AGES UNIT I ASSESSMENT (Academic) NAME:______________
1.
In the Declaration of Independence, Thomas Jefferson writes about all of the following ideas
EXCEPT:
A.
All people have the natural rights of Life, Liberty, and the Pursuit of Happiness
B.
That the Government must follow the Social Contract
C.
Governing power comes from God.
D.
All people are created equal
2.
Under federalism, power is shared between:
A.
state governments
B.
national governments
C.
the people and the governors
D.
national, state, and local governments
3.
Among the broad purposes of the United States government spelled out in the
Preamble to the Constitution is the obligation to except
A.
Keep everybody equal
B.
Unite the States and People and promote peace at home
C.
Defend the country against those who oppose its policies
D.
Provide for justice and the people’s general welfare.
4.
Locke would most likely agree that
A.
the state developed out of force
B.
those of royal birth should rule the state
C.
the state exists to serve the will of the people
D.
government should be eliminated
5.
Jean-Jacques Rousseau would most likely agree that
A.
That human instinct was more important than justice
B.
The Social Contract led to social cooperation that restricted man’s freedom
C.
The Social Contract led to social cooperation that improved man
D.
The government does not have the right to restrict man’s self interest.
6.
Adam Smith would must likely agree that
A.
The government understands people’s needs better than the people.
B.
When people all pursue their self interest, bad things can happen.
C.
Regulations that promote equality are essential for progress.
D.
Self interest drives the economy.
7.
In a democracy, supreme authority belongs to the
A.
state government
B.
people
C.
federal government
D.
rulers

8.
According to the Divine Right Theory, the power to govern comes from what source?
A.
The people
B.
The strength
C.
God
D.
Inherited
9.
This English Philosophy argued that people had natural rights; Life, Liberty, and
Property.
A.
Thomas Jefferson
B.
Adam Smith
C.
John Locke
D.
Jean-Jacques Rousseau
10.
Two parties are said to be in a “Prisoner’s Dilemma,” when
A.
Everybody seeks their own self interest and everybody’s condition is improved.
B.
Everybody cooperates and everybody’s condition is improved.
C.
Everybody seeks their own self interest and everybody’s condition is worsened.
D.
Everybody cooperate and everybody’s condition is worsened.
11.
The Stag hunt game created by Jean-Jacques Rousseau illustrates the need for
A.
Creative Destruction
B.
Social Cooperation
C.
Competition
D.
Regulations
12.
The Preamble of the Constitution of the United States introduces a form of government that balances authority with
A.
Liberty
B.
Protection
C.
Equality
D.
Order
13.
According to the Preamble of the Constitution of the United States the government’s power comes from the a.
National Government b.
The founding fathers c.
The states d.
The people

14.
What is the primary purpose of all economic systems?
A.
To allocate scarce resources that have alternative uses to their most useful purpose.
B.
To ensure that everybody’s wants and needs are satisfied.
C.
To promote equality and fairness to all members of society
D.
To create a natural balance between supply and demand
15.
On Thursday night, Mike wanted to watch both the football game and President Obama’s speech. He could not tape one while watching the other, he needed to make a decision. Mike decided to watch the President’ speech and as a result he missed the entire 1 st quarter of the game. Economically speaking what does the first quarter represent to Mike?
A.
External cost
B.
Cost
C.
Opportunity Cost
D.
Creative Destruction
16.
On Wednesday morning, Mr. Felton’s 2 nd period was interrupted by the sound of someone using hedge clippers right outside the window. The custodian wished to trim the bushes even though it served to disrupt the class. Economically speaking what did the disruption represent to the class?
A.
External Cost
B.
Cost
C.
Opportunity Cost
D.
Creative Destruction
17.
According to Adam Smith,
“It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner,”
According to Smith why should you expect your dinner?
A.
The government
B.
Cooperation
C.
Their own self interest
D.
Your self interest
18.
According to capitalism, what is the most efficient way to allocate scarce resources?
A.
The government
B.
Price
C.
Laws and regulation
D.
Price controls
19.
For the standpoint of society as a whole, what is the true cost of anything?
A.
Cannot tell from the information provided in the question
B.
The price determined by supply and demand
C.
The value that the object has in alternative uses
D.
The price determine by the government

20.
The idea that there has never been enough to satisfy everyone completely is referring to which economic term?
A.
Trade offs
B.
Opportunity Cost
C.
Shortages
D.
Scarcity
21.
In a capitalist economy the factors of production (land, capital, resources) are owned by
A.
Individuals (the people)
B.
the government
C.
C. unions
D.
the banks
22.
The American Economy can best be described as a
A.
Mixed Economy
B.
Command Economy
C.
Free Market Economy
D.
Socialist Economy
Short answers (pick 3 out of 5)
23.
According to the author of the reading, Benevolent Authority, why does Plato’s idea of a
Benevolent Authority contradict the ideas of Prisoner’s Dilemma?
24.
According to the author in the same passage, why should people who live in democracies not be complacent?
25.
According to the author of Basic Economics, “Economics is not about the financial fate of the particular individuals.” If so, then what is it about?
26.
Adam Smith coined the phrase the “invisible hand” to Smith what is the invisible hand?
27.
According to economist Joseph A. Schumpeter, why is Creative Destruction imperative for progress in a capitalistic society?

Economic Purposes of Government
A.
Maintaining a Legal and Social Framework
B.
Providing public goods and services
C.
Maintaining competition
D.
Redistributing income
E.
Correcting for externalities
F.
Stabilizing the Economy
28.
__________
29.
“Interest rates stay steady as unemployment rises.” _______
30.
Federal appeals court rejects Virginia's challenge to Obama's health care law. _______
31.
In 1984, the U.S. Justice Department broke the American Bell Telephone Company into three separate companies. _________
32.
The United States has a progressive tax rate, meaning as a person’s income increases the percent that they are taxed also increases. _______
33.
Toyota representatives to appear before Congress to answer questions about mechanical errors with gas pedal. _______