True/False
Indicate whether the sentence or statement is true
or false.
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1.
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Productivity will decrease if workers are unmotivated.
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2.
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The
four important measures of cost are: total cost, fixed cost, variable cost, and marginal
cost.
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3.
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The
supply curve is likely to be elastic for products that can be made quickly without huge amounts of
capital and skilled labor.
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4.
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The
Law of Supply states that suppliers will normally offer less for sale at higher prices and more for
sale at lower prices.
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5.
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The
theory of production deals with the relationship between the factors of production and the output of
goods and services.
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6.
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The
Law of Demand states that more of a product will be purchased at low prices than at high
ones.
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7.
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An
increase in the cost of inputs can cause the supply curve to shift to the left.
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8.
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The
production possibilities frontier can be reached even if certain resources remain idle.
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9.
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The
profit motive states that the consumer decides WHAT goods and services to produce.
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10.
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A
demand schedule is created from a demand curve.
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11.
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If
the price of an item is too high in a competitive market, a shortage appears until the price goes
down.
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12.
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Capitalism is a competitive economic system in which private citizens own the factors
of production.
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13.
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The
paradox of value occurs when some necessities have little value, while some non-necessities have a
much higher value.
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14.
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A
nation's wealth refers to a worth that can be expressed in dollars and cents.
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15.
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When
manufactured goods are used to produce other goods and services, they are called capital
goods.
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16.
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Economic products consist of both goods and services that are useful, relatively
scarce, and transferable to others.
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17.
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Marginal cost is the change in total revenue when one more unit of output is
sold.
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18.
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The
four factors of production are land, capital, labor, and financing.
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19.
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In
economics, land refers to the natural resources needed for production, such as forests,
minerals, and climate.
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20.
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Voluntary exchange is a characteristic of command economies.
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21.
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Both
goods and services are counted as part of a nation's wealth.
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22.
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Fixed
cost is the cost that a business incurs even if there are no employees and no production takes
place.
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23.
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Division of labor increases efficiency because it allows workers to master many
aspects of their jobs.
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24.
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Marginal utility describes the decreasing satisfaction a consumer receives with the
purchase of each additional unit.
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25.
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The
market supply curve shows the quantities offered at various prices by all firms that offer the
product for sale in a given market.
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26.
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Economic interdependence limits a nation's growth and usually reduces the efficiency
of production.
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27.
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A
nondurable good lasts for less than five years when used on a regular basis.
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28.
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The
entrepreneur organizes land, capital, and labor for production in hopes of earning a
profit.
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29.
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Economic growth occurs when a nation's total output of goods and services increases
over time.
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30.
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Economics is a social science because it deals with how people behave while trying to
satisfy their needs and wants through use of relatively scarce resources.
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31.
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Time
is an opportunity cost when a manufacturer assigns workers to one task rather than to
another.
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32.
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The
Law of Variable Proportions states that in the short run, output will not change as one
production input is varied while the others remain constant.
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33.
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Marginal analysis compares the additional benefits of an action to its additional
costs.
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34.
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The
production function describes the relationship of changes in output to different amounts of a single
input while other inputs are held constant.
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35.
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A
demand curve illustrates the quantity demanded at all possible prices at a given time.
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36.
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If
producers expect lower prices in the future, they may withhold some of the supply.
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37.
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A
desire to buy a product is the only requirement needed for demand to exist.
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38.
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The
circular flow of economic activity describes an economy that is free of markets.
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39.
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High gas
prices during the 1970s discouraged conservation efforts.
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40.
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The
traditional response to pollution problems has been to legislate regulations.
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41.
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Pollution
taxes are designed to give firms the incentive not to pollute.
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42.
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According to
an economist, a resource becomes scarce when it is polluted.
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43.
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People have
become increasingly concerned about pollution in recent years.
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44.
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The National
Council on Economic Education recommends that the first step in economic decision making should be to
state the problem or the issue.
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45.
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Cost-benefit
analysis can be used to make choices among economic goals.
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46.
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Socialism is
the dominant economic force in the world today.
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47.
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Capitalism
has remained the same for the past 100 years.
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48.
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Many
economists believe capitalism is the economic system best able to accomodate the unforeseen events of
the future.
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49.
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Supply and demand are used to predict the incidence of a tax.
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50.
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The
three criteria for effective taxes are equity, complexity, and efficiency.
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51.
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The
two principles of taxation are the benefit principle and the ability-to-pay principle.
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52.
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The
marginal tax rate is the tax that applies to the next dollar of taxable income.
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53.
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A
regressive tax imposes a lower percentage rate of taxation on low incomes than on high
incomes.
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54.
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The
two largest sources of revenue for states are sales taxes and intergovernmental
revenues.
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55.
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A
person's payroll withholding statement summarizes federal, state, and local tax
deductions.
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56.
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Taxes
on most personal property are seldom collected because of the problem of valuation.
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57.
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Only
one-quarter of the states run public lotteries to raise revenue.
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58.
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States receive funds from the federal government to help pay for education, highways,
and hospitals.
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Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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59.
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Impeachments are tried a. | in the House of Representatives with the Governor
presiding | c. | in the state
capital with the Governor presiding | b. | in the House with the Chief Justice of the Supreme Court
presiding | d. | in the Senate
with the Chief Justice presiding | | | | |
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60.
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There
are___state Senators
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61.
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Rent
payments and property taxes would be counted as a. | variable costs. | c. | total cost. | b. | fixed
costs. | d. | marginal
costs. | | | | |
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62.
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All
of the following are characteristics of allocation by rationing EXCEPT a. | efficiency. | c. | diminished
incentive for workers. | b. | high administrative cost. | d. | lack of fairness. | | | | |
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63.
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The
situation in which some necessities have little value while some non-necessities have a much higher
value is known as a. | economic
interdependence. | c. | paradox of
value. | b. | opportunity cost. | d. | trade-offs. | | | | |
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64.
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The
term of office for AZ Legislature is a. | 2 years (House and Senate) | c. | 2 years (House), 4 years (Senate) | b. | 4 years (House),
6 years (Senate) | d. | 4 years (House
and Senate) | | | | |
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65.
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An
economy at its production possibilities frontier is operating a. | without division
of labor. | c. | at full
potential. | b. | with slow economic growth. | d. | as a free enterprise economy. | | | | |
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66.
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Referendum petitions require signatures of at least___of the electors who voted for
the Governor in the last election
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67.
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At a
given price, a surplus occurs when a. | the quantity supplied is less than the quantity
demanded. | b. | the quantity supplied is greater than the quantity
demanded. | c. | the quantity demanded is more than the quantity
supplied. | d. | the quantity demanded is the same as the quantity
supplied. | | |
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68.
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There
may be no fewer than___judges on the Arizona Supreme Court
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69.
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A
market economy a. | limits the
choices of goods and services available. | b. | offers a high degree of certainty for its
workers. | c. | permits extensive government
intervention. | d. | does not provide for everyone's basic
needs. | | |
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70.
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The
AZ Executive Department consists of a. | the Governor, State Treasurer, and Attorney
General | c. | the Governor
only | b. | the Governor,
Secretary of State, Attorney General, State Treasurer, and Superintendent of Public
Instruction | d. | the Governor,
Secretary of State, Assessor, Recorder and Attorney General | | | | |
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71.
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When
a customer's need for a product is not urgent, demand tends to be a. | complementary. | c. | elastic. | b. | unit elastic. | d. | inelastic. | | | | |
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72.
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A
business doubled the price of a product in order to increase profits. Which of the following
scenarios might have occurred? a. | A dramatic decline in revenues demonstrated the elasticity of
the product. | b. | A small increase in revenues demonstrated the unit elasticity
of the product. | c. | A sharp increase in revenues demonstrated the elasticity of the
product. | d. | A dramatic decline in revenues demonstrated the inelasticity of
the product. | | |
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73.
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For
most products and services, increased price results in a. | reduced demand
for substitutes. | c. | demand for fewer
products. | b. | demand for more products. | d. | increased demand for complements. | | | | |
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74.
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A
demand schedule shows a. | a listing of the various quantities demanded of a particular
product at all prices that might prevail in the market. | b. | the fluctuations
in demand that occurred over a specified period of time. | c. | the fluctuations
in demand scheduled to occur over the following year. | d. | an
upward-sloping curve that illustrates the positive relationship between price and quantity
demanded. | | |
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75.
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An
increase in the price of cameras results in a decrease in the demand for film. The two products
are a. | unrelated. | c. | complements. | b. | demand elastic. | d. | substitutes. | | | | |
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76.
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Which
group of people ultimately determines the products that a free enterprise economy
produces? a. | local
government | c. | Congress | b. | property owners | d. | consumers | | | | |
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77.
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Elected county officers include a. | Sheriff, Accountant, Tax Collector, Public Health Officer and
School Committee | c. | Superintendent
of Schools, Treasurer, Assessor, Sheriff, and County Attorney | b. | County Manager,
Assessor, Attorney General, Sheriff, and Treasurer | d. | County Commissioner, Sheriff, County Attorney, Public Works
Director, and Assessor | | | | |
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78.
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Actions in one part of the country or world that have an economic impact on what
happens elsewhere are examples of a. | economic interdependence. | c. | specialization. | b. | opportunity
costs. | d. | trade-offs. | | | | |
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79.
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Elected county officials serve___year terms
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80.
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When
employees are getting in each other's way, the firm is operating a. | in Stage I of
production. | c. | as much as it
possibly can. | b. | in Stage II of production. | d. | in Stage III of production. | | | | |
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81.
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An
initiative refers to when a. | the Legislature repeals a law | c. | the people proposes a new law | b. | the Legislature
creates a new law | d. | the people
repeal a law | | | | |
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82.
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Because a modest price increase has little or no effect, the demand for the product
is a. | complementary. | c. | unit
elastic. | b. | inelastic. | d. | elastic. | | | | |
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83.
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To
recall any elected official, recall petitions must have valid signatures equaling a. | 50% of the
number of votes cast in the last general election for that office | c. | 40% of the number of votes cast in the last general election
for that office | b. | 15% of the numbers of votes cast in the last general election
for that office | d. | 25% of the
number of votes cast in the last general election for the office | | | | |
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84.
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Initiative petitions require the signature of at least a. | 25% of the
qualified electors | c. | 10% of the
qualified electors | b. | four members of the Executive
Department | d. | 2/3 of the
Legislature | | | | |
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85.
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The
purpose of government in a command economy is to a. | encourage entrepreneurs. | b. | promote economic
freedom. | c. | ensure the availability of consumer
products. | d. | make major economic decisions. | | |
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86.
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Consumers' willingness to replace a costly item with a less costly item is an example
of a. | complements. | c. | the income
effect. | b. | the substitution effect. | d. | demand elasticity. | | | | |
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87.
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An
increase in the price of milk causes a decrease in the demand for cereal. The two products
are a. | unrelated. | c. | complements. | b. | substitutes. | d. | demand elastic. | | | | |
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88.
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Which
of the following is NOT considered an economic and social goal? a. | entrepreneurship | c. | economic
efficiency | b. | economic growth | d. | price stability | | | | |
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89.
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Article 2 section 2.1 of the AZ Cosntitution protects the rights of
a. | victims | c. | teachers | b. | the governor | d. | the accused | | | | |
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90.
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What
is this?
“Under this power ten per cent of the qualified electors shall
have the right to propose any measure, and fifteen per cent shall have the right to propose any
amendment to the constitution.” a. | statutory initiative | c. | constitutional initiative | b. | right | d. | referendum | | | | |
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91.
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Profits will be maximized when marginal revenue a. | equals marginal
cost. | c. | exceeds marginal
cost. | b. | is one-half marginal cost. | d. | is double marginal cost. | | | | |
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92.
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The
money used to buy the tools and equipment needed for production is known as a. | capital
goods. | c. | wealth. | b. | the factors of production. | d. | financial capital. | | | | |
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93.
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The
separation of powers is described in Article ____ of the AZ Cosntitution
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94.
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What
title of the AZ Cosntitution is this?
Official
language of Arizona
Section 2. The official language of the state of Arizona is
English.
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95.
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In a
market economy, a high price is a signal for a. | producers to supply less and consumers to buy
less. | b. | producers to supply less and consumers to buy
more. | c. | government to intervene to protect
consumers. | d. | producers to supply more and consumers to buy
less. | | |
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96.
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Manufactured goods needed to produce other goods and services are
called a. | capital
goods. | c. | nondurable
goods. | b. | Gross Domestic Product (GDP). | d. | consumer goods. | | | | |
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97.
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Advertising, fashion trends, and new product introductions serve to a. | increase income
effectiveness. | c. | create consumer
demand. | b. | minimize the income effect. | d. | create consumer needs. | | | | |
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98.
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A
municipal corporations a. | a Governor-approved self-governing city or town with more than
3500 people | c. | a town with 1000
people or less | b. | a Governor-approved self-governing city or town of any
size | d. | a state-funded
organization designed to provide for larger city or town governments | | | | |
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99.
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The
theory of production deals with the relationship between the factors of production
and a. | fixed
costs. | c. | the cost of raw
materials. | b. | the cost of marginal returns. | d. | the output of goods and services. | | | | |
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100.
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The
study of economics is important because it enables us to a. | determine what
goods ought to be produced. | b. | increase our consumption of consumer
goods. | c. | become better decision makers. | d. | describe our
standard of living. | | |
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101.
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Total
cost is the sum of the a. | fixed costs and overhead. | c. | fixed and variable costs. | b. | fixed and
marginal costs. | d. | all variable
costs. | | | | |
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102.
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A
popular model used to illustrate the concept of opportunity cost is a. | entrepreneurship. | c. | the paradox of value. | b. | the factors of
production. | d. | the production
possibilities frontier. | | | | |
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103.
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Division of labor is a characteristic of a. | assembly line
production. | c. | classroom
education. | b. | home craft businesses. | d. | entrepreneurship. | | | | |
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104.
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To
arrive at an economic decision, a decision-making grid may be used to evaluate a. | alternative
choices of action. | c. | only capital
goods. | b. | only durable goods. | d. | productivity. | | | | |
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105.
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The
minimum wage is an example of a federal law that supports a. | full
employment. | c. | economic
growth. | b. | economic equity. | d. | economic efficiency. | | | | |
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106.
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When
a manufacturer of pain medication reduced the price of the medication by 30%, profits declined by
almost exactly 30%. Demand for the product is a. | complementary. | c. | unit elastic. | b. | elastic. | d. | inelastic. | | | | |
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107.
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The
federal minimum wage law demonstrates a. | a societal choice for economic equity over
efficiency. | b. | the function of equilibrium price in a competitive
market. | c. | government intervention to ensure the equilibrium
price. | d. | market equilibrium. | | |
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108.
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An
example of a market economy is a. | the Inuit. | c. | the United States. | b. | North
Korea. | d. | the former
Soviet Union. | | | | |
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109.
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The
dollar value of all final goods and services and the most comprehensive measure of a country's total
production output is a. | financial capital. | c. | a cost-benefit analysis. | b. | Gross Domestic
Product (GDP). | d. | its standard of
living. | | | | |
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110.
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All
of the following are characteristics of a command economy EXCEPT a. | it is not
designed to meet the wants of consumers. | b. | it provides workers with few incentives to work
hard. | c. | public services are available at little or no
cost. | d. | it can change direction drastically in a brief period of
time. | | |
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111.
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What
does this mean. Article 2 sec 35 of AZ Cosntitution?.
“A person
who is present in this state in violation of federal immigration law related to improper entry by an
alien shall not be awarded punitive damages in any action in any court in this
state.” a. | damages and
illegal | c. | punishment to be
illegal | b. | illegals can not sue if
injured | d. | illegals get
paid | | | | |
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112.
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If the world
population continues to grow at its present pace, by 2050 the world's population will
reach a. | 20
billion. | c. | eight
billion. | b. | 12 billion. | d. | six billion. | | | | |
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113.
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Nearly
two-thirds of the world's known coal reserves are in the United States, a. | Japan, and
China. | c. | Russia, and
China. | b. | Russia, and Poland. | d. | Poland, and Canada. | | | | |
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114.
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Cost-benefit
analysis would be useful in all of the following situations EXCEPT for a. | firms about to purchase
capital goods. | b. | government employees evaluating welfare
programs. | c. | local fire departments responding to a three-alarm
blaze. | d. | individuals about to purchase a new vehicle. | | |
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115.
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Under a
system of pollution permits, the amount of pollution can be reduced by a. | issuing fewer permits
as time goes on. | b. | issuing more permits as time goes on. | c. | taxing the pollution
permits. | d. | giving tax breaks for the pollution permits. | | |
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116.
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Today the
dominant economic force in the world is a. | socialism. | c. | communism. | b. | capitalism. | d. | military strength. | | | | |
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117.
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Malthus's
predictions were not entirely accurate for a. | industrialized nations. | c. | developing nations. | b. | capitalist
nations. | d. | much of the African
continent. | | | | |
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118.
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The largest
category of nonrenewable energy in use in the United States is a. | coal. | c. | petroleum. | b. | natural gas. | d. | hydroelectric power. | | | | |
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119.
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The Ogallala
Aquifer a. | may be pumped dry
within the next 40 years. | b. | underlies much of Southern California. | c. | is no longer useable
due to pollution. | d. | is the largest oil reserve in North America. | | |
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120.
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Pollution
permits a. | are in the theoretical
stage and have not been used. | b. | are just a way to let companies legally pollute at no cost to the
companies. | c. | can be made scarce, forcing companies to reduce
pollution. | d. | take the place of pollution-control
equipment. | | |
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121.
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All of the
following are advantages of the market economy EXCEPT a. | buyers have all of
their wants satisfied. | b. | prices efficiently allocate resources. | c. | supply and demand
interact to establish prices. | d. | incremental adjustments lead to gradual
changes. | | |
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122.
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The
incidence of a tax can more effectively be shifted from the supplier to the consumer
if a. | the demand curve
is inelastic. | b. | the demand curve is elastic. | c. | it is not a
luxury tax or an excise tax. | d. | it is a property tax rather than an income
tax. | | |
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123.
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The
authority to levy a federal income tax comes from a. | the Fifth Amendment. | c. | an act of Congress. | b. | the Sixteenth
Amendment. | d. | the Bill of
Rights. | | | | |
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124.
|
Intergovernmental revenues are generally intended for a. | education and
public welfare. | c. | environmental
cleanup. | b. | public transportation. | d. | parks and recreation. | | | | |
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125.
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The
alternative minimum tax a. | is an additional tax above and beyond the base
rate. | b. | requires people to pay a minimum tax of 20
percent. | c. | allows a reduction in business taxes based on investment in
equipment. | d. | allows larger-than-normal depreciation
charges. | | |
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126.
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The
flat tax a. | would increase
the need for individuals to hire tax accountants. | b. | includes
incentives that promote positive economic behavior. | c. | allows too many
loopholes. | d. | simplifies the tax process. | | |
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127.
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The
“incidence of a tax” a. | is a benefit tax. | b. | refers to those
who bear the final burden of taxation. | c. | is a special tax on individuals with high
income. | d. | is a tax paid by self-employed
workers. | | |
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128.
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Ann
earns $10,000 annually and pays a tax of $1,000. Jerome earns $60,000 during the same period and pays
taxes of $20,000. The tax they both paid was a a. | proportional tax. | c. | regressive tax. | b. | progressive
tax. | d. | marginal
tax. | | | | |
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129.
|
FICA
includes taxes to pay for a. | Social Security and medicare. | c. | unemployment and medicare. | b. | Social Security
and unemployment. | d. | medicare and
worker's compensation. | | | | |
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130.
|
The
Taxpayer Relief Act of 1997 a. | increased capital gains taxes. | b. | eliminated tax
credits for families with children. | c. | changed marginal tax brackets to favor
families. | d. | did little to benefit people without children or capital
gains. | | |
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131.
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The
flat tax a. | shifts the
burden of taxes to businesses. | b. | would complicate tax filing for most
individuals. | c. | departs from ability-to-pay principle of
taxation. | d. | is strictly proportional even when some income is
exempted. | | |
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Matching
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Match each statement with the correct item below. a. | diagram
representing various combinations of goods and/or services that an economy can produce when all
productive resources are fully employed | b. | any good that lasts three years or more when used
regularly | c. | process of using up goods and services to satisfy wants and
needs | d. | process of creating goods and
services | e. | market where productive resources are bought and
sold | f. | economy in which
consumers and privately owned businesses make the majority of the WHAT, HOW, and FOR WHOM
decisions | g. | basic requirement for survival | h. | manufactured
goods that are used to produce other goods | i. | way of expressing a need that leads to a preference for some
goods over others | j. | work that is performed for someone | | |
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132.
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want
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133.
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production
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134.
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factor market
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135.
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production possibilities frontier
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136.
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capital good
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137.
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need
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138.
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free
enterprise economy
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139.
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service
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Match each statement with the correct item below. a. | study of how
people try to satisfy their needs and wants through the use of limited
resources | b. | people with all their efforts, abilities, and
skills | c. | condition of not having enough resources to produce all the
things people want | d. | worth that can be expressed in dollars and
cents | e. | item that is economically useful or that satisfies an economic
want | f. | alternative
choices made by consumers in the marketplace | g. | quality of life
based on the possession of the necessities and luxuries that make life
easier | h. | sum of those economic products that are tangible, scarce,
useful, and transferable | i. | cost of the next best alternative use of money, time, or
resources when one choice is made rather than another | j. | tools,
equipment, machinery, and factories used in the production of goods and
services | | |
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140.
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opportunity cost
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141.
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capital
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142.
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economics
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143.
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wealth
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144.
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labor
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145.
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trade-offs
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146.
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good
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147.
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scarcity
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Match each statement with the correct item below. a. | amount of a
product that producers bring to market at any given price | b. | total product a
firm must sell to cover its total costs | c. | government payment to encourage or protect an economic
activity | d. | period of production that's long enough for adjustments in all
resources | e. | amount of a product that would be offered for sale at all
possible prices | f. | unprocessed natural products used in
production | g. | cost a business incurs even if nothing is
produced | h. | graph showing the various quantities supplied at each and every
price | i. | number of units sold multiplied by the average price per
unit | j. | cost that
changes when the rate of operation or output changes | | |
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148.
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supply
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149.
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long
run
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150.
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fixed
cost
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151.
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variable cost
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152.
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total
revenue
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153.
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break-even point
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Match each statement with the correct item below. a. | measure of
responsiveness that shows how a dependent variable responds to a change in an independent
variable | b. | field of economics that deals with behavior and decision making
by small units | c. | describes change in demand when a change in price causes a
relatively larger change in quantity demanded | d. | extra usefulness
gained from using one more unit of a product | e. | movement along
the demand curve | f. | desire, ability, and willingness to buy a
product | g. | products used in place of other
products | h. | change in quantity demanded due to a change in relative
price | i. | listing that shows quantities demanded of a product at all
prices | j. | given change in price that causes a proportional change in
quantity demanded | | |
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154.
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microeconomics
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155.
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substitution effect
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156.
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marginal utility
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157.
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demand schedule
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158.
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elastic
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159.
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demand
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160.
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elasticity
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161.
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substitutes
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Match each statement with the correct item below. a. | situation in
which suppliers offer different amounts of products for sale at all possible
prices | b. | principle that states that in the short run, output will change
if only one input is varied | c. | total output produced by a firm | d. | principle that
suppliers will normally offer more for sale at high prices and less at lower
prices | e. | extra cost incurred when a business produces one additional
unit of a product | f. | graph that shows the quantities of a product offered at various
prices by all firms that offer the product | g. | period of production that is too short for any adjustments in
production except changes in labor | h. | sum of the fixed and variable costs | i. | measure of the
way in which quantity supplied responds to changes in price | j. | total fixed
cost | | |
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162.
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marginal cost
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163.
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supply elasticity
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164.
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total
product
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165.
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short
run
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166.
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total
cost
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167.
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Law
of Supply
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Match each statement with the correct item below. a. | act of buyers
and sellers freely and willingly engaging in market transactions | b. | driving force
that encourages people and organizations to improve their material
well-being | c. | organized way in which a society provides for the wants and
needs of its people | d. | extent to which individuals or organizations are better off at
the end of an economic exchange than before the exchange | e. | economic system
in which people carry on their economic affairs freely but are subject to some government
intervention | f. | privilege that entitles people to own their
possessions | g. | market economy in which private citizens own the factors of
production | h. | federal program of disability and retirement benefits that
covers most working people | i. | economy in which a central authority makes most of the WHAT,
HOW, and FOR WHOM decisions | j. | income that does not increase even if prices go
up | | |
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168.
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command economy
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169.
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profit motive
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170.
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private property rights
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171.
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mixed
economy
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172.
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Social Security
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173.
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profit
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174.
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voluntary exchange
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175.
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economic system
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176.
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capitalism
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Match each statement with the correct item below. a. | quantity
demanded is greater than quantity supplied | b. | prices are relatively stable, and quantity supplied is equal to
quantity demanded | c. | check sent to producers that makes up the difference between
the actual market price and the target price | d. | monetary value
of a product | e. | quantity supplied is greater than quantity demanded at a given
price | f. | price that produces neither a surplus nor a
shortage | g. | set of assumptions and/or relationships that can be used to
help analyze behavior and predict outcomes | h. | ticket that entitles the holder to a certain amount of a
product | i. | a socially desirable price determined by factors other than the
market | j. | maximum legal price that can be charged for a
product | | |
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177.
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price
ceiling
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178.
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shortage
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179.
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price
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180.
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surplus
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181.
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economic model
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Match each statement with the correct item below. a. | role of the
consumer as ruler of the market | b. | society's way of providing for wants and
needs | c. | program that provides retirement and disability benefits for
working people | d. | economic system in which the allocation of resources and nearly
all other economic activity stems from ritual or habit | e. | struggle among
sellers to attract consumers | f. | economy in which people carry on their economic affairs freely
but are subject to some government intervention and regulation | g. | economic system
in which people and firms act in their own best interests to answer economic
questions | h. | economy in which competition is allowed to flourish with a
minimum of government interference | i. | degree to which people are better off after completing an
economic activity | j. | rise in the general level of prices | | |
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182.
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market economy
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183.
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traditional economy
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184.
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competition
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Match each statement with the correct item below. a. | illustrates the
demand of everyone interested in purchasing a product | b. | quantity
demanded of a product varies inversely with its price | c. | study of the
economic behavior of individuals and firms | d. | extent to which a change in price causes a change in
demand | e. | decline in extra satisfaction from using additional quantities
of a product | f. | change in quantity demanded because a price change altered
consumer's real income | g. | products where the use of one product increases the use of
another | h. | willingness to buy more or less of a product at the same
price | i. | graph showing the quantity demanded at every
price | j. | describes a given change in price that causes a relatively
smaller change in quantity demanded | | |
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185.
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Law
of Demand
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186.
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demand curve
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187.
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inelastic
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188.
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complements
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189.
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demand elasticity
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190.
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microeconomics
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Match each statement with the correct item below. a. | reduction in
business taxes based on investment in new plants and equipment | b. | tax on people's
earnings | c. | system requiring employers to deduct income taxes from
employees' paychecks and send it directly to the government | d. | profits from the
sale of an asset held for 12 months | e. | tax that imposes a higher percentage rate of taxation on people
with higher incomes than on people with lower incomes | f. | medicare and
FICA | g. | tax on tangible
and intangible possessions, such as real estate, buildings, furniture, stocks, bonds, and bank
accounts | h. | relatively high tax on socially undesirable products, such as
tobacco | i. | tax on the manufacture and sale of selected
items | j. | upward revision of the tax brackets to compensate for the
effects of inflation | | |
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191.
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payroll withholding system
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192.
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sin
tax
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193.
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property tax
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194.
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individual income tax
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195.
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indexing
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196.
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investment tax credit
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197.
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payroll taxes
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198.
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progressive tax
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199.
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capital gains
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200.
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excise tax
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Match each statement with the correct item below. a. | person who
assigns value to property for tax purposes | b. | tax that imposes a higher percentage of taxation on lower
incomes than on higher incomes | c. | annual report to the IRS summarizing income, deductions, and
taxes withheld by employers | d. | tax levied on property left to an heir when a person
dies | e. | exceptions in
the tax law that allow some people to avoid paying taxes | f. | additional tax
above and beyond the base rate | g. | federal health care program for senior
citizens | h. | proportional tax on individual income after an income threshold
has been reached | i. | tax paid by corporations on their
income | j. | tax in which everyone pays the same percentage regardless of
income | | |
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201.
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tax
loophole
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202.
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medicare
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203.
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surcharge
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204.
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proportional tax
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205.
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corporate income tax
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206.
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tax
assessor
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207.
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regressive tax
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208.
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flat
tax
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209.
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tax
return
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210.
|
estate tax
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