Apex Economics Unit 3 TEST review

Three macroeconomic goals in a society are stable prices, economic growth and

• decreased production

• full employment

• high inflation

• volatile market

What happens when inflation occurs?

• higher prices

• lower prices

• more jobs

• government programs

Building roads, using tax money to hire workers for programs, and increasing spending are actions of

• business owners

• private citizens

• the government

• the military

The ability to trade money between different people and compare the value of things is which function of money?

• reserve requirement

• store of value

• measure of value

• medium of exchange

What's unique about bartering?

• goods are often valuable

• values often do not match between goods

• it doesn't require any money being exchanged

• people always agree about value

In the United States, currency is based on the idea that money gets its value because it is assigned by the government. This is

• fiat money

• commodity money

• representative money

• bartering

If your money can be exchanged for gold or other metals, but has no value on its own, it is

• fiat money

• commodity money

• representative money

• bartering

What is the focus of fiscal policy?

• trade

• the value of money

• taxing and spending

• laws

If all citizens pay the exact same rate of taxes, regardless of income, this is

• progressive taxation

• proportional taxation

• regressive taxation

A tax system in which the wealthy pay a higher percentage than lower income earners is

• progressive taxation

• proportional taxation

• regressive taxation