Economics 2025 Final Exam [Student Edition]

Which fiscal policy change would be most appropriate to reduce inflation?

• increase tariffs

• lower government spending

• lower consumer spending

• increase sin tax

Two items that are considered withholdings on your paycheck are:

• Social Security and Property Tax

• Medicare and Social Security

• Social Security and Escrow Fees

• Medicare and Sales Tax

The is the most used kind of consumption tax in the United States

• excise

• income

• sales

• property

The ____________ tax is often referred to as a death tax and is usually only for the wealthy.

• estate

• excise

• income

• sales

The tax on gasoline is considered a(n) (a)   tax.

• income

• excise

• property

• sales

The term scarcity can be applied to which situation; limited resources and

• the lack of proper technological advances.

• overpopulation in industrial areas.

• the failure to produce what the consumer wants.

• unlimited wants and needs.

In a free market economy, what is the most likely result of a shortage of nurses?

• Fewer people become nurses.

• Nursing salaries rise.

• Hospitals use doctors to replace nurses.

• Nurses work for doctors instead of for hospitals.

In a market economy, who or what determines what is produced, who produces it, and how much is produced?

• the social customs of the people

• the national government

• bartering and traditions in the marketplace

• consumers and producers in the marketplace

Which is a condition of a market economy?

• Goods and services are traded instead of purchased using government-issued currency.

• Prices are determined by supply and demand instead of by government regulation.

• The number of goods and services that can be exported is determined by the government.

• The amount of raw materials available is determined by the government.

The fundamental economic problem facing all societies is the fact that all must deal with which of the following?

• scarcity

• competition

• poverty

• inflation