Economics 3
American free enterprise is driven by the (1) Desire for economic equality. (2) Need to make a living. (3) Desire for profit.
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An income level below that which is needed to support families or households is (1) Microeconomics. (2) The gross domestic product. (3) The poverty threshold.
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Subsidized housing is an example of (1) An in-kind benefit. (2) A faith-based initiative. (3) A cash transfer. (4) Workers compensation.
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What is a free rider? (1) Someone who would not choose to pay for a certain good or service, but who would get the benefits of it anyway if it were provided as a public good. (2) A force that encourages people and organizations to improve their material well -being (3) An economic side effect of a good or service that generates costs to someone other than the person deciding how much to consume (4) A private organization that tries to persuade public officials to act or vote according to group members interests
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Which of the following is a negative effect of government regulation? (1) Government regulations can be costly for businesses to implement and may cut into profits. (2) Government regulations can protect consumers health. (3) Government regulations define air traffic control and piloting standards. Government regulations recognize the rights of disabled individuals.
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Which of the following statements about externalities is FALSE? (1) Only the private sector can create both positive and negative externalities. (2) Negative externalities are unintended costs generated by the production of some goods and services. (3) A positive externality of education is the benefit to all of society from an educated population. (4) Many public goods and services generate positive externalities.
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Giving consumers the freedom to make their own economic choices is the fundamental purpose of (1) A centrally planned economy. (2) The free enterprise system. (3) Consumerism. (4) Socialism.
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Macroeconomics is (1) The study of the economic behavior and decision making of small units, such as individuals, families, and businesses. (2) The study of the behavior and decision making of entire economies. (3) The concept that everyone can compete in the marketplace. (4) A commitment to the value of work and purposeful activity.
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Welfare is (1) A faith-based initiative. (2) Government aid to the poor. (3) Goods and services provided to people over the age of 65. (4) The process used to produce a good or service.
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Which of the following would be considered a public good? (1) A cartoon-themed amusement park (2) Yellowstone National Park (3) A membership-only country club (4) A shopping mall
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Complete the sentence to make a true statement. Competition (1) Creates artificially high prices for products and services. (2) Allows most businesses to make a profit. (3) Slows down innovation in the marketplace. (4) Means consumers have more economic choices.
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The business cycle is (1) The study of the economic behavior and decision making of small units, such as individuals, families, and businesses. (2) The study of the behavior and decision making of entire economies. (3) A commitment to the value of work and purposeful activity. (4) A period of macroeconomic expansion followed by a period of contraction.
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The total value of all final goods and services produced in a particular economy is called (1) The work ethic. (2) Microeconomics. (3) Macroeconomics. (4) The gross domestic product.
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Which of the following is NOT a cash transfer program? (1) Temporary Assistance for Needy Families (2) Social Security (3) Unemployment insurance (4) The Food Stamp Program
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Which of the following is a public good? (1) An Internet provider (2) A construction company (3) A private garden (4) The military
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