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Gace practice test

Total questions: 106

Worksheet time: 55mins

Name
Class
Date
1.

The continental divide passes through which of the following states?

a)

North Dakota

b)

Kansas

c)

Nevada

d)

Colorado

2.

Which of the following was a major reason the population of the English colonies in North America grew more rapidly than the population of the French colonies in North America ?

a)

Unlike British ships, French ships carrying settlers had to avoid English warships blockading the coast of France.

b)

Land for Settlers was scarcer in the French Colonies than in the English colonies.

c)

Unlike the French Crown, the English Crown allowed religious dissenters to leave the homeland for North America.

d)

The discovery of gold in the English colonies attracted settlers from several western European nations.

3.

Which of the following was the most significant contribution of the Articles of Confederation government to the growth of the United States?

a)

Providing an effective method for the taxation of the states by the national government

b)

Passing the Northwest Ordinance of 1787 which established the procedure for territories to become states

c)

Establishing the precedent that later allowed Thomas Jefferson to acquire the Louisiana Territory

d)

Developing a system of tariffs that enabled the national government to meet its expenses by taxing imports

4.

The principal source of opposition to the ratification of the Constitution during the years 1787-1788 came from a fear that ratification would

a)

lead to a large national debt

b)

weaken the power of the states

c)

put an end to majority rule among United States citizens

d)

be the first step in the establishment of a monarchy

5.

Which of the following statements is true about barrier islands such Jekyll, Tybee, and St. Simons along the coast of Georgia?

a)

They are wildlife sanctuaries

b)

They are hubs of the fishing industry

c)

They protect the mainland from storms and Erosion

d)

They are untouched by development and industry

6.

The United States Supreme Court decision in the case of Marbury v. Madison was significant because it established the

a)

right of the supreme court to original jurisdiction in federal cases

b)

power of the Supreme Court to invalidate an act of Congress

c)

number of united states supreme court justices

d)

Principle that presidents have the authority to expand United States territory by purchasing land.

7.

Which of the following best describes the Monroe Doctrine, promulgated by President Monroe in 1823 ?

a)

A publication from the first continental congress that outlined Federalist principles

b)

The first plan for self-government adopted in the English colonies

c)

A document intended to end European colonization in the Western Hemisphere

d)

one of the first documents to oppose slavery in the united states

8.

Which of the following best describes a significant feature of the Waltham-Lowell system?

a)

Textile mill owners hired entire families, including children over 7 years old, to work in the mills

b)

Young women from neighboring farms were hired to work in the textile mills to earn money until they married.

c)

Textile mill owners paid the cost of passage for factory workers from Europe to the united states to guarantee a supply of labor

d)

Textile mills printed their own script, or currency, with which workers were paid for use in stores established by the owners.

9.

Harriet Tubman made which of the following contributions to the abolitionist movement?

a)

Writing Uncle Tom's Cabin, a novel chronicling the abuses of slavery

b)

Editing The Liberator, an abolitionist newspaper

c)

Leading a slave rebellion in Virginia in 1831

d)

Acting as a conductor on the Underground Railroad.

10.

Which of the following best describes a consequence of including the principle of popular sovereignty in the Kansas-Nebraska Act of 1854?

a)

It reopened the issue of slavery in the area closed to slavery north of the 36 degree 30' line of the Missouri Compromise.

b)

It gave New Orleans the best Chance of becoming the eastern terminus of the first transcontinental railroad

c)

it eliminated the possibility of extending slavery west of the Mississippi river

d)

It resulted in a repeal of the Fugitive Slave Act, thereby angering proslavery southerners and increasing the chances of secession

11.

Which of the following was a major concern for cotton farmers in Georgia around the time of the First World War?

a)

Bimetallism

b)

Boll weevil infestations

c)

Volatility in the stock market

d)

Rising transportation costs

12.

Which of the following Native American tribes was forced off its land by the Indian Removal Act of 1830 and resettled in the Indian Territory?

a)

Iroquois

b)

Cherokee

c)

Pueblo

d)

Sioux

13.

In the early years of European exploration and settlement of North America, the Native American population changed in which of the following ways?

a)

it grew, largely as a result of the spread of European crops.

b)

it decreased, largely as a result of European military attacks

c)

It decreased, largely as a result of changes in the climate.

d)

It decreased, largely as a result of the spread of infectious diseases from Europeans.

14.

The United States Constitution permits both of the federal and state governments to borrow money. Which of the following types of power best describes this arrangement?

a)

Concurrent powers

b)

implied powers

c)

Expressed powers

d)

Reserved powers

15.

Which of the following novels had the greatest impact on the abolitionist movement?

a)

Native Son

b)

Uncle Tom's Cabin

c)

Huckleberry Finn

d)

Gone with the wind

16.

What legal doctrine was overturned in the Supreme Court's Brown v. Board of Education of Topeka decision in 1954?

a)

Universal Schooling

b)

"Separate but equal" laws

c)

prayers in school

d)

Sanctity of the flag

17.

Which of the following individuals was the governor of Georgia who ended the poll tax and extended voting rights to 18-year-olds?

a)

Lester Maddox

b)

Ivan Allen

c)

William Hartsfield

d)

Ellis Arnall

18.

"Communists have infiltrated into the school system. We know that teachers in Harvard are avowed Communists. They are spreading Communism in every way they can."


Which political figure came to prominence espousing the sentiments similar to those expressed in this quote?

a)

Adlai Stevenson

b)

Harry Truman

c)

Joseph McCarthy

d)

Dwight Eisenhower

19.

President Franklin D. Roosevelt's New Deal attempted to combat the economic problems of the Great Depression primarily by

a)

reducing government regulations of business

b)

providing funding for public-works projects

c)

lowering tariffs to encourage imports

d)

imposing wage and price controls to stop inflation

20.

Which of the following best describes a major challenge that President Lyndon B. Johnson faced in 1968 as he completed his full term as president?

a)

He struggled to make the federal budget support both the Vietnam War and the "War on Poverty".

b)

He faced congress that was controlled by the Republican Party

c)

the majority of the country felt that the nation was falling behind in the space race.

d)

his health insurance proposal for elderly Americans was stalled in congress with little chance of passage

21.

"The short-run effects should be very favorable to the United States. Unquestionably, the United States will emerge from this confrontation with increased prestige worldwide. The Soviet action should demonstrate once again the offensive nature of Soviet motivations more clearly than anything we could say. It should also demonstrate that the Soviets are not prepared to risk a decisive military showdown with the US over issues involving the extension of Soviet power."


This passage was most likely written in the aftermath of which of the following conflicts?

a)

Cuban missile crisis

b)

Vietnam war

c)

Invasion of Afghanistan

d)

Korean War

22.

Click on your choices.


Which of the following are roles of the governor of Georgia?


Select ALL that apply.

a)

Signing bills into law

b)

commanding the state patrol

c)

Declaring laws unconstitutional

d)

Recommending the state budget

23.

In 1961, Charlayne Hunter and Hamilton Holmes became the first African Americans to

a)

integrate into the University of Georgia

b)

refuse to ride in the back of a city bus

c)

join the sibley commission and speak out against School segregation

d)

Challenge Lester Maddox for segregating his privately owned restaurant

24.

W.E.B. Du Bois' "The Souls of Black Folk" (1903) contained

a)

strong support for Marcus Garvey's Back-to-Africa movement

b)

a criticism of Booker T. Washington's approach to expanding the opportunities of African Americans.

c)

an alternative to the plan for advancing the civil rights movement advocated by the Niagara Movement

d)

a defense of the United States Supreme Court's decision in Plessy v. Ferguson

25.

Which of the following was a major obstacle that had to be overcome before the Panama Canal could be successfully completed?

a)

Several endangered species of plants and animals had to be moved away from the canal zone.

b)

The Panamanian public had to be convinced the canal would benefit their country.

c)

Doctors had to develop ways to combat malaria.

d)

The united states government had to revoke the Monroe Doctrine

26.

Which of the following civil rights activists is most closely associated with the Montgomery bus boycott?

a)

Ella Baker

b)

Angela Davis

c)

Martin Luther King, Jr.

d)

Malcolm X

27.

which of the following were effects of the GI bill on the united states following the second world war?

a)

The growth of suburbia

b)

Higher levels of education

c)

Decreased wages for the working class

d)

Decreased racial segregation

28.

Which of the following are accomplishments that were a result of the Progressive Movement?


(Select all that apply)

a)

Attainment of voting rights for black males

b)

Implementation of laissez-faire economic policies

c)

Regulation of the food and drug industries

d)

Development of better sanitation in urban areas

29.

Which of the following US presidents was a Georgia native?

a)

Lyndon Johnson

b)

Richard Nixon

c)

Gerald ford

d)

jimmy carter

30.

Which of the following policies were pursued by President Ronald Reagan during his presidency?


(Select all that apply)

a)

Easing the tensions with the Soviet Union

b)

Increasing regulation of business

c)

Increasing funding of social welfare programs

d)

Lowering taxes to stimulate the economy

31.

In which of the following regions of the United States is a farmer most likely to need irrigation to grow crops?

a)

New England

b)

Southeast

c)

Pacific Northwest

d)

Southwest

32.

Why did General William T. Sherman attack the infrastructure, such as roads, buildings, and railroad tracks, between Atlanta and Savannah during the Civil War?

a)

To retaliate for lives lost in the Battle of Kennesaw Mountain

b)

To force Georgia troops to return home defend Georgia

c)

To shorten the war by preventing civilians from supporting the war effort

d)

To decrease the mobility of the Union forces in Georgia

33.

Which of the following mountain ranges provides a natural barrier that separates the continents of Europe and Asia?

a)

The Alps

b)

The Andes

c)

The pyrenees

d)

The Urals

34.

Which of the following was a major effect of the Spanish conquest of Mesoamerica?

a)

The decimation of native populations exposed to European diseases

b)

The formation of alliances of Native Peoples to resist the Spanish invaders

c)

The revival of Maya culture

d)

The expulsion of Catholic missionaries

35.

Which of the following countries, because its location made it unusually well-placed to control trade during the Renaissance, rose to prominence in the 1700s?

a)

Great Britain

b)

France

c)

Italy

d)

Portugal

36.

Which of the following countries make up the region of the Andean West in South America?

a)

Argentina, Paraguay, Uruguay

b)

Bolivia, Ecuador, Peru

c)

Colombia, Guyana, Venezuela

d)

Guatemala, Honduras, Nicaragua

37.

what was the major purpose of the north American free trade agreement (NAFTA) ?

a)

To protect labor unions in the united states, Canada, and Mexico

b)

To increase energy production in the united states, canada, and Mexico

c)

To reduce tariffs and other trade barriers among the united states, Canada, and Mexico

d)

To increase trade between North America and the European Union

38.

Which of the following individuals was imprisoned for many years for opposing apartheid and was elected president of South Africa in 1994?

a)

Malcolm X

b)

Nelson Mandela

c)

Jackson manner

d)

MLK

39.

Which of the following was a major consequence of the treaties that ended the First World War?

a)

The dismantling of empires in central, eastern, and southeastern Europe led to the creation of numerous unstable states.

b)

It just ended

40.

The Vedas and the Upanishads are associated with which of the following religious traditions?

a)

islam

b)

Hinduism

c)

Judaism

d)

Daoism

41.

At the end of the twentieth century, which of the following regions had the highest rate of deforestation when calculated as a percentage of the total area of rain forest in the region?

a)

Central Asia

b)

South America

c)

Southeast Asia

d)

Eastern Europe

42.

Which of the following rivers is NOT in Asia

a)

Yangtze

b)

Mekong

c)

Euphrates

d)

Nile

43.

Toussaint Louverture led a revolution against the French to gain the independence of which country?

a)

Bolivia

b)

Cuba

c)

Haiti

d)

Mexico

44.

Which of the following has been a contributing factor in ethnic conflict and political unrest in sub-Saharan Africa during the last 50 years?

a)

it was war time

b)

They wanted to fight

c)

Just because

d)

Colonial borders superimposed over a cultural mosaic

45.

All of the following were characteristic of the interaction between China and Great Britain in the 1800s EXCEPT

a)

china used military means to resist the important of opium

b)

China agreed to grant treaty ports to Great Britain

c)

Great Britain colonized large areas of southern and central China

d)

Great Britain joined with other Western Powers to crush the Boxer Rebellion

46.

All of the following are aspects of disagreement in the Israeli-Palestinian conflict EXCEPT

a)

territorial borders

b)

water rights

c)

religious claims to land

d)

state control of the economy

47.

Which of the following best describes the first group of European colonists to settle in Australia?

a)

Dutch merchants who established harbors and trading posts

b)

landowners and aristocrats from Spain who settles on the eastern coast

c)

Prisoners from Great Britain who were forced into manual labor

d)

immigrants from France who established farms and businesses

48.

Which of the following took place after the government of Cuba nationalized property and assets held by United States citizens and corporations within its borders?

a)

The Cuban unemployment rate increased dramatically

b)

The United States government placed an embargo on trade with Cuba.

c)

Cuba reduced its economic dependence on the exportation of sugar

d)

The Cuban government instituted a series of wide-ranging economic reforms.

49.

The political system of modern Japan is best described as

a)

An Autocracy

b)

An oligarchy

c)

A Democracy

d)

A confederation

50.

Which of the following best describes the main goal of Pan-Africanism?

a)

To end support for the African National Congress

b)

To support trade between the countries of Africa

c)

To unify African people throughout the world

d)

To build military alliances with Western powers

51.

Federalism is best defined as a system of government in which

a)

power is divided between national and subnational governments

b)

power is centralized in a national government that can devolve certain authority and responsibility to subnational government

c)

a group of sovereign governments shares a supranational judicial institution

d)

citizens determine national policy by voting directly in national referenda

52.

Which of the following is a true statement about a pure parliamentary system of government?

a)

Legislators who accept ministerial appointments must resign their seats

b)

seats in parliament are apportioned strictly according to proportional representation

c)

Government must be formed by a coalition of serving parties

d)

The head of government must be a current member of the legislature.

53.

In its purest form, a direct democracy exists when citizens do which of the following?

a)

Participate without intermediaries in political decision making

b)

Elect representatives to participate in political decision making

c)

Directly elect a chief executive who writes all legislation

d)

vote to approve or overturn laws passed by elected representatives

54.

Which of the following political leaders ruled an autocracy?

a)

Adolf Hitler

b)

Dwight Eisenhower

c)

Charles de Gaulle

d)

Winston Churchill

55.

Which of the following is true of a presidential system of government?

a)

There is typically more party discipline than in a parliamentary system

b)

The executives is the head of the government but not the head of the state

c)

The executive is also a member of the legislature

d)

The executive serves a fixed term of office.

56.

Which of the following is the best example of a perfectly competitive product market?

a)

A corn farmer who sells corn in the national commodity markets

b)

A single firm that sells highly differentiated tennis shoes in the nations retail stores

c)

A single company in competition with the united states postal services

d)

A company that hires its laborers from a single labor union pool

57.

Which of the following is a characteristic of socialism as an economic system?

a)

The production and distribution of the nation's output are determined by central government planners.

b)

The decisions about production and distribution of the nations output are made by individuals households and firms

c)

Central planner impose production rules and regulations on privately owned businesses

d)

central planners impose taxes on corporate profits and rents

58.

Which of the following represents the opportunity cost of purchasing a used automobile for $6,000 ?

a)

The difference between the $6,000 and the cost of a new car

b)

The cost of paying for the necessary repairs to the car

c)

The time it took to research and identify the appropriate used car

d)

A vacation or other purposes for which the $6,000 could have been used

59.

The unemployment rate is a measure of the percent of the

a)

total population that is unemployed

b)

adult population that is unemployed

c)

labor force that is laid off from work

d)

labor force that is unemployed

60.

The fundamental economic problem stems from

a)

High unemployment and inflation

b)

scarce resources and unlimited wants

c)

lack of economic growth

d)

lack of competition and free markets

61.

A market structure in which there is a single seller producing a product for which there are no close substitutes is known as

a)

Perfect competition

b)

Monopolistic competition

c)

Monopoly

d)

oligopoly

62.

When compared with perfectly competitive firms in long-run equilibrium, a monopoly with an identical cost structure will charge a

a)

higher price and produce lower output

b)

higher price and produce higher output

c)

lower price and produce higher output

d)

lower price and produce lower output

63.

Historically, India’s society has been organized into hierarchical groups known as

a)

tribes

b)

Castes

c)

clans

d)

denominations

64.

which of the following has been a contributing factor in ethnic conflict and political unrest in sub-Saharan Africa during the last 50 years?

a)

A higher-than-average rate of natural disasters

b)

The Green Revolution

c)

Colonial borders superimposed over a cultural mosaic

d)

Rapid increase in literacy rates

65.

In the early years of European exploration and settlement of North America, the Native American population changed in which of the following ways?

a)

It grew, largely as a result of the spread of European crops.

b)

It decreased, largely as a result of European military attacks.

c)

It decreased, largely as a result of changes in the climate.

d)

It decreased, largely as a result of the spread of infectious diseases from Europeans.

66.

Former slaves who could not afford to buy land during Reconstruction often turned to which of the following?

a)

Factory work

b)

Sharecropping

c)

Railroad building

d)

Clerical work

67.

W. E. B. Du Bois' The Souls of Black Folk (1903) contained

a)

strong support for Marcus Garvey's Back-to-Africa movement

b)

a criticism of Booker T. Washington's approach to expanding the opportunities of African Americans

c)

an alternative to the plan for advancing the civil rights movement advocated by the Niagara Movement

d)

a defense of the United States Supreme Court's decision in Plessy v. Ferguson

68.

President Woodrow Wilson argued in 1917 that the United States needed to enter the First World War in order to

a)

make the world safe for democracy

b)

eliminate the communist threat in Europe

c)

establish the United States as a dominant superpower

d)

protect United States oil interests within the Ottoman Empire

69.

Which of the following socioeconomic patterns predominated in both Europe and Japan during the period between 700 and 1300 C.E.?

a)

Urbanization

b)

Feudalism

c)

Capitalism

d)

Guild system

70.

Which of the following was a significant result of the European participation in the Crusades?

a)

The strengthening of the Byzantine Empire

b)

New products and knowledge brought back to Europe

c)

The consolidation of papal control over European kings

d)

The establishment of European dominance over Eurasian land and sea trade routes

71.

Which of the following was a significant factor contributing to the French Revolution in the late 1700s?

a)

Opposition of the revolutionaries to the political ideals of the American Revolution

b)

The French monarchy's policy of isolating France from the rest of Europe

c)

A sharp fall in the price of bread, a staple of the peasant diet

d)

A large national debt caused in part by foreign adventures and the need to support a large army and navy

72.

Which of the following was a major consequence of the treaties that ended the First World War?

a)

The Romanov dynasty was overthrown in the first phase of the Russian Revolution, and the Bolsheviks took power in the second phase.

b)

European powers applied the principle of national self-determination to their colonies.

c)

The dismantling of empires in central, eastern, and southeastern Europe led to the creation of numerous unstable states.

d)

Germany and Austria were admitted with nonvoting status to the League of Nations.

73.

Which of the following was the most important contributing factor to the outbreak of the Iranian Revolution in 1979?

a)

The desire to create a Westernized, secular state on the model of Turkey

b)

The desire to restore Islamic fundamentalist theology as a political force

c)

The desire to liberate Iran from the political and economic control of the Soviet Union

d)

The desire to nationalize oil fields to economically support a military regime

74.

Which of the following has most accelerated the spread of a global popular culture?

a)

The creation of the United Nations

b)

The growth of world religions

c)

New communications technologies

d)

Increased access to air travel

75.

Which of the following works presents an argument that the legitimacy of a government is based on the consent of the governed?

a)

Aristotle's Politics

b)

V. I. Lenin's What Is to Be Done?

c)

John Locke's The Second Treatise of Government

d)

Adam Smith's The Wealth of Nations

76.

Which of the following best describes separation of powers?

a)

Power is divided between the national government and the 50 states.

b)

Power is distributed among three branches of government.

c)

State governments receive their powers from the people.

d)

The basic powers of government are gathered in a single agency.

77.

The Bill of Rights was originally added to the United States Constitution explicitly to ensure protection from abuse of power by

a)

the national government

b)

state governments

c)

individual citizens

d)

religious institutions

78.

In its purest form, a direct democracy exists when citizens do which of the following?

a)

Participate without intermediaries in political decision making

b)

Elect representatives to participate in political decision making

c)

Directly elect a chief executive who writes all legislation

d)

Vote to approve or overturn laws passed by elected representatives

79.

Membership in which of the following supranational organizations is most likely to affect the sovereignty of member countries?

a)

United Nations

b)

Organization of American States

c)

World Health Organization

d)

European Union

80.

Which of the following age-groups has had the lowest voter turnout in the most recent United States elections?

a)

18-24

b)

25-36

c)

37-50

d)

51 and older

81.

"No United States president was elected as a third-party candidate in the twentieth century. Therefore, the third-party system has had no effect on American politics."


Which of the following is an accurate claim about third-party candidacies that disputes this statement?

a)

Third-party candidates are usually members of ethnic minority groups.

b)

Third-party candidates tend to reduce the total amount of media coverage in an election.

c)

Third-party candidates often lead to voter confusion, reducing total voter turnout.

d)

Third-party candidates sometimes force platform shifts in the dominant parties

82.

Which of the following accurately describes the role of interest groups in the United States political system?

a)

They raise money to provide public funding for elections.

b)

Their membership generally includes a majority of potential beneficiaries of their efforts.

c)

They utilize lobbyists to provide policy makers with information on bills and issues.

d)

They hold national and state conventions to nominate candidates for political office.

83.

Which of the following correctly lists the order for passing a bill into a law in the House of Representatives?

a)

The bill is named, referred to the appropriate standing committee, scheduled for floor debate, and then voted on.

b)

The bill is referred to the appropriate standing committee, named, voted on, and then signed by the president.

c)

The bill is voted on, referred to the appropriate standing committee, sent to the Senate, and then scheduled for debate.

d)

The bill is scheduled for floor debate, voted on, referred to the appropriate standing committee, and then named.

84.

The media's impact on politics is primarily the ability to influence

a)

who people vote for

b)

which issues are perceived as important

c)

citizens' views on political ideology

d)

beliefs about political efficacy

85.

Which of the following has most influenced where humans have settled throughout history?

a)

Temperate climate

b)

Access to water

c)

Availability of game to hunt

d)

Natural barriers for protection

86.

Which of the following has been a primary cause of soil depletion in deforested rain forest environments?

a)

The overuse of harmful pesticides

b)

The introduction of cash-crop agriculture

c)

Contamination by industrial waste

d)

The use of chemical fertilizers

87.

Which of the following is an example of cultural diffusion?

a)

The integration of Irish immigrants into the dominant culture of the United States

b)

The intermarriage of immigrants of different ethnic and racial groups in Great Britain

c)

The passage of gunpowder from China to Europe

d)

The enforcement of an English-only environment in government-run schools for Native Americans

88.

An equatorial rain forest is associated with which of the following climatic conditions?

a)

Cold, dry winters and warm, moist summers

b)

Hot and wet conditions year-round

c)

Mild winters and hot, sultry summers

d)

Cold, snowy winters and hot, dry summers

89.

Which of the following is a subsistence crop?

a)

corn

b)

coffee

c)

rubber

d)

cocoa

90.

Singapore has become one of the outstanding centers of manufacturing, finance, and trade along the Pacific Rim. This is due in part to which of the following geographic advantages?

a)

Relative location

b)

Absolute location

c)

Topography

d)

Mineral resources

91.

Which TWO of the following are characteristics of the Southeast region of the United States?

a)

Hot, humid summers

b)

Lack of arable land

c)

A relatively low cost of living

d)

Domination of politics by the Democratic Party

92.

Which of the following states had the highest rate of population growth between 1980 and 2010 ?

a)

Arizona

b)

Kansas

c)

New York

d)

Ohio

93.

Many geographers have concluded that developing countries will continue to experience population growth despite a declining birth rate for which of the following reasons?

a)

Increased urbanization

b)

Migration from developed nations

c)

A young age profile

d)

increased demand for labor

94.

A group of people sharing common elements of culture and history is defined as a

a)

state

b)

country

c)

A nation

d)

polity

95.

Which of the following statements describes the absolute location of a place?

a)

City Hall is located at 23 S. Main Street.

b)

Pittsburgh is located 305 miles west of Philadelphia.

c)

Houston is located southeast of Austin.

d)

Seattle is located at 47°N, 122°W.

96.

The fundamental economic problem stems from

a)

high unemployment and inflation

b)

scarce resources and unlimited wants

c)

lack of economic growth

d)

lack of competition and free markets

97.

Maintaining a low-inflation economic environment is a macroeconomic goal intended to achieve

a)

economic growth

b)

price stability

c)

full employment

d)

income security

98.

Which of the following is an example of a progressive tax?

a)

A tax that imposes a higher percentage rate of taxation on persons with lower incomes

b)

A tax that imposes a higher percentage rate of taxation on persons with higher incomes

c)

A tax that imposes the same percentage rate of taxation on everyone, regardless of income

d)

A tax imposed on luxury goods rather than on necessities

99.

In which of the following phases of the business cycle does the economy experience decreasing unemployment rates and increasing consumer spending?

a)

depression

b)

recession

c)

recovery

d)

contraction

100.

An increase in which of the following is most likely to lead to long-run economic growth?

a)

Productivity

b)

Personal taxes

c)

Consumer spending

d)

Interest rates

101.

Which of the following is NOT an example of a factor of production?

a)

capital

b)

demand

c)

labor

d)

land

102.

When creating a monthly personal budget, which TWO of the following are considered fixed expenses?

a)

Heat

b)

Rent

c)

Groceries

d)

Car payment

103.

Which of the following is a characteristic of socialism as an economic system?

a)

The production and distribution of the nation's output are determined by central government planners.

b)

The decisions about production and distribution of the nation's output are made by individual households and firms.

c)

Central planners impose production rules and regulations on privately owned businesses.

d)

Central planners impose taxes on corporate profits and rents.

104.

If the international value of the United States dollar weakens in the foreign exchange markets, which of the following will occur?

a)

United States exports will increase.

b)

United States imports will increase.

c)

The supply of the dollar will increase.

d)

The United States trade deficits will increase.

105.

In a period of inflation, which of the following combinations of monetary policy actions would the Federal Reserve most likely undertake?


Discount Rate Open-market Operations

a)

Decrease Buy bonds

b)

Decrease Sell bonds

c)

Increase Buy bonds

d)

Increase Sell bonds

106.

Which of the following is NOT likely to be given as a justification for establishing protective tariffs on imports?

a)

Allowing infant industries time to develop within their own countries

b)

Providing the widest possible variety of goods and services within the home country

c)

Guaranteeing that sufficient supplies of essential materials are available in times of crisis

d)

Preserving high-paying jobs within the home country