1. Why would a large crop surplus be a problem for farmers? A. Surpluses drive down prices. B. Surpluses drive up prices. C. Sur
pluses are destroyed by the government. D. Surpluses drive up the price of agriculture equipment. Student Answer: D Answer: Incorrect Reference: Page 546, objective 6.1 3. Why are savings important to economic growth? A. Savings are used to invest in new businesses. B. Savings make American goods more attractive to foreign buyers. C. Money spent doesn't grow the economy. D. Savings are in place for a "rainy day." Student Answer: C Answer: Incorrect Reference: Page 531, objective 5.2 5. A country would place a tariff on imported steel to A. increase the standard of living for all citizens in the country. B. protect domestic steel manufacturers from foreign competition. C. lower prices for domestic steel consumers. D. make the market as fair as possible for all steel manufacturers around the world. Student Answer: C Answer: Incorrect Reference: Page 481, objective 2.1 8. Which of the following is taken into account when assessing the official poverty level? A. Food stamps B. Medical benefits C. Cash income D. Housing assistance Student Answer: B Answer: Incorrect Reference: Pages 581-582, objective 8.1 9. Demand for food doesn't change in response to a change in price. Why? A. Prices are set by the government. B. Demand for food is elastic. C. Demand for food is inelastic. D. People never change their eating habits. Student Answer: D Answer: Incorrect Reference: Page 547, objective 6.1 11. What's a possible risk when more federal aid is given to cities? A. Less local control of the city B. More money for public services C. Higher taxes in the states D. Higher taxes in the cities Student Answer: C Answer: Incorrect Reference: Page 572, objective 7.3 13. Which group tends to experience poverty most often? A. Middle-aged people B. Elderly people C. White males D. Racial minorities Student Answer: B Answer: Incorrect Reference: Page 583, objective 8.1, 8.2 14. How is real GDP different from GDP? A. Real GDP takes inflation into account. B. GDP takes inflation into account. C. Real GDP uses utility rather than dollars as a unit of measurement. D. GDP only uses dollars as a measurement. Student Answer: B Answer: Incorrect Reference: Page 528, objective 5.2 17. Why are governmental services more expensive in cities compared to other areas? A. Cities have more expensive tax rules than other areas. B. Federal government doesn't t help cities. C. State government doesn't help cities. D. Cities have a higher concentration of poor people. Student Answer: A Answer: Incorrect Reference: Page 564, objective 7.2 19. Exchange rates have an impact on which of the following? A. The price of domestic goods B. The price of imported goods C. The quality of imported goods D. The amount distributed in Social Security benefits Student Answer: A Answer: Incorrect Reference: Pages 498-499, objective 3.3
1. raises living standards 2.<span>B. Savings make American goods more attractive to foreign buyers. 3</span>'protect' its domestic steel industry, by increasing the price of imported steel.. 4. Medical benefits shouldn't have been wrong.. 5.people need food to survive, the demand for it will always exist no matter the price, if the price is changed people will prioritize food and other necessities 6. HIGHER TAXES IN THE STATES. 7.racial minorities 8.Nominal vs. Real GDP, and the GDP Deflator. The main difference between nominal and real values is that real values are adjusted for inflation, while nominal values are not. As a result, nominal GDP will often appear higher than real GDP.9.Cities have a higher Concentration of poor people
