ECONOMICS ASSESSMENT

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ECONOMICS ASSESSMENT
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• WHAT IS ECONOMICS?
• DEFINITION?

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Which is always present in an economic system?

• (a) central planning
• (b) strikes
• (c) scarce resources
• (d) market decision-making

4
Which of the following taxes is mostly based on
the ability to pay?

• A) property tax
• B)sales tax
• C) social security tax
• D) income tax

5
Caveat emptor means

• A) the publics right to obtain land
• B) let the buyer beware
• C) citizens right to own property
• D) noninterference by government
• E) special concessions to business

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Who controls the money in circulation?

• A) Treasury
• B) Federal Deposit of Insurance Corporation
• C) Federal Reserve
• D) Banks

7
An underdeveloped country is basically

• A) industrial in nature
• B) receiving a favorable balance of trade
• C) automated
• D) agrarian in nature

8
The total value of goods and services produced in
a given year is called

• A) national income
• B) national wealth
• C) consumer debt
• D) gross domestic product

9
Federal government expenditures in the market are
the greatest in which of the following areas?

• A) defense
• B) debt
• C) welfare
• d) foreign aid

10
Supply and demand in the market determine

• A) utility
• B) cost
• C) production
• D) price

11
Name the three basic economic systems in the
world.

• A)_____________
• B)_____________
• C)_____________

12
The opportunity cost of a new public high school
is the

• A) money cost of hiring teachers for the new
  school
• B) cost of constructing the new school at a later
  date
• C) change in the annual tax rate to pay for the
  new school
• D)other goods and services that must be given up
  to build the new school

13
Assuming little or no government interference in
the market, which of the following is the
lifeblood (internal engine) of the market?

• A) competition
• B) price
• C) stock market
• D) regulation

14
Which government agency regulates antitrust
formations?

• A) Supreme Court
• B) Congress
• C) Federal Trade Commission
• D) State Courts

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• ___Social Security___
• Federal Income Compensation Act.. (also called
  payroll taxes)

FICA which is reported in your paycheck stands
for what deduction?
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What is monetary policy?

• _________________________

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What is fiscal policy?

• ___________________________

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Name the four factors of production

• A________________
• B________________
• C_________________
• D________________

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One example of a capital good would be

• A) bank deposits
• B) roofing machine
• C) coal
• D) ink

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Ceteris paribus means

• A) who cares
• B) the money is inflated
• C) all other things being equal
• D) the money should be equally distributed

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Who wrote the Wealth of Nations?

• _________________________

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What type of business formation is the most
common in the U.S.?

• _________________________

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Which security pays interest?

• A)stock
• B) bond

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Name the four market models in the U.S.

• A)________________
• B)________________
• C)________________
• D)________________

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How does the First Amendment begin?

• _____________________________
• Why is that important to know?

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Name your Five Civil Liberties

• A)__________________
• B)__________________
• C)__________________
• D)__________________
• E)__________________

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What three questions does every economy ask?

• A)_________________
• B)_________________
• C)_________________

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What is the motivating force of a free enterprise
economy?

• ____________________________

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Our Economy Today?

• Unemployment rate?
• Inflation rate?
• Confidence level?
• Balance of trade?
• Cost of crude oil?
• Cost of cotton?
• Housing market?

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• There can be no real freedom in the presence of
  economic insecurity.
• Chester Bowles