Reference no: EM13818194
1. Which of the following would be a way that the government could encourage entrepreneurship in an economy?
a. The government could protect domestic businesses from foriegn competition.
b. The government could decrease regulations on small businesses.
c. The government could lower the amount of taxes that new businesses would have to pay.
d. all of these are possibilities that the government could take to encourage entrepreneurship.
2. Which of the following statements are true regarding employment statistics?
a. Full employment and cyclical unemployment are both scenarios that economists want to avoid.
b. Full employment means that every adult has a job
c. When the only unemployed people in an economy are structurally unemployed, the economy is at full employment.
d. Economists expect that a certain amount of people will be unemployed even at full employment.
3. Which of the following best describes an economy that is in recession?
a. GDP is down, but unemployment numbers are lower.
b. GDP is down and unemployment rates are up
c. A recession is a period of economic expansion.
d. unemployment rates are higher and GDP is up.
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