Economics Unit 3 Exam Review

One government restriction to consider when proposing to build a new business includes —

• zoning laws

• investor taxes

• repayment of loans

• hiring subcontractors

In recent years some cities have passed ordinances to restrict the size of houses being built on city lots. These types of regulations have been enacted in order to —

• lower building costs for local construction companies

• ensure that new houses are available to inner city buyers

• protect the property owners already living in the neighborhood

• collect higher property taxes to build infrastructure for the neighborhood

Based on the information on the table, which economic condition is characteristic of all three nations?

• Low GDP per capita

• High levels of inflation

• Low inflationary levels

• High levels of unemployment

High levels of unemployment combined with high levels of inflation could indicate that the business cycle has entered into a period of —

• recession

• stagflation

• expansion

• investment

An expansionary period in the business cycle is distinguished by —

• high inflation

• declining sales

• fewer excise taxes

• low unemployment

Economic growth would most likely result from —

• decreased trade

• increased productivity

• increased employment

• decreased sales of stock

If businesses can decrease the amount of labor needed to increase inventories, the result will most likely be —

• increased taxes

• economic growth

• increased inflation

• decreased productivity

The introduction of new manufacturing technologies generally affects economic growth by —

• creating safer work environments

• increasing the productivity of labor

• restricting growth because of the additional expense

• stopping production while workers learn the new technology

Which of the following best completes the diagram?

• Characteristics of Partnerships

• Characteristics of Free Enterprise

• Characteristics of Sole Proprietorships

• Characteristics of Corporations

One of the advantages corporations have that sole proprietorships do not is —

• limited liability

• ease of start up

• rights to all profits

• lack of special taxes