Question 1

Question

Why might government food subsidies be considered controversial?
They interfere in states rights
The USDA is forcing the consumer to eat imported foods
The USDA sets subsidies at random*
The USDA helps determine America's diet by promoting the growth of certain crops

Question 2
If the government were to set a price floor on milk they would be saying that?
Milk has to be sold at a very specific price.
Milk cannot drop below a certain price when it is sold.
The price of milk is free to fluctuate without any government interference.
Milk cannot go above a certain price when it is sold.*

Question 3
Please finish the sentence.
The biggest difference between a free enterprise economy and a communist/command economy is that in a free enterprise market economy ______________________________.

Mostly everyone works for the government in some shape and form.
Competition is eliminated, to give the economy a safe and stable playing field.*
The government is solely responsible for the economic health of the nation
The government does not play a role in the economic health of the nation

Question 4
Which of the following is an advantage of a socialist economy?
Holding controlled elections
Guarantee public welfare by providing retirement pensions, universal healthcare, free university education, and housing.*
Having no privately owned businesses
Government control of all land and housing

Question 5
Which of the following is an advantage of true free market economy?
Individuals can work in a field they choose
The government controls many sectors of the economy
Individuals are assigned a job in a specific field*
Competition does not exist which makes it easy for businesses to exist.

Question 6
Which of the following is MOST likely to cause deficit spending?
Entitlement programs
Payroll of congress
Food subsidies
Federal housing*

Question 7
Which of the following is NOT something the government does for farmers?
Pay farmers for growing a crop*
Set's price floors
Provide homeowners insurance
Sets subsidies

Question 8
Which of the following is part of the government's safety net or entitlement program?
Public education
Corn subsidies*
Medicare
Tax credits for first time home buyers

Answer 1

1. disagree
2. disagree (floors are down not up)
3. So very, very wrong :(
4. Wheww! YES !
5. Wrong
6. Read up on Entitlement programs.
7. Insurance ?
8. Maybe, not sure.

Answer 2

I strongly suggest reading your text.