Public and Private Solutions: Unit 4

Which statements accurately describe debts and deficits? Check all that apply.

2. A Government's budget deficit causes debt to increase. 3. Debt requires a government to pay back more than it has borrowed. 4. The deficit is the amount of government spends above what it brings in.

Which are the most likely options to consider for controlling the stray animal population in a town?

2. Building an animal shelter in a populated area. 4. Starting a trap, neuter, and release program.

How are Bill Gates and Henry Ford similar? Check all that apply.

2. They both became wealthy and successful 3. They both help better the lifestyles of others. 4. They both developed products that filled a human need or needs.

The graph shows the federal budget from 1980 to 2010. In which period did the federal budget shows the greatest deficit?

2000 to 2010

Which are examples of sole proprietorship? Check all that apply.

3. Independent workers 5. Tax preparer working his own business 6. Freelance writers.

What is one purpose of writing a business plan before entering the market?

To differentiate the new company from the competition.

Which of these is most likely the US government's aim in taxing imported goods?

To protect domestic businesses.

The job outlook for physical therapists

Will improve over time.

A mixed-market economy is best defined as an economy

With some government intervention

_________ laws ensure that workers are paid if they are injured on the job.

Workers' compensation

The Food and Drug Administration sets standards for

products labeling.

In order to add a salad bar to a school lunch menu for students with restricted diets, new materials or __ such as a refrigerators or a bar, would be needed.

resources

A regulatory agency that makes sure banks follow laws is

the FDIC

If the domino effect occurs as a result of changes in the money supply, what will most likely happen as an immediate result of interest rates being increased?

Borrowing will decrease.

What is one way for an entrepreneur to decreased risk?

By creating a strong business strategy

Government collect taxes to ensure that

Citizens contribute to meeting society's needs.

Which best describes the difference between preferred and common stocks?

Common stock gives shareholders one vote per share owned, while shareholders of preferred stocks do not have voting rights.

If union contracts raise wages above competitive levels, what might be one negative outcome?

Companies will move overseas to escape unions and hire cheaper labor.

After gathering information, a student using the problem-solving process should next

Consider options.

__ monetary policy involves decreasing the money supply.

Contractionary

Franchising is typically done by

Corporations.

A new business should be based on an entrepreneur's individual interests because the entrepreneur must

Dedicate as many hours as needed to the work.

Which of these best describes income tax?

Direct tax.

Considering whether adding a salad bar to a school lunch menu is cost effective is an example of weighing

Disadvantages

Government regulation is intended to

Discourage producers from taking harmful actions.

What is a function of regulatoy agencies?

Encouraging business compliance.

This Diagram shows a government's approach to taxing and spending. Which of the following would be a good title for this diagram?

Fiscal Policy

Which explains why government regulation is necessary in a mixed-market economy?

Government regulation protects constitutional rights, safety, and fairness.

The chart shows a typical school lunch menu. The menu would be considered a problem for students who

Have food allergies.

Why did Friedrich Hayek call expansionary spending dangerous?

He felt it could lead to inflation and poor decisions by consumers.

What led to Henry Ford's success as an entrepreneur?

His innovative production methods.

Which statement best summarizes what happens in the problem-solving step called "implementing a solution"

Implementing a solution involves putting a plan into action based on several factors

What is a potential negative effect of an expansionary policy?

Increased inflation.

A sales tax is a type of

Indirect tax.

Monetarism plays a role in economic growth by

Influencing the supply of money.

If the domino effect occurs as a result of changes in the money supply, what will most likely happen as an immediate result of banks having more money to lend?

Interest rates will decrease.

Why does the Fed pay interest to banks?

It is interest on money held in reserve.

Which best explains why including a salad bar on a school lunch menu should be an advantage for student on restricted diets?

It would allow them to eat more fruits and vegetables

Which best summarizes the philosophical difference between economists John Maynard Keynes and Adam Smith?

Keynes said government was the key to solving economic issues, while Smith believed government should take a hands-off approach.

What is the definition of collective bargaining?

Labor union and employer negotiations about wages and other issues.

The main advantage that corporation have is

Limiting liability for owners and stockholders.

Milton Friedman argued that consumers are more likely to alter their behavior based on

Long-term changes in the economy.

Spending that is required by law is known as _ spending

Mandatory

What makes enforcing safety standards a challenge for the Food and Drug Administration?

Many foods are imported from other countries, and the FDA must ensure those foods meet the same standards as US goods.

In the 1870's, _____ began to investigate factory conditions.

Massachusetts

Which of the following statements most accurately describes the federal government and its employees?

Millions of Americans work for the federal government.

Milton Friedman led a new economic school of thought called

Monetarism

The Fed's use of open market operations affects banks'

Money available to lend.

What was the status of US workplace safety laws in 1900?

Most states had passed some safety laws, but enforcement varied.

If expansionary taxation policies encourage growth, are they always appropriate to implement?

No, government services could create inflation, which decreases the purchasing power of consumers.

A regulatory agency that protects workers is

OSHA

The graph shows government spending as a percentage of GDP from 1990 to 2012. At its peak, government spending made up about

One quarter of GDP

Which group would most likely dislike a city ordinance that bans loud vehicles?

People who drive motorcycles.

An entrepreneur would most likely be a

Person who works well alone

According to the article by Brooks, successful entrepreneurs are most interest in

Personal fulfillment.

A purpose of government regulation in a mixed-market economy is to protect

Property rights.

The chart shows how two people with different income are taxed. According to the chart, the citizens are being taxed ___.

Proportionally.

The most useful advantage of adding a vegetarian hot-food option to a school lunch menu is

Providing an additional choices for students on restricted diets

Under expansionary taxation policy, the government tries to stimulate economic growth by

Reducing taxes.

Which statement explains how regulation on prices affect business practices?

Regulations keep prices fair and prevent business from establishing monopolies.

An entrepreneur must accept being accountable for the failure of the company because the entrepreneur is

Responsible for organizing the business.

Health care, business, retail, and education are examples of ______ industries

Service

People who buy stock in a company are known as

Shareholders.

Which best describes what a central bank uses monetary policy to do?

Steer the economy away from recession and toward growth.

Which of these is a banking activity of the Fed?

Storing money for banks.

What does deficit spending require a government to do?

Take on debt.

What gives the US government the power to collect taxes?

The Constitution.

What is the full name of the US central bank, known as the Fed?

The Federal Reserve Bank

Which describes the process of how a business incorporates?

The business must gain government permission and issue a stock sale, followed by a shareholder vote.

Friedrich Hayek believed that

The economy is too complicated to apply aggregates.

The graph shows the federal budget from 1980 to 2010. What conclusion can be drawn from this graph?

The federal budget is usually unbalanced.

How will an increase in the percentage of older Americans affect the healthcare field?

The healthcare field will create new jobs because more people will need care.

Both newspaper journalists and postal workers have been negatively affected by

The popularity of electronic communication and the Internet

What happens to earnings in a cooperative?

They are shared with member owners.

What is a main reason why entrepreneurs experience daily stress?

They have considerable responsibility

Franchises are attractive to business owners because

They have proven business model.

Which best describes how expansionary policies can facilitate economic growth?

They increase disposable income.

Which best explains how contractionary policies can hamper economic growth?

They reduce disposable income.

The graph shows how individuals affect economic growth. Which best describes how individuals help the economy grow?

They work in their own self-interest.

Which are steps in the problem-solving process? Check all that apply.

1. Gathering information 3. Considering options 5. Evaluating alternatives.

What are the goals when a government uses expansionary monetary policy? Check all that apply.

1. Increasing its money supply to boost the economy. 3. Increasing its money supply to speed business expansion 4. Decreasing its money supply to curb business expansion

How did Adam Smith;s economic ideas help the United States establish a free enterprise system? Check all that apply.

1. They led to freedom of choice for consumers and producers 3. They led to open competition for consumers. 4. They led to individual ownership of property.

How do corporations raise money and resources to expand? Check all that apply.

1. They request a bank loan. 4. They agree to sell stocks. 5. They issue bonds.

In how many cities are Federal Reserve districts banks located?

12

The diagram shows a government budget. Which of the following best describes what the diagram is showing?

A budget deficit.

What event had an enormous effect on US workplace safety?

A deadly factory fire.

As influential economic thinker, known as "the father of modern economics," was

Adam Smith

An entrepreneur conducted many experiments in a project without success. What characteristic must this person have to succeed?

An ability to learn from mistakes

An entrepreneur who opens a franchise must

Assume debts.

This diagram shows a government's budget. Which of the following words can best be applied to this budget?

Balanced.