EOC Practice Test 1

Last updated over 7 years ago

25 Nsɛmmisa

Hyɛ no nsow a efi ɔkyerɛwfo no hɔ:

Review of GSE Economics stardards

SSEMA1.e

SSEMA3.b

SSEMA3.a

SSEMA2.e

SSEMA2.c

SSEMI2.d

SSEMI2.e

SSEMI1.a

SSEMI3.a

SSEMI3.b

SSEMI1.b

SSEF6.d

SSEF4.a

SSEF1.d

SSEF2.c

SSEPF3.a

SSEPF4.c

SSEPF5.a

SSEPF4.a

SSEPF4.c

SSEIN3.c

SSEIN2.a

SSEIN1.a

SSEIN1.c

SSEIN1.b

EOC Practice Test 1

Last updated over 7 years ago

25 Nsɛmmisa

Hyɛ no nsow a efi ɔkyerɛwfo no hɔ:

Review of GSE Economics stardards

Complete the sentence. Stuctural unemployment occurs

when workers are short-term unemployed, or in the process of changing jobs.

every year and is related to weather or changes in demand for certain products.

over a period of three to five years and is related to changes in technology.

when a downturn in the business cycle reduces the demand for workers.

SSEMA1.e

The federal government is concerned that the Consumer Price Index rose by 6% this year. The federal government could

use fiscal policies to reduce government expenditures by $40 billion.

use monetary policies to decrease the money supply and cut unemployment rates.

use fiscal policies to increase the money supply and cut unemployment rates.

use monetary policies to spend $40 billion in new projects and grants.

SSEMA3.b

Fiscal policy includes actions

by individuals and states to regulate the money supply.

by the Federal Reserve System to regulate the money supply.

by the judicial branch to determine government expenditures and taxation.

by the federal government on spending and taxation.

SSEMA3.a

If the Federal Reserve buys Treasury securities on the open market at the same time that the federal government drastically increases spending, then

it is obvious both institutions thought the economy was on a peak.

the policies will cancel each other and there will be no change in the economy.

the business cycle will invert.

aggregate demand is likely to increase.

SSEMA2.e

Monetary policy is the Federal Reserve's attempt to

decrease aggregate demand by increasing government spending.

stabilize the economy through controlling the money supply.

increase aggregate supply by increasing sales and property taxes.

stabilize the economy through controlling the money supply.

SSEMA2.c

Suppose the downward sloping market demand curve for personal computers remains the same but new regulations reduce the ability of companies to efficiently produce and distribute computers.. The MOST likely result of this regulation is that

producers would produce more personal computers.

consumers would buy fewer personal computers.

consumers would buy the same number of personal computers as they did before the price decreased.

consumers would buy a greater number of personal computers.

SSEMI2.d

SSEMI2.e

When Apple purchased a large production facility in Silicon Valley, the company made a purchase in the

product market.

factor market.

foreign exchange market.

public market.

SSEMI1.a

James and Kim decided to open a computer repair shop. They used their own money and went to city hall to get a business license. James repairs the computers and Kim serves the customers and handles the accounts. What is the primary benefit of this company as it is structured?

high regulations

unlimited liability

double taxation

their ability to specialize

SSEMI3.a

In which market structure does a firm have the LEAST control over its product's price?

oligopoly

monopolistic competition

perfect competition

monopoly

SSEMI3.b

According to the circular flow model shown, the flow of goods and services is illustrated by paths

1 and 3

2 and 5

4 and 2

5 and 7

SSEMI1.b

According to the production possibilities information, the opportunity cost of moving from point C to point B could be expressed as

60 consumer goods.

15 consumer goods.

50 capital goods.

30 capital goods.

SSEF6.d

In which economic system does the government centrally plan the allocation of productive resources?

market

mixed

command

traditional

SSEF4.a

One important assumption underlying market economies is that

society's wealth must be evenly distributed.

central planning promotes economic efficiency.

government regulation increases economic freedom.

consumer sovereignty guides the use of resources.

SSEF4.a

The main opportunity cost of saving money is

the interest you could have earned.

current consumption.

the risk of the FDIC insurance.

knowing you have more money saved than your friends.

SSEF1.d

A local grocery store has decided to charge customers for bags. Which TWO statements describe how customers will MOST LIKELY respond to this change?

Customers will visit the store more often.

Customers will buy more goods in bulk

Customers will bring reusable bags to the store.

Customers will shop at other grocery stores.

Customers will purchase more goods.

Customers will exclusively use grocery delivery services.

SSEF2.c

In country A, everyone pays a 10% income tax. This type of tax system is known as

proportional

sales

progressive

regressive

SSEPF3.a

Eric has $2,000 that he wants to place in a savings account. He has researched two accounts, and both accounts pay 3.5% interest. Account X pays simple interest. Account Y pays compound interest. Eric should choose

account X because the interest rate would increase over time.

account Y because interest would accumulate on interest.

account X because it would pay tax free interest.

account Y because the interest rate would decrease over time.

SSEPF4.c

Carlton is injured while working at a retail store. Which type of insurance is MOST LIKELY to provide benefits while he is temporarily out of work?

automobile insurance

life insurance

property insurance

disability insurance

SSEPF5.a

Creditworthiness is MOST AFFECTED by

job history showing many different types of jobs.

whether or not one owns a house.

payment history on current loans.

the amount of funds currently available in a savings account.

SSEPF4.a

Loans extended for longer periods of time often involve higher interest rates in order to

compensate the buyer for using savings to make a purchase.

encourage savings.

encourage consumers to buy durable goods for extended periods of time.

compensate the lender for greater risk.

SSEPF4.c

Which group is MOST LIKELY to benefit if the US Dollar appreciates against the Yen?

Tourists traveling from Japan to the United States.

United States investors buying Japanese stock.

Japanese businesses with contracts to buy US goods.

United States banks holding Japanese currency.

SSEIN3.c

Which trade barrier is associated with laws that require certain shipping methods and proper handling of food or equipment?

standards

quotas

embargoes

subsidies

SSEIN2.a

Which generalization is the MOST accurate comparison of absolute advantage and comparative advantage?

A nation that has an absolute advantage will automatically have a comparative advantage in production.

A nation can have an absolute advantage without having a comparative advantage in production.

A nation can have either an absolute advantage or a comparative advantage in production, but not both.

A nation that has a comparative advantage will automatically have an absolute advantage in production.

SSEIN1.a

If the United States has a balance of trade surplus with Belize, it means that

American companies are investing more in their operations in Belize than Belize is investing in the United States.

U.S. dollars are more valuable in Belize than the Belizian currency is in the U.S.

the U.S. exports more products to Belize than it imports from Belize.

the U.S. imports more products from Belize than it exports to Belize.

SSEIN1.c

When nations specialize in the production of goods in which they possess a comparative advantage, which of the following is a result?

The nations have an incentive to trade.

Economic efficiency is less likely to be achieved.

Consumers are hurt because prices will increase.

The nations become more self-sufficient and less interdependent.

SSEIN1.b