The Companion to The Little Book On Line
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Q. Economic Concepts
#6. Know the following economic concepts.
Ohio Department of Education - High School Proficiency Testing Fact Sheets
You will recall that "Economic Systems" dealt with broad policies adopted by various nations. "Economic Concepts" deals with some more specific aspects of the economy: taxation, scarcity, and interdependence.
- Which of the following statements is NOT CORRECT?
A. Commerce means buying and selling goods.
B. Trade means the business of buying and selling goods or exchanging goods.
C. Invest means putting money into a business to make a profit.
D. Competition means working together.
- Long ago in Egypt the people did not have enough to eat because of seven years of dry weather. Which of the following words describes that result?
- A nation had many busy mills that made steel, using lots of coal and iron ore that came from mines in the nation. The supply from mines ran very low and most of the mills had to shut down. Which of the following statements is NOT correct?
A. The supply of coal and ore was limited.
B. The mills did not have enough resources.
C. The lack of ore and coal reduced the means of production.
D. The investors were cheated.
- Governments perform many services and to do so they need REVENUE. The national government raises revenue in all of the following ways EXCEPT by
A. estate taxes.
B. taxing exports.
C. collecting customs duties.
D. income taxes.
- The state of Ohio raises REVENUE in all of the following ways EXCEPT by
A. taxing exports shipped from Ohio.
B. income taxes.
C. inheritance taxes.
D. sales taxes.
- Intensive study followed by work in a particular field such as aeronautics, electrical engineering or pediatrics is best described as
D. work toward the doctoral degree.
- Local governments raise most of their REVENUE through which one of the following methods?
A. the lottery
C. selling tickets for public events
D. running public playgrounds
- Vinland had lots of farms and produced more grain and butter than it could use, but it needed farm equipment it could not make. Busiland made farm equipment but could not produce enough grain or butter for its citizens. So Vinland shipped grain and butter across the ocean to Busiland in exchange for farm equipment. This was a classic example of
A. cut-throat competition.
B. interstate trade.
D. domestic exchange of goods.
- Which of the following statements is NOT correct?
A. For revenue state governments depend partly on property tax.
B. A license is a court order to pay a fine.
C. Levy means to collect or charge.
D. Inherit means to receive something from someone after he or she dies.
- Melanie and Joe, a young married couple, lived in an apartment across the hall from Carlo, a young man living by himself. Carlo and Joe worked at the same factory. Carlo had a nice car which his uncle left him when he died. Carlo could not drive, so Joe drove them to work each day. Melanie made their lunch and cooked their dinner. Which of the following statements about Melanie, Joe and Carlo are true?
A. They were not cooperating.
B. Carlo inherited the car.
C. They were not interdependent.
D. They engaged in competition with each other.
- A state whose total expenses for education, welfare and other services exceed all the money it takes in is said to be running
A. a deficit.
B. in the black.
C. a tight ship.
D. a sound economy.
- CUSTOMS DUTY refers to
A. one's duty to observe the customs of a foreign country.
B. proper behavior in the White House.
C. a tax which must be paid to this country on the value of goods being brought in.
D. a tax which must be paid to the country which sold the goods.
- The word DOMESTIC when compared to the word FOREIGN refers to
A. a quarrel at home.
B. products made in this country.
C. imports from foreign countries.
D. someone who likes cooking.
- The following statements about the federal INCOME TAX are true EXCEPT:
A. The government receives most of its revenue from this tax.
B. It is based on the amount of a person's annual income.
C. It must be paid when due.
D. It has been declared unconstitutional.
- One can INHERIT ALL BUT ONE of these:
A. money and property
B. family traits
C. a judicial appointment
D. athletic ability
- The ESTATE TAX and INHERITANCE TAX are two taxes that have to be paid
A. before someone dies.
B. after someone dies.
C. to the person's favorite charity.
D. on jewelry and furs only.
- The PROPERTY TAX and SALES TAX LEVIED in the state of Ohio help pay for all EXCEPT:
A. substantial funds for local and state governments
B. public education
C. the cost of federal courts in Ohio
D. salaries of members of the General Assembly.
- Busiland had only enough wheat and corn to meet half of its needs. Which of the following words best describes Busiland's supply of those resources?
- If you want to practice law, own a dog and drive to work, which of the following are you required to have to accomplish all of these purposes?
A. food for yourself and the dog
B. a car
C. office space
D. licenses to practice law, to own a dog and to drive.
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