C&E Final Exam
1. Which statement best describes the relationship between labor and capital?
Component / DefinitionLabor / human activity that generates a good or a service
Capital / cash or durable goods used to produce goods or services
A Laborers help determine the amount of taxes paid by
the owner of the capital
B Entrepreneurs use capital with labor to produce
goods for the marketplace
C Capital is the result of competition between laborers
and entrepreneurs
D Capital will determine the number of laborers
employed in a factory
2. Which method best describes how a capitalistic system addresses the basic economic problem of scarcity and choice?
A Central planning ensures equity of distribution
B Price mechanisms are based on the laws of supply
and demand
C Subsidy programs prevent the decline of major
industries
D Market regulations are designed to maintain useful
monopolies
3. Which economic concept is discussed in this excerpt?
Every gun that is made, every warship launched,
every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed.
—President Dwight D. Eisenhower, 1953
A Marginal benefit
B International competition
C Monetary incentives
D Opportunity cost
The mission of the U.S. National Park Service (NPS) is to conserve the scenery, the natural and historic objects, and the wildlife in United States’ national parks, and to provide for the public’s enjoyment of these features in a manner that will leave them unimpaired for the enjoyment of future generations.
—National Park Service Mission Statement
4. Which goal would a government pursue by creating the organization described above?
A Keeping national employment rates stable
B Increasing attendance rates in national parks
C Ensuring that national parks are profitable
D Protecting the scarce resources of the nation
5. What was a likely result of the trend shown in the graph above?
A Construction of highways decreased
B Demand for public transportation declined
C US consumers bought fewer fuel efficient cars
D US consumers had less money to spend on goods
6. Which phrase best completes the list below?
Factors of ProductionLand/location
Labor
Capital
?
A Consumer demand
B Entrepreneurship
C Regulation
D Urban growth
7. In a pure free enterprise system, individuals either purchase health insurance or pay for any medical service needed. How is socialism different?
A Companies would be unable to lower costs for
employees’ health-care benefits
B Individuals would choose form health-care options
sponsored by the government
C The military would receive government health care
in an effort to promote stability
D The government would be unable to provide
incentives to companies providing healthcare
8. No government has the assets to supply everything its citizens might want or need. What does this basic economic fact force governments to do?
A Save money by cutting current spending on goods
and services
B Increase federal taxes so that more goods are
affordable in the future
C Conserve resources to enable the manufacture of
more goods
D Make choices among goods and services currently on
the market
9. Which economic system is best described in the diagram above?
A Commercial
B Communist
C Free enterprise
D Market socialist
10. Which set of characteristics correctly matches the economic systems in the table below?
1. Communism / 2. Capitalism? / ?
A 1-high profit motive, 2-large bureaucracy
B 1-collective resources, 2-free market
C 1-large private sector, 2-high entrepreneurship
D 1-private property, 2-publicly owned utilities
11. Which scenario showsthe results of competition in a free enterprise system (capitalism)?
A The price of personal computers decreases as more
companies develop computers
B Two companies merge to control the market share in
an economic sector
C A business publishes safety information about a
product because of state laws
D A personal computer company must use a different
song in its ads due to copyright laws
Gloria owns a business that fixes and sets up computers. In January, she charged her client Evan $200.00 to set up a wireless Internet network in his home. The price included all of the supplies necessary for the network.By charging $200.00, Gloria made a $45.00 profit on the work she did for Evan. A new client, Wilson, called Gloria in April and wanted a wireless network set up for $200.00. Gloria discovered that the price of wireless routers had increased to $110.00.
$100.00 / wireless router$50.00 / wireless card for computer
$5.00 / cable
$155.00 / total cost of supplies
12. To keep the same profit, what will Gloria most likely tell Wilson?
A She thinks that he should wait until the price of
wireless routers goes back down
B She will charge $200.00 because that is what she
charged the last client|
C She is not making enough of a profit to continue
setting up computers
D She needs to raise her price to $210.00 to match the
rising cost of supplies.
13. Which of the following is most likely to lead to inflation?
A An increase in the costs of production
B Reduced prices for goods and services
C An increase in the aggregate supply of goods and
services
D The application of price ceilings
14. The actions of the dealer above changed the allocation of goods by
A Reducing dealer inventory
B Increasing customer satisfaction
C Increasing the demand for other model
D Decreasing the value of the car
A The supply of food would decrease due
to demand
B Prices would decrease as the result of
competition
C The demand of food would increase
due to more variety
D Prices would remain the same initially,
then rise
16. / Which example best describes how the free enterprise system influences technological innovation?
A University researchers experiment to increase
the number of bushels of corn per acre
B The government offers incentives to discourage
the outsourcing of production
C The government regulates communications by
assigning radio bandwidth
D Companies compete to develop better cell
phones for the market
17. / Which of the following direct results is a benefit of capitalism?
A Governments allow efficient wealth distribution
B Individuals free to choose production/consumption
C Monopolies ensure the profitability of specific
economic sectors
D International trade creates a dependency among
economic partner
18. / What is the primary role of consumers in a free market economy?
A To sustain traditional production methods
B To purchase goods and services
C To balance the forces of supply and demand
D To meet government production goals
19. What does a surplus of goods signal?
A The price is low
B The price is high
C The price is variable
D The price is reasonable
20. On the graph below, “quantity of goods” and “price” will always move in opposite directions in accordance with which law?
A The law of demand
B The law of supply and demand
C The law of market demand
D The law of supply
21. When does scarcity occur?
A When citizens have an overabundance of resources
B When citizens import needed resources
C When citizens have a shortage of resources
D When citizens develop additional resources
22. Which of the following economic principles would most influence the behavior of consumers?
A Law of supply
B Law of demand
C Law Diminishing margins
D Law of gravity
Use the supply and demand schedule below to answer the following questions
23. What usually happens to available supply when prices rise?
A Supply decreases
B Supply does not change
C Supply rises
D Supply equals demand
24. What usually happens to demand when prices decrease?
A Demand increases
B Demand decreases
C Demand does not change
D Demand disappears
25. When an automobile manufacturer builds 200,000 units of its top selling model, the company is responding mainly to which questions?
A Where to produce?
B How to produce?
C What to produce?
D When to produce?
26. If Sarah chose to spend an afternoon studying instead of earning money at her job, which value represents her lost income?
A Elastic price
B Externalities
C Opportunity cost
D Trade-off
27. Which factor is a major advantage of capitalism compared with centrally planned economies?
A Slower rate of change in business cycles
B Greater variety in consumer choice
C More equitable distribution of goods
D More extensive social welfare program
28. Some nations are protecting fisheries through “catch shares” programs. Shares for individual fisherman determine the number of fish that can be taken from a specific area and these rights can be bought or sold. How can these programs ensure the continued success of the fishing industry?
A Fishermen can maximize profits by harvesting as
many fish as possible
B A desire to protect the value of shares discourages
access for new fishers
C Profits gained from the programs can be used to
establish new fisheries
D A desire to protect the value of shares discourages
overuse of fisheries
29. Which statement best explains the importance of economic decision making when scarcity is a factor?
A Each choice results in an opportunity cost
B Economic decisions are made by the majority
C Economic decisions provide access to more resources
D Each choice must be made with incomplete information
30. Which type of criminal conviction would affect a person’s ability to gain employment?
A traffic summons
B misdemeanor
C felony
31. In the past year, many employees have left Company A to work at Company B.
Which of the following best explains this trend?
A The employees want to be promoted more quickly.
B Company B offers more earning potential.
C The employees value nonmonetary incentives.
D Company A makes employees feel more appreciated.
32. In what order do the elements of a criminal case take place during a trial?
A arraignment, indictment, sentencing
B indictment, sentencing, arraignment
C sentencing, arraignment, indictment
D arrest, acquittal, conviction
33. If defense counsel reviews a client’s case and concludes that the charges and evidence against the client are strong, what is counsel most likely to ask the client to contemplate?
A taking the witness stand
B considering a plea bargain
C citing 5th amendment privilege
D appealing to a higher court
34. In a civil case, who is the plaintiff?
A the district attorney
B person filing the lawsuit
C the party accused of wrongdoing
D the state government
35. How would a defendant in a criminal case most likely want the verdict to conclude?
A conviction
B acquittal
C hung jury
D appeal
36. A contempt of court ruling by a judge would most likely occur due to ignoring a
A plea bargain
B probation
C acquittal
D subpoena
37. In a criminal case who is the plaintiff?
A the defendant
B Leandro
C the prosecutor
D the jury
38. North Carolina’s top law enforcement official, the Attorney General, would likely seek alternatives to incarceration such as boot camps, house arrest and community service if he saw high rates of what?
A Apathy
B Recidivism
C Parole
D Lobbying
39. Someone is most likely to face incarceration for
A damaging someone’s Mercedes in a traffic accident
B stealing $3000 cash
C scamming someone out of money on Ebay.com
D a public school denying a child an education
40. The responsibility of a plaintiff to prove there is enough evidence that someone probably did something wrong
A ignorance of the law is no excuse
B subpoena
C preponderance of evidence
D beyond a reasonable doubt
41. Ignorance of the law is no excuse most likely refers to
A the way state troopers feel during traffic stops
B how a judge would respond to apathy in court
C a defendant’s best defense during a trial
D your 1st Amendment rights
42. The principal reason perjury is against the law
A it is just not right
B it encourages recidivism
C it prevents justice
D it is a misdemeanor
The Selective Service System will be an active partner in the national preparedness community that anticipates and responds to the changing needs of the Nation.
Mission
The statutory missions of Selective Service are to be prepared to provide trained and untrained personnel to the DoD (Department of Defense) in the event of a national emergency…
---Selective Service System, 2011
43. Which phrase best summarizes the responsibility of many US citizens in connection with this organization?
A To undertake military training before graduation from high
school
B To take an active role in a veterans group after military
discharge
C To enlist as a reserve in one of the military branches
D To register for availability in the event of a military draft
44. Someone promoting the melting pot theory would MOST support which statement?
A “Now that these Hispanic immigrants have come to the
US, they need to start acting more ‘American’ if they
want to better our society.”
B “Due to the various communities within our town, I
believe that our Christmas parade should include a float
honoring Hanukkah and Kwanzaa as well.”
C “The United States is a land where we should embrace and
celebrate our cultural differences.
D “Racism is not the evil people claim it is.”
45. How are civil rights and civil liberties similar?
A They both are provided only to citizens who can vote.
B They provide Americans with freedoms and promote
positive treatment of Americans.
C They do not reflect the values of democracy.
D All Americans have been protected by them throughout
history.
46. It is ESSENTIAL to…a (republican form of) government that it be derived from the great body of society
--James Madison
What is the most direct way a citizen can support this principle?
A Hiring a lobbyist
B By running for public office
C By circulating a petition
D By responding to a public opinion poll
47. A citizen lives in a country in which he must be completely loyal to the government and obedient to its ruler.
This is an example of which type of government?
A Theocracy
B Totalitarian dictatorship
C Constitutional monarchy
D Oligarchy
48. A Soviet citizen living under Stalin’s rule had all aspects of life monitored and controlled by a centralized authority.
This is an example of:
A Totalitarianism
B Fascism
C Theocracy
D Democracy
49. This Constitution, and the Laws of the United States shall be made in Pursuance thereof: and all Treaties made, or which shall be made, under the authority of the United States, shall be the supreme law of the land.
Why is this passage significant?
A It establishes that the Constitution is the highest form of
law in America
B It sets forth a state’s right to change a law
C It establishes judicial independence
D It grants supreme power to the President.
50. The New Jersey Plan and the Virginia Plan proposed at the Constitutional Convention in 1787 disagreed with each other about the basis of representation in the legislative branch. What best explains the reason for this disagreement?
A Some states wanted indirect elections, but others wanted
elections by universal suffrage
B Some states wanted a parliamentary system, but others
wanted separate branches of government
C Some states wanted equal representation, but others
wanted representation according to size of population
D Some states wanted representatives appointed by
governors, but others wanted them appointed by state
legislators
51. Which of the following was used as a compromise to gain more support for the Constitution and to assure Anti-Federalists that citizens’ liberties would be secure?
A Declaration of Independence
B Articles of Confederation
C Bill of Rights
D Fundamental Orders of Connecticut
52. Some features of the Articles of Confederation were…
-No national court system or national executive
-Amendments required approval by all 13 states
-Laws required approval from 9 of 13 states to pass
-Congress could raise money only by requesting it from the states
-No national army; states voluntarily sent troops when requested by Congress
Which of the following represents the above characteristics?
A Respect for states’ rights
B A strong national government
C The influence of large states
D An effective national military
53. Which statement identifies the purpose of the Declaration of Independence?
Governments are instituted among Men, deriving their just powers from the consent of the governed. Whenever any Form of Government becomes destructive to these ends, it is the Right of the People to abolish it, and to institute new Government…
A Government should have unlimited authority to guarantee
basic rights
B The people can overthrow a government that fails to
protect basic rights
C Government should be based on a written constitution to
provide basic rights
D The people can increase government authority to expand
basic rights
54. How does the US Constitution conform to John Locke’s social contract theory?
A The government operates on a system of law that is based
on contracts and statutes
B Citizens transfer some rights to the government in
exchange for social order
C States retain sovereign powers and are joined by
confederation
D People agree to a social system guided by conscience
55. Why didn’t the Anti-Federalists support the Constitution?
A There was no established church.
B It gave individual citizens too much power and too many
individual rights.
C The executive branch was not strong enough.
D The national government had too much power.
56. Who assumes the immediately presidency if the POTUS is assassinated or cannot fulfill his/her duties of office?
A Secretary of State
B The First Lady
C Vice President
D The assistant principal
The Council of the Mohawk shall be divided into three parties…the third party is to listen only to the discussion of the first and second parties, and if an error is made or the proceeding is irregular they are to call attention to it, and when the case is right and properly decided by the two parties they shall confirm the decision of the two parties and refer the case to the Seneca Lords for their decision.
57. Which principle of government found in the Iroquois Constitution influenced the framing of the US Constitution?
A Popular sovereignty
B Unicameralism
C Separation of powers
D Federalism
58. In 1973 the U.S. Congress passed a law requiring the president to consult with the Congress before sending U.S. troops into combat. Since the law passed, every president has argued that the law is unconstitutional.