ECONOMICS ASSESSMENT

The way individuals and groups deal with the allocation of scarce resources WHAT IS ECONOMICS? DEFINITION?

Which is always present in an economic system? (a) central planning (b) strikes (c) scarce resources (d) market decision-making

Which tax is based mostly on ability to pay? a. Social Security Tax b. Excise Tax c. Sales Tax d. Income Tax

Caveat emptor means: A) the public’s right to obtain land B) let the buyer beware C) citizen’s right to own property D) noninterference by government E) special concessions to business

Who controls the money in circulation? A) Treasury B) Federal Deposit of Insurance Corporation C) Federal Reserve D) Banks

An underdeveloped country is basically A) industrial in nature B) receiving a favorable balance of trade C) automated D) agrarian in nature

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

Federal government expenditures in the market are the greatest in which of the following areas? A) defense B) debt C) welfare d) foreign aid

Supply and demand in the market determine A) utility B) cost C) production D) price

Name the three basic economic systems in the world. A)_____________ B)_____________ C)_____________

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

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

Which government agency regulates antitrust formations? A) Supreme Court B) Congress C) Federal Trade Commission D) State Courts

What is the deduction called that refers to Social Security in your paychecks? FICA – Federal Insurance Contributions Act

What is monetary policy? _The money and credit policy of the United States

What is fiscal policy? ___ The taxing and spending policy of Congress

Name the four factors of production A________________ B________________ C_________________ D________________

One example of a capital good would be: A) bank deposits B) roofing machine C) coal D) ink

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

Who wrote the Wealth of Nations? _________________________

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

Which security pays interest? A)stock B) bond

Name the four market models in the U.S. A)________________ B)________________ C)________________ D)________________

How does the First Amendment begin? _____________________________ Why is that important to know?

Name your Five Civil Liberties A)__________________ B)__________________ C)__________________ D)__________________ E)__________________

What three questions does every economy ask? A)_________________ B)_________________ C)_________________

What is the motivating force of a free enterprise economy? ____________________________

Our Economy Today? Unemployment rate? Inflation rate? Confidence level? Balance of trade? Cost of crude oil? Cost of cotton? Housing market?

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