Practice Quiz

CLEP Economics Exam Prep - Question List

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1. In the United States, which of the following forms of taxation currently represents the largest source of tax revenue for the federal government?
  1. Property tax
  2. Sales tax
  3. Corporate income tax
  4. Personal income tax
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2. Which of the following is a policy tool of the Federal Reserve?
  1. Raising or lowering income taxes
  2. Increasing or decreasing unemployment benefits
  3. Buying or selling government securities
  4. Increasing or decreasing government spending
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3. Which of the following defines the equilibrium price for a product in a competitive market?
  1. The price that most consumers are willing to pay for the product
  2. The price at which business makes the maximum revenue
  3. The price that is equal to the total cost of producing and marketing the product
  4. The price at which the quantity supplied is the same as the quantity demanded
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4. Which of the following best describes the primary role of an economic system?
  1. To respond to market failure
  2. To address equity concerns to improve fairness
  3. To determine the allocation of limited resources
  4. To protect domestic producers from foreign competition
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5. Which of the following actions does the United States federal government commonly take to finance a budget deficit?
  1. Printing more money
  2. Imposing import quotas
  3. Borrowing from the public
  4. Expanding public-works projects
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