Description QUESTION 1 Which of the following people was a classical economist and believed that th ...

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Description QUESTION 1 Which of the following people was a classical economist and believed that the economy would regulate itself? Adam Smith John Quincy Adams Rutherford B. Hayes John Maynard Keynes 2 points   QUESTION 2 State governments use taxes to pay state employees. TRUE FALSE 2 points   QUESTION 3 Which of the following government actions has a direct impact on the protection of consumers? Consumers are required to pay taxes. The government increases spending on interstate road projects. The government prohibits the use of lead in paint. 2 points   QUESTION 4 Taxes do not help pay for which of the following: education highways law enforcement personal defense classes 2 points   QUESTION 5 A patent gives a person the ability to earn large amounts of money by selling the item for whatever price the government wants. TRUE FALSE 2 points   QUESTION 6 The portion of deposits that banks are required to keep on hand is called the Required Reserve Ratio (RRR). TRUE FALSE 2 points   QUESTION 7 Federal taxes vary from state to state. TRUE FALSE 2 points   QUESTION 8 There are laws that require taxes to be collected based on what you earn, what you own, and what you buy. TRUE FALSE 2 points   QUESTION 9 Social security was created during the Great Depression of the 1930s. TRUE FALSE 2 points   QUESTION 10 Can State governments use taxes to pay state employees? required by law covers spending on entitlement programs government can make decisions on how to spend the money none of these 2 points   QUESTION 11 Thomas Edison was: an economist. an entrepreneur. a former president. none of these 2 points   QUESTION 12 The United States has no government involvement in its economy. TRUE FALSE 2 points   QUESTION 13 Welfare programs help the economically needy. TRUE FALSE 2 points   QUESTION 14 The government funds research to expand technological capabilities, which positively affects the economy. TRUE FALSE 2 points   QUESTION 15 The American Free Enterprise System allows the government to protect producers. TRUE FALSE 2 points   QUESTION 16 Dams are an example of a public good. TRUE FALSE 2 points   QUESTION 17 The Duryea brothers invented: the assembly line. the microwave oven. the gasoline powered automobile. none of these 2 points   QUESTION 18 Which benefit of the American Free Enterprise System is best described in the statement "Individuals are free to invest in companies and products they feel will benefit them"? variety of goods economic freedom government protection none of the above 2 points   QUESTION 19 Local governments use taxes to hire police officers. TRUE FALSE 2 points   QUESTION 20 Taxes pay for the daily operations of the government. TRUE FALSE 2 points   QUESTION 21 Social Security gives money to those who are retired or disabled. TRUE FALSE 2 points   QUESTION 22 The first constitutional power granted to Congress is the power to tax. TRUE FALSE 2 points   QUESTION 23 Increases in government spending can help end a recession. TRUE FALSE 2 points   QUESTION 24 The government uses the tax income to provide assistance to the needy. TRUE FALSE 2 points   QUESTION 25 The Fed was established by Congress in 1913 to give people confidence in the nation's banking system. TRUE FALSE 2 points   QUESTION 26 Which principle of the American Free Enterprise System is described in the statement "It is in a company's best interest to produce more and better products than other companies who produce the same product."? competition profit motive private property voluntary exchange 2 points   QUESTION 27 Monetary Policies adjusts the amount of money in circulation. TRUE FALSE 2 points   QUESTION 28 The Federal Reserve tries to stabilize the economy by closely monitoring the amount of money in circulation. TRUE FALSE 2 points   QUESTION 29 An externality is an intangible effect of production and purchases. TRUE FALSE 2 points   QUESTION 30 The U.S. Constitution gives the power of taxation to the government. TRUE FALSE 2 points   QUESTION 31 Which benefit of the American Free Enterprise System is best described in the statement "Prices will rise and fall according to the competition and the prices consumers will pay for products"? variety of goods responsive prices economic freedom government protection 2 points   QUESTION 32 State governments use taxes to operate nature preserves. TRUE FALSE 2 points   QUESTION 33 The Office of Management and Budget (OMB) works with the President to develop an initial budget. TRUE FALSE 2 points   QUESTION 34 When a country's supply of money is high, interest rates will be lower. TRUE FALSE 2 points   QUESTION 35 Henry Ford invented which of the following? the diesel engine the assembly line the microwave oven none of these 2 points   QUESTION 36 Social Security is a form of mandatory spending. True False 2 points   QUESTION 37 The Federal Reserve is the "mother of all banks." TRUE FALSE 2 points   QUESTION 38 Contractionary fiscal policies are designed to: slow the economy. boost the economy. balance the economy. have no effect on the economy. 2 points   QUESTION 39 Expansionary fiscal policies are used to: slow the economy. balance the economy. increase economic output. have no effect on the economy. 2 points   QUESTION 40 A deficit is the amount of money that a government overspends (and owes). TRUE FALSE 2 points   QUESTION 41 Which of the following is a tool used by the Federal Reserve to implement monetary policy? adjusting the discount rate adjusting income tax returns buying and selling foreign stocks none of these 2 points   QUESTION 42 To protect the economic rights of its citizens, the US government tries to correct externalities. TRUE FALSE 2 points   QUESTION 43 When the government decreases taxes: the economy prospers. the economy slows down. consumers are not affected. none of these 2 points   QUESTION 44 Which of the following redistribution programs can significantly increase the level of output of a nation by improving the human capital and efficiency of the workforce? Medicaid Medicare Education Social Security 2 points   QUESTION 45 When there is a national debt, there is less confidence in the economy. TRUE FALSE 2 points   QUESTION 46 Which of the following is not an In-kind benefit? free food food stamps shares of stock low cost housing 2 points   QUESTION 47 The statement "American consumers are kept from purchasing products that could cause them serious injury or illness." Best represents which benefit of the American Free Enterprise System? variety of goods responsive prices economic freedom government protection 2 points   QUESTION 48 Local governments use taxes to fund local school districts. TRUE FALSE 2 points   QUESTION 49 Non-profit organizations are tax exempt. TRUE FALSE 2 points   QUESTION 50 John Maynard Keynes believed that the economy could be turned around by doing which of the following? increasing the minimum wage increasing government spending decreasing government spending passing higher taxes on businesses