Economics Quiz

Which statement about taxes is most accurate?

• Sales taxes are a type of regressive tax.

• Federal income taxes are an example of a proportional tax.

• Progressive income taxes are designed to benefit the wealthy.

• User fees charged by the government are a type of progressive tax.

The nation of Japan has very limited natural resources, but it is one of the wealthier nations in Asia. How does Japan maintain its wealth with limited natural resources?

• Japan exports petroleum to produce revenue.

• Japan trades technology to get the resources it needs.

• Japan exports agricultural products to produce revenue.

• Japan trades precious metals to get the resources it needs.

Which statement best describes a defining characteristic of traditional economies?

• Businesses work with governments to set production goals.

• Consumer demand determines production levels.

• Production is based on cultural customs.

• Production is mandated by the state.

One way the federal government can control inflation is to increase

• the money supply.

• public spending.

• the tax rate.

• bank regulation.

Which best describes a purpose of international trade?

• Nations can obtain enough workers needed to produce goods.

• Nations can obtain goods they are unable to produce on their own.

• Nations can ensure they will have enough funds to purchase goods.

• Nations can ensure that goods they produce will sell for high prices.

Which feature of the Soviet economy limited the ability of individuals to make economic choices?

• central planning

• mercantilism

• collective bargaining

• free enterprise

When the resource allocation decisions are made by the government but property is typically owned by individuals, this type of economy is most likely

• market capitalism.

• market socialism.

• command capitalism.

• authoritarian socialism.

Which term describes a factor of production?

• inflation

• labor

• scarcity

• tariff

Use the news headline below to answer the question. Government would most likely use the tax increase to pay for

• building a church.

• holding a carnival.

• opening a restaurant.

• funding public transit.

How will a city most likely obtain money to pay for a new middle school?

• raise the income tax rate

• merge municipal agencies

• promote local fundraisers

• raise the local property tax