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Economics 2.2 Quiz

Total questions: 15

Worksheet time: 13mins

Name
Class
Date
1.

Define public good.

(a)  

2.

Identify key question relating to government involvement in the economy.

(a)  

3.

Personal code of economic ethics.

(a)  

4.

1st principle of a free enterprise economy:

Open Opportunity

(a)  

5.

2nd principle of a free enterprise economy:

Legal Equality

(a)  

6.

3rd principle of a free enterprise economy:

Voluntary Exchange

(a)  

7.

4th principle of a free enterprise economy:

Binding Contracts

(a)  

8.

5th principle of a free enterprise economy:

Competition

(a)  

9.

6th principle of a free enterprise economy:

Profit Motive

(a)  

10.

7th principle of a free enterprise economy:

Private Property Rights

(a)  

11.

Highways are generally provided as public goods because

a)

the Constitution obligates the government to provide them.

b)

law enforcement officers must have access to them.

c)

it is impractical and inefficient to charge people to travel on them.

d)

they cannot be operated on a for-profit basis.

12.

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)

Many regulations promote too much competition, driving down prices.

b)

Certain regulations result in rapid business growth, which some companies find difficult to handle.

c)

Some regulations are costly to implement and cut into profits.

d)

All of the above

13.

You will still be able to get public broadcasting whether or not you contribute to their fundraising campaign. You decide not to contribute. This is an example of

a)

a public sector problem.

b)

a public good problem.

c)

a free-rider problem.

d)

an externality problem.

14.

The LEAST significant goal for the government in stabilizing the economy are selection F (unfortunately) and

a)

increasing standard of living.

b)

healthy financial institutions.

c)

stable prices.

d)

growth of the public sector

15.

An economist who focuses on microeconomics might study which of the following?

a)

income

b)

inflation

c)

household credit card debt

d)

unemployment