Which of the following best describes the concept of the underground economy?(1 point)

Question

Responses

The underground economy refers to economic activity involving the sale of used goods and services.
The underground economy refers to economic activity involving the sale of used goods and services.

The underground economy refers to economic activity involving only the sale of final goods.
The underground economy refers to economic activity involving only the sale of final goods.

The underground economy refers to products made in the US that are sold to other countries.
The underground economy refers to products made in the US that are sold to other countries.

The underground economy refers to economic activity that is not recorded by GDP.
The underground economy refers to economic activity that is not recorded by GDP.
Question 12
Which of the following might lead to frictional unemployment?(1 point)
Responses

growth in demand for consumer goods of all kinds
growth in demand for consumer goods of all kinds

seasonal fluctuation in demand for a product
seasonal fluctuation in demand for a product

a large segment of the population reaching retirement age
a large segment of the population reaching retirement age

opportunities for higher wage jobs in a new industry
opportunities for higher wage jobs in a new industry
Question 13
Which of the following best describes the expected trend in the inflation rate after the Federal Reserve took action in 2022?(1 point)
Responses

The inflation rate will stabilize as the Federal Reserve enacts contractionary monetary policy.
The inflation rate will stabilize as the Federal Reserve enacts contractionary monetary policy.

The inflation rate will slowly decrease over 2023 and 2024 as the changes in monetary policy occur slowly.
The inflation rate will slowly decrease over 2023 and 2024 as the changes in monetary policy occur slowly.

The inflation rate will continue to grow in 2023 and 2024 as monetary policy targets a nine percent inflation rate.
The inflation rate will continue to grow in 2023 and 2024 as monetary policy targets a nine percent inflation rate.

The inflation rate will continue rising in 2023 as GDP continues growing in 2022.
The inflation rate will continue rising in 2023 as GDP continues growing in 2022.
Question 14
Use the table to answer the question.

Using the data in the table, which of the following statements best evaluates the effect of government intervention on production?

(1 point)
Responses

Government intervention was not successful because production increased from 1940 until 1942.
Government intervention was not successful because production increased from 1940 until 1942.

Government intervention was successful because production grew from 1940 to 1945.
Government intervention was successful because production grew from 1940 to 1945.

Government intervention was not very successful, because GDP decreased from 1944 to 1945.
Government intervention was not very successful, because GDP decreased from 1944 to 1945.

Government intervention was not very successful, because GDP decreased from 1942 to 1943.
Government intervention was not very successful, because GDP decreased from 1942 to 1943.
Question 15
Which of the following changes to the money supply can the government take to stimulate a slowing of the economy?(1 point)
Responses

It can increase the money supply by selling bonds in the open market.
It can increase the money supply by selling bonds in the open market.

It can increase the money supply by decreasing the reserve requirement.
It can increase the money supply by decreasing the reserve requirement.

It can decrease the money supply by buying bonds in the open market.
It can decrease the money supply by buying bonds in the open market.

It can decrease the money supply by increasing the discount rate.
It can decrease the money supply by increasing the discount rate.
Question 16
What action could ensure a national increase in standard of living and economic growth?(1 point)
Responses

The nation needs to increase its investment in education, health, and workforce development.
The nation needs to increase its investment in education, health, and workforce development.

The nation needs to decrease its investment in big business, stocks, and education.
The nation needs to decrease its investment in big business, stocks, and education.

The nation needs to decrease its investment in health, workforce development, and education.
The nation needs to decrease its investment in health, workforce development, and education.

The nation needs to increase its investment in big business, stocks, and education.
The nation needs to increase its investment in big business, stocks, and education.
Question 17
Which of the following best summarizes how investing in capital goods helps increase standard of living?(1 point)
Responses

Investing in capital goods gives people the opportunity to build their business, which makes them happy.
Investing in capital goods gives people the opportunity to build their business, which makes them happy.

Investing in capital goods gives cities the chance to expand public transportation, making it easier for people to travel.
Investing in capital goods gives cities the chance to expand public transportation, making it easier for people to travel.

Investing in capital goods helps businesses make a lot of money, which helps with economic growth.
Investing in capital goods helps businesses make a lot of money, which helps with economic growth.

Investments in capital goods can give people back time, energy, and revenue, which increase standard of living.
Investments in capital goods can give people back time, energy, and revenue, which increase standard of living.
Question 18
Which of the following correctly describes a method that can be used to improve human capital?(1 point)
Responses

Businesses can give their workers more access to work-related technology.
Businesses can give their workers more access to work-related technology.

Improving educational opportunities can limit the types of jobs that can be performed by the workforce.
Improving educational opportunities can limit the types of jobs that can be performed by the workforce.

Businesses can increase their cost of production by reducing the training of their workers.
Businesses can increase their cost of production by reducing the training of their workers.

Communities can save money by reducing educational opportunities.
Communities can save money by reducing educational opportunities.
Question 19
Which of the following best identifies the reasons governments exert influence over international trade of goods and services?(1 point)
Responses

Governments exert influence to prevent citizens from having access to foreign goods and services.
Governments exert influence to prevent citizens from having access to foreign goods and services.

Governments exert influence to protect citizens from potentially harmful imports.
Governments exert influence to protect citizens from potentially harmful imports.

Governments exert influence to give citizens access to goods they might not otherwise have and to help increase the revenue of other countries.
Governments exert influence to give citizens access to goods they might not otherwise have and to help increase the revenue of other countries.

Governments exert influence to protect citizens, shield domestic workers and markets, and increase the country’s revenue.
Governments exert influence to protect citizens, shield domestic workers and markets, and increase the country’s revenue.
Question 20
What is one of the main concerns for how climate change will affect the global economy?(1 point)
Responses

Climate change will cause a decrease in manufacturing prices, which will harm the economy.
Climate change will cause a decrease in manufacturing prices, which will harm the economy.

Global growth will increase because of costs associated with climate change.
Global growth will increase because of costs associated with climate change.

Climate change will cause an increase in income for people, which will harm the economy.
Climate change will cause an increase in income for people, which will harm the economy.

Global growth will slow because of costs associated with climate change.
Global growth will slow because of costs associated with climate change.
Question 21
Which of the following is an effect of actions taken by the government during the Great Recession of 2007?(1 point)
Responses

decrease in spending on housing and cars
decrease in spending on housing and cars

decrease in spending as debt increased
decrease in spending as debt increased

increase in consumer and business spending
increase in consumer and business spending

increase in unemployment as business closed

Answer 1

Here are the best responses to each of the questions based on the provided information:

Question 11: Which of the following best describes the concept of the underground economy?

• The underground economy refers to economic activity that is not recorded by GDP.

Question 12: Which of the following might lead to frictional unemployment?

• Opportunities for higher wage jobs in a new industry.

Question 13: Which of the following best describes the expected trend in the inflation rate after the Federal Reserve took action in 2022?

• The inflation rate will slowly decrease over 2023 and 2024 as the changes in monetary policy occur slowly.

Question 14: Using the data in the table, which of the following statements best evaluates the effect of government intervention on production?

• Government intervention was successful because production grew from 1940 to 1945.

Question 15: Which of the following changes to the money supply can the government take to stimulate a slowing of the economy?

• It can increase the money supply by decreasing the reserve requirement.

Question 16: What action could ensure a national increase in standard of living and economic growth?

• The nation needs to increase its investment in education, health, and workforce development.

Question 17: Which of the following best summarizes how investing in capital goods helps increase standard of living?

• Investments in capital goods can give people back time, energy, and revenue, which increase standard of living.

Question 18: Which of the following correctly describes a method that can be used to improve human capital?

• Businesses can give their workers more access to work-related technology.

Question 19: Which of the following best identifies the reasons governments exert influence over international trade of goods and services?

• Governments exert influence to protect citizens, shield domestic workers and markets, and increase the country’s revenue.

Question 20: What is one of the main concerns for how climate change will affect the global economy?

• Global growth will slow because of costs associated with climate change.

Question 21: Which of the following is an effect of actions taken by the government during the Great Recession of 2007?

• Increase in unemployment as business closed.

These answers should accurately reflect the best choices for each question presented.