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WorksheetsAmerican Free Enterprise Chapter 3 Test
Total questions: 20
Worksheet time: 11mins
Name
Class
Date
1.
What is the most effective way for consumers to make their desires known to businesses?
a)
through mail and phone surveys
b)
by protesting and boycotting products
c)
by the purchases they make
d)
by hiring lobbyists and joining consumer groups
2.
What protections does OSHA give to people in the United States?
a)
regulations on workplace safety and information about hazards in the workplace
b)
consumer protection in buying foods
c)
regulations about clean environment
d)
protection for certain key industries such as logging
3.
What is the term for the total value of all goods and services produced in a particular economy?
a)
net worth
b)
open market value
c)
gross domestic product
d)
standard of living
4.
Assume that the poverty threshold for a single parent with one child is $11,869 per year. Catrina is a single mother who works 40 hours per week. What hourly wage does she need to earn in order to rise above the poverty threshold?
a)
$5.71
b)
$5.15
c)
$5.47
d)
$5.07
5.
In 1996, a new federal welfare program called Temporary Assistance for Needy Families (TANF) began assisting poor families. Which of the following was NOT a provision of TANF?
a)
direct cash payments to recipients
b)
work incentives
c)
lifetime limit of benefits
d)
state-run welfare programs
6.
The U.S. Constitution guarantees certain rights that allow people to engage in business activities. Which of the following does the U.S. Constitution NOT guarantee?
a)
the protection against monopolies and oligopolies
b)
the recognition and protection of private property rights
c)
a limitation on the kinds of taxes that Congress can impose
d)
the right to make binding contracts
7.
A large telephone company has hired lobbyists to try to persuade lawmakers to reduce governmental regulation over the telecommunications industry. Why might the company do this?
a)
Some regulations are costly to implement and cut into profits.
Some regulations are costly to implement and cut into profits.
b)
Many regulations promote too much competition, driving down prices.
c)
Certain regulations result in rapid business growth, which some companies find difficult to handle.
d)
All of these
8.
To stabilize the economy, policymakers try to achieve three main outcomes: high employment, steady growth, and
a)
technological advancement.
b)
stable prices.
c)
competition.
d)
consumer confidence.
9.
Which of the following is the best example of a public good?
a)
highway system
b)
shopping mall
c)
country club
d)
movie theater
10.
Each payday, some of your pay is withheld as payroll deductions for Social Security. What happens to the money that is withheld?
a)
It is redistributed as cash transfers to workers who are injured on the job.
It is redistributed as cash transfers to workers who are injured on the job.
b)
It is put into an account under your name to earn interest until you retire.
c)
It is used to provide medical benefits to Americans over 65.
d)
It is redistributed as cash transfers to elderly and disabled people.
11.
A new runway has opened up at the airport, and the flight path goes directly over your apartment. The noise of the airplanes is a
a)
positive externality.
b)
free-rider problem.
c)
negative externality.
d)
market failure.
12.
the part of the economy that involves the transactions of individuals and businesses
a)
market failure
b)
gross domestic product
c)
macroeconomics
d)
Private Sector
13.
someone who would not choose to pay for a certain good or service, but who would get the benefits of it anyway if it were provided as a public good
a)
in-kind benefits
b)
Free Rider
c)
welfare
d)
poverty threshold
14.
the concerns of the people as a whole
a)
Public interest
b)
free rider
c)
public disclosure laws
d)
macroeconomics
15.
the study of the behavior and decision making of entire economies
a)
macroeconomics
b)
welfare
c)
in-kind benefits
d)
public interest
16.
an income level below that which is needed to support families or households
a)
gross domestic product
b)
free rider
c)
Poverty threshold
d)
in0kind benefits
17.
government aid to the poor
a)
welfare
b)
microeconomics
c)
business cycle
d)
externality
18.
a situation in which goods are not fairly distributed
a)
cash transfers
b)
public disclosure laws
c)
microeconomics
d)
market failure
19.
a period of macroeconomic expansion followed by a period of contraction
a)
business cycle
b)
interest group
c)
public disclosure laws
d)
externality
20.
a private organization that tries to persuade public officials to act or vote in a certain way
a)
externality
b)
interest groups
c)
market failure
d)
poverty threshold
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