Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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Which of the following is NOT true about inflation?
a. | It is one problem that our country has not had to worry about. | b. | It is a sustained
increase in the general level of prices. | c. | Prices of goods and services rise faster than
wages. | d. | In general, most people think inflation is harmful. |
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2.
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Which of the following is NOT true about prices?
a. | If prices are too high, consumers won’t buy. | b. | If prices are too
low, businesses will not earn a profit. | c. | Prices are affected by both supply and
demand. | d. | Setting a price does not require any study by a
business. |
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3.
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In performing economic roles, which of the following is NOT true?
a. | You don’t need to know the importance of making good
decisions. | b. | The entire economy is affected. | c. | It is helpful to understand the private
enterprise system. | d. | Everyone performs all three roles to some
degree. |
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4.
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Which of the following is NOT one of the economic roles performed in our
economy?
a. | worker | c. | leader | b. | citizen | d. | consumer |
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5.
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Which of the following is true about your citizen role?
a. | Voting is not part of it. | b. | Keeping informed is not
important. | c. | Decisions made are individual and not collective. | d. | It helps provide
goods and services needed by the community. |
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6.
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Productivity is affected by
a. | technology and worker training. | c. | the number of workers in the work
force. | b. | the wages paid to workers. | d. | all of the above. |
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7.
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Which of the following is true about the business cycle?
a. | It has four phases. | b. | There are recurring ups and
downs. | c. | There is a pattern of good times to bad times and back again. | d. | All of the
above. |
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8.
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The factor that helps to keep prices at a reasonable level is
a. | kind-hearted people | c. | government regulations | b. | competition among
businesses | d. | profit
motive |
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9.
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Which of the following is the correct sequence of the phases of the business
cycle?
a. | Recovery, recession, depression, prosperity. | b. | Prosperity,
recovery, recession, depression. | c. | Prosperity, recession, recovery,
depression. | d. | Prosperity, recession, depression, recovery. |
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10.
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Which of the following is true about your worker role?
a. | It is the least important of the three economic roles. | b. | It supports your
consumer role. | c. | Your productivity is unimportant. | d. | It has no relationship to your standard of
living. |
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