Final Exam - Economics Practice #1

To protect against adverse economic events, the government set up a retirement and disability benefits program called Social Security, as well as a health insurance program called Medicare.

• True

• False

Inflation is not a threat to people with fixed incomes.

• True

• False

All of the following are examples of government regulation: Obamacare, child labor laws, minimum wage, and workers compensation.

• True

• False

Most businesses are successful.

• True

• False

Economic freedom is the ability of businesses and consumers to make their own choices.

• True

• False

Who ultimately determines the success of a product?

• the consumer

• the business producing the product

• the store selling the product

• the government

What is the name of the federal retirement program for senior citizens beginning at age 65?

• Medicaid

• ObamaCare

• Social Security

• FDIC

Consumers can influence the production and sale of goods by

• reducing their spending habits.

• "voting" with their dollars.

• paying off their debt.

• saving their money.

A general rise in the level of prices over time is known as

• inflation.

• profit.

• voluntary exchange.

• a catalyst.

Markets in the free enterprise system are seldom regulated by

• the government.

• entrepreneurs.

• businesses.

• consumers.