View a FREE sample

This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. A change in prices affects all but the following:
(a) incentrive to act on information
(b) nothing
(c) procedures income
(d) wages

2. Equality before God means:
(a) the right to do whatever one wants
(b) personal equality
(c) total freedom
(d) the right to an equal income

3. Which of the following was not a part of the 1964 War on Poverty program?
(a) Medicare
(b) Medicaid
(c) Social Security
(d) food stamps

4. The term human capital refers to the:
(a) machinery in the factory
(b) personal productive capacity of an individual
(c) output produced by a fasting
(d) kinds of inputs the worker uses

5. The purpose of urban renewal projects is to:
(a) provide low cost housing
(b) build housing projects
(c) eliminate slums
(d) finance the building of offices

6. Government expands through all but:
(a) welfare programs
(b) nationalization
(c) private enterprise
(d) regulatory activities

7. Which of the following is not a problem experienced by the British National Health Service?
(a) strikes
(b) long waiting lists of patients
(c) lack of citizen interest
(d) rising costs

8. Adam Smith says that voluntary exchange will not take place unless:
(a) one party can profits
(b) both parties benefit from it
(c) the government can tax the transaction
(d) it is commanded

9. After World War II there was a lot of interest in:
(a) central economic planning
(b) imperialism
(c) laissez-faire capitalism
(d) the price system

10. Enforced equality is a part of life in:
(a) apartment buildings
(b) communes
(c) government
(d) schools

11. What words did Thomas Jefferson write?
(a) there is no such thing as equality
(b) equality is not a part of freedom
(c) all men are created equal
(d) equality is not important

12. Government measures to promote fair shares for all:
(a) reduce liberty
(b) create harmony
(c) have no affefct on liberty
(d) enhance liberty

13. A tariff implemented to raise employment in the domestic nation:
(a) benefits all consumers
(b) lowers employment in the foreign nation
(c) has no effect on employment
(d) benefits all workers

14. The Federal Deposit Insurance Corporation:
(a) guarantees the repayment of bank loans
(b) provides mortgage insurance for homeowners
(c) guarantees the full amount of all deposits against loss
(d) guarantees deposits against a loss up to a stated amount

15. Equality of outcomes is related to:
(a) education
(b) fairness or fair shares
(c) right to own property
(d) rights to open a business

Short Answer Questions

1. The first head of the Federal Reserve System was:

2. Which of the following is not a function of the price system:

3. Which of the following is not one of Adam Smith's duties of government?

4. The equality of outcomes approach is based on:

5. The first thing Roosevelt did after his inauguration was to:

(see the answer keys)

This section contains 470 words (approx. 2 pages at 300 words per page) View a FREE sample