GACE Practice Test Questions and Answers Rated A
1. 1. A command economy is characterized by: D
a. A laissez-faire approach by the government
b. A moderate amount of government interven-
tion in the economy
c. Businesses commanding all aspects of the
economy
d. The government controlling prices and produc-
tion
2. 2. Which of the following is not a responsibility of C
the Securities and Exchange Commission (SEC)?
a. Regulating securities
b. Investigatirg insider trading
c. Setting interest rates
d. Processing applications for initial public offer-
ings (IPOS)
3. 3. In marketing, the demand for a product is di- D
rectly influenced by:
a. Customers' desire for a product
b. Customers' ability to obtain a product
c. Availability of a product
, GACE Practice Test Questions and Answers Rated A
d. Both A andB
4. 4. The Sarbanes-Oxley Act of 2002: C
a. Vastly reduced the financial reporting obliga-
tions that corporations face
b. Deregulated public utilities
c. Was intended to fight corporate and accounting
fraud
d. Reduced tariffs on trade among North Ameri-
can countries
5. 5. An employee earns $2,000.00 per month in B
gross pay, but pays 9% in federal taxes, 3% for
state taxes, and 2% for local taxes. After tax, the
company withholds $104.36 for health insurance.
What is the employee's net pay?
a. $2,000.00
b. $1,615.64
c. $1,820.00
d. $1,720.00
6. 6. A market in which product availability exceeds C
demand is called
a: a. Free market
, GACE Practice Test Questions and Answers Rated A
b. Seller's market
c. Buyer's market
d. Black market
7. 7. Which of the following is not a part of Maslow's D
hierarchy of needs?
a. Self-actualization
b. Esteem
c. Safety
d. Supply and demand
8. 8. Which of the following countries is not part of D
NAFTA?
a. Mexico
b. United States
c. Canada
d. China
9. 9. A consumer's credit score is directly influenced A
by which of the following factors?
a. Debt repayment history
b. Employment history over the last five years
, GACE Practice Test Questions and Answers Rated A
c. Marital status
d. Income level
10. 10. Upon which organization does the inter- B
national community primarily rely to deal with
claims of unfair protectionism by one country
against another?
a. North Atlantic Treaty Organization (NATO)
b. World Trade Organization (WTO)
c. Organization of Petroleum Exporting Countries
(OPEC)
d. International Red Cross (IRC)
11. 11. A homeowner is attempting to choose be- A
tween several mortgage loans for a $200,000
home. Which of the following would have the low-
est monthly payment?
a. A 30-year fixed rate mortgage at 6%
b. A 15-year fixed rate mortgage at 7%
c. A 30-year fixed rate mortgage at 12%
d. A 15-year fixed rate mortgage at 12%
12. 12. The biggest factor that leads American com- B
panies to manufacture their products overseas in
1. 1. A command economy is characterized by: D
a. A laissez-faire approach by the government
b. A moderate amount of government interven-
tion in the economy
c. Businesses commanding all aspects of the
economy
d. The government controlling prices and produc-
tion
2. 2. Which of the following is not a responsibility of C
the Securities and Exchange Commission (SEC)?
a. Regulating securities
b. Investigatirg insider trading
c. Setting interest rates
d. Processing applications for initial public offer-
ings (IPOS)
3. 3. In marketing, the demand for a product is di- D
rectly influenced by:
a. Customers' desire for a product
b. Customers' ability to obtain a product
c. Availability of a product
, GACE Practice Test Questions and Answers Rated A
d. Both A andB
4. 4. The Sarbanes-Oxley Act of 2002: C
a. Vastly reduced the financial reporting obliga-
tions that corporations face
b. Deregulated public utilities
c. Was intended to fight corporate and accounting
fraud
d. Reduced tariffs on trade among North Ameri-
can countries
5. 5. An employee earns $2,000.00 per month in B
gross pay, but pays 9% in federal taxes, 3% for
state taxes, and 2% for local taxes. After tax, the
company withholds $104.36 for health insurance.
What is the employee's net pay?
a. $2,000.00
b. $1,615.64
c. $1,820.00
d. $1,720.00
6. 6. A market in which product availability exceeds C
demand is called
a: a. Free market
, GACE Practice Test Questions and Answers Rated A
b. Seller's market
c. Buyer's market
d. Black market
7. 7. Which of the following is not a part of Maslow's D
hierarchy of needs?
a. Self-actualization
b. Esteem
c. Safety
d. Supply and demand
8. 8. Which of the following countries is not part of D
NAFTA?
a. Mexico
b. United States
c. Canada
d. China
9. 9. A consumer's credit score is directly influenced A
by which of the following factors?
a. Debt repayment history
b. Employment history over the last five years
, GACE Practice Test Questions and Answers Rated A
c. Marital status
d. Income level
10. 10. Upon which organization does the inter- B
national community primarily rely to deal with
claims of unfair protectionism by one country
against another?
a. North Atlantic Treaty Organization (NATO)
b. World Trade Organization (WTO)
c. Organization of Petroleum Exporting Countries
(OPEC)
d. International Red Cross (IRC)
11. 11. A homeowner is attempting to choose be- A
tween several mortgage loans for a $200,000
home. Which of the following would have the low-
est monthly payment?
a. A 30-year fixed rate mortgage at 6%
b. A 15-year fixed rate mortgage at 7%
c. A 30-year fixed rate mortgage at 12%
d. A 15-year fixed rate mortgage at 12%
12. 12. The biggest factor that leads American com- B
panies to manufacture their products overseas in
