Econ Final

Which of the following is NOT one of the three basic economic questions?

• How shall goods and services be produced?

• What goods and services shall be produced?

• Why shall goods and services be produced?

• For whom shall goods and services be produced?

Economics may best be defined as a(n)

• scientific study of supply and demand

• study of efforts to satisfy unlimited wants with limited resources

• limited description of economic activities

• extended application of cost benefit analysis

Macroeconomics is the study of

• the economic behavior of individuals

• the economic behavior of whole economies

• the economic behavior of the President

• all of these

Land, labor, capital, and entrepreneurs are

• results of supply and demand

• results of production

• basis of employment

• factors of production

One reason rational economic choice is not always made is

• people don't care about their money

• the government decides for us

• we follow fads, trends, and fashion

• it doesn't help anyway

Why does the government protect inventors and authors by offering them patents and copyrights?

• to encourage free trade

• to promote innovation

• to regulate the business cycle

• to strengthen American culture

An example of incentives in a capitalist system would be

• better health of workers

• lower train and airfares

• profits

• losses

Which of the following taxes is the most unfair to the poor?

• progressive income taxes

• regressive taxes

• estate taxes

• gift taxes

The largest source of revenue for the federal government

• are excise taxes

• are social insurance taxes

• is borrowing

• are personal income taxes

Discretionary spending is

• spending that is mandatory

• spending that requires no approval from Congress

• spending that requires Congressional approval on a yearly basis

• done automatically regardless of what Congress wants