Goal 9: Analyze factors influencing the US economy. Ch. 23,26,27. Economic Notes. Around 8-12 Questions
1. Which of the following is an example of aprogressive tax?
A. TariffB. Excise TaxC. Income TaxD. Sales Tax
2. Which of the following best describesmonetary policy?
A. The Federal Reserve regulates howmuch money is in circulation
B. The government gives aid to familiesbelow the poverty line
C. The Treasury Department’s use of cashto influence the decisions of Congressand the President
D. The United States is economicallydependent on other countries
3. What kind of tax is placed on gasoline andtobacco?
A. Excise TaxB. Income TaxC. Property TaxD. Sales Tax
4. When the government spends money, whatis the short term affect of its purchase?
A. To decrease the trade deficitB. To slow the economy
C. To operate government cooperationD. To stimulate the economy
5. Which of the following is a characteristic ofeconomic expansion?
A. Decrease in building permitsB. Increased employmentC. Increased unemployment D. Decreased stock market averages
6. Which of the following best describesterrorism?
A. A declaration of war by one country onanotherB. A criminal act that is prosecuted by the UN
C. A criminal act on innocent people tomake a pointD. An attack by another country on ourmilitary
7. What is a migrant worker?
A. An individual who moves throughoutthe country to pick fruits and vegetablesas various crops come into season
B. An individual who moves throughoutthe country to invest in various stockportfolios of seasonal companies
C. An individual who migrated from thesouthern United States as part of theGreat Migration
D. An individual whose work has beenoutsourced to another country, so theyhave migrated industries to earn a living
8. Which department was added to the federalgovernment most recently?
A. Department of Homeland SecurityB. Department of Education
C. Department of EnvironmentalProtectionD. Department of Agriculture
9. Which is the best definition of outsourcing?
A. The selling of some factories in order toreduce the size of your company
B. Goods and services being supplied bysomeone outside the company/country
C. Using technology that is supplied byanother personD. The buying of bonds from a foreigncountry
10. Which one of the following acts/laws gavethe federal government the “appropriate toolsrequired to intercept and obstruct terrorism?”
A. Antri-Trust LawsB. September 11th ActC. Patriot ActD. American Recovery and ReinvestmentAct
11. Imagine America decided to add a fifteenpercent import duty on all goods from China.Why would the government likely haveimposed such a protective tariff?
A. To balance the trade deficitB. To raise money for transportation
C. To raise money for educationD. To increase the quality of goodsprovided to consumers in America
12. What is the purpose of a free-trade zonelike the one established by NAFTA?
A. To increase government revenue fromtariffsB. To reduce trade barriers betweennations
C. To protect jobs for workersD. To reduce foreign competition
13. What occurs when a nation exports moregoods than it imports?
A. Exchange RateB. Comparative AdvantageC. Trade DeficitD. Trade Surplus
14. What occurs when a country imports moregoods than it exports?
A. Exchange RateB. Comparative AdvantageC. Trade DeficitD. Trade Surplus
15. Choose the best definition of ComparativeAdvantage
A. The advantage between one countryand another in living conditions
B. A comparison between differentadvantages in countries
C. When one firm can produce a productbetter (or cheaper) than another firm
D. Shipping routes that are more easilynavigable
16. Reduction of trade barriers is known as______.
A. Free TradeB. EmbargoC. TariffD. Balance of Trade
17. The agreement to eliminate all traderestrictions between Mexico, Canada, and theUS is commonly known as:
A. DECAB. NATOC. NAFTAD. CAFTA
18. What is a contraction in the business cycle?
A. When the economy begins to improveafter hitting its lowest point
B. When economic activity is strong withbusinesses working and selling at fullcapacity
C. When the economy is starting to slowdown and people are buying fewergoods and services
D. When production is at its lower pointand unemployment is very high
19. What is a peak in the business cycle?
A. When the economy begins to improveafter hitting its lowest point
B. When economic activity is strong withbusinesses working and selling at fullcapacity
C. When the economy is starting to slowdown and people are buying fewergoods and services
D. When production is at its lower pointand unemployment is very high
20. What is the best definition of anexpansion in the business cycle?
A. When the economy begins to improveafter hitting its lowest point
B. When economic activity is strong withbusinesses working and selling at fullcapacity
C. When the economy is starting to slowdown and people are buying fewergoods and services
D. When production is at its lower pointand unemployment is very high
21. A trough in the business cycle is usuallydefined as:
A. When the economy begins to improveafter hitting its lowest point
B. When economic activity is strong withbusinesses working and selling at fullcapacity
C. When the economy is starting to slowdown and people are buying fewergoods and services
D. When production is at its lower pointand unemployment is very high
22. Which of the following organization’s purpose is to offer advice and financial assistance to developing nations?
A. European Union (EU)B. Bank of America C. UN Security CouncilD. Inter. Monetary Fund (IMF)
23. Which of the following is an example of a trade sanction?
A. OPEC Oil EmbargoB. Clean Air and Water ActC. détenteD. Cent. American Free Trade Agreement
24. Which term describes a tax rate that is lower for people with lower incomes and higher for people with higher incomes?
A. regressiveB. ingressiveC. progressiveD. retrogressive
25. What action could the US gov’t reasonably take in order to protect domestic steel producers from competition from steel producers in other countries?
A. require citizens to purchase domestic productsB. allow free trade among countries
C. lower the cost of production for American companiesD. impose a tariff on steel produced outside the US
26. Which term describes the condition of a country whose value of the products it imports exceeds the value of products it exports?
A. trade deficitB. trade surplusC. trade balanceD. exchange rate
27. What is the main purpose of a quota?
A. reduce prices of foreign goods and servicesB. limit the amount of foreign goods imported
C. increase the prices of domestic goods and services abroadD. increase the prices of foreign goods and services
28. What was the basic purpose of the Sherman Antitrust Act of 1890?
A. prevent competition among businessesB. protect consumers from monopolies
C. promote corporate mergersD. force businesses to succumb to government regulations
1. C
2. A
3. A
4. D
5. B
6. C
7. A
8. A
9. B
10. C
11. A
12. B
13. D
14. C
15. C
16. A
17. C
18. C
19. B
20. A
21. D
22. D
23. A
24. C
25. D
26. A
27. B
28. B