AG Unit 8 Pretest

What is capital in economic terms?

• Government subsidies for goods

• Human-made resources used in production

• A state’s revenue from taxes

• Natural resources from the land

• I don't know

Which agency ensures companies disclose financial information truthfully?

• FDIC

• IRS

• FTC

• SEC

• I don't know

What is one main role of government in laissez-faire capitalism?

• Maintain police and court systems

• Fund all private businesses

• Build all roads and bridges

• Set salaries and benefits

• I don't know

What does a mixed economy attempt to balance?

• Central planning with cultural values

• Free market with government intervention

• Government spending with consumer saving

• Private wealth with traditional practices

• I don't know

What was a key economic goal of Reaganomics?

• Create national economic boards

• Cut taxes and reduce regulation

• Expand welfare spending

• Increase government investments

• I don't know

Why is taxation necessary in a democratic society?

• To increase voter income

• To support community needs

• To promote individual wealth

• To reduce citizen rights

• I don't know

A new business owner combines labor, land, and capital to launch a new tech product. Which term best applies to this person?

• Entrepreneur

• Economist

• Manufacturer

• Banker

• I don't know

What happens to consumer purchasing power during inflation?

• It increases

• It is unchanged

• It decreases

• It strengthens

• I don't know

What does GDP measure?

• National debt level across 10-year span

• All final goods and services produced annually

• Imports and exports across the whole world

• Federal tax incomes from all but the bottom fifth

• I don't know

If the U.S. placed a tariff on imported electronics, it would likely:

• Lower prices for American consumers

• Raise prices on imported electronics

• Have no effect on trade balance

• Increase exports of electronics

• I don't know