Question 1

Household production consists of households producing goods and services,like meals,cleaning and child care,instead of firms.

Accepted Answer

A) True 
 B)False  True

Question 2

One explanation for the increased participation of married women in the U.S.labor force is that:

Accepted Answer

A) fewer women are being trained for household work by the public school system. 
B) the rapid growth in the service sector has increased job opportunities for women. 
C) the cost of professional day care has increased. 
D) couples are having more children. 
E) husbands earn more today than they did previously. 
A) fewer women are being trained for household work by the public school system. 
B) the rapid growth in the service sector has increased job opportunities for women. 
C) the cost of professional day care has increased. 
D) couples are having more children. 
E) husbands earn more today than they did previously. B

Question 3

When the government sells something it produces,_____.

Accepted Answer

A) revenue received must be greater than cost to justify government production 
B) revenue received must equal cost because government is a nonprofit organization 
C) the price does not always reflect the cost of producing the good 
D) the price charged is an accurate measure of the benefits generated 
E) it prices the good the same way a natural monopolist would 
A) revenue received must be greater than cost to justify government production 
B) revenue received must equal cost because government is a nonprofit organization 
C) the price does not always reflect the cost of producing the good 
D) the price charged is an accurate measure of the benefits generated 
E) it prices the good the same way a natural monopolist would C

Question 4

​To serve the public interest,government sometimes promotes competition by breaking up natural monopolies.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not based on the benefits-received principle of taxation?

Accepted Answer

A) Charging a fee for use of public golf courses 
B) Differences between residential and out-of-state college tuition 
C) The excise tax on gasoline 
D) Toll booths on a highway 
E) Charging a fee per bag to haul away garbage 
A) Charging a fee for use of public golf courses 
B) Differences between residential and out-of-state college tuition 
C) The excise tax on gasoline 
D) Toll booths on a highway 
E) Charging a fee per bag to haul away garbage

Question 6

Suppose you form a legal partnership with your best friend,and she purchases consulting services calling for a $100,000 fee.Your business is broke,and you never wanted the consultants to work for you-only your partner did.For how much of this debt are you legally liable?

Accepted Answer

A) $25,000 
B) All of the $100,000 
C) The proportion reflected by the proportion of the business owned 
D) Only an amount equal to the assets of the business 
E) $50,000 
A) $25,000 
B) All of the $100,000 
C) The proportion reflected by the proportion of the business owned 
D) Only an amount equal to the assets of the business 
E) $50,000

Question 7

A disadvantage of the corporate form of business organization is that corporate income is taxed twice.

Accepted Answer

A) True 
 B)False

Question 8

​The following table shows tax payments made for various incomes.According to the information in the table below,the tax system is: ​
Table 3.1

Accepted Answer

A) progressive throughout all levels of income. 
B) progressive between $1,000 and $2,000 of income but regressive above $2,000. 
C) regressive throughout all levels of income. 
D) regressive between $1,000 and $2,000 of income but progressive above $2,000. 
E) proportional throughout all levels of income. 
A) progressive throughout all levels of income. 
B) progressive between $1,000 and $2,000 of income but regressive above $2,000. 
C) regressive throughout all levels of income. 
D) regressive between $1,000 and $2,000 of income but progressive above $2,000. 
E) proportional throughout all levels of income.

Question 9

The second largest source of tax revenue for the federal government is:

Accepted Answer

A) payroll taxes. 
B) the personal income tax. 
C) the corporate income tax. 
D) excise taxes. 
E) the sales tax. 
A) payroll taxes. 
B) the personal income tax. 
C) the corporate income tax. 
D) excise taxes. 
E) the sales tax.

Question 10

Which of the following is one of the chief reasons for the increased number of married women in the U.S.workforce?​

Accepted Answer

A) The marginal cost of working in the labor force has increased. 
B) Jobs provide greater independence and self-worth. 
C) The opportunity cost of household work has increased. 
D) The sunk cost of household appliances has risen to the point where women must work to make payments on them. 
E) Women spend more time shopping as a result of the increasing division of labor in household production. 
A) The marginal cost of working in the labor force has increased. 
B) Jobs provide greater independence and self-worth. 
C) The opportunity cost of household work has increased. 
D) The sunk cost of household appliances has risen to the point where women must work to make payments on them. 
E) Women spend more time shopping as a result of the increasing division of labor in household production.

Question 11

The Salvation Army is an example of a(n):

Accepted Answer

A) military organization. 
B) not-for-profit organization. 
C) partnership. 
D) S corporation. 
E) U.S.government agency. 
A) military organization. 
B) not-for-profit organization. 
C) partnership. 
D) S corporation. 
E) U.S.government agency.

Question 12

Which of the following is a result of increased real wages in the United States?

Accepted Answer

A) A decrease in the quantity of services demanded by households 
B) An increase in the opportunity cost of remaining employed in the home 
C) A decrease in the opportunity cost of working outside the home 
D) A decline in the number of households providing labor outside the home 
E) Reduced use of labor-saving devices in households 
A) A decrease in the quantity of services demanded by households 
B) An increase in the opportunity cost of remaining employed in the home 
C) A decrease in the opportunity cost of working outside the home 
D) A decline in the number of households providing labor outside the home 
E) Reduced use of labor-saving devices in households

Question 13

Which of the following is not a goal of government programs?

Accepted Answer

A) To enforce private property rights 
B) To prohibit natural monopolies 
C) To reduce pollution 
D) To transfer money from higher-income households to the poorest households 
E) To maintain price stability 
A) To enforce private property rights 
B) To prohibit natural monopolies 
C) To reduce pollution 
D) To transfer money from higher-income households to the poorest households 
E) To maintain price stability

Question 14

Which of the following is not a function of government?

Accepted Answer

A) Promotion of competition 
B) Stabilization to achieve the macroeconomic goals 
C) Redistribution of income through taxation and transfer payments 
D) Production of public goods 
E) Providing the economy's private goods 
A) Promotion of competition 
B) Stabilization to achieve the macroeconomic goals 
C) Redistribution of income through taxation and transfer payments 
D) Production of public goods 
E) Providing the economy's private goods

Question 15

​The table below shows tax payments made for various incomes.According to the information in the table below,the tax system is: ​
Table 3.2

Accepted Answer

A) progressive at all levels of income. 
B) proportional. 
C) regressive. 
D) based on the benefits received. 
E) proportional between $5,000 and $10,000. 
A) progressive at all levels of income. 
B) proportional. 
C) regressive. 
D) based on the benefits received. 
E) proportional between $5,000 and $10,000.

Question 16

The increased labor force participation of married women in the United States is most often explained by:

Accepted Answer

A) declining productivity in agricultural production. 
B) a rise in average household size. 
C) increased education and an increased demand for labor. 
D) the decreased opportunity cost of working in the home. 
E) declining productivity in household production. 
A) declining productivity in agricultural production. 
B) a rise in average household size. 
C) increased education and an increased demand for labor. 
D) the decreased opportunity cost of working in the home. 
E) declining productivity in household production.

Question 17

If the value of the euro increases relative to the U.S.dollar,then French goods will be less expensive in the U.S.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following best defines foreign exchange?

Accepted Answer

A) A trade between two countries 
B) The market where exporting and importing activities take place 
C) The price of a currency relative to another currency 
D) The currency of another country used for trading 
E) The currency that the United States uses to buy goods from other countries 
A) A trade between two countries 
B) The market where exporting and importing activities take place 
C) The price of a currency relative to another currency 
D) The currency of another country used for trading 
E) The currency that the United States uses to buy goods from other countries

Question 19

Trade restrictions can take any of the following forms except one.Which is the exception?

Accepted Answer

A) Tariffs 
B) Free trade agreements 
C) Quotas 
D) Voluntary trade restrictions 
E) Health and safety restrictions 
A) Tariffs 
B) Free trade agreements 
C) Quotas 
D) Voluntary trade restrictions 
E) Health and safety restrictions

Question 20

Which of the following taxes is most clearly based on the benefits-received principle of taxation?

Accepted Answer

A) Corporate income tax 
B) Gasoline tax 
C) Personal income tax 
D) Payroll tax 
E) Value added tax 
A) Corporate income tax 
B) Gasoline tax 
C) Personal income tax 
D) Payroll tax 
E) Value added tax

Household production consists of households producing goods and services,like meals,cleaning and child care,instead of firms.

One explanation for the increased participation of married women in the U.S.labor force is that:

When the government sells something it produces,_____.

To serve the public interest,government sometimes promotes competition by breaking up natural monopolies.

Which of the following is not based on the benefits-received principle of taxation?

Suppose you form a legal partnership with your best friend,and she purchases consulting services calling for a $100,000 fee.Your business is broke,and you never wanted the consultants to work for you-only your partner did.For how much of this debt are you legally liable?

A disadvantage of the corporate form of business organization is that corporate income is taxed twice.

The following table shows tax payments made for various incomes.According to the information in the table below,the tax system is: Table 3.1

The second largest source of tax revenue for the federal government is:

Which of the following is one of the chief reasons for the increased number of married women in the U.S.workforce?

The Salvation Army is an example of a(n):

Which of the following is a result of increased real wages in the United States?

Which of the following is not a goal of government programs?

Which of the following is not a function of government?

The table below shows tax payments made for various incomes.According to the information in the table below,the tax system is: Table 3.2

The increased labor force participation of married women in the United States is most often explained by:

If the value of the euro increases relative to the U.S.dollar,then French goods will be less expensive in the U.S.

Which of the following best defines foreign exchange?

Trade restrictions can take any of the following forms except one.Which is the exception?

Which of the following taxes is most clearly based on the benefits-received principle of taxation?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 3: Economic Decision Makers

Household production consists of households producing goods and services,like meals,cleaning and child care,instead of firms.

One explanation for the increased participation of married women in the U.S.labor force is that:

When the government sells something it produces,_____.

​To serve the public interest,government sometimes promotes competition by breaking up natural monopolies.

Which of the following is not based on the benefits-received principle of taxation?

Suppose you form a legal partnership with your best friend,and she purchases consulting services calling for a $100,000 fee.Your business is broke,and you never wanted the consultants to work for you-only your partner did.For how much of this debt are you legally liable?

A disadvantage of the corporate form of business organization is that corporate income is taxed twice.

​The following table shows tax payments made for various incomes.According to the information in the table below,the tax system is: ​ Table 3.1

The second largest source of tax revenue for the federal government is:

Which of the following is one of the chief reasons for the increased number of married women in the U.S.workforce?​

The Salvation Army is an example of a(n):

Which of the following is a result of increased real wages in the United States?

Which of the following is not a goal of government programs?

Which of the following is not a function of government?

​The table below shows tax payments made for various incomes.According to the information in the table below,the tax system is: ​ Table 3.2

The increased labor force participation of married women in the United States is most often explained by:

If the value of the euro increases relative to the U.S.dollar,then French goods will be less expensive in the U.S.

Which of the following best defines foreign exchange?

Trade restrictions can take any of the following forms except one.Which is the exception?

Which of the following taxes is most clearly based on the benefits-received principle of taxation?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

To serve the public interest,government sometimes promotes competition by breaking up natural monopolies.

The following table shows tax payments made for various incomes.According to the information in the table below,the tax system is: Table 3.1

Which of the following is one of the chief reasons for the increased number of married women in the U.S.workforce?

The table below shows tax payments made for various incomes.According to the information in the table below,the tax system is: Table 3.2