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Economics Unit 2 Review

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

As production quantity increases, the price decreases. This is ___ industry.

a)

an increasing cost

b)

a decreasing cost

c)

a stable cost

d)

an efficient

2.

Monopolies are ___ in the US.

a)

always legal

b)

always illegal

c)

sometimes legal

d)

illegal, but happen anyway

3.

How is the poverty line determined in the US?

a)

It's based on rent.

b)

It's based on child-care costs.

c)

It's based on interest rates.

d)

It's based on the percentage of income Americans spent on food in the 1960s

4.

In Europe, poverty is calculated ___.

a)

the same way as in the US

b)

based on the median income

c)

based on the mean income

d)

based on rent and property values

5.

What is the poverty trap?

a)

Capitalism

b)

No government assistance for the poor

c)

Attempts to alleviate poverty that encourage people not to work.

d)

student loans

6.

Who is considered "near poor"?

a)

grad students

b)

service sector workers

c)

adjunct professors

d)

all of these

7.

Socialized medicine for the elderly

a)

Medicare

b)

Medicaid

c)

Obamacare

d)

SNAP and TANF

8.

Medicare covers all medical expenses for people who meet certain guidelines.

a)

True

b)

False

c)

What kind of dirty hippie country would that happen in.

d)

Keep on imagining, John.

9.

The richest 20% of Americans receive about ___ of the country's total income.

a)

a fifth

b)

a fourth

c)

a third

d)

half

10.

Net worth most nearly means ___.

a)

income

b)

wealth

c)

one's stock portfolio

d)

real estate holdings

11.

How do rich people legally avoid paying inheritance taxes?

a)

life insurance

b)

fraud

c)

offshore bank accounts

d)

through stock holdings

12.

What is a progressive tax system supposed to do?

a)

the poor pay more

b)

tax the poor and rich at equal rates

c)

tax the rich at higher rates

d)

eliminate loopholes for the rich

13.

Which is an example of a "free rider" in economics?

a)

A worker who doesn't join the union.

b)

a hobo who jumps on a train

c)

a stowaway on a ship

d)

a woman who marries a rich old man who is about to die

14.

Are free music and games really free?

a)

no, they take your money, anyway

b)

no, you pay by watching ads

c)

yes

d)

well, if they weren't, they wouldn't be "free" would they?

15.

What is regulatory capture?

a)

an acquisition

b)

a merger

c)

when a company promises a job to a lawmaker who helps them

d)

predatory pricing