Cenni Demo Test Reading 1
This is a DEMO CENNI test in order to practice and prepare yourselves for the exam
Questions and Answers
- 1.
Economics is the social science that deals with the production, distribution, and consumption of goods and services. Business may refer to any gainful economic activity or, more narrowly, to organizations that produce and distribute commodities. Basically, economics is a branch of investigation and study, while business connotes activity. Yet, the two terms increasingly overlap. Once thought of as a knack or skill that could never be taught in school, business has developed claims to scientific status in the twentieth century. Today, there are schools of business administration that, much like departments of economics, engage in study and research.Both economic theory and the growing emphasis on the study of business have spilled over from the universities into the public forum. The budget deficit, foreign trade deficit, and stock market boom of the 1980s and early 1990s have combined with the recent recession and decline of interest rates to pique popular interest in economic issues. Less obvious but no less important, the deregulation of financial institutions by the federal government, the vast growth of pension funds within the last twenty years, and recent changes in the federal tax code have raised the threshold of financial knowledge for Americans. As late as the 1950s, banks rarely advertised, savings and loan associations did not offer checking accounts, and insurance companies concentrated on selling insurance. Now, all of these institutions advertise and compete with one another by offering similar services. For example, all of them offer pension and retirement plans, and individual investors must be able to sort out and assess their rival claims.To do so, ordinary Americans need not become professors of economics; but they must understand the difference between stocks and bonds, and they should understand why the stock market tends to decline when the interest rates rise What is the topic of the passage?
- A.
Business and its relation to economic issues
- B.
Business and economics
- C.
The teaching of economics in business schools
- D.
The American economic system
Correct Answer
A. Business and its relation to economic issuesExplanation
The passage discusses the relationship between business and economic issues. It explains how economics is a branch of investigation and study, while business refers to gainful economic activity. The passage also mentions the overlap between the two terms and how business has gained scientific status in the twentieth century. It further highlights the impact of economic issues, such as budget deficit, foreign trade deficit, and stock market boom, on popular interest. Additionally, it discusses the growth of financial institutions, changes in the federal tax code, and the need for financial knowledge among ordinary Americans. Therefore, the topic of the passage is "Business and its relation to economic issues."Rate this question:
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- 2.
Economics is the social science that deals with the production, distribution, and consumption of goods and services. Business may refer to any gainful economic activity or, more narrowly, to organizations that produce and distribute commodities. Basically, economics is a branch of investigation and study, while business connotes activity. Yet, the two terms increasingly overlap. Once thought of as a knack or skill that could never be taught in school, business has developed claims to scientific status in the twentieth century. Today, there are schools of business administration that, much like departments of economics, engage in study and research.Both economic theory and the growing emphasis on the study of business have spilled over from the universities into the public forum. The budget deficit, foreign trade deficit, and stock market boom of the 1980s and early 1990s have combined with the recent recession and decline of interest rates to pique popular interest in economic issues. Less obvious but no less important, the deregulation of financial institutions by the federal government, the vast growth of pension funds within the last twenty years, and recent changes in the federal tax code have raised the threshold of financial knowledge for Americans. As late as the 1950s, banks rarely advertised, savings and loan associations did not offer checking accounts, and insurance companies concentrated on selling insurance. Now, all of these institutions advertise and compete with one another by offering similar services. For example, all of them offer pension and retirement plans, and individual investors must be able to sort out and assess their rival claims.To do so, ordinary Americans need not become professors of economics; but they must understand the difference between stocks and bonds, and they should understand why the stock market tends to decline when the interest rates rise What is the purpose of the passage?
- A.
To advise people to study economics
- B.
To discredit the services that banks and other financial institutions provide
- C.
To stress the differences between economics and business
- D.
To discuss the increasing interest in the study of economics and business
Correct Answer
D. To discuss the increasing interest in the study of economics and businessExplanation
The purpose of the passage is to discuss the increasing interest in the study of economics and business. It highlights how economics and business are overlapping fields and how they have gained importance in both academic and public forums. The passage also mentions the various economic issues and changes in financial institutions that have raised the threshold of financial knowledge for ordinary Americans. Overall, the passage emphasizes the growing interest and relevance of studying economics and business in today's society.Rate this question:
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- 3.
Economics is the social science that deals with the production, distribution, and consumption of goods and services. Business may refer to any gainful economic activity or, more narrowly, to organizations that produce and distribute commodities. Basically, economics is a branch of investigation and study, while business connotes activity. Yet, the two terms increasingly overlap. Once thought of as a knack or skill that could never be taught in school, business has developed claims to scientific status in the twentieth century. Today, there are schools of business administration that, much like departments of economics, engage in study and research.Both economic theory and the growing emphasis on the study of business have spilled over from the universities into the public forum. The budget deficit, foreign trade deficit, and stock market boom of the 1980s and early 1990s have combined with the recent recession and decline of interest rates to pique popular interest in economic issues. Less obvious but no less important, the deregulation of financial institutions by the federal government, the vast growth of pension funds within the last twenty years, and recent changes in the federal tax code have raised the threshold of financial knowledge for Americans. As late as the 1950s, banks rarely advertised, savings and loan associations did not offer checking accounts, and insurance companies concentrated on selling insurance. Now, all of these institutions advertise and compete with one another by offering similar services. For example, all of them offer pension and retirement plans, and individual investors must be able to sort out and assess their rival claims.To do so, ordinary Americans need not become professors of economics; but they must understand the difference between stocks and bonds, and they should understand why the stock market tends to decline when the interest rates rise The word "overlap" is closest in meaning to
- A.
Completely oppose.
- B.
hardly correlate.
- C.
coincide partly
- D.
absolutely distinguish.
Correct Answer
C. coincide partlyExplanation
The word "overlap" means to coincide partly. In the context of the passage, it suggests that there are areas where the fields of economics and business share similarities or common ground. While economics is a branch of investigation and study, business refers to gainful economic activity. However, as the passage explains, the two terms increasingly overlap, with business becoming more scientific and academic in nature. This implies that there are areas where the study of economics and business intersect and have shared concepts or principles.Rate this question:
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- 4.
Economics is the social science that deals with the production, distribution, and consumption of goods and services. Business may refer to any gainful economic activity or, more narrowly, to organizations that produce and distribute commodities. Basically, economics is a branch of investigation and study, while business connotes activity. Yet, the two terms increasingly overlap. Once thought of as a knack or skill that could never be taught in school, business has developed claims to scientific status in the twentieth century. Today, there are schools of business administration that, much like departments of economics, engage in study and research.Both economic theory and the growing emphasis on the study of business have spilled over from the universities into the public forum. The budget deficit, foreign trade deficit, and stock market boom of the 1980s and early 1990s have combined with the recent recession and decline of interest rates to pique popular interest in economic issues. Less obvious but no less important, the deregulation of financial institutions by the federal government, the vast growth of pension funds within the last twenty years, and recent changes in the federal tax code have raised the threshold of financial knowledge for Americans. As late as the 1950s, banks rarely advertised, savings and loan associations did not offer checking accounts, and insurance companies concentrated on selling insurance. Now, all of these institutions advertise and compete with one another by offering similar services. For example, all of them offer pension and retirement plans, and individual investors must be able to sort out and assess their rival claims.To do so, ordinary Americans need not become professors of economics; but they must understand the difference between stocks and bonds, and they should understand why the stock market tends to decline when the interest rates rise The words "these institutions" refer to:
- A.
Banks, savings and loans associations and insurance companies
- B.
Federal government and financial institutions.
- C.
Universities and schools of business administration.
- D.
Advertising companies.
Correct Answer
A. Banks, savings and loans associations and insurance companiesExplanation
The words "these institutions" refer to banks, savings and loans associations, and insurance companies. This is evident from the previous sentence which states that "all of these institutions advertise and compete with one another by offering similar services." Therefore, the correct answer is banks, savings and loans associations, and insurance companies.Rate this question:
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- 5.
Economics is the social science that deals with the production, distribution, and consumption of goods and services. Business may refer to any gainful economic activity or, more narrowly, to organizations that produce and distribute commodities. Basically, economics is a branch of investigation and study, while business connotes activity. Yet, the two terms increasingly overlap. Once thought of as a knack or skill that could never be taught in school, business has developed claims to scientific status in the twentieth century. Today, there are schools of business administration that, much like departments of economics, engage in study and research.Both economic theory and the growing emphasis on the study of business have spilled over from the universities into the public forum. The budget deficit, foreign trade deficit, and stock market boom of the 1980s and early 1990s have combined with the recent recession and decline of interest rates to pique popular interest in economic issues. Less obvious but no less important, the deregulation of financial institutions by the federal government, the vast growth of pension funds within the last twenty years, and recent changes in the federal tax code have raised the threshold of financial knowledge for Americans. As late as the 1950s, banks rarely advertised, savings and loan associations did not offer checking accounts, and insurance companies concentrated on selling insurance. Now, all of these institutions advertise and compete with one another by offering similar services. For example, all of them offer pension and retirement plans, and individual investors must be able to sort out and assess their rival claims.To do so, ordinary Americans need not become professors of economics; but they must understand the difference between stocks and bonds, and they should understand why the stock market tends to decline when the interest rates rise According to the author, why is it important for Americans to understand that there is a difference between stock and bonds?
- A.
To understand a rise in the interest rates and its effects on stock markets
- B.
To be able to evaluate those services offered by competing institutions
- C.
To compete with each other by offering better investment opportunities
- D.
To participate in political and economic debates throughout the country
Correct Answer
B. To be able to evaluate those services offered by competing institutionsExplanation
The author states that banks, savings and loan associations, and insurance companies now offer similar services and compete with each other. Therefore, it is important for Americans to understand the difference between stocks and bonds in order to evaluate the services offered by these competing institutions. By understanding the difference between stocks and bonds, individuals can make informed decisions about their investments and assess the rival claims of these institutions.Rate this question:
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Mar 17, 2023Quiz Edited by
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Mar 17, 2015Quiz Created by
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