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SS Chapter 11A
practice
| Question | Answer |
|---|---|
| 1) Which one of the following is a result of automation in the United States? A) a large population increase B) a reduction in the demand for unskilled labor C) a shortage of housing in many cities D) higher prices for color TV's | |
| 2) Which one of the following statements best explains why people in industrial countries have more leisure time today than in the early 20th century? A) People in industrial countries often work fewer hours because of advances in technology. B) People in industrial countries are paid higher wages. C) Most people in industrial countries now own automobiles. D) Industrial countries celebrate more public holidays. | |
| Which one of the following statements best portrays the point of view expressed in the cartoon? A) Machines have made many inventors rich. B) Machines can perform all human activities. C) Machines can become harmful to people. D) Machines will always be useful to humans. | |
| 4) Which cartoon shows a direct result of automation? A) A B) B C) C D) D | |
| 5) Which cartoon shows the demands of labor unions? A) A B) B C) C D) D | |
| 6) Which one of the following best describes a consumer? A) Someone who manufactures goods. B) Someone who sells goods. C) Someone who runs for political office. D) Someone who uses goods. | |
| 7) What would be an example of a consumer protection law? A) A law requiring manufacturers to label the contents of prepared foods. B) A law that increases the amount of Social Security benefits. C) A law that limits the courts in antitrust cases. D) A law that requires exact payment of income taxes. | |
| 8) Before you make a purchase, what agency could you check with if you wanted to find out if a company had complaints against them? A) Federal Trade Commission B) Better Business Bureau C) State Attorney General's Office D) Small Claims Court | |
| What was the cartoonist criticizing in the cartoon? A) international trade B) economic inequality C) servants D) taxes | |
| 10) The economy of the United States is sometimes referred to as a mixed economic system because both A) corporations and single proprietorship exist side by side B) foreign and domestic products are sold in the United States C) inflation and high unemployment can exist at the same time D) private business and government influence the economy | |
| 11) What term best describes an economy in which both government and private citizens make economic decisions? A) purely capitalistic economy B) mercantile economy C) mixed-market economy D) socialist economy | |
| 12) In an ideal market economy, who has the greatest influence over the products that should be produced? A) bankers B) governments C) retailers D) consumers | |
| 13) In what type of economy are economic decisions based primarily on the supply and demand of goods and services? A) traditional economy B) market economy C) planned economy D) command economy | |
| 14) What economic system uses a profit motive? A) communism B) socialism C) capitalism D) feudalism | |
| 15) Which one of the following is most characteristic of a capitalist economy? A) businesses earning a profit on investment B) government ownership of industry C) efforts to redistribute wealth from rich to poor D) collective farming | |
| 16) What is a basic problem all economic systems share? A) encouraging workers to save part of their wages B) balancing resources and needs C) establishing a class system D) sharing the wealth equally | |
| 17) What does GNP stand for? A) Gross National Product B) Global-National Pricing C) Great National Pride D) Grand National Park | |
| 18) The total value of all goods and services produced in a country during a year equals the country's A) rate of inflation B) national debt C) gross national product D) consumer price index | |
| 19) What term best defines the total value of goods and services? A) trade deficit B) balance of trade C) laissez-faire D) gross national product | |
| 20) Why would an economist study the gross domestic product, the consumer price index, and the Dow-Jones Industrial Average? A) to determine the condition of the economy B) to decide what stock to buy C) to determine bank interest rates D) to decide what the role of government should be in the stock market | |
| 21) As the gross domestic product increases, which one of the following is likely to happen in factories and stores? A) hiring of more workers B) a lockout C) a reduction in wages D) a strike | |
| 22) Which one of the following information most accurately indicates the economic well-being of a nation's citizens? A) number of millionaires B) value of annual exports C) area of the nation in square miles D) per capita gross domestic product | |
| 23) The term "balance of trade" is most closely defined as the A) transportation of manufactured goods B) ownership of raw materials C) competition among corporations within a nation D) comparison of imports and exports of a nation | |
| 24) What term best defines the value of goods and services produced within a nation each year? A) GOP B) GDP C) EPA D) AARP | |
| 25) What would indicate that a nation has a favorable balance of trade? A) It buys most of its products from friendly nations. B) It sells all of the products it manufactures. C) It exports more than it imports. D) It heavily taxes its exports. | |
| 26) What term best defines the situation in which exports are greater than imports? A) trade balance B) gross domestic product C) trade surplus D) trade deficit | |
| 27) Under what conditions does a nation have a trade deficit? A) exporting more goods than it imports B) having no new products to market C) suffering a depression D) importing more goods than it exports | |
| 28) When the United States buys more goods from foreign countries than it sells to them, the United States has a trade A) surplus B) barrier C) deficit D) increase | |
| 29) What is the main idea of the cartoon? A) Products made in the United States are superior to foreign-made products. B) The present balance of trade is unhealthy for the United States economy. C) Foreign-made products are useful to American consumers. D) Taxes on imports are too high. | |
| 30) Which one of the following would do the most to help the situation illustrated in the cartoon? A) an amendment to place an export tax on all American-made goods B) an increase in the amount of foreign-made goods purchased by Americans C) a decrease in import taxes D) an increase in the amount of American-made products sold in other countries | |
| 31) Why would some Americans object to raising tariffs? A) Tariffs only benefit foreign countries. B) Tariffs improve world trade. C) Tariffs increase the prices of goods. D) Tariffs are unconstitutional. | |
| 32) Raising tariffs on shoes and clothing most likely would strain United States foreign relations with A) African nations B) Asian nations C) Middle Eastern nations D) European nations | |
| 33) Within the United States, what is a likely effect of an increase in the import tax on foreign-produced cars? A) an increase in the sale of American-made cars B) a decrease in the price of foreign cars C) a decrease in price of American-made cars D) an increase in the sale of foreign cars | |
| 34) What have some Americans demanded because of increased sales of foreign products in the United States? A) establishing a higher wage rate B) a lowering of the sales taxes C) a six-day work week D) a raise in the tariff rates | |
| 35) What is the purpose of import taxes? A) It gives consumers a wider choice of products to buy. B) It encourages free trade among nations. C) It protects industries from competition from foreign goods. D) It keeps strategic materials from being sent to foreign nations. | |
| 36) What was a major problem faced by the United States textile industry in the 1980s? A) increased competition from foreign textile imports B) establishment of hiring quotas for women C) decreased numbers of skilled workers D) regulated prices by the government | |
| 37) What happens when a society faces the problem of economic scarcity? A) Consumers will generally not spend wisely. B) There are limited resources and unlimited wants. C) Competition becomes a basic part of the economic systems. D) The supply equals the demand for any specific item. | |
| 38) " Top Coffee Firm Announces 50ยข Increase: Price Now $3.21 Wholesale" " It's Tea for $2 and the Rush is On" Which economic principle is shown by the headlines? A) Despite price increases, people tend to buy the same product. B) As the prices increase, people look for substitute products. C) When prices increase, people buy even more of the product. D) As production increases, the cost of production decreases. | |
| 39) Which one of the following is most likely to be a major cause of inflation in the United States? A) increased number of bankruptcies B) a balanced federal budget C) increased demand for scarce products D) decreased demand for imported goods | |
| 40) If inflation should occur, a retired person living on a fixed income would probably A) have to spend more money for the same amount of goods and services B) have to rely less on government-funded programs for the elderly C) not be affected D) be able to save more money | |
| 41) Who of the following would most likely suffer the most from inflation? A) doctors and lawyers B) union members C) store owners D) people on fixed pensions | |
| 42) What effect would high interest rates most likely have on a nation's economy? A) decline in consumer demand B) decline in unemployment C) increased demand for exports D) increased general prosperity | |
| 43) " Early Cold Wave Destroys Florida Orange Crop" Which one of the following would most likely result from this news headline? A) supermarkets will import fewer oranges B) the price of oranges will drop dramatically C) the price of oranges will remain the same D) the price of oranges will rise | |
| Sp A: Athletes are overpaid. No one deserves to make as much money as they do for p Spr B: Modern athletics is "big business." There tremendous profit in the field of sports, and if the athletes do not get the money, the owners of the teams will. Sp C: Big salaries for the athletes mean greater costs for the team owners. Sooner or later, the public wi Speaker D: The careers of most athletes are brief. They are under great pressure from fan | |
| 44) Which speaker's statement is an opinion rather than a fact? A) A B) B C) C D) D | |
| 45) Which speaker's statement best illustrates inflation? A) A B) B C) C D) D | |
| 46) Which two speakers most likely feel that athletes are entitled to higher pay? A) C and D B) A and B C) A and C D) B and D | |
| 47) Which one of the following would increase if there was an economic depression? A) printing of new money B) unemployment C) new bank accounts D) number of new businesses | |
| 48) In the past, recessions have generally been characterized by A) increased industrial production and higher wages B) high farm wages and surplus farm production C) a rising unemployment rate and a decrease in the sale of consumer goods D) full employment and too many consumer goods | |
| 49) What action might the federal government take in order to decrease the unemployment rate? A) cut taxes B) lower the age at which students may leave school C) ration gasoline D) cut government spending | |
| 50) In early 2002, the United States experienced an economic downturn and increasing unemployment. What term best describes this economic occurrence? A) recession B) inflation C) depression D) deflation | |
| 51) What part of the United States government is responsible for directly controlling interest rates? A) Senate B) Federal Reserve System C) Supreme Court D) House of Representatives | |
| 52) What does the Federal Reserve System have the power to do? A) adjust the money supply to meet changing economic conditions B) determine the number of people a bank can employ C) set the price of stocks on the Stock Exchange D) appoint the boards of directors of member banks | |
| What might the political cartoon be suggesting about government in the United States? A) Citizens rarely question the ways government spends its income. B) The cost of government may be increasing beyond citizens' ability to pay for it. C) Government bureaucracy is finally under the control of citizens. D) Public opposition to government spending is decreasing. | |
| 54) What is a deficit? A) the amount that the government earns from taxes in a year B) the amount that Congress earns in a year C) the amount that the government has overspent during a year D) the amount that the government is allowed to spend in a year | |
| 55) According to the graph, which one of the following best described the United States budget deficit's changes in the early 1980s? A) declined steadily B) remained the same C) rose sharply D) rose somewhat and then declined sharply | |
| 56) According to the graph, in what year did the deficit grow the most? A) 1983 B) 1976 C) 1980 D) 1979 | |
| 57) What was the main idea of the cartoon? A) The housing industry suffered most from deficit financing. B) The economy was getting bigger and better. C) Deficits were needed for economic growth. D) Government deficits threatened economic well-being. | |
| 58) What was the main cause of the situation in both the cartoon and the graph? A) The United States exported more than it imported. B) Tax rates were too high. C) The federal government spent more than it collected. D) The interest rates charged by the Federal Reserve were too high. | |
| 59) What was the cartoonist criticizing in the cartoon? A) overweight soldiers B) defense spending C) United States involvement in the Middle East D) foreign aid expenses | |
| 60) In the cartoon, who does the small person holding the "Cut Fat" list in his hand probably represent? A) a senator B) the president C) a lobbyist D) a taxpayer | |
| 61) Which one of the following is the most common source of income for the largest number of people in the United States? A) wages and salaries B) profits and dividends C) rents D) interest charges | |
| 62) A progressive or graduated tax is considered a fair tax by some because it A) attempts to eliminate excess profits B) raises rates for married people C) is based upon the ability to pay D) requires everyone to pay the same amount of tax | |
| 63) Regressive taxes, such as the sales tax, are most difficult for those who A) buy luxury goods B) live on low fixed incomes C) have high incomes D) are able to save part of their incomes | |
| 64) Which one of the following taxes might be used to encourage Americans to buy American-made products? A) import tariff B) excise tax C) property tax D) income tax | |
| 65) One way the federal government could put more money into the hands of its citizens would be to A) lower the individual's Social Security benefit B) lower the amount of money in circulation C) increase the sales tax by one percent D) lower the individual's payment of personal income tax | |
| 66) In addition to the personal income taxes, what is the next major source of money for the federal government? A) export taxes B) inheritance taxes C) Social Security taxes D) import taxes | |
| 67) Which one of the following federal budget items costs the taxpayers the most money? A) education B) economic aid to foreign countries C) interest payments on the national debt D) Social Security | |
| 68) What type of tax increases with the ability to pay? A) graduated income tax B) import tax C) excise tax D) export tax | |
| 69) Which one of the following best describes the present-day relationship of government to business? A) government maintains a hands-off business policy B) government encourages business monopolies C) government owns all monopolies D) government regulates many businesses | |
| 70) When the government sets prices and minimum standards of service, it is regulating what part of the economy? A) clothing manufacturers B) petroleum companies C) public utilities D) food-processing companies | |
| 71) Which one of the following economic policies opened the utilities market to increased competition? A) monopoly B) deregulation C) oligopoly D) closed shop | |
| 72) One way in which family life in the United States today differs from family life in colonial America is that today A) children receive most of their education at home B) the family is a self-contained economic unit C) several generations live in the same household D) many mothers are employed outside the home | |
| 73) How did the American workforce change in the 20th century? A) Fewer African Americans were employed in management positions. B) Women began to work in business and industry. C) The majority of Americans became farmers. D) Professional positions became unavailable to women. | |
| 74) Which one of the following statements concerning women in the United States today is accurate? A) Women are allowed to vote at age 17. B) Women still lack equal employment opportunities in some fields. C) Women are no better off now than they were in the Thirteen Colonies. D) Women have few legal rights. | |
| According to the graph, the number of women in the labor force between 1970 and 1981 A) doubled B) declined by approximately 50% C) tripled D) increased by approximately 50% | |
| 76) Between the 1970s and 2001, what major change in the United States labor force was indicated by the chart? A) The number of job opportunities for unskilled male workers increased. B) The number of college graduates entering the job market decreased. C) The number of women employed outside the home increased. D) The total number of people employed in the United States decreased. | |
| 77) According to the chart, the number of women in the labor force between 1970 and 2001 approximately A) doubled B) decreased by half C) tripled D) remained the same | |
| 78) According to the chart, the number of men in the labor force between 1970 and 2001 approximately A) tripled B) doubled C) remained the same D) decreased by half | |
| 79) Which one of the following statements is best supported by the information in the chart? A) The male workforce has increased. B) The female workforce has increased. C) There has been a decline in the total workforce. D) There has been no change in the workforce. | |
| 80) Which one of the following actions helped the trend shown in the chart to continue toward greater equality in the workplace? A) a return of women to more traditional roles B) an increase in the birth rate C) an increase in the required age for retirement D) government support of equal employment opportunities | |
| 81) The main idea of the cartoon is that black teenagers are A) particularly hard hit by unemployment B) not covered by minimum-wage laws C) unemployed because of automation D) less affected by unemployment than white teenagers | |
| 82) What could the government do to help the boy in the cartoon? A) cut federal spending for social programs B) increase job training programs C) cut foreign aid D) increase defense spending | |
| 83) The advertisement would most likely be used to support A) protective tariffs B) income taxes C) regulation of advertising D) automation | |
| 84) Who would most likely agree with the view expressed in the advertisement? A) a manufacturer of VCR's in Tokyo, Japan B) a department store manager in Pittsburgh C) a housewife in Chicago D) a United Auto Workers Union official in Detroit | |
| 85) What was the advertisement trying to encourage Americans to do? A) correct poor working conditions in factories B) buy United States union-made clothing C) keep up with the current fads and fashions D) protest against child labor | |
| 86) The development of large-scale industry has usually resulted in A) encouraging the growth of labor unions B) decreasing leisure time for workers C) providing for more personal relationships between employers and employees D) increasing worker interest and satisfaction | |
| 87) Why is union membership of service workers growing faster than that of production workers? A) Production workers no longer need unions. B) Employers in service industries tend to exploit workers less. C) Service workers have always been strong supporters of unions. D) Service employment opportunities are growing. | |
| 88) Which one of the following occupations has grown significantly since the 1930s? A) professional and service work B) home maintenance C) manufacturing and heavy industry D) agriculture | |
| 89) Based on trends since World War II, by the year 2020 there will probably be the greatest number of job openings in A) professional sports B) farming C) service occupations D) education | |
| 90) Due to automation and computerization, which type of workers have more job opportunities? A) farm workers B) service workers C) migrant workers D) unskilled workers | |
| 91) Why have many Americans continued onto college or trade schools after graduation from high school? A) Education has become increasingly less expensive. B) The United States has provided free education for all minorities. C) High-paying jobs for teenagers have become more readily available. D) There have been increasingly fewer job opportunities available for unskilled workers. | |
| 92) Which one of the following conclusions can be made from the chart? A) Education and training became more important for employment than in the past. B) More workers joined labor unions than in the past. C) It became more difficult for secretaries to obtain jobs than in the past. D) Unemployment increased. | |
| 93) Which would be the best title for the chart? A) " Non-farm Employment" B) " The Current Labor Force" C) " Changes in the Labor Force" D) " Employment and Unemployment" | |
| 94) Which one of the following actions might the cartoonist be commenting on? A) the rise in postage prices B) a strike by government workers C) the kidnapping of a governmental official D) work layoffs at General Motors | |
| 95) Who does the hostage represent in the cartoon? A) organized labor B) big business C) the United States government D) the American people | |
| 96) Rising unemployment, a reduction in housing construction, and a falling gross national product are all characteristics of what economic situation? A) deficit financing B) recession C) inflation D) prosperity | |
| 97) Which one of the following contributed to the problems of the recession of the 1990s? A) invasion of Grenada B) collapse of communism in Eastern Europe C) savings banks' scandals D) development of the Strategic Defense Initiative |
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