WorksheetsUnit 4 Economics Post Test
Total questions: 15
Worksheet time: 15mins
Which of the following statements are true?
Economic stability means fair distribution of goods in an economy
Full employment is a macroeconomic goal
Inflation is a fall in the prices of goods and services
Inflation is a rise in the prices of goods and services
Microeconomics studies the economy as a whole
A severe water shortage recently hit country X. The government wants to ensure that drinking water remains affordable to the public. What policy or steps should the government undertake?
Decrease spending on water reforms
Introduce a price floor on drinking water
Introduce a price ceiling on drinking water
Increase taxes for working individuals
Increase taxes for producers of drinking water
Based on the graph, how many people are willing to work when the government of a country raises the minimum wage from $17 to $25?
9
16
12
28
17
Based on this graph, how many apartments are property owners willing to rent out at $520?
15
20
25
52
At one time, the US government collected taxes only through _____ taxes and imports.
excise
income
property
sales
The _____ Amendment to the Constitution allowed the federal government to collect taxes on income.
Fourteenth
Sixteenth
Seventeenth
Eighteenth
The property taxes on a house that Alan owns and rents out have increased. To balance his monthly budget, he decides to increase his tenants’ rent by $10 per month. He will use the extra money to pay his property tax. In this scenario, what type of tax do his tenants pay?
direct tax
estate tax
excise tax
gift tax
indirect tax
Tim gave his house in another city to his sister. He had to pay taxes to the government on this transfer. What type of tax did the government levy?
estate tax
excise tax
gift tax
property tax
sales tax
What are payroll taxes levied on?
a business's profits
an individual's dividend income
the wages or salaries of a company's employees
the goods and services purchased by people
a piece of land
_____ is a tool of monetary policy
Investing
Open market operations
Trading
Open market operations is a tool of monetary policy in which the Federal Reserve buys and sells ______
government securities
gold
debentures
Which statement is true?
People throughout history have used only currency notes for financial transactions.
The Reserve Banks determine tax rates.
Only the Federal Reserve can buy government securities.
The Federal Reserve affects monetary policy.
The Federal Reserve affects fiscal policy.
In a remote village, a person used five beaver pelts to buy a bag of rice and two beaver pelts to buy a pair of shoes. For what purpose did this person use the money?
increase trade
store of value
medium of exchange
unit of account
investment
Expansionary Monetary Policy is:
reducing the
discount rate
buying government
securities
increasing the
federal funds rate
increasing the required
reserve ratio
Contractionary Monetary policy is:
buying government
securities
increasing the required
reserve ratio
increasing the
federal funds rate
reducing the
discount rate
