Multiple Choice
Identify the
choice that best completes the statement or answers the question.
|
|
|
1.
|
Sole proprietors have ____, meaning they are financially responsible for all
problems related to their businesses.
a. | unlimited liability | c. | financial capital | b. | limited liability | d. | stock |
|
|
|
2.
|
The ____ is the clearest statement of the administration’s plans and goals
for the coming year.
a. | federal budget | c. | Council of Economic Advisers | b. | cabinet | d. | bureaucracy |
|
|
|
3.
|
What is a sustained increase in the general level of prices?
a. | recession | c. | expansion | b. | inflation | d. | consumer price
index |
|
|
|
4.
|
A ____ is a graph that lists prices on the vertical axis and quantities on the
horizontal axis.
a. | market demand | c. | demand curve | b. | demand schedule | d. | utility demand |
|
|
|
5.
|
A governor can ____, or reduce, a criminal’s sentence.
a. | commute | c. | parole | b. | veto | d. | apportion |
|
|
|
6.
|
An economic ____ occurs when real GDP goes up.
a. | peak | c. | business cycle | b. | recession | d. | expansion |
|
|
|
7.
|
The ____ cost is what you cannot buy or do when choosing to do one thing rather
than another.
a. | incentive | c. | marginal | b. | rational | d. | opportunity |
|
|
|
8.
|
What court usually hears minor cases and civil cases involving small sums of
money?
a. | magistrate court | c. | people’s court | b. | community court | d. | mayor’s
court |
|
|
|
9.
|
In a ____ shop, workers do not have to join a union, but can choose to do
so.
a. | free | c. | closed | b. | union | d. | modified union |
|
|
|
10.
|
By ____, the Supreme Court decides if a law is constitutional.
a. | stare decisis | c. | docket | b. | dissenting opinion | d. | judicial review |
|
|
|
11.
|
What is the term for a court’s authority to hear and decide cases?
a. | juris doctoris | c. | judgment | b. | justice | d. | jurisdiction |
|
|
|
12.
|
Passed by both houses of Congress, ____ become law if signed by the
president.
a. | voice votes | c. | filibusters | b. | joint resolutions | d. | riders |
|
|
|
13.
|
If the Supreme Court refuses to hear a case
a. | the case may be appealed to another branch of government | c. | the case may be
appealed to a higher court | b. | the case receives a new
trial | d. | the ruling of the
lower court stands |
|
|
|
14.
|
Which term refers to the role of the consumer as ruler of the market?
a. | competition | c. | free enterprise | b. | market determination | d. | consumer
sovereignty |
|
|
|
15.
|
The president may grant ____ to pardon a group of people.
a. | amnesty | c. | sanctions | b. | treaties | d. | executive
agreements |
|
|
|
16.
|
A justice who disagrees with the majority’s decision may write a ____
opinion.
a. | overruling | c. | minority | b. | dissenting | d. | concurring |
|
|
|
17.
|
____ refers to the way people think about the future.
a. | Demand | c. | Elasticity | b. | Expectations | d. | Utility |
|
|
|
18.
|
Which term refers to the methods or processes used to make goods and
services?
a. | productivity | c. | technology | b. | supply elasticity | d. | supply schedule |
|
|
|
19.
|
Ownership shares of a corporation are called
a. | stocks. | c. | bonds. | b. | bills. | d. | charters. |
|
|
|
20.
|
The Supreme Court claimed the power of judicial review in the decision of what
case?
a. | Marbury v. Madison | c. | Mayberry v.
Shelbyville | b. | Brown v. Topeka | d. | Plessy v. Ferguson |
|
|
|
21.
|
Competing products are called ____ because consumers can use one in place of the
other.
a. | complements | c. | utilities | b. | substitutes | d. | demands |
|
|
|
22.
|
When one thing is exchanged for the use of another, it is called a
a. | free exchange. | c. | opportunity cost. | b. | trade-off. | d. | marginal cost. |
|
|
|
23.
|
When the Supreme Court accepts a case for review, it places it on the ____, or
calendar.
a. | brief | c. | circuit | b. | caseload | d. | docket |
|
|
|
24.
|
A(n) ____ is a judge who presides over a justice court.
a. | attorney general | c. | magistrate | b. | justice of the peace | d. | circuit judge |
|
|
|
25.
|
Food, clothing, and shelter are examples of
a. | needs. | c. | trade-offs. | b. | wants. | d. | incentives. |
|
|
|
26.
|
A ____ is a previous case that gives guidance to other judges hearing similar
cases.
a. | docket | c. | precedent | b. | rule of law | d. | brief |
|
|
|
27.
|
The amount of money that is left after all expenses have been paid is
a. | distinguished money | c. | allowed money | b. | revenue | d. | the profit |
|
|
|
28.
|
The two houses of a state legislature have passed different versions of a bill
giving tax breaks to small-business owners. The most likely place the bill would go next is to
a. | the floor of both houses | c. | a joint conference
committee | b. | the governor | d. | a referendum |
|
|
|
29.
|
A ____ is the amount by which the quantity demanded is higher than the quantity
supplied.
a. | surplus | c. | shortage | b. | subsidy | d. | equilibrium |
|
|
|
30.
|
What is it called when a job is broken down into several, smaller tasks that are
performed by different workers?
a. | specialization | c. | division of labor | b. | job performance | d. | productivity |
|
|
|
31.
|
____ refers to the desire, willingness, and ability to buy a good or
service.
a. | Market demand | c. | Law of demand | b. | Supply | d. | Demand |
|
|
|
32.
|
____ are annual reports to the government that calculate the tax that workers
must pay on their incomes.
a. | Tax returns | c. | Appropriations bills | b. | Income reports | d. | Budget
resolutions |
|
|
|
33.
|
The ____ principle means that a person is prevented from consuming private goods
unless he or she pays for them.
a. | private goods | c. | nonexclusion | b. | exclusion | d. | consumption |
|
|
|
34.
|
Which term describes the blueprint of how the government will raise and spend
money?
a. | budget | c. | expenditures | b. | fiscal year | d. | revenue |
|
|
|
35.
|
According to the law of demand, when the price of a good goes up
a. | the supply will go up | c. | peole will usually buy less of it | b. | the demand will go
up | d. | people will usually buy
more of it |
|
|
|
36.
|
What is the name of a business owned by two or more people?
a. | partnership | c. | closed shop | b. | sole proprietorship | d. | corporation |
|
|
|
37.
|
____ is the struggle between buyers and sellers to get the best products at the
lowest prices.
a. | Competition | c. | Free enterprise | b. | Economic freedom | d. | Productivity |
|
|
|
38.
|
Economists use ____ to test solutions to questions for which there are no
obvious or easy answers.
a. | trade-offs | c. | economic models | b. | rational choices | d. | cost-benefit
analyses |
|
|
|
39.
|
When a business concentrates on goods or services that it can produce better
than anyone, it is using
a. | specialization. | c. | factor marketing. | b. | productivity. | d. | capitalism. |
|
|
|
40.
|
____ is the act of buyers and sellers freely engaging in market
transactions.
a. | Capitalism | c. | Consumer sovereignty | b. | Consumerism | d. | Voluntary
exchange |
|
|
|
41.
|
Before a corporation can form, it must get permission from the government in the
form of a
a. | article of partnership. | c. | charter. | b. | corporate
deed. | d. | grant of
incorporation. |
|
|
|
42.
|
With ____ accounts, banks pay interest to customers based on how much money they
have deposited.
a. | checking | c. | debit | b. | savings | d. | reserve |
|
|
|
43.
|
What are the tools, machinery, and buildings used to make other products?
a. | labor | c. | resources | b. | entrepreneurs | d. | capital |
|
|
|
44.
|
The highest ranking officers of the Army, Navy, Air Force and Marines who advise
the president on military matters are called the
a. | Joint Chiefs of Staff | c. | Bureaucracy | b. | President’s Men | d. | Cabinet |
|
|
|
45.
|
The alternating periods of economic growth and decline make up
a. | the business cycle. | c. | a peak. | b. | an expansion. | d. | a recession. |
|
|
|
46.
|
Resources needed to produce goods and services are called ____ of
production.
a. | materials | c. | elements | b. | capital | d. | factors |
|
|
|
47.
|
A bill that passes one house of Congress and fails to pass in the second
house
a. | returns to its house of origin | c. | will not become a
law | b. | returns to a committee in the second house | d. | is sent to a circuit court for
interpretation |
|
|
|
48.
|
Who are the owners of a corporation?
a. | stockholders | c. | chief executive officers | b. | board of
directors | d. | charter
members |
|
|
|
49.
|
Which of the following is not a step in the Federal lawmaking process?
a. | the President signs a bill into law | c. | It is introduced in both
houses. | b. | 2/3 of state legislatures must approve it | d. | members of congress debate whether to approve
or reject a bill |
|
|
|
50.
|
Demand for a good in a particular market area is related to the number of ____
in the area.
a. | sellers | c. | resources | b. | consumers | d. | supplies |
|
|
|
51.
|
The additional benefit associated with an action is the ____ benefit.
a. | fixed | c. | total | b. | marginal | d. | variable |
|
|
|
52.
|
____ is when union and company officials meet to discuss the terms of the
workers’ new contract.
a. | Arbitration | c. | Closed shop | b. | Mediation | d. | Collective
bargaining |
|
|
|
53.
|
The job of the ____ courts is to review decisions made in the lower district
courts.
a. | appeals | c. | concurrent | b. | exclusive | d. | supreme |
|
|
|
54.
|
A product for which quantity changes very little when prices go up or down is
said to be supply
a. | dynamic. | c. | inelastic. | b. | elastic. | d. | subsidized. |
|
|
|
55.
|
____ is the extra benefits gained from the purchase of a good or service.
a. | Demand elasticity | c. | Marginal utility | b. | Substitution | d. | Complement |
|
|
|
56.
|
Which program gives payments to blind or disabled people and to persons age 65
and older?
|
|
|
57.
|
What term refers to government projects and grants that primarily benefit a
Congress member’s home state?
a. | fat money | c. | filibusters | b. | cloture grants | d. | pork-barrel
projects |
|
|
|
58.
|
The governor has the power to postpone the execution of a sentence through
a
a. | commute | c. | reprieve | b. | parole | d. | pardon |
|
|
|
59.
|
Economics is sometimes called the science of
a. | decision making. | c. | cost-benefit analysis. | b. | economic
models. | d. | supply and
demand. |
|
|
|
60.
|
When passed by Congress, what becomes a law that authorizes spending for a
particular activity?
a. | budget resolution | c. | tax return | b. | appropriations bill | d. | entitlement
program |
|
|
|
61.
|
A ____ is a business owned and operated by a single person.
a. | corporation | c. | sole proprietorship | b. | partnership | d. | cooperative |
|
|
|
62.
|
____ markets are where productive resources are bought and sold.
a. | Product | c. | Foreign | b. | Consumer | d. | Factor |
|
|
|
63.
|
The ____ states that the laws Congress makes outweigh all state laws.
a. | supremacy clause | c. | congressional clause | b. | Tenth Amendment | d. | Fifth Amendment |
|
|
|
64.
|
____ laws are designed to control monopoly power and to preserve and promote
competition.
a. | Natural monopoly | c. | Merger | b. | Externality | d. | Antitrust |
|
|
|
65.
|
The ____ is the percentage of the civilian labor force who are not working but
are looking for jobs.
a. | unemployment rate | c. | TANF | b. | CPI | d. | fiscal policy |
|
|
|
66.
|
Who follows the vice president in succession to the presidency?
a. | Speaker of the House | c. | attorney general | b. | secretary of state | d. | secretary of
defense |
|
|
|
67.
|
Demand is ____ when a change in price causes a relatively larger change in
quantity demanded.
a. | dependent | c. | elastic | b. | inelastic | d. | complementary |
|
|
|
68.
|
____ helps answer what to produce, how to produce, and for whom to
produce.
a. | Demand | c. | Supply | b. | Technology | d. | Price |
|
|
|
69.
|
____ revenue is the change in total revenue that results from selling one more
unit of output.
a. | Residual | c. | Actual | b. | Flux | d. | Marginal |
|
|
|
70.
|
Only Nebraska has a ____, or one-house, legislature.
a. | apportioned | c. | mono-level | b. | bicameral | d. | unicameral |
|
|
|
71.
|
Which programs provide health, nutritional, or income payments to people meeting
certain eligibility requirements?
a. | subsidy programs | c. | stabilizing programs | b. | bond programs | d. | entitlement
programs |
|
|
|
72.
|
What is the study of how we make decisions in a world where resources are
limited?
a. | economic model | c. | cost-benefit analysis | b. | economics | d. | capitalism |
|
|
|
73.
|
What is the indirect method we use to elect the president?
a. | Electoral College | c. | Executive College | b. | electoral agreement | d. | executive
agreement |
|
|
|
74.
|
What is the payment people receive when they end money or allow someone else to
use thier money?
a. | savings | c. | income | b. | interest | d. | warranty |
|
|
|
75.
|
States ____, or pay part of the costs of, a college education for resident
students.
a. | entitle | c. | stabilize | b. | subsidize | d. | appropriate |
|
|
|
76.
|
Congress may not pass ____ laws, or laws that make an act a crime after the act
has been committed.
a. | ex post facto | c. | filibuster | b. | cloture | d. | casework |
|
|
|
77.
|
Governors have the power to grant a prisoner a ____, or early release from
prison.
a. | commutation | c. | pardon | b. | citation | d. | parole |
|
|
|
78.
|
____ are deducted from a worker’s paycheck to fund Social Security and
Medicare.
a. | Payroll taxes | c. | Estate taxes | b. | Proportional taxes | d. | Excise taxes |
|
|
|
79.
|
If a case can be heard in either a federal or a state court, those courts have
____ jurisdiction.
a. | liberal | c. | exclusive | b. | executive | d. | concurrent |
|
|
|
80.
|
What is the basic goal of American foreign policy?
a. | national security | c. | treaty negotiation | b. | trade sanctions | d. | embargo
resolution |
|
|
|
81.
|
What is the term for the geographic area covered by an appeals court?
a. | jurisdiction | c. | judiciary zone | b. | circuit | d. | appellate |
|
|
|
82.
|
____ markets are markets where producers offer goods and services for
sale.
a. | Factor | c. | Foreign | b. | Product | d. | Free |
|
|
|
83.
|
What is the payment people receive when they lend money or allow someone else to
use their money?
a. | savings | c. | income | b. | warranty | d. | interest |
|
|
|
84.
|
What is an agreement among a group of nations that prohibits them all from
trading with a target nation?
a. | a blockade | c. | an embargo | b. | a tariff | d. | a sanction
treaty |
|
|
|
85.
|
What jurisdiction allows a court to hear appeals from a lower court?
a. | incremental | c. | exclusive | b. | concurrent | d. | appellate |
|
|
|
86.
|
According to the War Powers Act, the president must notify ____ immediately when
troops are sent into battle.
a. | Congress | c. | the Pentagon | b. | the public | d. | the attorney
general |
|
|
|
87.
|
Which term describes the percentage of deposits that banks have to set aside
either in their vaults or in their Federal Reserve district bank?
a. | certificate of deposit | c. | cache | b. | reserve | d. | futures |
|
|
|
88.
|
A ____ is something that can be traded for goods and services.
a. | loan | c. | deposit | b. | exchange certificate | d. | medium of
exchange |
|
|
|
89.
|
____ goods are goods that when consumed by one individual, cannot be consumed by
another.
a. | Public | c. | Private | b. | Nonexclusive | d. | Exclusive |
|
|
|
90.
|
____ are things we would like to have to make life more comfortable.
a. | Wants | c. | Incentives | b. | Trade-offs | d. | Needs |
|
|
|
91.
|
All of the following are factors of production except
a. | labor | c. | land | b. | profit | d. | capital |
|
|
|
92.
|
As commander in chief of the armed forces, the president
a. | can suspend the War Powers Act | c. | can send U.S. Troops
overseas | b. | can declare war on another nation | d. | leads forces into
Narnia |
|
|
|
93.
|
A person has been arrested and questioned by the police before being informed of
his or her rights. This is violation of the Supreme Court ruling in the case of
a. | Plessy vs. Ferguson | c. | Miranda vs. Arizona | b. | Brown vs. Board of
Education | d. | Marbury vs.
Madison |
|
|
|
94.
|
Any disagreements between ____ are initially heard by federal courts.
a. | individual citizens | c. | military officers | b. | state governments | d. | businesses |
|
|
|
95.
|
A ____ happens when a company agrees to pull a product off the market or agrees
to change it to make it safe.
a. | recall | c. | monopoly | b. | peak | d. | recession |
|
|
|
96.
|
Which term describes an unintended side effect of an action that affects someone
not involved in the action?
a. | exclusion | c. | externality | b. | expansion | d. | peak |
|
|
|
97.
|
What occurs when the government spends less than it collects in revenue?
a. | an entitlement | c. | a surplus | b. | a deficit | d. | a rebate |
|
|
|
98.
|
Where does the president live and work?
a. | Camp David | c. | Monticello | b. | White House | d. | Capitol |
|
|
|
99.
|
____ is the money needed to run a business or enable it to grow larger.
a. | Seed money | c. | Stock | b. | Charter | d. | Financial
capital |
|
|
|
100.
|
The ____ caused a financial panic that forced thousands of banks to
collapse.
a. | S&L deregulation | c. | National Banking Act | b. | Great Depression | d. | Glass-Steagall Banking
Act |
|
Essay
|
|
|
101.
|
Final Exam Essay
Prompt:
This year you have studied how our government works and
the roles of citizens in our government. What do you see as the individual’s role
in our democratic society? Be sure to include in your essay the personal, political and
economic roles of a United States citizen.
Rubric:
points
Graphic
Organizer
2
5
paragraphs
2
Appropriate paragraph
form
2
Introduction and conclusion
4
3-5
Personal characteristics
3-C,
4-B, 5-A
3-5 political characteristics
3-C, 4-B, 5-A
3-5 economic
characteristics
3-C, 4-B, 5-A
Total: 25 points
|