue. Answer: D.
What is the most likely result of new U.S. government programs beginning without any budget to pay for them?
A.
Citizens in the future will have fewer services or higher taxes.
B.
Politicians will have less chance of being re-elected to office.
C.
Americans will offer to pay higher taxes to balance the budget.
D.
Goods and services will continue to become more expensive.
The most likely result of new U.S. government programs beginning without any budget to pay for them is that citizens in the future will have fewer services or higher taxes. Answer: A.
What is the best definition of gross domestic product, or GDP?
A.
money paid to the government in taxes to support public goods and services
B.
the value of all goods and services produced within domestic borders
C.
the value of exports minus the total value of imports
D.
a period of decline in overall income and employment
The best definition of gross domestic product, or GDP, is that it is the value of all goods and services produced within domestic borders. Answer: B.
In a circular flow diagram, what flows from households to businesses?
A.
income
B.
land
C.
expenditures
D.
goods
In a circular flow diagram, expenditures flow from households to businesses. Answer: C.
What does a rise in per capita GDP indicate?
A.
increased productivity
B.
better trade deals
C.
more bank loans
D.
increased population
A rise in per capita GDP indicates increased productivity. Answer: A.
Mr. Lee received a raise at a job this year, but he finds that he has less money to spend each month even though his spending habits are the same. What is the most likely reason for this situation?
A.
The supply of goods and services has risen.
B.
Unemployment has dropped across the country.
C.
Mr. Lee is not tracking his finances.
D.
Inflation was greater than Mr. Lee's raise.
The most likely reason for this situation is that inflation was greater than Mr. Lee's raise. Answer: D.
Which of these are factors in determining whether a person is counted in the unemployment rate? Select the two correct answers.
A.
whether the person is actively looking for a job
B.
whether the person has been employed for five or more years
C.
whether the person has the skills needed to find a job
D.
whether the person is willing and able to work
E.
whether the person is over 21 years of age
The two factors in determining whether a person is counted in the unemployment rate are whether the person is actively looking for a job and whether the person is willing and able to work. Answer: A and D.
New technology has made most of the jobs workers do at a particular factory obsolete, and they are laid off. Which type of unemployment are they experiencing?
A.
structural
B.
casual
C.
frictional
D.
cyclical
The laid-off workers are experiencing structural unemployment, which occurs as a result of technological advancements or changes in the structure or location of the economy. Answer: A.
Which type of investment are stocks?
A.
lending
B.
ownership
C.
cash equivalent
D.
interest
Stocks are a type of investment that represents ownership in a corporation. Answer: B.
Which is an example of an oligopoly?
A.
many different soap companies giving consumers choices
B.
a few soda companies competing for business
C.
one shipping company with no competition
D.
several grocery stores stocking different items
A few soda companies competing for business is an example of an oligopoly, which is a market structure in which a small number of firms dominate the market. Answer: B.
If the price of stock falls dramatically but an investor thinks it will go up again, what is the investor likely to do?
A.
trade shares
B.
sell shares
C.
buy shares
D.
do nothing
If the price of stock falls dramatically but an investor thinks it will go up again, the investor is likely to buy shares. Answer: C.
Eddie has a credit card on which he makes monthly payments and tries not to carry a balance. What kind of credit is this? Select the two correct answers.
A.
non-revolving
B.
revolving
C.
secured
D.
unsecured
E.
flexible
The two correct answers are:
- Eddie's credit card is a revolving type of credit because he is using credit and repaying the balance on an ongoing basis. Answer: B.
- Eddie's credit card is an unsecured type of credit because there is no collateral attached to the credit card. Answer:
Riya recently bought a new phone. She was taking a photo of her sister when she dropped the phone in the pool. The company that made the phone told her they wouldn’t replace it. Riya decides to call her credit card company to find out if they can help.
Use the passage to answer the question.
Which advantage of credit is Riya seeking to use?
A.
emergencies
B.
purchase power
C.
building a credit line
D.
protection of purchases
i have 22 questions
1. What is the definition of economics?
A. The study of how people make decisions about the allocation of scarce resources to satisfy their needs and wants.
1d
2d
3b
4c
5d
6c
7c
8b
9c
10c
11c
12a
13c
14b
15b
16a
17c
18d
19c
20c
21d
22b
23d
24a
25d
26a
27cd
Certainly! Here are the written questions with their correct answers:
1. What is the definition of economics?
Answer: The study of how people make decisions about the allocation of scarce resources to satisfy their needs and wants.
2. What is the difference between a good and a service?
Answer: A good is a tangible product that you can touch, while a service is an intangible product that you cannot touch.
3. What are the four factors of production?
Answer: Land, labor, capital, and entrepreneurship.
4. What is an opportunity cost?
Answer: The opportunity cost is the value of the next best alternative that is forgone in order to pursue a certain action.
5. What is the law of supply?
Answer: The law of supply states that as the price of a good or service increases, the quantity supplied increases, and vice versa.
6. What is the law of demand?
Answer: The law of demand states that as the price of a good or service increases, the quantity demanded decreases, and vice versa.
7. What is a market economy?
Answer: A market economy is an economic system in which economic decisions and pricing are guided by the interactions of individuals and businesses in the marketplace.
8. What is a command economy?
Answer: A command economy is an economic system in which government planners make economic decisions and decisions about the allocation of resources.
9. What is the difference between a shortage and a surplus?
Answer: A shortage is when there is an excess demand for a good or service, while a surplus is when there is an excess supply of a good or service.
10. What is the role of the government in a mixed economy?
Answer: The government in a mixed economy plays a role in regulating economic activity, providing public goods, and redistributing income.
11. What is the difference between GDP and GNP?
Answer: GDP measures the value of all goods and services produced within a country's borders, while GNP measures the value of goods and services produced by a country's citizens regardless of their location.
12. What is inflation?
Answer: Inflation is the rate at which the general level of prices for goods and services is rising.
13. What is the Federal Reserve?
Answer: The Federal Reserve is the central bank of the United States, responsible for implementing monetary policy, regulating banks, and maintaining the stability of the financial system.
14. What is fiscal policy?
Answer: Fiscal policy refers to the use of government spending and taxation to influence economic activity.
15. What is monetary policy?
Answer: Monetary policy refers to the use of the money supply and interest rates to influence economic activity.
16. What is the difference between a progressive tax and a regressive tax?
Answer: A progressive tax is a tax system in which the tax rate increases as the taxable amount increases. A regressive tax is a tax system in which the tax rate decreases as the taxable amount increases.
17. What is globalization?
Answer: Globalization refers to the process of increasing interconnectedness and interdependence among people, businesses, and countries around the world.
18. What is a tariff?
Answer: A tariff is a tax on imported goods.
19. What is a quota?
Answer: A quota is a limit on the quantity or value of a particular good that can be imported or exported.
20. What is a trade deficit?
Answer: A trade deficit occurs when a country imports more goods and services than it exports.
21. What is a monopoly?
Answer: A monopoly is a market structure in which a single seller controls the supply of a particular good or service.
22. What is perfect competition?
Answer: Perfect competition is a market structure in which a large number of small firms compete with one another, with no single firm able to influence the market price.
23. What is a price ceiling?
Answer: A price ceiling is a legal maximum price that can be charged for a good or service.
24. What is a price floor?
Answer: A price floor is a legal minimum price that can be charged for a good or service.
25. What is elastic demand?
Answer: Elastic demand is a type of demand in which the quantity demanded changes significantly in response to a change in price.
26. What is a profit motive?
Answer: The profit motive refers to the driving force behind business owners and entrepreneurs, which is to make a profit.
27. What is a mixed economy?
Answer: A mixed economy is an economic system in which private enterprise and government intervention coexist.