ECONOMICS FOR TODAY TEST BANK
UPDATED SOLVED QUESTIONS AND
CORRECT ANSWERS FULL REVIEW GUIDE
●● The primary purpose of a conclusion in an informative essay is to
Answer: refer back to the thesis.
●● Total output is a synonym for
Answer: Gross Domestic Product
●● Which economic indicators are used to measure the global economy?
Check all that apply.
Answer: purchasing power parity
trade volumes
gross domestic product
●● Which organization created a shared economy?
Answer: European Union
●● Corporate taxes are a type of
Answer: income tax
, ●● Why do most nations use fiat money today?
Answer: Governments are able to exert control over the value of fiat
money.
●● Demand-pull inflation occurs when
Answer: consumers show an interest in purchasing more goods.
●● Economists use GDP to measure
Answer: any economic growth or shrinkage.
●● What is true of the M1 category of money?
Answer: It can be easily liquidated.
●● Which is an example of comparative advantage?
Answer: A country decides to grow wheat and when another country
raises cattle.
●● What is one example of a closed economy?
Answer: a restricted system that blocks trade with international partners
●● It costs Cool Clothes Company $15 to produce one pair of jeans, but
they needed to discontinue production of shirts to focus on jeans. The
UPDATED SOLVED QUESTIONS AND
CORRECT ANSWERS FULL REVIEW GUIDE
●● The primary purpose of a conclusion in an informative essay is to
Answer: refer back to the thesis.
●● Total output is a synonym for
Answer: Gross Domestic Product
●● Which economic indicators are used to measure the global economy?
Check all that apply.
Answer: purchasing power parity
trade volumes
gross domestic product
●● Which organization created a shared economy?
Answer: European Union
●● Corporate taxes are a type of
Answer: income tax
, ●● Why do most nations use fiat money today?
Answer: Governments are able to exert control over the value of fiat
money.
●● Demand-pull inflation occurs when
Answer: consumers show an interest in purchasing more goods.
●● Economists use GDP to measure
Answer: any economic growth or shrinkage.
●● What is true of the M1 category of money?
Answer: It can be easily liquidated.
●● Which is an example of comparative advantage?
Answer: A country decides to grow wheat and when another country
raises cattle.
●● What is one example of a closed economy?
Answer: a restricted system that blocks trade with international partners
●● It costs Cool Clothes Company $15 to produce one pair of jeans, but
they needed to discontinue production of shirts to focus on jeans. The
