Chapter 5 Economics Test
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For NCA kids to study for final. Test Questions!
- 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
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