1. an important effect of economic growth is that it a. lowers taxes. b. raises living standards. c. lowers living standards. d. fights inflation. 2. the lack of skilled workers to operate an oil rig is an example of a shortage of capital. a. physical b. financial c. worker d. human 3. if a country was to place a limit on the number of cars that could be imported in a year, it would be an example of what kind of trade regulation? a. quota b. currency control c. subsidy d. tariff 4. the percentage of the total population living below the poverty level is known as the a. income rate. b. poverty rate. c. poverty measure. d. poor rate. 5. why are governmental services more expensive in cities compared to other areas? a. cities have a higher concentration of poor people. b. cities have more expensive tax rules than other areas. c. federal government doesn't t cities. d. state government doesn't cities. 6. which group tends to experience poverty most often? a. middle-aged people b. white males c. racial minorities d. elderly people 7. why are savings important to economic growth? a. savings are used to invest in new businesses. b. money spent doesn't grow the economy. c. savings make american goods more attractive to foreign buyers. d. savings are in place for a "rainy day." 8. a large continuous chain of cities and suburbs is known as a a. municipality b. large city c. metropolis d. megalopolis 9. a reason to trade with other nations is that trade a. reduces demand for goods and services. b. forces consumers to buy goods and services at a higher cost. c. reduces the supply of goods and services. d. allows consumers to buy goods and services at a lower cost. 10. which of the following is a way to reduce unemployment? a. higher taxes b. training programs c. lower inflation d. reduced government spending