Economics Final Exam

What is the Fundamental Problem of Economics

• Scarcity
• Opportunity Costs
• Tariffs
• Trade-offs

All of the following are examples of how the government is involved in the economy EXCEPT for

• Setting minimum wage laws
• Regulating big businesses
• Offering personal loans to citizens
• Collecting taxes

Which of the following is the overall goal of tariffs?

• Encourage people to buy domestic goods because they become relatively cheaper
• Reduce inflation immediately
• Eliminate all imports
• Encourage international job growth

Which of the following is a criticism of globalization?

• Lower production costs for companies
• Poor labor conditions in developing countries
• Faster global communication

Mandatory spending MAINLY includes

• Social Security
• Military funding
• Education grants
• Space programs

Discretionary spending HIGHLY FUNDS which program

• Medicare
• Social Security
• National defense
• Medicaid

A ______________ tax is when everyone pays the same % of their income, no matter how much they make

• Proportional
• Progressive
• Regressive

What is one example of a job that uses unskilled labor?:

• Teachers
• Lawyers
• Fast-food workers
• Electricians

Which of the following is a benefit of globalization?:

• Increased trade barriers
• Access to wider markets
• Decreased availability of foreign goods
• Reduced cultural exchange

A ____________ tax is where people with higher incomes pay a higher % of their income in taxes

• Progressive
• Regressive
• Proportional