GACE PRACTICE TEST EXAM 100 CORRECT QUESTIONS
AND ANSWERS.
1. A command economy is characterized by:
a. A laissez-faire approach by the government
b. A moderate amount of government intervention in the economy
c. Businesses commanding all aspects of the economy
d. The government controlling prices and production - Correct Answer D
2. Which of the following is not a responsibility of the Securities and Exchange
Commission (SEC)?
a. Regulating securities
b. Investigatirg insider trading
c. Setting interest rates
d. Processing applications for initial public offerings (IPOS) - Correct Answer C
3. In marketing, the demand for a product is directly influenced by:
a. Customers' desire for a product
b. Customers' ability to obtain a product
c. Availability of a product
d. Both A andB - Correct Answer D
4. The Sarbanes-Oxley Act of 2002:
,a. Vastly reduced the financial reporting obligations that corporations face
b. Deregulated public utilities
c. Was intended to fight corporate and accounting fraud
d. Reduced tariffs on trade among North American countries - Correct Answer C
5. An employee earns $2,000.00 per month in gross pay, but pays 9% in federal taxes,
3% for state taxes, and 2% for local taxes. After tax, the company withholds $104.36 for
health insurance. What is the employee's net pay?
a. $2,000.00
b. $1,615.64
c. $1,820.00
d. $1,720.00 - Correct Answer B
6. A market in which product availability exceeds demand is called
a: a. Free market
b. Seller's market
c. Buyer's market
d. Black market - Correct Answer C
7. Which of the following is not a part of Maslow's hierarchy of needs?
a. Self-actualization
b. Esteem
,c. Safety
d. Supply and demand - Correct Answer D
8. Which of the following countries is not part of NAFTA?
a. Mexico
b. United States
c. Canada
d. China - Correct Answer D
9. A consumer's credit score is directly influenced by which of the following factors?
a. Debt repayment history
b. Employment history over the last five years
c. Marital status
d. Income level - Correct Answer A
10. Upon which organization does the international community primarily rely to deal with
claims of unfair protectionism by one country against another?
a. North Atlantic Treaty Organization (NATO)
b. World Trade Organization (WTO)
c. Organization of Petroleum Exporting Countries (OPEC)
d. International Red Cross (IRC) - Correct Answer B
, 11. A homeowner is attempting to choose between several mortgage loans for a
$200,000 home. Which of the following would have the lowest monthly payment?
a. A 30-year fixed rate mortgage at 6%
b. A 15-year fixed rate mortgage at 7%
c. A 30-year fixed rate mortgage at 12%
d. A 15-year fixed rate mortgage at 12% - Correct Answer A
12. The biggest factor that leads American companies to manufacture their products
overseas in developing countries like China and India is:
a. Higher quality of craftsmanship
b. Lower labor costs
c. Decreased transportation costs
d. Effective leal systems - Correct Answer B
13. Which of the following correctly summarizes the accounting equation for a sole
proprietorship?
a. Assets = Liabilities + Owners' equity
b. Liabilities = Assets + Owners' equity
c. Owner's equity = Assets + Liabilities
d. Revenue = Assets - Liabilities - Correct Answer A
14. In order to present a business plan to a group of potential investors, a businessperson
would most likely use which software?
AND ANSWERS.
1. A command economy is characterized by:
a. A laissez-faire approach by the government
b. A moderate amount of government intervention in the economy
c. Businesses commanding all aspects of the economy
d. The government controlling prices and production - Correct Answer D
2. Which of the following is not a responsibility of the Securities and Exchange
Commission (SEC)?
a. Regulating securities
b. Investigatirg insider trading
c. Setting interest rates
d. Processing applications for initial public offerings (IPOS) - Correct Answer C
3. In marketing, the demand for a product is directly influenced by:
a. Customers' desire for a product
b. Customers' ability to obtain a product
c. Availability of a product
d. Both A andB - Correct Answer D
4. The Sarbanes-Oxley Act of 2002:
,a. Vastly reduced the financial reporting obligations that corporations face
b. Deregulated public utilities
c. Was intended to fight corporate and accounting fraud
d. Reduced tariffs on trade among North American countries - Correct Answer C
5. An employee earns $2,000.00 per month in gross pay, but pays 9% in federal taxes,
3% for state taxes, and 2% for local taxes. After tax, the company withholds $104.36 for
health insurance. What is the employee's net pay?
a. $2,000.00
b. $1,615.64
c. $1,820.00
d. $1,720.00 - Correct Answer B
6. A market in which product availability exceeds demand is called
a: a. Free market
b. Seller's market
c. Buyer's market
d. Black market - Correct Answer C
7. Which of the following is not a part of Maslow's hierarchy of needs?
a. Self-actualization
b. Esteem
,c. Safety
d. Supply and demand - Correct Answer D
8. Which of the following countries is not part of NAFTA?
a. Mexico
b. United States
c. Canada
d. China - Correct Answer D
9. A consumer's credit score is directly influenced by which of the following factors?
a. Debt repayment history
b. Employment history over the last five years
c. Marital status
d. Income level - Correct Answer A
10. Upon which organization does the international community primarily rely to deal with
claims of unfair protectionism by one country against another?
a. North Atlantic Treaty Organization (NATO)
b. World Trade Organization (WTO)
c. Organization of Petroleum Exporting Countries (OPEC)
d. International Red Cross (IRC) - Correct Answer B
, 11. A homeowner is attempting to choose between several mortgage loans for a
$200,000 home. Which of the following would have the lowest monthly payment?
a. A 30-year fixed rate mortgage at 6%
b. A 15-year fixed rate mortgage at 7%
c. A 30-year fixed rate mortgage at 12%
d. A 15-year fixed rate mortgage at 12% - Correct Answer A
12. The biggest factor that leads American companies to manufacture their products
overseas in developing countries like China and India is:
a. Higher quality of craftsmanship
b. Lower labor costs
c. Decreased transportation costs
d. Effective leal systems - Correct Answer B
13. Which of the following correctly summarizes the accounting equation for a sole
proprietorship?
a. Assets = Liabilities + Owners' equity
b. Liabilities = Assets + Owners' equity
c. Owner's equity = Assets + Liabilities
d. Revenue = Assets - Liabilities - Correct Answer A
14. In order to present a business plan to a group of potential investors, a businessperson
would most likely use which software?
