civics and economics e.o.c . review

CIVICS AND ECONOMICS E.O.C.

REVIEW

1) ________ are broad ideas about what is good and desirable.

A. Public policiesB. InstitutionsC. ValuesD. Budgets

Government by consent of the governed is _____________.

A. CommunityB. Majority RuleC. NaturalizationD. Popular Sovereignty

People from foreign countries who plan to stay in the United States for a

short time are called __________.

A. CitizensB. ImmigrantsC. AliensD. Institutions

The People are the ultimate source of power in a __________.

A. MonarchyB. DictatorshipC. RepublicD. Totalitarian state

Which is the fastest growing ethnic group in the United States today?

A. Native AmericansB. African AmericansC. European AmericansD. Latino Americans

Which value is part of Americans’ common civic and political heritage?

A. Fair electionsB. VolunteerismC. Caring parentsD. Cultural education

Which person is NOT a United States citizen?

A. A child born in Guam to Japanese parents.

B. A girl born in Yemen to an American mother.

C. A boy born in Illinois to Mexican parents.

D. A child born in Great Britain to Irish parents.

What is the primary responsibility of the National Boarder Patrol?

A. To deport aliens with expired visas.

B. To prevent illegal entry of aliens

C. To naturalize resident aliens.D. To issue visas to legal aliens.

Which function of government do public libraries fulfill?

A. Keeping orderB. Providing public securityC. Providing servicesD. Guiding the community

Which factor is a legal restriction on voting in the United States?

A. AgeB. RaceC. WealthD. Religion

Which principle of American democracy prevents a president from serving more terms than allowed in

Amendment XXII of the Constitution?

A. Rule of lawB. Limited governmentC. Individual rightsD. Representative

government

Which practice best reflects the principle of representative government?

A. Serving on a juryB. Voting for mayorC. Writing to the editorD. Polling public opinion

The Second Continental Congress made plans for a _________.

A. ConfederationB. Constitutional

conventionC. Bill of rightsD. Territorial government

The agreement about how to represent enslaved persons was known as the __________.

A. Rule of lawB. Electoral College

CompromiseC. Great CompromiseD. Three-Fifths Compromise

According to the Constitution, establishing schools is a(n) __________.

A. Expressed powerB. Reserved powerC. Concurrent powerD. Enumerated power

The president and vice president head the _________.

A. Judicial branchB. Executive branchC. Legislative branchD. All three branches

How were most early state governments different from the

British government?

A. They guaranteed trial by juryB. They had written constitutionsC. They had bicameral

legislaturesD. They protected private

property

What was a significant achievement under the Articles of Confederation?

A. Payment of all Revolutionary War debt

B. Economic security for American farmers

C. Establishment of a plan for organizing territories

D. Uniform enforcement of laws throughout the states

Which proposal at the Constitutional Convention described a system with a president, courts, and bicameral

legislature?

A. Albany PlanB. Virginia PlanC. New Jersey PlanD. Connecticut Plan

Which person defended the constitution in The Federalist?

A. John JayB. John TylerC. Roger ShermanD. Baron de Montesquieu

What does Article I of the Constitution outline?

A. The purposes of the federal government

B. The lawmaking powers of the legislative branch

C. The law-enforcing powers of the executive branch

D. The relationship of the state and national governments

Which principle divides the functions of government among three branches?

A. FederalismB. Rule of lawC. Popular sovereigntyD. Separation of powers

What does the supremacy clause state?

A. The Constitution is the highest law of the land.

B. Only the national government can raise an army.

C. States keep powers not given to the federal government.

D. The federal and state governments share the power to tax.

If government tried to take away a people’s __________, it was breaking the social contract.

A. LegislatureB. Natural rightsC. CharterD. compact

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The founders of Massachusetts were __________.

A. Enslaved people B. Plantation ownersC. Indentured servantsD. Religious dissenters

The Navigation Acts put __________ into practice.

A. TolerationB. MercantilismC. EgalitarianismD. Triangular trade

Which innovation allowed rights to land holders in England?

A. Magna CartaB. Common LawC. English Bill of RightsD. Locke’s social contract

Which document established a tradition of direct democracy in New

England?

A. Virginia CompanyB. House of BurgessesC. Mayflower CompactD. Fundamental Orders of

Connecticut

Which English colony became the first to welcome people of all faiths?

A. MassachusettsB. Rhode IslandC. PennsylvaniaD. Maryland

Why did Southern farmers begin using enslaved Africans?

A. Africans were more willing workers than Europeans

B. Long indentures place huge financial burdens on planters

C. Plantations demanded more workers than immigration provided

D. The triangular trade was more humane than indentured servitude

What about the Middle Colonies spurred the growth of ports such

as New York and Philadelphia?A. Soil and climate suited cash cropsB. Rivers for easy transport to the

coastC. Abundant wood for use in

shipbuildingD. An ideal location for fishing and

whaling

How would you characterize the Great Awakening of the 1700’s?

A. A religious revivalB. A political upheavalC. An economic revolutionD. An educational

movement

Which legislation passed by Parliament restricted colonists’ right to trial by

jury?

A. Stamp ActB. Townshend ActC. Declaratory ActD. Coercive Act

Who published Common Sense, a pamphlet calling for complete independence from Britain?

A. Benjamin FranklinB. Thomas PaineC. Thomas JeffersonD. John Locke

The First Amendment guarantees the right to _________.

A. LibelB. SlanderC. PetitionD. Due process

The right of the government to take private property for public

use is called __________.

A. SuffrageB. Civil rightC. Eminent domainD. Double jeopardy

_________ in Southern states prevented many African Americans from voting.

A. Poll taxesB. Age requirementsC. Civil rightsD. Search warrants

Sometimes law enforcement officials single out suspect unfairly

through ___________.

A. IndictmentsB. Racial profilingC. CensorshipD. Affirmative action

Which of the following does the Bill of Rights Protect?

A. The right to provoke a riot for a good cause.

B. The power of government to operate efficiently.

C. The freedom to act without government interference.

D. The choice to overthrow an unjust government by force.

What does the First Amendment prohibit?

A. Assembly of groups such as communists.

B. Establishment of an official state religion.

C. Criticism of the government or its officials.

D. Dissemination of alarming or offensive ideas.

How does the Fifth Amendment help accused persons?

A. By requiring a speedy trial.B. By requiring a search

warrant.C. By guaranteeing a trial by

jury.D. By protecting against self

incrimination.

Which amendment states that all rights not spelled out in the

Constitution are “retained by the people”?

A. Second AmendmentB. Third AmendmentC. Seventh AmendmentD. Ninth Amendment

Which amendment guaranteed African American men the right to vote?

A. Thirteenth AmendmentB. Fourteenth AmendmentC. Fifteenth AmendmentD. Nineteenth Amendment

Whose right to vote did the Twenty-sixth Amendment guarantee?

A. Poor people in the SouthB. Women across the countyC. Residents of Washington,

D.C.D. Citizens 18 years old and

older

Which sphere of American life was desegregated in the 1940’s?

A. SchoolsB. Work placesC. Armed forcesD. Lunch counters

Which measure outlawed poll taxes?

A. Civil Rights Act of 1957B. Civil Rights Act of 1654C. Voting Rights Act of 1965D. Twenty-fourth

Amendment

Which amendment protects freedom of speech?

A. First AmendmentB. Fifth AmendmentC. Thirteenth AmendmentD. Twenty-fourth

Amendment

Which right or freedom best reflects the humane intent of

Anglo-American law?

A. The right to bear armsB. The freedom of the pressC. The right to private

propertyD. The freedom from cruel

punishment

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Men 18 to 25 years of age are required to register in case the

county needs to draft them for__________.

A. Military dutyB. Volunteer serviceC. Jury dutyD. School attendance

Listening to a neighbor in a different political party shows

___________.A. ToleranceB. ObedienceC. CompassionD. responsibility

What is the most important civic duty of Americans?

A. To pay taxesB. To obey lawsC. To serve in courtD. To attend school

When was the last time the United States instituted a

military draft?A. World War IB. World War IIC. Korean WarD. Vietnam War

_________ choose the Speaker of the House.

A. LobbyistsB. Constituents membersC. Standing committeesD. Majority party

_________ requires police to bring a prisoner to court to explain

why they are holding him or her.A. A bill of attainderB. The franking privilegeC. An ex post facto lawD. A writ of habeas corpus

Members of Congress bring government funds to their state through _____________.

A. CaseworkB. Special-interest groupsC. GerrymanderingD. Pork barrel projects

The simplest way to vote in the House and the Senate is a _____________.

A. Voice voteB. Standing voteC. Roll-call voteD. Computerized vote

The House and Senate meet as one body in _____________.

A. A standing committeeB. Odd-numbered yearsC. CaucusesD. A joint session

The ___________ is the most powerful leader in the House of Representatives.

A. Speaker of the HouseB. President pro temporeC. Vice presidentD. Minority leader

Which of the following legislative powers is implied by the elastic clause?

A. Coining moneyB. Creating an air forceC. Regulating foreign tradeD. Establishing post offices

What non-legislative power resides in the House of Representatives?

A. Trying public officialsB. Impeaching federal judgesC. Establishing bankruptcy

lawsD. Approving presidential

nominees.

Which of the following is a requirement for representatives in the House?

A. Be at least 30 years oldB. Live in the state they

representC. Live in the district they

representD. Be U.S. citizens for at least 9

years

What is NOT a major responsibility of representatives?

A. Writing and introducing billsB. Voting on the floor of the

houseC. Troubleshooting for people

in their districtD. Providing analysis for the

IRS

What is the term for ignoring a bill and letting it die?

A. EarmarkingB. ClotureC. GerrymanderingD. Pigeonholing

What may happen to a bill in the House after the bill leaves committee?

A. Representatives add riders to the bill.

B. The House clerk assigns a number to the bill.

C. Representatives add amendments related to the bill.

D. Representatives vote for cloture to limit debate on the bill.

The Constitution provides an indirect method of electing a president called the ____________.

A. Merit systemB. Electoral CollegeC. Spoils systemD. Executive system

The president can delay the punishment of a person by issuing a(n) _____________.

A. PardonB. AmnestyC. ReprieveD. Executive order

The nation’s plan for dealing with other nations is called its __________.

A. Foreign policyB. National securityC. Trade sanctionsD. Federal bureaucracy

Most national government employees are ___________.

A. AmbassadorsB. Civil service workersC. Cabinet membersD. Political appointees

Which president was elected to four terms?

A. George WashingtonB. Abraham LincolnC. Franklin RooseveltD. George W. Bush

Why was the Twenty-fifth Amendment passed?

A. To create the Electoral CollegeB. To limit presidents to two termsC. To establish the order of

presidential successionD. To clarify when a vice president

becomes president

Which of the following powers does the Constitution give the president?

A. To declare war on other nationsB. To appoint judges to federal

courtsC. To ignore laws passed by

CongressD. To strike down unconstitutional

laws

How does the president fulfill the role of economic leader?

A. By planning the federal budgetB. By meeting with foreign

leadersC. By raising funds for his or her

political partyD. By proposing legislation to

Congress

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Which of the following is NOT a primary goal of American foreign policy?

A. World peaceB. National securityC. Better health careD. International trade

What part of the Executive Office of the President supervises the Central Intelligence

Agency?

A. Office of AdministrationB. National Security CouncilC. Council of Economic

AdvisersD. Office of Management

and Budget

What is the responsibility of the Department of the Interior?

A. School fundingB. Natural resourcesC. Problems of citiesD. Trade, business, and

tourism

A situation in which both federal and state courts have authority to hear a case is known as ________.

A. Appellate jurisdictionB. Concurrent jurisdictionC. Original jurisdictionD. Exclusive jurisdiction

A past decision on which judges base their decisions in similar cases is a(n) __________.

A. CircuitB. OpinionC. Docket D. Precedent

Judicial review gives the Supreme Court the power to __________.

A. Declare a law unconstitutional

B. Remand a case to a lower court

C. Reject a briefD. Hear an appeal

When all the justices vote the same way, the Supreme Court issues a(n) ____________.

A. Majority opinionB. Concurring opinionC. Dissenting opinionD. Unanimous opinion

According to the Constitution, what does every accused person have a right to?

A. A lawyerB. A civil trialC. The bet legal helpD. A Supreme Court hearing

Which of the following cases would be tried in a federal court?A. A state sues another state over

water rightsB. A Houstonian kills a person in

Los AngelesC. An Illinois state worker is

accused of forgeryD. The U.S. ambassador to Russia

breaks a Russian law

In which federal courts to juries try cases?

A. District courtsB. Appellate courtsC. The Supreme CourtD. All levels of federal

courts

How might a president limit the powers of the Supreme Court?

A. Submit an appeal to the courtB. Revise a law ruled

unconstitutionalC. Pass an amendment to

override a rulingD. Refuse to enforce a Supreme

Court decision

What kind of case does the Supreme Court usually decide to hear?

A. A case that concerns political issues

B. A case that involves the Bill of Rights

C. A case that poses hypothetical questions

D. A case that affects only a few individuals

What major factor influenced the Supreme Court to overturn the “separate but equal” doctrine?

A. Stare decisisB. ConservatismC. Racial prejudiceD. Societal changes

Which decision might lead you to infer that the Constitution

protects your right to protest war by wearing a black armband?

A. Engle v. VitaleB. Brandenburg v. OhioC. United States v. EichmandD. Tinker v. Des Moines

A political party’s belief, position, or principle on an election issue is called a(n) ________.

A. IdeaB. PlatformC. PlankD. ideology

Each party chooses its delegates to the national convention through a

combination of elections and __________.

A. PetitionsB. CaucusesC. Political machinesD. National committees

All voters in a _________ cast their ballots at the same voting place.

A. WardB. PrecinctC. Political partyD. Direct primary

An election in which only the declared members of a party are allowed to vote

for that party’s nominees is a(n) ____________.

A. Direct primaryB. General electionC. Open primaryD. Closed primary

In what year did Democrats and Republicans become the major parties in the United States?

A. 1824B. 1828C. 1854D. 1860

Which third party would like to replace capitalism with work-owned factories?

A. Reform PartyB. Libertarian PartyC. Communist PartyD. Prohibitionist Party

What is the delegates first job at a party’s national convention?

A. Nominating candidatesB. Writing the party platformC. Raising large amounts of

moneyD. Listening to nominating

speeches

How do candidates unaffiliated with either of the two major parties get on

the ballot in a general election

A. By winning an open primaryB. By running in a direct primaryC. By collecting voters’

signatures on a petitionD. By receiving a majority of

votes

What political organization of the past used to win elections

consistently?

A. Ideological partiesB. Whig partyC. Precinct organizationsD. Political machines

Results of an election are called________.

A. ReturnsB. BallotsC. Exit pollsD. electorates

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Citizens can propose a new law through a(n) ____________.

A. RecallB. InitiativeC. ReferendumD. proposition

Citizens can approve or reject a local or state law with a(n) __________.

A. RecallB. InitiativeC. ReferendumD. Proposition

Much of the money from election campaigns comes from ________.

A. ReturnsB. ElectionsC. IncumbentsD. Political Action

Committees

What does the National Voter Registration Act

require states to do?

A. Deny felons the right to voteB. Give the vote to citizens 18

and olderC. Record voters’ party

affiliation when they registerD. Allow people to register when

renewing their licenses

Which group has the highest rate of voter turnout?

A. Middle-aged peopleB. Disgruntled citizensC. Low-income earnersD. High school dropouts

How many electoral votes does a presidential candidate need to win?

A. 100B. 270C. 435D. 538

Why is a runoff election held?

A. Citizens want to remove an elected official

B. Parties want to narrow a field of candidates

C. No candidate in a state election wins a majority

D. No presidential candidate wins enough electoral votes

Why does the federal government set limits on direct campaign contributions?

A. To limit candidates’ free speechB. To keep corruption out of

electionsC. To create public funding for

third partiesD. To increase the soft money

contributions

Issues that receive the most time and money from government leaders make up the __________.

A. Mass mediaB. Public opinionC. Public agendaD. Public interest group

Why do responsible pollsters condemn push polls?

A. Push polls discourage voting.B. Push poll questions are

biased.C. Push polls use too few

respondents.D. Push poll samples are seldom

random.

How do mass media act as a “watchdog” over government?

A. By covering leaks from public officials.

B. By airing news that attracts more viewers.

C. By exposing public officials’ misconduct.

D. By publicizing entertainers running for office.

What interest group would most likely back a candidate who supports laws to protect nature?

A. Sierra ClubB. Tobacco InstituteC. Chamber of CommerceD. League of Women Voters

The opening section of the Constitution of North Carolina is _____________.

A. Article IB. The preambleC. The Charter of 1663D. The Declaration of Rights

The idea that power lies with the people is called ____________.

A. Separation of powersB. Power of the purseC. Popular sovereigntyD. Divided authority

A ____________ legislature consists of two houses.

A. UnicameralB. BicameralC. General AssemblyD. Council of State

A protest in which a group refuses to buy certain goods is called a(n) _____________.

A. CharterB. BoycottC. Expressed powerD. precedent

The framers of the United States Constitution included a system of federalism in order to _____________.

A. Maintain a civilian militiaB. Limit the power of the

legislatureC. Create an independent judiciaryD. Divide the power between state

and national levels of government

Who has the power to approve or reject amendments to the Constitution of North

Carolina?

A. The governorB. The peopleC. The General AssemblyD. The North Carolina

Supreme Court

Each branch of North Carolina’s government exercises some control over the other branches under the

principle of __________.

A. Popular sovereigntyB. Checks and balancesC. Civil rightsD. The right to vote

In order to vote in North Carolina, which of the following must be true?

A. You must pay a poll tax.B. You must own property.C. You must be at least 18

years of age and registered.D. You must be at least 21

years of age and registered.

The United States Supreme Court decision in Brown v. Board of Education

of Topeka (1954) _____________.

A. Established the principle of “one man, one vote”

B. Found “separate but equal” facilities to be unconstitutional

C. Upheld the earlier Supreme Court decision in Plessy v. Ferguson (1896)

D. Established the principle of judicial review

The General Assembly has the power to pass general ____________,

or laws that apply statewide.

A. PrecedentsB. AppealsC. VetoesD. statutes

The __________ is an official population count taken every 10 years.

A. CensusB. CaucusC. BallotD. Constituent

To ____________ is the act of reducing a criminal’s sentence.

A. ReviseB. LevyC. CommuteD. Impose

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A _________ is a minor crime.

A. FelonyB. MisdemeanorC. LawsuitD. Magistrate

What is the main responsibility of the N.C. General Assembly?

A. To pass lawsB. To try people accused of

committing crimesC. To evaluate the

constitutionality of lawD. To make sure laws are

carried out

The North Carolina Senate has ______ members.

A. 50B. 100C. 120D. 435

On what basis does North Carolina balance the house of representatives?

A. AreaB. PartiesC. PopulationD. Legislation

Which of the following is a legislative duty of the governor?

A. Preparing a budgetB. Suggesting new billsC. Commanding the

National GuardD. All of the above

What state department shapes the budget?

A. Department of Administration

B. Department of StateC. Attorney GeneralD. Department of Crime

Control

Misdemeanor crimes are tried in ________.

A. Superior courtsB. District courtsC. Juvenile courtsD. The Supreme Court

The governor has the power to make appointments, but nominees must be

approved by the state senate. This is an example of what principle of government?

A. Checks and balancesB. FederalismC. Separation of powersD. Judicial review

The __________ is the largest political subdivision of a state.

A. CountyB. CityC. MunicipalityD. Special District

Laws and regulations passed by local government are called __________.

A. OrdinancesB. AmendmentsC. Home ruleD. Executive orders

A general agreement among government leaders about how to deal with issues or

problems is called ____________.

A. Civil serviceB. BureaucracyC. Public policyD. Concurrent power

The power that allows a city to write its own charter is called ___________.

A. Public policyB. Home ruleC. At-large electionD. Reserved power

Which of the following has the power to incorporate an unincorporated area?

A. The governorB. The General AssemblyC. The county

commissionersD. The Supreme Court

A unit of government that controls a specific function of government is a(n) ___________.

A. Metropolitan areaB. TownshipC. Appellate CourtD. Special district

The amount of money that the government spends on programs in a year is known as ___________.

A. CapitalB. RevenueC. ExpendituresD. Interest

The system of __________ law is based on court decisions rather than on a legal code.

A. CriminalB. ConstitutionalC. AdministrativeD. Common

A person charged with a crime and tried in court is the ________.

A. PlaintiffB. DefendantC. TortD. Judge

A __________ is a negotiation between the prosecutor and defense attorney to

avoid a trial.

A. VerdictB. Due process of lawC. Plea bargainingD. Search warrant

On which of the following did the writers of the U.S. Constitution

base the system of laws?

A. Russian LawB. New laws they createdC. Ancient laws passed down

through generationsD. Warnings from King George

The oldest system of laws known to the modern world is the _______________.

A. Justinian CodeB. Napoleonic CodeC. Roman CodeD. Code of Hammurabi

A crime that is considered less serious and requires a short jail sentence is a _____________.

A. MisdemeanorB. FelonyC. PlaintiffD. Lawsuit

Which of the following might result in a lawsuit?

A. A person is attacked and a wallet is stolen.

B. A person has his or her garage painted with graffiti.

C. A company breaks a contract to build someone’s house.

D. A person is hit by a hit-and-run driver.

With a writ of habeas corpus, the person arrested has the right to know _____________.

A. Why he or she is being arrested.

B. Who the prosecutor is.C. Who brought the lawsuit

against him or her.D. How many people will be on

his or her jury.

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Economics is the study of how we make decisions in a world of limited ____________.

A. NeedsB. WantsC. ChoicesD. Resources

Capitalism is an example of a(n) _____________.

A. Economic modelB. Economic decisionC. Economic systemD. Branch of economics

The income from a full time job that you give up when you go to college is called a(n) ___________.

A. trade-offB. Opportunity costC. Marginal costD. Marginal benefit

The additional profit obtained from producing one more unit in a factory is called a(n) _________.

A. Trade-offB. Opportunity costC. Marginal costD. Marginal benefit

What does microeconomics deal with?

A. The production of whole industries.

B. The distribution of goods worldwide.

C. The economic decisions of individuals.

D. The allocation of resources by governments.

Which of the following items is a want?

A. FoodB. VideosC. ShelterD. Clothing

Which of the following is a natural resource?

A. WaterB. SkillsC. MachineryD. Knowledge

What is an example of a fixed cost of doing business?

A. WagesB. Cost of fuelC. Price of materialsD. Mortgage payment

What is the formula for total cost?

A. Fixed cost + variable costB. Fixed cost + marginal costC. Variable cost + marginal

costD. Fixed cost + variable cost

+ marginal cost

Why do businesses use cost-benefit analysis?

A. To compute total costB. To measure total revenuesC. To decide how much to

produceD. To compare marginal cost

and marginal revenue

Machines, buildings, and tools used to make other goods and services are __________ goods.

A. ConsumerB. CapitalC. FactorD. Manufactured

Total value of all final goods and services produced in a country in one year is its

___________.

A. IncomeB. VATC. GDPD. Resources

Consumers earn their income in _________ markets where productive

resources are bought and sold.

A. FactorB. ProductC. ResourceD. Consumer

The _________ between sellers keeps the cost of production low and quality of goods high.

A. Profit motiveB. InterdependenceC. ExchangeD. Competition

The four factors of production are natural resources, labor, capital, and

A. entrepreneurs.B. services.C. goods.D. specialization.

A nation’s standard of living is a measure of not only the quantity of its products, but also

A. the value of its resources.B. of its people.C. the quality of goods and

services.D. of how the products are

produced.

The four sectors business, consumer, government, and foreign are all part of

A. the GDP.B. the factors of production.C. the circular flow of

economic activity.D. a nation’s standard of

living.

When workers receive additional training for their jobs, this increases

A. the cost of production.B. human capital.C. economic

interdependence.D. the division of labor.

In a free enterprise economy, competition is allowed to flourish with a minimum of

A. government interference.

B. voluntary exchange.C. specialization.D. division of labor.

In our economy businesses try to produce goods and services that people

want most, this is an example of

A. private property rights.B. specialization.C. the factors of production.D. consumer sovereignty.

A __________ is a graph that shows the amount of a product that would be bought at all prices in the market.

A. Supply CurveB. Law of DemandC. Demand CurveD. Market Demand

Some products, such as DVD players and DVD’s, are called

_________ because demand for one moves in the opposite direction

as the price of the other.

A. SubstitutesB. SurplusC. ElasticD. Complements

At the ___________ price there is neither a surplus nor a shortage.

A. ProfitableB. CeilingC. ExchangeD. Equilibrium

According to the law of demand, quantity demanded and price

___________.

A. Move in the same directionB. Depend on marginal utilityC. Move in opposite directionsD. Are not related

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Diminishing marginal utility is the explanation for the

consumer’s decision to __________.

A. Spend less money for sale itemsB. Buy only one dessert with a

mealC. Purchase more CDs of a favorite

singerD. Buy expensive gifts for close

friends

Total demand may change if more consumers enter the market,

consumer tastes change, or __________.

A. Consumer expectations change

B. Substitutes become popularC. Demand is inelasticD. Supply remains the same

Businesses invest time, money, and other capital resources for the primary motive of

__________.

A. Paying good wagesB. Supplying better

productsC. Making a profitD. Satisfying customers’

needs

One of the strengths of a market economy is that ___________.

A. Prices absorb some of the shocks or unexpected changes in the economy.

B. Most consumers can afford plenty of the goods and services they want.

C. Producers almost always make a profit.

D. Demand is never greater than supply.