NEW
Font size
S
M
L
XL
WorksheetsChapter 2 Review
Total questions: 15
Worksheet time: 8mins
Name
Class
Date
1.
Productivity would likely increase as a result of
a)
higher taxes.
b)
expanded production technology.
c)
decreased training programs.
d)
lower government spending.
2.
Retail sales include
a)
taxes collected.
b)
companies buying new equipment.
c)
borrowing by a business.
d)
school supplies bought by students.
3.
Equity refers to
a)
reduced spending by government.
b)
ownership in a company or other asset.
c)
borrowing to finance a capital project.
d)
increased government taxes.
4.
If you purchase a bond from a business, you own a part of that business.
a)
True
b)
False
5.
If a company has higher earnings, less people will want to buy its stock.
a)
True
b)
False
6.
When consumers increase their borrowing, interest rates tend to decline.
a)
True
b)
False
7.
The phase of the business cycle in which unemployment is highest is
a)
recovery
b)
recession
c)
prosperity
d)
depression
8.
People with poor credit ratings pay a higher interest rate to borrow money than people with good credit ratings.
a)
True
b)
False
9.
In the United States, the labor force consist of all people above age ___ who are actively working or seeking work.
a)
21
b)
18
c)
16
d)
14
10.
The money for capital projects usually comes from
a)
personal savings
b)
stock investments
c)
bonds
d)
all are correct answers
11.
The movement of the economy from one condition to another and back again is called the
a)
recession
b)
inflation
c)
deflation
d)
business cycle
12.
The main cause of unemployment is reduced demand for the goods and services being provided by various workers.
a)
True
b)
False
13.
People who buy bonds are called
a)
debtors
b)
owners
c)
creditors
d)
consumers
14.
The total amount owed by the federal government is called the
a)
budget surplus
b)
budget deficit
c)
balanced budget
d)
national debt
15.
Inflation
a)
is least harmful to people on fixed incomes
b)
causes the buying power of the dollar to increase
c)
generally occurs at the same rate from year to year
d)
can sometimes stimulate economic activity if it is kept relatively low
Reset
