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WorksheetsQuizizz--Economics (Module 3--Element 1.9)--Creating Value Not J
Total questions: 22
Worksheet time: 11mins
According to Adam Smith, what is the primary motivation for the production of goods and services?
Benevolence of producers
Government regulations
Regard for their own interest
Consumer demand
What was the main objective of the Agricultural Adjustment Act (AAA) passed in 1933?
Increase agricultural production
Reduce supply to prevent price drops
Promote international trade
Encourage technological innovation
What was one of the actions taken under the AAA to reduce agricultural supply?
Importing more crops
Paying farmers to plant more
Plowing under portions of crops
Increasing livestock production
What happened to the Agricultural Adjustment Act in 1936?
It was expanded
It was declared unconstitutional
It was renewed
It was ignored by farmers
What was the main goal of the 2009 "Cash for Clunkers" program?
To increase the production of new cars
To promote prosperity by destroying productive assets
To reduce the price of used cars
To provide free cars to low-income families
How much were car dealers paid to destroy older cars under the "Cash for Clunkers" program?
$1,000 to $2,000
$2,500 to $3,000
$3,500 to $4,500
$5,000 to $6,000
What was the total amount of subsidies provided by taxpayers for new car purchases in the "Cash for Clunkers" program?
$1 billion
$2 billion
$3 billion
$4 billion
Approximately how many used cars were destroyed under the "Cash for Clunkers" program?
500,000
600,000
700,000
800,000
What is the main argument against destroying automobiles every year?
It would increase the scarcity of products.
It would generate new-car sales.
It would improve the general populace's well-being.
It would reduce the consumption value of goods.
What is one effect of government subsidies on ethanol production?
Decrease in food prices.
Increase in the cost of obtaining energy.
Reduction in environmental impact.
Lower gasoline prices.
Why are government subsidies for ethanol difficult to repeal?
They reduce the cost of gasoline.
They provide benefits to corn farmers in Iowa.
They decrease the opportunity cost of goods.
They improve environmental conditions.
What is a common misconception about government spending programs?
They always create wealth.
They improve economic well-being by creating more jobs.
They reduce the scarcity of products.
They produce goods and services people value.
What was the main point of the engineer's story about building a dam in China?
To show the importance of using advanced technology
To illustrate how job creation can be misleading
To emphasize the need for more workers
To highlight the efficiency of manual labor
What did the engineer suggest to the supervisor to complete the job faster?
Use more workers
Use motorized earthmoving equipment
Work longer hours
Use larger shovels
How did the supervisor respond to the engineer's suggestion about using machinery?
He agreed and ordered the equipment
He said it would destroy many jobs
He ignored the suggestion
He laughed and walked away
What sarcastic suggestion did the engineer make to emphasize his point?
Use smaller shovels
Use spoons instead of shovels
Use buckets instead of picks
Use bare hands
What was the goal of the Agricultural Adjustment Act (AAA) passed by Congress in 1933?
to increase the demand for agricultural goods
to increase the price of agricultural goods for farmers
to decrease the demand for agricultural goods
to lower the price of agriculture goods for consumers
Which of the following is the most important when it comes to creating value for society?
creating jobs
saving local and small businesses from failing
allocating resources into products consumers’ demand
A Senator stated, “The main goal of government policy is to create jobs. Economic progress depends on more jobs—period. “This statement is
I. True. Jobs create income and income improves our standard of living.
II. True. In most recessions, governments must create jobs to increase consumer income.
III. False. Production of goods and services people value, not just jobs, is the key to improving living standards.
II only
I only
III only
II and III
When the government funds a project that will create jobs, the funds for the project
will have to be either taxed or borrowed from the private sector.
will generate additional tax revenues that will pay for the project.
will leave private sector output and employment unchanged.
are essentially free, because the project originated in the government sector.
If the construction of a high speed rail project creates benefits of $20 billion while the cost is $45 billion, this indicates the project
should be undertaken if it is favored by a majority of voters.
will increase the welfare of society.
should not be undertaken.
should be undertaken even if it is opposed by a majority of voters.
When the government finances a shovel-ready project through taxes or borrowing, this will result in
lower taxes or interest rates, which will reduce private sector employment.
lower taxes or interest rates, which will increase private sector employment.
higher taxes or interest rates, which will reduce private sector employment.
higher taxes or interest rates, which will increase private sector employment.
