Economics and Business: Help and Review Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is the BEST explanation of monetary policy?

Question 2 2. Tommy's Tweezers has had a change in inventory, increasing by 100,000. What component of the GDP would this affect?

Question 3 3. What happens to economic output as measured by GDP during a recession?

Question 4 4. As Rosa considers where to build her new bakery, she also factors in the number of other bake shops in the area. If she builds in an area where she is one of many bakeries, she will be forced to charge lower prices in order to compete with the other bakeries already in the neighborhood. This is an example of which economic theory?

Question 5 5. What's a depression?

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Question 6 6. Why is it often difficult to enter into a market that BEST resembles an oligopoly?

Question 7 7. The Bureau of Labor Statistics categorizes an individual as unemployed if they are:

Question 8 8. Which of the following statements is FALSE regarding inflation?

Question 9 9. Which of the following best describes a free market?

Question 10 10. Which one of the following is NOT a characteristic of capitalism?

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Question 11 11. If the unemployment rate rose from 5% to 7%, but more people were employed, what LIKELY occurred?

Question 12 12.

John manages a toy factory that produces toy trains, baby dolls, and race cars. Every day he receives a list from the local government specifying how many toys he must produce, what materials to use, and how much each toy is to be sold for. He organizes the day's work accordingly.

This scenario closely aligns with which of the following?

Question 13 13. When savings leaks out of the circular flow model, what happens to it?

Question 14 14. Which of the following are the two phases and the two turning points of the business cycle?

Question 15 15. Which of the following statements regarding recessions is FALSE?

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Question 16 16. Which of the following would NOT be included in consumption?

Question 17 17. Economists call the equipment and structures used to produce goods and services:

Question 18 18. What does the word domestic in Gross Domestic Product refer to?

Question 19 19. Which of the following statements is true regarding the relationships in a market economy?

Question 20 20. Human capital refers to which of the following?

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Question 21 21. If the Consumer Price Index rises from 101 to 104, which of the following statements is true?

Question 22 22. What is the cyclical growth and decline of an economy called?

Question 23 23. What determines the price of a good or service in a capitalistic economy?

Question 24 24. _____ is the study of business and consumers, while _____ is the study of the economy as a whole.

Question 25 25. Which of the following BEST explains sustainable economic growth?

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Question 26 26. Which of the following statements about the Great Recession is TRUE?

Question 27 27. What is the real interest rate when the nominal interest rate on a bank checking account is 1%, and the rate of inflation is 2%?

Question 28 28.

What is the GDP for the following information:

Consumption = 10,000

Investment = 2,000

Government spending = 1,000

Exports = 7,500

Imports = 7,000

Question 29 29. Which one of the following economic systems is characterized by state ownership of land and capital, but individuals remaining in control of their labor?

Question 30 30. Which of the following is not true regarding productivity?

Economics and Business: Help and Review Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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