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Chapter 5 Economics Test

25 Questions
Economics Quizzes & Trivia

For NCA kids to study for final. Test Questions!

Questions and Answers
  • 1. 
    Which of the following principles is most clearly taught in Scripture?
    • A. 

      The primary means by which people should obtain income is through their own labor.

    • B. 

      The governement should provide a "safety net" for the truly poor

    • C. 

      Christians should not be concerned about the poor because poverty is a fact of life

    • D. 

      Everyone has a right to equal economic benefits regardless of productivity

  • 2. 
    Which of the following statements is not found in Scripture?
    • A. 

      'If any would not work, neither should he eat."

    • B. 

      "Ye have the poor with you always."

    • C. 

      "If thou wilt be perfect, go and sell that thou hast, and give to the poor."

    • D. 

      'For this cause are the powers ordained of God, to distribute to the poor and fearless."

  • 3. 
    What concept is the source of the phrase "economic darwinism'?
    • A. 

      Survival of the fittest

    • B. 

      Egalitarian fainess

    • C. 

      Economic leveling

    • D. 

      Communism

  • 4. 
    What is a market solution to the distribution question?
    • A. 

      Libertarian fairness

    • B. 

      Egalitarian fairness

    • C. 

      Interest rates

    • D. 

      Labor intensive firms

  • 5. 
    Which of the following statements is true of communism?
    • A. 

      It offers a way to perfect society by human effort.

    • B. 

      It condems revolution

    • C. 

      It approves of greed.

    • D. 

      It was widely accepted in Europe when it was first introduced.

  • 6. 
    Which o fthe following staements is a viewpoint of egalitarian fairness?
    • A. 

      Wealth should be distributed primarily to those who satisfy the needs of other

    • B. 

      Society is obligated to protect the poor from the most devastating economic hardships

    • C. 

      If a person is unable to earn a living because of a lack of education, it is responsibilities to secure a marketable skill

    • D. 

      If a person has a physical limitation, it is his responsibility to seek private charity

  • 7. 
    What viewpointt leads nations to introduce food stamps, social secruity, and housing assistance?
    • A. 

      Safety-net egalitarianism

    • B. 

      Libertarianism

    • C. 

      Economic leveling

    • D. 

      Communism

  • 8. 
    What is a command solution to the distribution nquestion?
    • A. 

      Libertarian solution

    • B. 

      Egalitarian fairness

    • C. 

      Interest rates

    • D. 

      Labor intensive firms

  • 9. 
    What is the distirbution question that every society must answer?
    • A. 

      Ho will the nation's oods be produced?

    • B. 

      Who will recieve the goods that are produced?

    • C. 

      How many goods will be produced?

    • D. 

      What types of goods will be produced?

  • 10. 
    What is the input uestion that every society must answer?
    • A. 

      How will the nations good be produced?

    • B. 

      Who will recieve the goods that are produced?

    • C. 

      How many goods will be produced?

    • D. 

      What types of goods will be produced?

  • 11. 
    What is the command solution to the input question?
    • A. 

      A committee decides the comsumer good/capital ood tradeoff

    • B. 

      The interest rate decides the comsumer good/capital tradeoff

    • C. 

      A committee chooses the labor intensive/capital intensive combination

    • D. 

      Individual frims choose the labor intensive/capital intensive combination.

  • 12. 
    What is the market solution to the input question?
    • A. 

      A committee decides the consumer good/capital good tradeoff.

    • B. 

      The interest rate decides the comsumer good/capital god tradeoff.

    • C. 

      A committee chooses the labor intensive/capital intensive combination

    • D. 

      Individual firms choose the labor intensive/capital intensive combination

  • 13. 
    What is a major advantage of a labor intensive business over a capital intensive business?
    • A. 

      Low unemployment

    • B. 

      Few hidden costs

    • C. 

      Reliable rate of productivity

    • D. 

      Increase in the average indiidual income

  • 14. 
    What is a major advantage of using automated equipment instead of labor?
    • A. 

      Cheap maintenance

    • B. 

      Versatile application

    • C. 

      Small cost of new investment

    • D. 

      Nearly constant rate of productivity

  • 15. 
    What is the market solution to the output question?
    • A. 

      A committee decides the consumer good/capital good tradeoff.

    • B. 

      The interest rate decides the comsumer good/capital god tradeoff.

    • C. 

      A committee chooses the labor intensive/capital intensive combination

    • D. 

      Individual firms choose the labor intensive/capital intensive combination

  • 16. 
    What is the command solution to the output question?
    • A. 

      A committee decides the consumer good/capital good tradeoff.

    • B. 

      The interest rate decides the comsumer good/capital god tradeoff

    • C. 

      A committee chooses the labor intensive/capital intensive combination

    • D. 

      Individual firms choose the labor intensive/capital intensive combination

  • 17. 
    Which of the following is a capital good?
    • A. 

      A toaster

    • B. 

      A house

    • C. 

      Medicine

    • D. 

      A plow

  • 18. 
    Which of the following is a consumer good?
    • A. 

      An aoutomobile

    • B. 

      A tractor

    • C. 

      A printing press

    • D. 

      A welding machine

  • 19. 
    What is the output question that every society must answer?
    • A. 

      How will the nation's goods be produced?

    • B. 

      Who will recieve the goods that are produced?

    • C. 

      How many goods will produced?

    • D. 

      What type os godos will be produced?

  • 20. 
    What is meant by the "consumer good/capital good tradeoff"?
    • A. 

      The same business cannot produce both capital goods and consumer goods.

    • B. 

      Every business must sell its capital goods for cnsumer goods, and vice versa

    • C. 

      Business that produce consumer goods cause the production of capital goods to suffer, and vice versa

    • D. 

      Businesses should trade both consumer goods and capital goods with foreing business

  • 21. 
    Why is it deceitful for the Soviet Union to claim that its past economic growth was a benefit of command solutions to the economy?
    • A. 

      The growth was actually achieved through market solutions.

    • B. 

      The growth was made possible by untapped resources, ot government policy.

    • C. 

      The growth was actually achieved through foreing investments

    • D. 

      The growth never took place

  • 22. 
    If a business is seeking intensive growth, one of its goals might be
    • A. 

      To achieve 0% unemployment

    • B. 

      To tap new natural resources

    • C. 

      To train uneducated employees

    • D. 

      To increase its financial capital

  • 23. 
    During the 1950'2 the command-regulated Soviet Union expierenced phenomenal growth in productivity due to
    • A. 

      Intensive growth

    • B. 

      Extensive growth

    • C. 

      Labor intensive business

    • D. 

      Egalitarain fairness

  • 24. 
    What is the most obvious consequence of rapidly rising prices?
    • A. 

      Unemployment

    • B. 

      Unfair distribution of income

    • C. 

      Decreased savings

    • D. 

      Decreased spending

  • 25. 
    Which of the following is not a primary economics goal of societies?
    • A. 

      Fair distibution of income

    • B. 

      Low unemmployment

    • C. 

      Stable productivity

    • D. 

      Stable prices