Economics - Unit 2: Exam Questions and Answers Rated A

Economics - Unit 2: Exam Questions and Answers Rated A which are characteristics of macroeconomics? select all that apply. it deals with the overall condition of the economy. it measures exports and imports for international trade. what do traditional and command economies have in common? a focus on the community rather than the individual which are fundamental principles of economics? select all that apply. how will it be produced? how will it be distributed? why is scarcity a significant problem? it forces people to make choices. read the sentence. the three basic economic questions everyone must answer are _[blank]_. which most accurately completes the sentence? what to produce, how to produce, and for whom to produce why do business owners have to answer the three economic questions? the answers determine the best way to use their resources. read the sentence. a person visits the grocery store to buy the materials to make and sell fudge door-to-door. what factors of production are being used? all of the factors: land, labor, and capital why are many goods and services produced in a mixed market economy? businesses desire to make a profit based on the demands of their consumers which accurately describes a principle argued by adam smith to drive a free market economy? adam smith argued for a laissez-faire economy that is free of government intervention. which is a disadvantage of a free market economy? it does not provide public goods. what is the main advantage of a command economy? everyone's basic needs are met. what is the main advantage of a market economy? personal freedom allows people to innovate and allocate resources. which accurately describes events of the industrial revolution and subsequent emergence of capitalism? the industrial revolution created economic opportunities for the middle class (bourgeoisie) and the desire for profits without government interference. which best describes adam smith's view on economics and government involvement in business? he believed in a laissez-faire policy in which the government does not interfere in commerce. which is true regarding consumer sovereignty? it can be lost when monopolies are allowed to exist. which action by the government would promote competition among firms? passing legislation that prevents price-fixing in which situation is a consumer exercising consumer sovereignty? a person does not like the food served at a restaurant and chooses another restaurant. what is economic incentive in a free enterprise economy? businesses sell goods and services and people take jobs for income. when adjustable mortgage rates began to increase, what was the result? select all that apply. banks tightened credit restrictions again. thousands of homes were foreclosed on. what are roles of the government in a mixed market economy? select all that apply. it helps to ensure that prices are fair. it enforces laws against false advertising. which government entities play a direct role in the us economy and compete with private businesses? select all that apply. tennessee valley authority (tva) united states postal service (usps) how do government benefit payments, such as social security and veteran benefits, play an indirect role in the market? select all that apply. they provide individuals with college loans to further their education. they are a source of revenue that people use to purchase goods and services. what is the purpose of the tennessee valley authority? select all that apply. it improves navigation along the tennessee river. it develops agriculture and forest land in the tennessee valley it generates and provides inexpensive hydroelectric power to the tennessee valley which accurately describes a downside of the tennessee valley authority act? independent electric companies went out of business due to lower government rates. what does the fdic do when a bank fails? select all that apply. it notifies depositors if their bank has been sold. it sells off a bank's remaining assets to settle any debts. what is the biggest disadvantage to setting up a sole proprietorship? the personal liability how do business partners share liability? they share all liability jointly. which accurately describes disadvantages of a corporate business structure? select all that apply. setting up a corporation is complex and may require the advice of an attorney or accountant. a corporate business structure has a lot more regulations, or laws, compared to other structures. which accurately describes advantages of a corporate business structure? select all that apply. a corporate business structure allows owners to raise capital by selling shares of stock. a corporation pays a corporate tax, and that rate may be lower than a personal income tax rate. which accurately describes advantages of a sole proprietorship? select all that apply. the owner of a sole proprietorship keeps the profits. the owner of a sole proprietorship has the freedom to make all business decisions.