1) (True/False)
A country is more prosperous if the National economy grows and everyone is
better off than they were before the growth, though some benefited more from
the growth than others
2) (True/False)
The poor aspire to have income because it is needed.
The rich aspire to have income because they are greedy
3) (True/False)
No one should be forced to work to “make ends meet”
4) (True/False)
If a survey indicates that one in 10 adults lives in poverty, they
are always the same adults from survey to survey
5) Prices are
a)
Decided by evil corporations
b)
Arbitrary social conventions
c)
Less fair when they are high
d) More
fair when they are low
e) Determined by the relative scarcity of
the item, the cost of its transportation to point of sale, the cost of its
production, overhead and other factors
f) A way to force consumers to share scarce
resources
6) Wages are
a)
Decided by evil corporations
b) Plucked
from the air
c)
Less fair when they are low
d) More
fair when they are high
e) Determined by the scarcity of the labor,
the skill set required and the economics of the product produced
7) Wages should be based solely on:
a)
Effort
b) Productivity
c)
Merit
d)
Societal contribution
e) Business profits
f)
Portions of National Economic Output
g) Worker’s
race
h)
Worker’s gender
i)
The needs of the worker’s ego
8) When someone accepts a job, some of
the factors they consider are:
a) Flexibility of schedule
b) Wage
c) Insurance Coverage
d) Pension
e) Savings Plan
f) Distance and Type of Commute
g) Office Environment
h) Personal Enjoyment of work (seeing results
etc)
i) Location
9) The
gap between the wages of CEOs and other high-level executives and the Average
Worker should be small because
a) They do the same work
b) They have the same skills
c) They have the same Experience
d) Investors and Stockholders increase their
backing to a venture if it is run poorly
e) Wages are the result of a voluntary
agreement between two parties
f) It
is more fair that way
10) Fixing prices at arbitrary levels in a
market economy will
a) Result in a surplus when prices are set
too high
b) Result in shortage when prices are set too low
c) Require a government bailout or subsidy
d) Nullify
and repeal the laws of supply and demand
11) A good has a single fair price that should
be charged everywhere because:
a) Every neighborhood requires the same
security precautions against crime
b) The cost of transporting goods to any location
on earth is the same
c) The cost of storing a good until it is
needed is zero
d) The quality of like-goods is always the same
e) The expertise the merchant is always the
same
f) The warrantees and return polices of
every merchant are the same
g) It’s
the same physical object no matter where it is located
12) Price gouging after a disaster should be
illegal because
a) A change in the circumstances of
supply and/or demand will cause prices to accurately reflect the new conditions
b) Higher prices discourage hoarding and
encourage the rationing of scarce goods
c) Higher prices will encourage
external resources to converge on the affected areas
d) Its not
fair
13) Minimum wage Laws:
a) Help teenagers obtain jobs
b) Increase unemployment amongst the least
qualified workers
c) Allow easier discrimination against
minorities because there is a surplus of workers
d) Provide incentives for employers to hire and
retain more workers
e) Deprive the least qualified from opportunities
to gain job experience and promotions
f) Add more people to welfare rolls
g) Help
the poor
14) Rent control and affordable housing laws
help the poor by:
a) Reducing the incentives a landlord has
to keep existing housing in good repair
b) Creating housing shortages by removing the
profit incentives to build new housing
c) Increasing the number of homeless
families
d) Allowing landlords to use shortages to more
easily discriminate against minorities
e) Allowing some of the poor to afford
nicer housing while leaving others on the street
f)
Keeping prices fair
15)
Monopolies hurt the consumer by
a)
Raising the consumer’s cost of buying a product
b)
Providing products that have lower quality than what might be demanded in a
free marketplace
c)
Providing bigger dividends to stockholders out of the businesses increased
profits
d)
Decreasing the number of people who could afford the product
e)
Preventing Competition that will result in a better, more competitive product
on the world market
16) Unions help the workers by
a)
Raising the employer’s cost of buying labor
b)
Providing work rules that result in lower productivity than what would be
provided in a free marketplace
c)
Providing bigger contributions to the Democratic Party out of the workers
increased wages
d) Decreasing the number of workers an employer
can afford to hire
e) Preventing labor Competition that will
result in a more competitive employer better able to survive in the world
market and provide jobs to workers
17) Federal Employees need to be unionized
because (check all that apply):
a) The unions allow the workers to share
the profits of the government
b) The workers need to have input to the
management practices of the government
c)
Mandatory Dues and Agency fees can be transferred directly from the taxpayer to
the Union to fund the Democratic Party regardless of
union members’ party affiliation
d) The power
to shutdown government agencies which provide police, fire and other critical
services should not be in the hands of elected officials
18) The total amount of money collected by the
government:
a)
Is called tax rates
b) Is called tax receipts
c) Is related to the income generated by
the economy
d) Is
absolutely determined by the tax rate charged
e)
Always goes up when tax rates are high
f)
Always goes down when tax rates are low
19) Income Distribution is
a) The mathematical distribution of the
values of a discrete function of income vs. household in the United
States
b) The result of many complex variables in a
market economy
c)
The result of the intentions of millions of rich entrepreneurs and
investors
d) The same thing as fairness
e)
How the Government gives out income to members of the population
20) When looking at
the United States Income distribution as measure of class inequity what factors
need to be considered:
a) Household distribution in each Income
Quintile (Married, Single, Children etc)
b) How much “Personal Income Tax” comes from
Small Businesses
c) Number of People in each Income Quintile
d) The effect of income ranges of each quintile
differing from year to year
e) The effect of differing numbers of
people in each quintile from year to year
f) The effect of differing numbers and
types of households in each from year to year
g) The age distribution of people in each
quintile
h) The income distribution within each quintile
i) The frequency with which households move
from one Quintile to the next
j) The after-tax income distribution across
the board an in each quintile
k) Income added by Welfare and Tax Credits and
other government entitlement programs
l) Hours of Work per Household or Per
person
m) The job status (unemployed) of persons within
the households over the period
n) Other forms of wealth and capital (houses) not
reported as income until realized
o) The
difference between the maximum amount earned and the minimum amount earned
p) The
average income of each quintile
21) In a slumping economy the government should
spend taxpayer money on government programs to help the poor because:
a) Accumulations of capital are not
required to start or grow businesses.
b) The wealthy typically invest “surplus income”
c) The poor commonly save their money in
banks where it can loaned out
d) Every dollar spent rather than directly
invested is subject to sales tax
e) Every dollar spent rather than directly
invested is subject to corporate tax
f) More businesses are started when
accumulations of capital are broken up
g) Its
more fair
22) Social Security is
a) An insurance
program regulated by same laws that apply to private insurance firms
b)
Insurance for the unwise and/or unlucky paid for by the wise and/or lucky
c) A retirement
saving plan where the reward is commensurate with the money put in.
d) A government run
pyramid scheme with mandatory participation that relies on expanding
populations to allow each new generation to pay for the previous one
e)
Necessary to promote fairness
23) Providing
welfare recipients with food, shelter, clothing and other services and
resources
a) Creates an
incentive to get a job, and work hard to support themselves
b) Encourages teen
pregnancy by lowering the costs incurred by having a child
c) Encourages
unwed motherhood by paying mothers per child
d) Discourages
marriage by providing greater assistance for single parents families
e) Transfers
the cost of a struggling individual from their relatives to the government
f)
Helps the poor
g) Gives the poor
dignity
24) A planned
economy is superior to Capitalism because
a)
Goods are produced more cheaply if profits do not need to be provided
b)
Workers are happier and more productive when they labor for the common good
rather than for their own self-interest
c)
The products of labor should be distributed to all regardless
of the effort contributed by any given individual.
d)
The co-ordination of the millions of decisions and tradeoffs to determine what
resources should be allotted to the production of what
goods, at what quantity and what price are best left to a few human beings who
know what the entire population wants and needs.
e)
The only reason a planned economies have not worked where they have been tried
is that the right people haven’t been doing the planning
