Name / Block: _____________________________________
Mr. Huesken
12th Grade Principles of Democracy / Econ.
Unit I Exam: Principals of Economics & The Basics of American
Government
(50 points)
DIRECTIONS – Please circle the letter of the most appropriate response for each of the
following question. (35 questions @ 1 point apiece = 35 points)
1) One of the major issues facing the delegates at the Constitutional Convention of 1787
was how to create a functioning and long-lasting national government. What was the
name of the plan that called for a bicameral national legislature and called for the
number of delegates in those houses to be determined by population?
a. The Albany Plan
b. The Galloway Plan
c. The Virginia Plan
d. The New Jersey Plan
2) No one is sure how government originated, but his historians and political philosophers
have done their best to fill the void. What is the name of the political theory that
stressed the idea that God created government and designated a ruling family to
oversee it?
a. Divine Right Theory
b. Force Theory
c. Social Contract Theory
d. Evolution Theory
3) The city-state of Athens and the Roman Republic were the first originators of
democracy, as we know it today. What is the name associated with the Roman form of
government, where representatives are elected to make the law for the people?
a. In-Direct Democracy
b. Direct Democracy
c. Authoritarianism
d. Social Contract
4) Though the study of Economics has been around since the dawn of man, what event in
world history really got governments and citizens interested in it in the late-1700’s and
early 1800’s?
a. The Renaissance
b. The Industrial Revolution
c. The Reformation
d. The Cold War
5) Not every American was in favor of the US Constitution in 1787. What was the main
argument to the states against the ratification of the US Constitution by the AntiFederalists?
a. No term-limits for politicians
b. No “bill of rights”
c. Not much power in the hands of the courts
d. Not enough power in the hands of the Congress
6) The idea of “free enterprise” economics has become very popular across the world since
the end of the Cold War. Which of the following is NOT a basic idea behind this system
of economics?
a. The right to choose your economic involvement
b. The right to produce what you want or like
c. The right to government involvement in an economic setting
d. The right to maximize profits
7) What was the name of the Enlightenment philosopher who used satire or comedy to get
his messages across while also speaking out in support of religious tolerance (Hint: He
was the Jon Stewart of his day…)
a. John Locke
b. Jean Jacques Rousseau
c. Mary Wollstonecraft
d. Voltaire
8) This state was the main objective of many pro-Constitution supporters (the Federalists)
due to its influential size and economic standing, as well as its location for the new
nation’s capital?
a. New York
b. Pennsylvania
c. Virginia
d. Maryland
9) Prior to the American Revolution, the United States lacked a strong national
government. What event helped to push more Americans towards national unity after
so many years of colonial division?
a. The French and Indian War
b. Pontiac’s Rebellion
c. The American Revolution
d. The War of 1812
10) What is the name given to an area where buyers and settlers meet to exchange goods,
service, or economic ideas?
a. A market
b. A union
c. A culture
d. A business
11) In the 1700’s this leader of the Capitalist movement wrote a famous book called The
Wealth of Nations. Today, he is considered the “Father of Modern Economics”. Who
was he?
a. David Ricardo
b. Karl Marx
c. Charles Fourier
d. Adam Smith
12) This type of tax is an annual tax that is paid at both the state and national levels on
things that a taxpayer owns, like a house or boat. What type of tax is it?
a. Estate tax
b. Property tax
c. Gift tax
d. Excise tax
13) When governments raise and spend money, there is often imbalances between the
amount of money coming in and the amount of money going out. What is this
imbalance called when the amount of money going out is greater?
a. A deficit
b. A surplus
c. A debt
d. A recession
14) Over the course of our history, the American “free enterprise” system has developed a
number of popular freedoms that all economic participants enjoy. Which of the
following is NOT one of those freedoms?
a. The right to open opportunity
b. The right to legal equality
c. The right to private ownership of property
d. The right to tax
15) Used often by politicians and political commentators, what is the name given to all the
goals a government sets and all the actions a government takes to meet the needs of its
citizens?
a. Political Action
b. Public Policy
c. Sovereignty
d. Congressional Oversight
16) Heavy taxes placed on such luxury items as tobacco, alcohol, and (possibly soon) soda
are often found at the national, state, and local levels to help communities raise money.
Nicknamed “sin taxes”, what type of tax is it?
a. Estate tax
b. Property tax
c. Gift tax
d. Excise tax
17) In a “free enterprise” economy, who controls the movement of resources and goods?
a. The government
b. The individual
c. The economy
d. The market
18) When studying economics, what is the main problem that all economists are trying to
address?
a. What goods or services should be produced?
b. The issue of scarcity
c. The issue of natural resources
d. How will goods and services be produced?
19) Communities constantly struggle with making sure their decisions were the best
possible ones for their economic situation. What is it called when an economist
considers what they “could have” bought?
a. Opportunity costs
b. Product analysis
c. Opportunity analysis
d. Budget and revenue review
20) Under the Articles of Confederation, the new United States government lack many basic
powers that our government enjoys today. Which of the following was one of the major
issues that plagued the Confederation government?
a. Debt
b. Threats of Foreign Invasion
c. Currency Issues
d. All of the Above
21) Under the idea of the elements of a state, which of the following is NOT one of the ones
we talked about in class?
a. Economy
b. Population
c. Sovereignty
d. Government
22) We, as American citizens, like the services provided to us by our government. What is it
called when the government promises a service or benefit for its citizens in the future
without a viable way of paying for it?
a. A debt
b. An unfunded liability
c. A “pay-go”
d. A crisis
23) What country is America’s largest holder of debt and our largest creditor?
a. China
b. Japan
c. Canada
d. The United Kingdom
24) In the late-1800’s, this German philosopher co-wrote an influential book called The
Communist Manifesto, that called for a “civil war between the working classes” and
creation of a worker’s utopia where the government controls the economy. Who was
he?
a. David Ricardo
b. Karl Marx
c. Charles Fourier
d. Adam Smith
25) In an effort to convince his fellow Americans that the Constitution was the right course
of action, Federalist Alexander Hamilton, James Madison, and John Jay wrote a series of
letters under a false name to try and sell their case to the American people. What were
these letters called?
a. The Silence Dogood Letters
b. The Anti-Federalist Papers
c. The Pentagon Papers
d. The Federalist Papers
26) This controversial tax has been around since the American Civil War and taxes an
individual or family based on how much money they make. What type of tax is this?
a. Estate tax
b. Property tax
c. Income tax
d. Sin tax
27) Despite failed efforts to unite the country under a single national government, many of
America’s Founding Father endorsed the idea long before the Revolution. What was the
name of the plan presented by Benjamin Franklin in 1754 to try and bring the states
together?
a. The Galloway Plan
b. The Franklin Plan
c. The Albany Plan
d. The Constitutional Plan
28) Founding Father Thomas Jefferson was accused of plagiarizing mercilessly this man’s
work for the Declaration of Independence, especially the line of “life, liberty, and the
pursuit of happiness.” What Enlightenment philosopher did Jefferson plagiarize?
a. Thomas Hobbs
b. Cesare Beccaria
c. John Locke
d. Voltaire
29) Economists characterize a society’s valuable resources (such as land, labor, capital, etc.)
under what title?
a. Natural resources
b. Economic factors
c. Factors of Production
d. Productivity incentives
30) This economic resource is often made up of the risk takers in a society; those individuals
like the business owners and managers who see an economic want and come up with a
plan to provide for it. What are these titans of industry called? (Hint: Think Michael
Scott…)
a. Economic leaders
b. Managers
c. Positive economists
d. Entrepreneurs
31) Which of the following is NOT an assumption that the US government considers when
developing a budget?
a. Natural Resources
b. Population trends
c. Tax / Spending policies
d. Economic growth
32) Led by a former officer in the American Revolution, a group of farmers from
Massachusetts rose in revolt against their state for loss of property and high taxes in
1786. What was this rebellion called?
a. Frye’s Rebellion
b. Nat Turner’s Rebellion
c. Shays’ Rebellion
d. Pontiac’s Rebellion
33) The debate and disagreements of the Constitutional Convention might have derailed the
entire process if it was not for a key compromise, recommended by delegate Roger
Sherman, for our legislative branch. What was the name given to this epic compromise?
a. The Great Compromise
b. The Missouri Compromise
c. The Compromise of 1850
d. The Great Connecticut Compromise
34) Slavery became a major stumbling block at the Constitutional Convention. However,
another major compromise helps to resolve it and move the Constitution closer to
ratification. What was the compromise over slavery at the Convention called?
a. The Great Compromise
b. The Three-Fifths Compromise
c. The Two-Thirds Compromise
d. The One-Half Compromise
35) No one is sure how government originally developed, but several theories have been
proposed. What is the name of the theory that believes government evolved out of a
family group (Hint: think Native Americans)
a. Divine Right Theory
b. Force Theory
c. Social Contract Theory
d. Evolution Theory
Matching Section (Part I)DIRECTIONS - Using the options provided, pick which answer works the best with each
question, place the correct letter in front of it, AND GRAPHICLY SHOW HOW THE CURVE
WOULD MOVE. (5 questions @ 5 points)
A = Shift to the left
B = Shift to the right
C = No movement
_____B_____ 36) There is 25% decrease in the price of the Big Macs’ Special Sauce (Supply)
_____B_____ 37) A new assembly line system is brought in to help in production (Supply)
_____B_____ 38) The price of games for the Xbox 360 decreases (Demand)
_____A_____ 39) Due to a series of lawsuits, consumers start buying less (Demand)
_____A_____ 40) The middle buns in the Big Macs are now taxed 2¢ more (Supply)
Matching Section (Part II)DIRECTIONS - Using the options provided, pick which answer works the best with each
question and place the correct letter in front of it. (5 questions @ 5 points)
A = Thomas Hobbs
B = John Locke
C = Voltaire
D = Jean Jacques Rousseau
E = Cesare Beccaria
F = Mary Wollstonecraf
_____E_____ 41) “Excessive bail shall not be required, nor excessive fines imposed, nor cruel
and unusual punishment inflicted” ---------- Bill of Rights, Amendment VIII
____C______ 42) “Congress shall make no law respecting an establishment of religion, or
prohibiting the free exercise thereof…” ----------- Bill of Rights, Amendment I
_____F_____ 43) “The right of citizens of the United States to vote shall not be denied or
abridged by the United States or by any State on account of sex.” ----------- Bill of Rights,
Amendment XIX
_____A_____ 44) “The executive Power shall be vested in a President of the United States of
America…shall be Commander in Chief of the Army and Navy of the United States, and of the
Militia of the several States…” ----------- Section II, Article II, US Constitution
_____B_____ 45) “We hold these truths to be self-evident, that all men are created equal, that
they are endowed by their Creator with certain unalienable rights that among these are life,
liberty, and the pursuit of happiness…” ----------- Declaration of Independence