GACE PRACTICE TEST QUESTIONS WITH COMPLETE SOLUTIONS GRADED A+, Exams of Nursing

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GACE PRACTICE TEST QUESTIONS WITH COMPLETE SOLUTIONS

GRADED A+

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 AnswersD
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 AnswersC
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 AnswersD

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 AnswersC
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. b. $1,615. c. $1,820. d. $1,720.00 - Correct AnswersB
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 AnswersC

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 AnswersD
8. Which of the following countries is not part of NAFTA? a. Mexico b. United States c. Canada d. China - Correct AnswersD
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 AnswersA

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 AnswersB
11. A homeowner is attempting to choose between several mortgage loans for a $200, 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 AnswersA
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 AnswersB

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 AnswersA
14. In order to present a business plan to a group of potential investors, a businessperson would most likely use which software? a. Powerpoint b. Quickbooks c. Peoplesoft d. Excel - Correct AnswersA
15. In order to start an online business, and individual would need all but which of the following: a. A business model b. A website c. An email address d. A fax machine - Correct AnswersD

16. Which of the following types of assets would not be subject to depreciation? a. Heavy equipment b. Computers c. Real estate d. Company vehicles - Correct AnswersC
17. When itemizig deductions on a federal tax return, an individual taxpayer may be able to deduct all but which of the following? a. Interest paid on a mortgage b. Charitable donations c. Losses from theft d. Groceries - Correct AnswersD
18. Which of the following terms best describes a situation where an individual enters into an agreement with a company to use the company's business model within a given territory, usually in exchange for a fee? a. Sole proprietorship b. Limited liability corporation c. Franchise d. Incorporation - Correct AnswersC

19. The par value of a bond is the: a. Average interest rate paid by a given type of bond over subsequent issues b. Amount of time until the bond matures c. Amount paid when the bond matures d. Amount of ihterest that the bond pays - Correct AnswersC
20. Which of the following best describes Congress' purpose in setting up Freddie Mac in 1970? a. Expanding opportunities for home ownership b. Deregulating the credit market c. Improving regulation of the Internet d. Creating a place for small businesses to get loans - Correct AnswersA
21. Which of the following countries would be considered an emerging market? a. Japan b. India c. Britain d. Canada - Correct AnswersB
22. If the exchange rate between the Euro (€) and the U.S. dollar ($) is $2.5 to € 1, how many dollars would it take to purchase a plane ticket that costs € 1580.00?

a. $39,500. b. $3,950. c. $395. d. $632.00 - Correct AnswersB

23. If the U.S. Federal Reserve concludes that there is a significant risk of inflation, it will most likely: a. Raise interest rates b. Lower interest rates c. Keep interest rates the same d. Decrease bynd yields - Correct AnswersA
24. A combination of slow economic growth and high inflation is called: a. Inflationary pressure b. Deflation c. Stagflation d. Disinflation - Correct AnswersC
25. A shareholder owns 200 shares of stock XYZ at $58 each. If there is a 2 - 1 stock split, how many shares will that shareholder have, and what will the new share price be?

a. 100 shares at $116 per share b. 200 shares at $116 per share C. 400 shares at $29 per share d. 400 shares at $58 per share - Correct AnswersC

26. Which of the following is not true of stock dividends? a. They are usually taxable b. They are offered voluntarily by companies in order to make their stock more attractive c. Their amount and frequency are determined directly by shareholders at large d. They may be discontinued or reduced at any time - Correct AnswersC
27. If a stock has a high P/E ratio, this means that: a. The stock's price is low considering the value of the company's earnings b. The stock pays a high dividend based on its earnings per share c. The stock's price is high considering the value of its earnings per share d. The compañy's earnings per share are high - Correct AnswersC
28. An individual who is about to retire and wants to earn interest without risking his or her principal would most likely be advised to invest in: a. Value stocks

b. An index fund c. A mutual fund d. U.S. Treasury bonds - Correct AnswersD

29. A company that is included in the Dow Jones Industrial Average most likely to be: a. A well-known corporation with a large market capitalization b. A foreign company c. A start-up that was recently listed on the stock exchange d. A small- to mid-sized technology company - Correct AnswersA
30. Which of the investors has the portfolio that is exposed to the greatest amount of risk? a. Investor A b. Investor B c. Investor C d. Investor D - Correct AnswersA
    • Correct Answers
31. If Investor D's stocks have an average return of 8.8% during the year, and Investor D's bonds have an average return of 5.2%, what is the average overall return on Investor D's portfolio?

а. 14% b. 7% c. 5.6% d. Cannot be determined - Correct AnswersB

32. If one is planning to start a small business, which should one do first? a. Obtain a business loan b. Find a partner c. Assess one's personal financial situation d. Choose a location for one's business - Correct AnswersC
33. Frank is 33 years old and married, with 2 children. He has $40,000 in his retirement account, which is earning an average of 5% annually, and $10,000 in his personal savings account, which is earning 2% annually. He is current with his mortgage, and has $50, left to pay at a rate of 6%. Frank also has $30,000 in credit card debt with an average rate of 13%. If Frank wants to increase his chances of retiring comfortably, what would the best way be for him to spend a Christmas bonus of $10,000? a. Put it in his retirement account b. Put it in his savings account c. Use half to pay down his mortgage and save the other half d. Use all of it to pay down his credit card debt - Correct AnswersD

34. If a country is a net exporter, this means that: a. The value of the goods that it imports exceeds the value of the goods that it exports b. The value of the goods that it exports exceeds the value of the goods that it imports c. It exports consumer products d. It has high tariffs - Correct AnswersB
35. If a government implements an import tariff on consumer electronics, what is it most likely trying to accomplish? a. It is trying to protect its domestic consumer electronics industry from competition b. It is trying to decrease the cost of imported consumer electronics c. It is trying to discourage domestic companies from producing consumer electronics d. It is trying to increase competition and lower prices in the consumer electronics industry

• Correct AnswersA

36. If a potential business owner projects that she will need to invest $100,000 in equipment to start a dry cleaning business, and the business' monthly expenses on rent, insurance, labor costs, and other incidentals are $5,000, how many months will it take for her to earn back her initial investment if the gverage monthly gross revenue is $8,000? a. Less than 9 months b. Less than 20 months c. Less than 34 months

d. None of the above - Correct AnswersC

37. A family wants to buy a new car, and is trying to decide between four different car and car loan options. Which of the loans would require them to pay the least amount of money overall, including the down paymert and the monthly payments? a. Option A b. Option B c. Option C d. Option D - Correct AnswersA
38. Which of the four options listed in the table would require the family to pay the least amount of interest, total? a. Option A b. Option B c. Option C d. Option D - Correct AnswersC
39. Which of the options listed in the table would require the family to pay the highest amount of interest, total? a. Option A b. Option B c. Option C

d. Option D - Correct AnswersB

40. Sarah has up to $550,000 to invest, and is trying to decide which of four catering businesses she wants to purchase. Which of the options below correctly lists the businesses in order of average monthly profit from largest to smallest when the franchise fee is taken into consideration? a. А, В, С, D b. С, D, A, B с. В, С, А, D d. C, B, A, D - Correct AnswersC
41. If Sarah wanted to get her initial investment back as quickly as possible, which of the following options would you advise her to choose, based upon the information in the table? a. Business A b. Business B C. Business C d. Business D - Correct AnswersD
42. A consumer's credit score may be factor in all but which of the following transactions? a. Buying a car b. Buying a home

c. Getting a personal loan d. Opening a bank account - Correct AnswersD

43. Comprehensive car insurance typically covers: a. Damage the insured does to the property of others while driving the insured vehicle b. Medical expenses others incur as a result of a collision with the insured vehicle c. Damage done to the insured's vehicle by a vandal d. All of the above - Correct AnswersC
44. Which of the following is not typically cited as a potential cause of oil price increases? a. Price increases for consumer goods and services in the U.S. b. Increased global demand for oil c. Speculation in the oil market d. Insufficient refinery capacity - Correct AnswersA
45. Nations whose economies rely primarily of the export of non-oil commodities like rubber or copper are: a. Typically located in Northern and Western Europe b. Often referred to as "developing countries" or "emerging markets" c. Known for their world class education systems

d. Usually among the wealthiest countries in the world - Correct AnswersB

46. A company considering manufacturing a product in several different emerging markets will most likely consider which of the following factors in choosing between them? a. Likelihood of political instability b. Labor costs and regulations c. Cost of shipping goods from that country to the destination country d. All of the aove - Correct AnswersD
47. Adam Smith is best known for: a. Founding the doctrine of mercantilism b. Supporting the spread of communism c. Arguing for free market economics d. Arguing that the government should redistribute income - Correct AnswersC
48. According to standard economic theories, countries that have a comparative advantage in the production of cotton should: a. Export another product, and import cotton b. Export cotton, and import other products c. Implement tariffs to protect their domestic cotton industry

d. Work hard to reduce their comparative advantage and diversify their economy - Correct AnswersB

49. An advantage of protectionism for countries that implement it is that it: a. Improves the country's global competitiveness b. Ensures that domestic jobs will be retained in the short term c. Encourages economic growth d. Prevents corruption - Correct AnswersB
50. GDP measures a country's: a. Employment level b. Education level c. Total economic output d. Wage levels - Correct AnswersC
51. A human resources manager is likely to be responsible for all but which of the following: a. Sales b. Payroll c. Hiring d. Training - Correct AnswersA

52. The main function of a human resources department is to: a. Meet the company's recruiting goals b. Maximize employee productivity while minimizing pay c. Facilitate communication between the employer and the employees d. Prevent lawsuits - Correct AnswersC
53. Which of the following questions would it be illegal to ask a job candidate at a pre- employment interview? a. Have you ever requested workers' compensation benefits? b. Do you have any disabilities that would interfere with your ability to perform c. Both A and B d. Neither A nor B - Correct AnswersC
54. Technological aids can be used to directly fulfill all but which of the following human resources functions: a. Soliciting resumes for open positions b. Assessing a new employee's job readiness c. Communicating information about employee benefits d. Resolving disputes between employees and management - Correct AnswersD

55. A new manager with ABC Industries has noticed that many of his employees are chronically late to work. To remedy the problem, the manager decides to implement a bonus system that will financially reward employees who are on time to work for ten consecutive days. According to B.F. Skinner's Operant Conditioning theory, what type of behavior modification approach is the manager using? a. Extinction b. Punishment c. Negative reinforcement d. Positive reinforcement - Correct AnswersD
56. Classical Theory 2. Behavioral Theory 3. Management Stience Approach 4. Contingency Approach - Correct Answers3. Productivity can be improved through the application of mathematical models
57. Understanding the worker's perspective is key to successful management
58. There is no single "correct" theory; instead, managers should apply the theory that is most sensible in a given situation
59. Productivity can be maximized by presenting the right combination of incentives, and correctly designing jobs
60. A successful manager will be able to effectively delegate: a. Responsibility b. Accountability c. Authority

d. Ability - Correct AnswersC

58. According to Fayol's Administrative Theory of Management, which of the following is a correct list of the five essential functions of management? a. Controlling, composing, planning, organizing, implementing b. Containing, controlling, implementing, planning, organizing c. Composing, coordinating, controlling, planning, organizing d. Controlling, commanding, coordinating, planning, organizing - Correct AnswersD
59. According to the National Environmental Policy Act of 1967, a business is required to prepare an environmental impact statement (EIS) when it: a. Hires a new worker b. Makes a charitable contribution c. Develops a new marketing initiative d. Builds a new factory - Correct AnswersD
60. A manufacturing company implements anti-pollution measures as outlined by applicable legislation, but opts not to adopt any additional anti-pollution measures. This company has most likely adopted which of the following approaches to business-society relations? a. Social Responsiveness Approach b. Social Responsibility Approach

c. Social Obligation Approach d. Cost-benefit Approach - Correct AnswersC

61. Which of the following constitutes a binding contract? a. An agreement signed and dated by one party and one witness b. An agreement signed and dated by both parties C. An agreemeht signed by both parties and witnessed by a third party d. An agreement signed and dated by both parties and a witness - Correct AnswersD
62. Corporation X, the largest oil refiner in the U.S., wants to purchase Corporation Y, the only other oil refiner in the U.S. This situation may be of concern to the government because: a. It may violate environmental laws b. It may constitute a violation of antitrust laws c. It could violate labor laws by reducing employees' choice of employers d. It could constitute a pyramid scheme - Correct AnswersB
63. The Equal Employment Opportunity Commission (EEOC) is responsible for enforcing all but which of the following laws? a. Civil Rights Act of 1964 b. Equal Pay Act

c. Environmental Protection Act d. Americans with Disabilities Act - Correct AnswersC

64. Anna is interested in purchasing a computer for her small landscaping business. She wants to be able to compose simple fliers and advertising materials, communicate with clients via email, and order supplies online. Which of the following lists best describes the hardware and software components that Anna's computer should have? a. Internet connection, Quickbooks, and at least 10 GB of memory b. Word processing software, Quickbooks, and an Internet connection c. Word processing software, an Internet connection, and 1 - 5 GB of memory d. Quickbooks, an Internet connection, and 1 - 5 GB of memory - Correct AnswersC
65. Microsoft Excel would most likely be used for which of the following tasks? a. Developing a strategic plan b. Filing invoices c. Creating a sales presentation d. Analyzing numerical sales data - Correct AnswersD
66. Which of the following steps might a company take in order to prevent unauthorized individuals from accessing confidential data? a. Requiring a username and password b. Constructing a firewall to protect its computer system to access its computer system

c. Both A and B d. Neither A nor B - Correct AnswersC

67. In order to facilitate communication between employees considering providing all employees with unlimited access to a file that contains employee names, addresses, birthdates, and social security within a company, the company is work phone numbers and addresses, work email numbers. What confidentiality issues would this new policy raise? a. None, the value of improved communication between employees would outweigh any confidentiality issues others; the company should b. Many employees may object to their social security numbers and birthdays being shared with publish the birthdays anyway, but withhold the social security numbers c. Many employees may object to their social security numbers and birthdays being shared with others; the company should withhold both of these d. Releasing of any of this information is a violation of employees' privacy - Correct AnswersC
68. A business education teacher has allotted one class period to help students identify potential career options. Which of the following activities would be most appropriate given these circumstances? a. Having students complete an internship b. Having each student deliver a five-minute presentation describing their parents' jobs c. Administering a test that advises students about what careers might fit their interests and talents d. Asking students to write an essay describing their "dream job" - Correct AnswersC

69. Which of the following business careers could a teacher safely recommend for a student who would not enjoy working with the public on a regular basis? a. Financial advisor b. Insurance salesperson c. Real estate agent d. None of the above - Correct AnswersD
70. Choose the list below that best describes the most important contents of a resume: a. Salary requirements, relevant work experience, educational attainment, objective b. Contact information, grade point average, relevant work experience, objective c. References, objective, educational attainment, salary requirements d. Contact infmation, objective, educational attainment, relevant work experience - Correct AnswersD
71. At a meeting with shareholders, an executive would be most likely to use which of the following visual aids to present a report on monthly stock gains and losses over a one- year period? a. Bar chart b. Pie chart c. Line graph d. Scatterplot - Correct AnswersC

72. When manually proofreading a business document for a colleague, which of the following answers describes the correct way one would indicate that a section of text should be removed? a. An X should be drawn through the text b. A caret should be drawn at the beginning and end of the text c. A diagonal line should be drawn through the text from bottom left to top right d. A horizontal line should be drawn through the text with a loop at the right end of the line - Correct AnswersD
73. When researching a presentation about a national shipping business, the most detailed and comprehensive source of information about the top management of the company and its competitors would most likely be: a. Microfilm records from local newspapers b. Hoovers.com c. LexisNexis.com d. The catalogue at your local library - Correct AnswersB
74. Which of the following lists contains only types of computer software? a. Internet, Microsoft Office, Quicken b. Motherboard, Quicken, Excel c. Quicken, Peoplesoft, Microsoft Office