ECONOMICS UNIT 3-5, ECONOMICS 1QUESTIONS AND
GRADED ANSWERS, 100% GUARANTEE
Read the scenario.
The citizens of Country D have noticed that the average prices of most goods within their nation
have begun to rise. At the same time, employers are not raising wages at the same rate. The
combination of these challenges has resulted in a decrease in overall demand, causing a decline
in GDP.
According to the scenario, what is the greatest economic challenge that Country D is facing?
unemployment
inflation
high production
high wages - b
When an economy suffers from low production, a country cannot
worry about unemployment.
change the tax rate.
provide adequate funding for public safety.
enjoy a steady rate of economic growth. - d
Read the scenario.
The citizens of Country D have noticed that the average prices of most goods within their nation
have begun to rise. At the same time, employers are not raising wages at the same rate. The
combination of these challenges has resulted in a decrease in overall demand, causing a decline
in GDP.
,Based on the scenario, who is most affected by the situation taking place within Country D?
the government of Country D
the workers of Country D
the businesses of Country D
the government, workers, and businesses of Country D - d
The graph shows the number of employed workers in the United States in nonfarm jobs from
2008 to 2013.
What course of action might a government take to respond to the downturn revealed in this
graph?
reducing the size of its armed forces
laying off unnecessary workers
investing in job-training programs
encouraging people to travel overseas - c
The graph shows the number of employed workers in the United States in nonfarm jobs from
2008 to 2013.
The best conclusion that can be drawn from the graph is that the number of nonfarm jobs
remained consistent over time.
,started going down in 2008.
went up every year since 2008.
started going down in 2010. - b
Public policy can be best defined as
a course of action the government takes in response to an issue or problem.
a decision made by all registered voters to change a government program.
the annual review of a government's plans to spend taxpayers' money.
a forum where citizens can debate the merits of a government proposal. - a
Economic interdependence means that economic policies must balance the needs of
all governments in the world.
governments, individuals, and businesses.
small businesses and large corporations.
both wealthy and poor individuals. - b
In a free enterprise system, governments address public problems through policy to ensure that
citizens' needs are met and protected.
economic operations of businesses are controlled.
workers earn more than workers in other countries.
the nation's level of productivity remains steady. - a
The diagram shows a challenge for government policy-makers.
, Which of these statements describes what the diagram is showing?
A country's needs are more important than its ideals.
The most important aspect of economic policy is citizens' safety.
Economic policy must reach a balance between needs and ideals.
Private property is somewhat less important than fairness. - b
A government's monetary policy is its plan to control
taxation and spending.
prices.
workers' wages.
the money supply. - d
A plan for spending money that balances income with spending and shows how money will be
spent is
a surplus.
an expenditure.
a budget.
a deficit. - c
The graph shows government spending as a percentage of GDP from 1990 to 2012.
At its peak, government spending made up about
half of GDP.
GRADED ANSWERS, 100% GUARANTEE
Read the scenario.
The citizens of Country D have noticed that the average prices of most goods within their nation
have begun to rise. At the same time, employers are not raising wages at the same rate. The
combination of these challenges has resulted in a decrease in overall demand, causing a decline
in GDP.
According to the scenario, what is the greatest economic challenge that Country D is facing?
unemployment
inflation
high production
high wages - b
When an economy suffers from low production, a country cannot
worry about unemployment.
change the tax rate.
provide adequate funding for public safety.
enjoy a steady rate of economic growth. - d
Read the scenario.
The citizens of Country D have noticed that the average prices of most goods within their nation
have begun to rise. At the same time, employers are not raising wages at the same rate. The
combination of these challenges has resulted in a decrease in overall demand, causing a decline
in GDP.
,Based on the scenario, who is most affected by the situation taking place within Country D?
the government of Country D
the workers of Country D
the businesses of Country D
the government, workers, and businesses of Country D - d
The graph shows the number of employed workers in the United States in nonfarm jobs from
2008 to 2013.
What course of action might a government take to respond to the downturn revealed in this
graph?
reducing the size of its armed forces
laying off unnecessary workers
investing in job-training programs
encouraging people to travel overseas - c
The graph shows the number of employed workers in the United States in nonfarm jobs from
2008 to 2013.
The best conclusion that can be drawn from the graph is that the number of nonfarm jobs
remained consistent over time.
,started going down in 2008.
went up every year since 2008.
started going down in 2010. - b
Public policy can be best defined as
a course of action the government takes in response to an issue or problem.
a decision made by all registered voters to change a government program.
the annual review of a government's plans to spend taxpayers' money.
a forum where citizens can debate the merits of a government proposal. - a
Economic interdependence means that economic policies must balance the needs of
all governments in the world.
governments, individuals, and businesses.
small businesses and large corporations.
both wealthy and poor individuals. - b
In a free enterprise system, governments address public problems through policy to ensure that
citizens' needs are met and protected.
economic operations of businesses are controlled.
workers earn more than workers in other countries.
the nation's level of productivity remains steady. - a
The diagram shows a challenge for government policy-makers.
, Which of these statements describes what the diagram is showing?
A country's needs are more important than its ideals.
The most important aspect of economic policy is citizens' safety.
Economic policy must reach a balance between needs and ideals.
Private property is somewhat less important than fairness. - b
A government's monetary policy is its plan to control
taxation and spending.
prices.
workers' wages.
the money supply. - d
A plan for spending money that balances income with spending and shows how money will be
spent is
a surplus.
an expenditure.
a budget.
a deficit. - c
The graph shows government spending as a percentage of GDP from 1990 to 2012.
At its peak, government spending made up about
half of GDP.
