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WorksheetsGovernment and the Free Market Economy (practice and review)
Total questions: 25
Worksheet time: 13mins
More often than not, economists use a country's GDP as a barometer of its economic health.
No
Yes
Define or explain a country's infrastructure. Choose the best answer.
The good fortune, health, happiness, prosperity, etc., of a person, group, or organization; well-being:
The basic physical and organizational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of a society or enterprise.
The total value of goods produced and services provided in a country.
Pertaining to monetary receipts and expenditures; pertaining or relating to money matters; pecuniary: Infrastructure operations.
True or false: By lowering taxes the government is directly aiding the neediest sectors of society rather than the highest income.
True
False
Complete sentence: By investing in the country's infrastructure governments often intend to
Jumpstart the country's foreign trade and prepare for the future with a sound economic plan.
Deceive the opposition with bright future plans, but their goal is primarily to benefit themselves and their families.
Stabilize the currency's value with the Federal Reserve and boost the country's agricultural system.
Refurbish the public physical frameworks and jumpstart the economy by producing jobs.
Choose the best answer. What would result if the government infuses large quantities of capital into the market economy while lowering taxes?
The natural result is to benefit the entire country because this measure will quickly raise millions from poverty by offering many economic opportunities to society's most vulnerable sectors.
By investing in society (capital infusion) and leaving more money in the wallets of middle and high earners (owering taxes), the government reached the ideal compromise because it will satisfy democrats and republicans alike.
It will balloon the national debt because by reducing taxes, the state is also decreasing its income source and will have to borrow to pay for the capital infusion.
Neither the capital infusion nor the tax reduction will be felt in the economy because the government has little or nothing to contribute in a free market economy.
True or false. As a rule, the economy benefits when prices decline.
True
False
True or false. Totalitarian governments like China's can reach a macroeconomic balance with a thriving GDP, full employment, and stable prices even when is not pursuing equity.
True
False
Choose the best definition for economic growth.
A tangible increase in a state's internal revenues.
A boost in the purchasing power of most customers.
An expansion in a country’s output of goods and services.
Adding a significant quantity of new jobs to the economy.
True or false. Zero unemployment means full employment.
False
True
True or false. Frictional unemployment results when people leave their jobs voluntarily or are in school taking specialized training.
True
False
True or false. Cyclical unemployment results from the job displacement from mechanization and technological advances.
False
True
True or false. When the economy evades deflation and economic depression, it achieves market stability.
False
True
True or false. A low inflation level may easily tank the economy.
True
False
True or false. Economic Equity is when people's differences are erased.
True
False
Fill in the blanks with the best answer. Governments achieve economic growth, full employment, and stable inflation through _________________
Good communication.
Fiscal Policy.
A free-market economy.
Exporting more products and services.
Choose the best definition. Fiscal policy is:
The government’s power to tax its citizens and to spend money.
A state's definite course of fiscal action adopted for the sake of economic expediency, facility, etc.
Regard for what is political or advantageous to a sense of self-interest.
To promote some proposed or desired objective and proper under the circumstances.
True or false. Keynesian's economics seeks a course between capitalism and socialism by having government intervene during economic depressions.
True
False
True or false. The government employs contractionary fiscal policy to recover from an economic depression.
False
True
True or false. The federal government pursues an Expansionary Fiscal Policy to promote bills with an economic stimulus and infrastructure development.
True
False
True or False. The U.S. Government attempts to balance economic gains with equity policies.
True
False
True or false. The minimum wage is a type of price control.
True.
False.
True and False. The minimum wage is in counterposition to the equilibrium wage.
True
False
True or false. Equilibrium wage may not be fair for all sectors of the population.
True.
False.
True or false. In unregulated market economies, price ceilings do not exist.
True
False.
True or false. The differences between rent control and equilibrium rent could boost the demand for apartments.
False
True
