Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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Economic decisions involve…
a. | mandates. | c. | voting. | b. | mediation. | d. | wants. |
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2.
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Which of the following programs is administered by the Social Security
Administration?
a. | food stamps | c. | TANF | b. | SSI | d. | WIC |
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3.
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The tax system is used for all of the following purposes EXCEPT…
a. | to discourage criminal activity. | c. | to help the
needy. | b. | to encourage home ownership. | d. | to pay for road
repair. |
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4.
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Today, most of the world’s economies are…
a. | command economies. | c. | mixed economies. | b. | market economies. | d. | traditional
economies. |
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5.
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Which of the following is NOT provided by the Social Security system?
a. | disability benefits | c. | survivors’ benefits | b. | retirement
benefits | d. | unemployment
benefits |
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6.
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Characteristics of the American economic system include all of the following
EXCEPT…
a. | free enterprise. | c. | limited government control. | b. | limited consumer
choice. | d. | private
property. |
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7.
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A society’s economic resources include all of the following
EXCEPT…
a. | land. | c. | productive workers. | b. | power systems. | d. | time. |
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8.
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What is the main source of funding for unemployment insurance?
a. | a tax paid by employers | c. | sales tax | b. | a tax paid by
workers | d. | state and federal
grants |
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9.
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The largest percentage of federal government revenue comes from…
a. | corporate income taxes. | c. | individual income
taxes. | b. | excise taxes. | d. | Social Security taxes. |
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10.
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Which of the following is a public assistance program that focuses on nutrition
for pregnant women?
a. | food stamps | c. | TANF | b. | SSI | d. | WIC |
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11.
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Which statement is true?
a. | The resources of a society are limited, and peoples’ wants are
limited. | b. | The resources of a society are limited, and peoples’ wants are
unlimited. | c. | The resources of a society are unlimited, and peoples’ wants are
limited. | d. | The resources of a society are unlimited, and peoples’ wants are
unlimited. |
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12.
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The federal government’s power to collect income taxes was granted by
the…
a. | Bill of Rights. | b. | Sixteenth Amendment to the
Constitution. | c. | state legislatures. | d. | Supreme Court. |
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13.
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Of the following, the federal government spends the highest percentage of its
revenues on…
a. | health care. | c. | Medicare. | b. | interest on the national
debt. | d. | Social
Security. |
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14.
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Economic systems develop in response to the problem of…
a. | business practices. | c. | scarcity. | b. | funding methods. | d. | taxation. |
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15.
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Goals of the American economic system include all of the following
EXCEPT…
a. | scarcity. | c. | stability. | b. | security. | d. | efficiency. |
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16.
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FICA taxes are another name for…
a. | excise taxes. | c. | property taxes. | b. | income taxes. | d. | Social Security
taxes. |
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17.
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Which of the following is a public assistance program that provides
health-related services to low-income and needy people?
a. | disability benefits | c. | Medicare | b. | Medicaid | d. | SSI |
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18.
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If a high-income family and a low-income family both pay the same dollar amount
when paying a particular tax, that tax would be described as…
a. | flat. | c. | proportional. | b. | graduated. | d. | regressive. |
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19.
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Using a tax on air travel to help pay for airport security would be an example
of the…
a. | ability-to-pay principle. | c. | proportional
principle. | b. | benefit principle. | d. | revenue principle. |
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