FREE NAEP Economics Grade 12 Questions and Answers

Question 1

In comparison to Country B, Country A spends more on worker training and education programs as a percentage of GDP. Which of the following statements is most likely to be accurate over time?

Accepted Answer

Country A's economic growth rate will be higher than Country B's.

Answer

Country A's trade surplus will be higher than Country B's.

Answer

Country A's interest rate will be lower than Country B's.

Answer

Country A's minimum-wage rate will be lower than Country B's.

Question 2

What alteration is most likely to result in an increase in employment?

Accepted Answer

An increase in consumer spending

Answer

A decrease in business investment

Answer

A decrease in income

Answer

An increase in interest rates

Question 3

Consider a scenario in which the Japanese yen loses value on currency exchange markets in comparison to the US dollar. Which of the following scenarios most likely describes how US exports to Japan and US imports from Japan will change?
United States Exports
United States Imports to Japan from Japan

Accepted Answer

Decrease  Increase

Answer

Increase    Decrease

Answer

Decrease  Decrease

Answer

Increase    Increase

Question 4

Which of the following measures would most likely help to address the nursing shortage mentioned in the headline?

Accepted Answer

Increasing the wage rate of nurses

Answer

Opening additional hospitals in cities

Answer

Decreasing the number of nursing school scholarships

Answer

Raising the certification requirements for registered nurses

Question 5

Which of the following is most likely to cause short-term interest rates to decline?

Accepted Answer

An increase in the money supply

Answer

An increase in bank reserve requirements

Answer

An increase in the national debt

Answer

An increase in government spending

Question 6

Which of the following is most likely to occur if the United States Congress imposed a tariff on aluminum imports?

Accepted Answer

United States consumers would pay higher prices for goods made with aluminum.

Answer

An increase in costs would cause United States producers of aluminum to decrease production.

Answer

The tariff would increase the United States economy's growth rate by raising productivity rates.

Answer

United States manufacturers that use aluminum to produce goods would benefit.

Question 7

How would a significant increase in business and personal bankruptcies over a number of years affect the interest rates that banks charge on loans?

Accepted Answer

Interest rates would rise because banks would find it riskier to lend funds.

Answer

The answer cannot be determined because the government sets interest rates that banks charge for loans.

Answer

Interest rates would stay the same because banks are not affected by bankruptcies.

Answer

Interest rates would fall because the supply of funds would decrease.

Question 8

Lita ,discovers that a movie she rented is not as good as she expected after viewing a portion of it. Which of the following should she take into account when deciding whether to continue watching the movie?

Accepted Answer

The activity she could do if she stopped watching the movie.

Answer

The time it would take to return the movie.

Answer

The amount of time she already spent watching the movie.

Answer

The price she paid to rent the movie.

Question 9

Which of the following measures can the Federal Reserve take to ease the country's inflationary pressures?

Accepted Answer

Increase interest rates

Answer

Increase government spending

Answer

Increase the money supply

Answer

Increase taxes

Question 10

Which of the following determines the majority of decisions in a market economy regarding the goods and services to produce, how to produce them, and who will consume them?

Accepted Answer

Consumers and producers

Answer

Industry planning groups

Answer

The national government

Answer

Local and state governments