Practice Quiz

MTEL Business Practice Exam - Question List

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51.
One function of money is that it allows value to be stored easily. Which of the following best explains one advantage of using money to store value rather than other assets such as real estate or fine art?
  1. Money can be exchanged at any time for an equivalent value of gold or silver.
  2. The purchasing power of money does not change over time.
  3. Money is more liquid than most other assets.
  4. Interest paid on invested money is generally greater than the gains in value of other assets.
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52.
Compared with a country that has a largely capitalist economy, one that has a largely socialist economy is more likely to have:
  1. Reduced barriers to free trade.
  2. Lower taxes on businesses and workers.
  3. Greater personal freedom.
  4. Greater government control of major industries.
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53.
Compared with mixed economic systems, systems characterized by free-market capitalism tend to have:
  1. Greater social and economic inequality.
  2. Lower rates of productivity and economic growth.
  3. More frequent incidences of scarcity or oversupply.
  4. Fewer consumer choices of products and services.
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54.
Which of the following is the most important factor in bringing about the end of the expansion phase of a business cycle and the beginning of a recession?
  1. A decline in spending by businesses and consumers.
  2. An increase in prices for consumer products and services.
  3. A fall in short-term interest rates.
  4. A rise in business productivity.
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55.
Which of the following is the best example of structural unemployment?
  1. Additional sales staff hired at a business during the holiday season are laid off after the season ends.
  2. A decline in sales due to a recession forces a business to lay off 20% of its workforce.
  3. A group of skilled workers lose their jobs when technological advances render their skills obsolete.
  4. Workers for a company that goes out of business are unemployed while they search for new jobs.
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