1. An important effect of economic growth is that it
A. lowers living standards.
B. fights inflation. (Incorrect)
C. lowers taxes.
D. raises living standards.
2. The ¬¬_______ is an example of a regional trading bloc.
A. Russian Federation
B. World Trade Organization
C. North Atlantic Treaty Organization
D. European Union
3. Why are savings important to economic growth?
A. Money spent doesn't grow the economy.
B. Savings make American goods more attractive to foreign buyers.
C. Savings are in place for a "rainy day."
D. Savings are used to invest in new businesses.
4. What is a possible negative aspect of economic growth?
A. Increased standard of living
B. Increased trade
C. Increased population
D. Increased pollution
5. _______ employment is the result of a downturn in the economy and usually isn't permanent.
A. Frictional
B. Structural (incorrect)
C. Cyclical
D. Situational
7. Demand for food doesn't change in response to a change in price. Why?
A. Demand for food is elastic.
B. Prices are set by the government.
C. People never change their eating habits.
D. Demand for food is inelastic.
8. Why are governmental services more expensive in cities compared to other areas?
A. Cities have a higher concentration of poor people.
B. State government doesn't help cities.
C. Cities have more expensive tax rules than other areas.
D. Federal government doesn't t help cities.
9. A reason to trade with other nations is that trade
A. reduces the supply of goods and services.
B. forces consumers to buy goods and services at a higher cost.
C. reduces demand for goods and services.
D. allows consumers to buy goods and services at a lower cost.
10. What's the likely result if the US dollar is valued lower than other nations' currencies?
A. United States exports would be less attractive to foreign buyers.
B. The United States would need to raise tariffs.
C. Imports would be more expensive.
D. Nations would refuse to trade with the United States.
12. Which of the following is a way to reduce unemployment?
A. Training programs
B. Reduced government spending
C. Higher taxes
D. Lower inflation
13. If The United States has proven supplies of natural gas in the ground, but France doesn't, the United States has what kind of advantage in terms of trade?
A. Absolute advantage
B. Price advantage
C. Comparative advantage
D. Natural resource advantage
14. Which of the following factors is not a concern of regional planning organizations?
A. Land use
B. Economic development
C. Waste management
D. Global trade agreements
15. What's a possible risk when more federal aid is given to cities?
A. Less local control of the city
B. More money for public services
C. Higher taxes in the states
D. Higher taxes in the cities
16. Why would a large crop surplus be a problem for farmers?
A. Surpluses drive up the price of agriculture equipment.
B. Surpluses are destroyed by the government.
C. Surpluses drive up prices.
D. Surpluses drive down prices.
17. The price at which a nation's currency can be bought using another nation's currency is known as
A. currency trade.
B. consumer advantage.
C. the rate of exchange.
D. globalization.
18. Which group tends to experience poverty most often?
A. Middle-aged people
B. Racial minorities
C. White males
D. Elderly people
19. Advances in farm technology have led to what result for US agriculture?
A. More people working in agriculture than ever before
B. No change in productivity
C. Farmers enjoying higher incomes than ever before
D. Greatly increased productivity
20. Which of the following is a concern about globalization?
A. Less variety in consumer goods
B. Less jobs in exporting industries
C. The possibility of promoting child labor
D. Higher prices for consumer goods
Please is you can just help me with this .. I already took the text and I didn't pass. and I need to pass this exam .
