ECONOMICS ASSESSMENTECONOMICS ASSESSMENT

The way individuals and The way individuals and groups deal with the groups deal with the allocation of scarce resourcesallocation of scarce resources

WHAT IS ECONOMICS?DEFINITION?

Which is always present in an Which is always present in an economic system?economic system?

(a) central planning(b) strikes

(c) scarce resources(d) market decision-making

Which tax is based mostly on Which tax is based mostly on ability to pay?ability to pay?

a. Social Security Taxb. Excise Taxc. Sales Taxd. Income Tax

Caveat emptor means:Caveat emptor means:

A) the public’s right to obtain landB) let the buyer bewareC) citizen’s right to own propertyD) noninterference by governmentE) special concessions to business

Who controls the money in Who controls the money in circulation?circulation?

A) TreasuryB) Federal Deposit of Insurance

CorporationC) Federal ReserveD) Banks

An underdeveloped country is An underdeveloped country is basicallybasically

A) industrial in natureB) receiving a favorable balance of

tradeC) automatedD) agrarian in nature

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

A) national incomeB) national wealthC) consumer debtD) gross domestic product

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

A) defenseB) debtC) welfare

d) foreign aid

Supply and demand in the market Supply and demand in the market determinedetermine

A) utilityB) costC) productionD) price

Name the three basic economic Name the three basic economic systems in the world.systems in the world.

A)_____________

B)_____________

C)_____________

The opportunity cost of a new The opportunity cost of a new public high school is the: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 Assuming little or no government interference in the government interference in the market, which of the following market, which of the following is the lifeblood (internal is the lifeblood (internal engine) of the engine) of the marketmarket??

A) competitionB) priceC) stock marketD) regulation

Which government agency Which government agency regulates antitrust formations?regulates antitrust formations?

A) Supreme CourtB) CongressC) Federal Trade CommissionD) State Courts

What is the deduction called that refers to Social Security in your paychecks?

FICA – Federal Insurance Contributions Act

What is monetary policy?What is monetary policy?

_The money and credit policy of the United States

What is fiscal policy?What is fiscal policy?

___The taxing and spending policy of Congress

Name the four factors of Name the four factors of productionproduction

A________________

B________________

C_________________

D________________

One example of a capital good One example of a capital good would be:would be:

A) bank depositsB) roofing machineC) coalD) ink

Ceteris paribus meansCeteris paribus means::

A) who caresB) the money is inflatedC) all other things being equalD) the money should be equally

distributed

Who wrote the Who wrote the Wealth of Wealth of Nations?Nations?

_________________________

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

_________________________

Which security pays interest?Which security pays interest?

A)stockB) bond

Name the four market models Name the four market models in the U.S.in the U.S.

A)________________

B)________________

C)________________

D)________________

How does the First How does the First Amendment begin?Amendment begin?

_____________________________

Why is that important to know?

Name your Five Civil LibertiesName your Five Civil Liberties

A)__________________B)__________________C)__________________D)__________________E)__________________

What three questions does What three questions does every economy ask?every economy ask?

A)_________________

B)_________________

C)_________________

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

____________________________

Our Economy Today?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