Practice Test 3

What is a primary characteristic of nonprofit service cooperatives?

• They aim to maximize profits for shareholders.

• They provide services to their members at cost.

• They are owned by government entities.

• They primarily focus on manufacturing goods.

Which of the following is a common risk factor associated with investments?

• Guaranteed returns

• Market volatility

• Fixed interest rates

• Government subsidies

Which of the following is a cause of inflation?

• Decrease in money supply

• Increase in production costs

• Decrease in consumer demand

• Increase in unemployment

What is one effect of inflation on the economy?

• Decrease in prices

• Increase in purchasing power

• Decrease in currency value

• Increase in savings rate

Which of the following is a major source of federal revenue?

• Property taxes

• Sales taxes

• Income taxes

• Tariffs

Supply side economics primarily focuses on:

• Increasing consumer demand

• Reducing government spending

• Increasing production and supply

• Controlling inflation through monetary policy

• Capital investments

• Consumer spending

• Corporate profits

• Currency exchange

• Imports

• Investments

• Interest rates

• Inflation

• Net exports

• Net imports

• Net income

• Net interest

Which of the following is NOT a component of GDP?

• Government spending

• Net exports

• Personal savings

• Consumer spending