| A | B |
|---|
| Which colony was established by a joint-stock company for economic reasons? | Virginia |
| Which colony was established by the religious dissenters called the Puritans? | Massachusetts |
| Which colony was established by the religious dissenters called the Quakers? | Pennsylvania |
| Which colonies had a geography that resulted in the development of an economy based on plantation agriculture? | Southern colonies |
| Which economic system made the British colonies part of a triangular trade route for economic growth? | mercantilism |
| What was the first colonial legislature to be established in the British colonies? | House of Burgesses |
| What document established self-government for the Pilgrims? | Mayflower Compact |
| Social contract theory and natural law are theories about government developed by which English philosopher? | John Locke |
| Prior to the French and Indian war, what term described the British policy of allowing colonies to govern their own day-to-day affairs? | salutary neglect |
| After the French and Indian War, which act levied the first-ever direct tax on the colonies? | Stamp Act |
| Protests against the Quartering Act resulted in British troops firing on protestors in which historical event? | Boston Massacre |
| Which historical event involved a protest by the Sons of Liberty against the Tea Act? | Boston Tea party |
| Which acts were passed by Parliament to try to regain control over the colonists in Boston, Massachusetts? | Coercive or "Intolerable" Acts |
| Which historical event is known as “the shot heard ‘round the world”? | Lexington & Concord |
| What was the primary cause of the American Revolution? | taxation without representation |
| What did Thomas Paine’s Common Sense urge colonists to do? | declare independence from Britain |
| Which document described American political beliefs and listed the reasons for breaking away from Great Britain? | Declaration of Independence (1776) |
| Which document established the national government of the United States after the Revolutionary War? | Articles of Confederation |
| Which historical event demonstrated the need to establish a stronger national government? | Shays rebellion |
| Which plan resulted in the creation of a bicameral Congress for our legislative branch? | Great Compromise/Connecticut plan |
| Which political group supported the ratification of the Constitution? | Federalists |
| Which political group opposed the Constitution because it didn’t have a Bill of Rights? | Anti-Federalists |
| What was the name of the essays that were written to gain support for ratification of the Constituton? | Federalist papers |
| What form of government allows the people to choose representatives who will make and enforce the laws? | republic or representative democracy |
| What features of the U.S. Constitution limit the power of government? | separation of powers and checks & balances |
| At the Constitutional Convention, which plan favored a new government with representation based on population? | Virginia plan |
| At the Constitutional Convention, which plan favored a government with equal representation for each state? | New Jersey plan |
| In which form of government features one-person or one-party rule? | dictatorship |
| Which form of government features a king or a queen? | monarchy |
| Which part of the U.S. constitution protects personal freedoms such as expression, right to bear arms, and rights of the accused? | Bill of Rights |
| Which constitutional principle gives citizens the right to choose their own government? | popular sovereignty |
| Which constitutional principle divides powers between the different branches of government? | separation of powers |
| Which branch of government makes laws? | legislative (U.S. Congress) |
| What constitutional principle enables one branch to counteract the powers of another branch? | checks & balances |
| Which branch of government enforces or carries out the law? | executive (President and executive agencies) |
| Which branch of government interprets the law? | judicial (Supreme Court and lower federal courts) |
| What constitutional principle enables the Supreme Court to strike down a law or government action that it has determined to be unconstitutional? | judicial review |
| Which landmark court case established the principle of judicial review? | Marbury v. Madison |
| What powers are specifically delegated to Congress in Article I, Sec. 8 of the Constitution? | enumerated powers |
| What powers are delegated to Congress by the “necessary and proper” or "elastic" clause? | implied powers |
| What are the powers called that the Constitution gives only to the national government? | delegated powers |
| According to the 10th Amendment, who do the reserved powers belong to? | the states |
| Which clause in the U.S. Constitution makes the national government and all laws made under it the "supreme law of the land"? | the supremacy clause |
| Which clause in the U.S. Constitution requires each state to honor any public acts, records, or legal contracts that are made in another state? | "full faith and credit" |
| Which non-legislative power enables the House of Representatives to bring charges against the president for "high crimes or misdemeanors"? | impeachment |
| Which power gives an executive such as the president or a governor the authority to officially forgive an individual for a crime? | pardon |
| Which constitutional protection limits government by preventing people from being jailed without charge? | writ of habeus corpus |
| Which "power denied" limits government from punishing a person without due process? | bill of attainder |
| Which "denied power" limits government from passing an act to punish someone retroactively | ex post facto |
| Which power of the president can be used to forbid a bill passed by Congress? | veto |
| Who is the presiding officer that leads the House of Representatives? | Speaker of the House |
| Which elected official acts as the "president of the Senate"? | Vice-president |
| Who is the presiding officer on a day-to-day basis in the Senate when the "president of the Senate" is absent? | president pro tempore |
| Which two legislative bodies make up the U.S. Congress? | the House of Representatives and the Senate |
| What is the most basic function of the U.S. Congress? | to make laws |
| Which leaders are elected by the political parties in each house of Congress to maintain party unity and achieve their political goals? | majority and minority leaders |
| What is the name of the process used to distribute legislative seats in Congress amongst the states? | apportionment |
| How long is the term for a member of the House of Representatives? | two years |
| How long is the term for a member of the Senate? | six years |
| How many U.S. Senators does each state have in Congress? | two |
| On what basis are seats in the U.S. House of Representatives allocated to the states? | population |
| How can the Constitution be changed? | amendment process |
| How are amendments to the U.S. Constituion normally proposed? | passage by a 2/3 majority in each house of Congress |
| How are amendments to the U.S. Constitution normally ratified? | by a majority vote in 3/4 of the state legislatures |
| Which constitutional principle divides powers between the national government and the states? | federalism |
| What freedoms are guaranteed by the 1st Amendment? | expression (speech), the press, assembly, religion, petition |
| Which freedom is protected by the principle of “separation of church and state”? | religious freedom |
| What right is protected by the 2nd Amendment? | right to bear arms |
| What freedom is protected by the 4th Amendment? | no unreasonable searches and seizures |
| What rights for the accused are guaranteed by due process in the 5th Amendment? | no double jeopardy, right to remain silent, indictment by grand jury |
| What features of the 6th Amendment protect the rights of the accused? | right to an attorney and trial by jury |
| Which Amendment guarantees “equal protection” under the law? | Fourteenth Amendment |
| Which court case upheld the implied power of Congress to use the elastic clause to create a national bank? | McCullough v. Maryland |
| Which court case upheld the principle of "separate but equal"? | Plessy v. Ferguson |
| Which court case overturned the principle of “separate but equal” by declaring that segregation in schools was unconstitutional? | Brown v. Board of Education |
| Which court case protected affirmative action programs? | Bakke v. Regents of the University of California |
| Which constitutional issue was involved in the case of New Jersey v. T.L.O.? | searches and seizures |
| Which court case protected students' freedom of expression to wear armbands in protest against the Vietnam War? | Tinker v. DesMoines |
| What was banned by the decision in the case of Engle v. Vitale? | official prayer in public schools |
| Which Supreme Court ruling established the exclusionary rule in criminal court proceedings? | Mapp v. Ohio |
| Which court case expanded the rights of criminal suspects by requiring law enforcement officers to inform them of their rights? | Miranda v. Arizona |
| Which court case protected the rights of juvenile suspects under the age of 18? | In re Gault |
| What court case confirmed that the right to an attorney is guaranteed by the 6th Amendment? | Gideon v. Wainwright |
| Which court case protected flag-burning as a 1st Amendment freedom of expression? | Texas v. Johnson |
| Which amendment to the U.S. Constitution extends due process rights to the citizens of a state? | Fourteenth Amendment |
| In the Fourteenth Amendment, which clause guarantees the civil rights of all citizens of a state? | "equal protection" clause |
| Which civic responsibility is necessary to maintain our judicial system? | jury duty |
| Which political parties make up the two-party system in the United States? | Democrats and Republicans |
| What term is used to describe a political philosophy that believes in limited government? | conservative |
| What term is used to describe a political philosophy that believes that government should be more involved in addressing social and economic problems? | liberal |
| What is the primary function of a political party? | to win elections |
| What is an individual called who runs for public office? | candidate |
| Where can one find out about a political party's offical position on specific issues? | party platform |
| What is a campaign organized and led by ordinary citizens called? | grassroots |
| What is it called when a candidate receives more than 50% of the vote? | majority |
| What is it called when a candidate receives the most votes? | plurality |
| Which political philosophy is most likely support compromises on public policies? | moderate |
| What are minor parties called? | third-parties |
| Who is responsible for registering voters and overseeing local, state, and national elections? | Board of Elections |
| What type of election is used to nominate a party’s candidates for office? | primary election |
| Where do you vote on election day? | polling place |
| What is a voting district called? | precint |
| What qualifications does one need to be eligible to vote in North Carolina? | must be a resident at least 18 years old and be registered by the local Board of elections |
| What type of laws regulate how much money a person can give to a political campaign? | campaign finance laws |
| What are groups that try to influence public policy on specific issues called? | interest groups |
| What do interest groups use to raise money for political campaigns? | Political Action Committees (PAC's) |
| Which civic duty is necessary to "keep the peace"? | obeying the law |
| What system is used to elect the President of the United States? | electoral college |
| What are the political party members who nominate candidates at a political convention called? | delegates |
| What do researchers use to survey public opinion? | opinion polls |
| What are the news organizations and television networks that report on public issues called? | mass media |
| What is the most basic civic responsibility that a person can take to promote or inhibit political action? | voting |
| How are judges in the federal court system selected? | appointed by the President |
| Who is responsible for the confirmation process to approve (or block) the appointment of federal judges to the courts? | U.S. Senate |
| Where is most of the debate, compromise, and changes to bills made during the legislative process? | committees |
| What is it called when legislators who have the most experience are selected as leaders of committees? | seniority |
| What do committees in Congress hold to obtain public testimony on a specific issue? | hearings |
| Which committee sets the rules, schedule, and time limits for debate in the House of Representatives? | House Rules committee |
| Which committees in Congress are permanently set up to deal with proposed legislation related to a specific issue? | standing committees |
| Where does a bill go if the House and Senate pass two different versions of the same bill? | Conference committee |
| What procedure can be used in the Senate to block a bill by "debating it to death"? | filibuster |
| In the U.S. Senate, what is needed to pass a motion of cloture to end a filibuster? | 60-vote majority |
| What method can an individual or group use to put a local issue on the ballot? | petition |
| What is needed to over-ride a president's veto of a bill? | a 2/3 majority vote in each house of Congress |
| Who do interest groups hire to influence elected officials on proposed legislation? | lobbyists |
| What acts have been passed to prevent interest groups from having too much influence on public policy? | campaign finance laws (ex. Federal Elections Campaign Act) |
| What do you call the name calling, bandwagon, glittering generalities, symbols, stacked cards, and endorsements that interest groups use to influence voters? | propaganda |
| What are some of the legal responsibilities that citizens have? | obeying the law, paying taxes, jury duty |
| What are some of the civi responsibilities that citizens have? | voting, volunteering |
| What qualifies as person as a "natural born" citizen? | American birth or parents who are citizens |
| What is the process called by which aliens can become U.S. citizens? | naturalization |
| What do payroll taxes pay for? | Social Security and Medicare |
| Who pays the most in federal income taxes? | people with higher incomes |
| What type of tax is hidden in the price of a good such as alcohol, tobacco, or gasoline? | excise tax |
| Which power gives an executive such as the president or a governor the authority to officially forgive an individual for a crime? | pardon |
| Which power of the president can be used to forbid a bill passed by Congress? | veto |
| What power can the president use to instruct a government agency how to carry out a law? | executive order |
| Which power refers to the president's ability to direct the nation's armed forces? | commander-in-chief |
| Which power refers to the president's authority to carry out the law | chief executive |
| Which role refers to the president's image as the leader of our nation? | head-of-state |
| Who is the next-in-line to the president in the order of presidential succession? | Vice-president |
| What is the term-limit for the president of the United States? | two |
| How long is the term in office for the president of the United States? | four years |
| Who selects the president if no candidate has won a majority in the electoral college? | the House of Representatives |
| Which federal government agencies have the duty of protecting national security? | Central Intelligence Agency (CIA), Department of Homeland Security |
| Which federal government agency oversees the nation's highway system? | Department of Transportation (DOT) |
| Which federal government agency enforces the nation's immigration policies? | U.S. Citizenship and Immigration Services |
| Which federal government agency carries out policies to respond to natural disasters? | Federal Emergency Management Administration (FEMA) |
| Which federal government agencies provide research data on infectious diseases? | Center for Disease Control (CDC) |
| Which federal government agency provides population information so that legislative seats can be re-apportioned every ten years? | the Census Bureau |
| Which federal government agency is responsible for administering the nation's welfare programs? | Department of Health and Human Services |
| Which government agency collects taxes for the federal government? | Internal Revenue Service (IRS) |
| What cabinet-level department is responsible for federal law enforcement? | U.S. Department of Justice |
| Which government agency investigates and apprehends persons suspected of committing federal crimes? | Federal Bureau of Investigation (FBI) |
| Which government agency investigates counterfeiting activity and provides protection for the President of the United States? | Secret Service |
| What are the government agencies called that are created to regulate a particular type of business? | regulatory commissions |
| What are the government agencies called that make and enforce rules and regulations related to a specific issue? | independent executive agencies |
| Which public official serves as the head of the Department of Justice? | Attorney General |
| What system is used to elect the president of the United States? | the electoral college |
| How many electoral votes does each state get in the electoral college system? | number equal to the # of Senators and Representatives that the state has in Congress |
| In the electoral college system, what must a candidate attain in order to be elected president? | a majority (270) of the electoral votes |
| In the electoral college system, what must a candidate win in order to receive all of a state's electoral votes? | a plurality of the popular vote in that state |
| Which act limits the president's ability to wage war? | War Powers Act of 1973 |
| Who has the power to block the president's appointments to the federal courts, executive departments and other government agencies? | the Senate |
| Which independent executive agency makes and enforces regulations to protect the environment? | Environmental Protection Agency (EPA) |
| Which independent executive agency makes and enforces regulations to ensure the safety of the nation's food and medicine? | Food and Drug Administration (FDA) |
| Which government agency regulates radio and television broadcasts on the public airwaves? | Federal Communications Commission (FCC) |
| Which government agency regulates trade in the stock market? | Securities and Exchange Commission (SEC) |
| Which cabinet-level department is responsible for preventing and responding to terrorist attacks and natural disasters? | Department of Homeland Security |
| What are the 15 department heads called that provide advice and assistance to the president in carrying out the law? | the cabinet |
| Which government agency was created to prohibit unfair business practices? | Federal Trade Commission (FTC) |
| Which government agency was created to run the space program? | NASA |
| Which cabinet-level department carries out the nation's foreign policy? | Department of State/State Department |
| What is the primary duty of the judicial branch? | interpret or apply the law |
| Which type of jurisdiction gives a court the authority to hear a case first? | original jurisdiction |
| Which type of jurisdiction gives a court the authority to hear an appeal? | appellate jurisdiction |
| Which trial court has original jurisdiction over cases involving federal law? | U.S. District Court |
| What is the highest court in the U.S. legal system? | U.S. Supreme Court |
| What type of jurisdiction does the U.S. Court of Appeals have? | appellate jurisdiction |
| What cases are heard in the federal courts? | cases involving the U.S. Constitution, federal law, the U.S. government, disputes between states |
| Which court in the N.C. legal system hears appeals for cases involving the death penalty and the N.C. Constitution? | N.C. Supreme Court |
| Which court in the N.C. legal system hears appeals that come from the Superior and District courts? | N.C. Court of Appeals |
| Which N.C. court is the trial court where cases involving felonies and lawsuits over $10,000 are heard? | N.C. Superior Court |
| Which N.C. court is the trial court for misdemeanors and lawsuits involving amounts less than $10,000? | N.C. District Court |
| How are judges selected in the North Carolina court system? | elected |
| Who is responsible for the confirmation process to approve (or block) the appointment of federal judges to the courts? | U.S. Senate |
| What do justices on the Supreme Court write to explain the decision that it has made in a court case? | majority opinion |
| What does a law enforcement officer need to have before they can arrest a criminal suspect? | probable cause |
| What do you call the party that brings files charges against another party in court? | plaintiff |
| What do you call the party that is charged with a crime or wrongdoing? | defendant |
| In which part of the judicial process does the court determine if there is enough evidence to charge the suspect and set bail? | preliminary hearing |
| In the judicial process, who has the authority to indict a criminal suspect for a felony crime? | grand jury |
| What is it called when a person is ordered by the court to appear and testify as a witness? | subpoena |
| In which phase of the judicial process is the testimony and credibility of the witnesses questioned? | cross-examination |
| What is it called when two parties settle their dispute out of court? | settlement |
| Who is elected to represent the state as the plaintiff in a criminal case? | prosecutor/district attorney |
| What grants a person release from jail in exchange for their promise to attend their court date? | bail |
| What is a lighter sentence offered in exchange for a guilty plea called? | plea bargain |
| What is a notice called that order a person to appear in court for a civil case? | summons |
| Which official in the N.C. legal system usually issues warrants, sets bail, and hears guilty pleas for minor traffic offenses? | magistrate |
| What order is used by the Supreme Court so that they can review the details of a case that has been appealed? | writ of certiorari |
| What is the calender of cases for the Supreme Court called? | docket |
| What type of judicial interpretation involves a more conservative approach that focuses on original intent? | strict interpretation |
| What type of judicial interpretation involves a more liberal interpretation that changes the way that a law is applied? | loose interpretation |
| What is it called when a suspect is formally charged with a crime by a grand jury? | indictment |
| What principle of American government ensures that the law will be applied fairly to everybody? | rule of law |
| What burden of proof does a prosecutor need to meet for a jury to convict a criminal suspect? | proof beyond a reasonable doubt |
| What does a law enforcement officer need to have before they can arrest a criminal suspect? | probable cause |
| What do you call a complaint filed against a defendant in a civil case? | civil suit/lawsuit |
| What type of law is based on precedent? | common law |
| What type of law sets procedures for arresting, prosecuting, and punishing people who violate the penal code? | criminal law |
| What type of law is used to settle disputes between parties? | civil law |
| What do you call “a lawsuit that seeks damages from the defendant”? | tort |
| What type of law is created by a legislature? | statutory law |
| What type of law deals with the regulations made by government agencies? | administrative law |
| Which state government agency investigates crimes in North Carolina? | State Bureau of Investigation (SBI) |
| Who enforces traffic laws on North Carolina’s public highways? | Highway Patrol (State troopers) |
| Who is responsible for law enforcement in the county? | Sheriff's Department |
| Who is responsible for law enforcement within a city? | Police Department |
| What type of punishment requires a convicted criminal to pay the victim or family of the victim of their crime? | restitution |
| What is a conditional release that sets certain requirements on a person convicted of a crime? | probation |
| What is it called when a convicted criminal is given an early release from prison for good behavior? | parole |
| What is the primary goal of the juvenile justice system? | rehabilitation |
| What is it called when the law requires a mandatory sentence for a particular criminal conviction? | structured sentencing |
| What term refers to the rate of repeat offenders? | recidivism |
| What type of punishment is most likely for a person convicted of a felony? | incarceration (prison) |
| What types of punishements are most likely for a person convicted of a misdemeanor? | community service, probation |
| What is it called when the criminal justice system has the goal of preparing a criminal to re-enter society? | rehabilitation |
| Who is responsible for enforcing federal laws? | U.S. Department of Justice |
| Which government agency investigates and apprehends persons suspected of committing federal crimes? | Federal Bureau of Investigation (FBI) |
| What can a person attend in order to become informed about laws and influence local public policy? | public hearing |
| What privilege do members of Congress use to inform their constituents about recent legislation? | franking |
| Which government agency investigates counterfeiting activity and provides protection for the President of the United States? | Secret Service |
| In what phase of the judicial process will a criminal suspect be informed of the charges against them and asked to enter a plea? | arraignment |
| Who has the burden of proof in a criminal case? | the prosecutor/district attorney |
| What burden of proof is necessary for a plaintiff to win a judgement in a civil suit? | preponderance of the evidence |
| Which part of the NC Constitution protects the individual liberties of citizens? | Declaration of Rights |
| In which court case did the North Carolina Supreme Court rule that the right to public education is guaranteed by the NC Constitution? | Leandro v. North Carolina |
| What does the North Carolina General Assembly do? | make the state's laws, set the state budget |
| Who is the president of the Senate in the NC General Assembly? | Lieutenant Governor |
| In the NC General Assembly, who is the presiding officer in the House? | Speaker of the House |
| What are the duties of the governor? | carry out the state laws, propose a budget, appoint state officials |
| In the state of North Carolina, which executive body is appointed by the governor to serve as his advisors and department heads? | cabinet |
| In the state of North Carolina, which executive body is elected by the people to serve as department heads? | council of state |
| Which state government official is elected to oversee law enforcement in North Carolina? | attorney general |
| Which state government agency is responsible of collecting taxes in North Carolina? | Department of Revenue |
| What is the primary source of revenue for the state of North Carolina? | state income taxes |
| What type of tax do counties and municipalities in North Carolina rely on for most of their revenue? | property tax |
| What is it called when the state or local governments acquire a grant of money from the federal government? | intergovernmental revenue or "grant-in-aid" |
| What public services do state and local governments spend the largest portion of their budget on? | education and health & human services (public welfare) |
| Who is responsible for providing emergency services in the case of a natural disaster or fire? | Emergency services (EMS), local law enforcement and fire department |
| Who is elected to adopt a budget, make ordinances, and set local property tax rates for the county? | county board of commissioners |
| What is a local law called? | ordinance |
| Which public official is appointed to administer the county government? | county manager |
| What form of local government is most commonly used in North Carolina municipalities? | council-manager |
| Who is elected to adopt a budget and make ordinances for the city? | city council |
| Which public official is appointed to carry out the city council’s policies and oversee the operations of the city government? | city manager |
| What term is defined as “the rules for land use that are set by a local county or municipal government”? | zoning |
| What process enables a municipality to expand its territory? | annexation |
| Which body is elected to establish public schools, hire teachers, and set policies for the local school district? | Board of Education |
| Who sets the graduation requirements and curriculum standards for public schools in the state of North Carolina? | State Board of Education |
| Which tax used by state and local governments is regressive? | sales tax |
| How do state and local government borrow money to build large projects like schools and stadiums? | bonds |
| What process is used to approve of amendments to the N.C. Constitution and bond issues for funding schools and other public construction projects? | referendum |
| Which amendment to the U.S. Constitution extends due process rights to the citizens of a state? | Fourteenth Amendment |
| In the Fourteenth Amendment, which clause guarantees the civil rights of all citizens of a state? | "equal protection" clause |
| What court case demonstrated that the NC Constitution is supreme over state law? | State v. Mann |
| What word means “having unlimited wants and needs but limited resources”? | scarcity |
| What term is used to describe the value of an alternative that is not chosen? | opportunity cost |
| What are the Four Factors of Production? | land, labor, capital, entrepreneurship |
| The work done by humans is an example of which factor of production? | labor |
| Tools, machines, money and buildings are examples of which factor of production? | capital |
| Which factor of production is being used when an individual decides to start a business? | entrepreneurship |
| What word means “the additional cost of producing one more unit of a good or service”? | marginal cost |
| What method of mass production do factories use to increase productivity? | assembly lines |
| What is it called when production is divided into a set of specific tasks? | division of labor |
| What is it called when worker specializes in a single, specific task in the production process? | specialization |
| What components must be considered when a producer is calculating the total cost of production? | fixed costs + variable costs |
| What type of cost is dependent upon how many units a business decides to produce? | variable costs |
| Which factors can increased the productivity of a business's workforce? | increased training and education |
| What term refers to the level of training and education that workers have? | human capital |
| What type of worker performs tasks that involve manual labor? | blue collar |
| What type of worker is professionally trained to perform tasks in an office or institutional setting? | white collar |
| What type of workers the least productive and earn the lowest wages? | unskilled workers |
| What type of workers earn the highest wages because of their high level of productivity? | skilled workers |
| What is the result of using innovation, technology, specialization, and division of labor? | mass production |
| What type of resources can a business invest in to help it lower its production costs? | human capital, capital goods, technology |
| What is exemplified when a business reaches a point at which producing additional units is less and less profitable? | law of diminishing returns |
| What type of economic system is exemplified by Adam Smith's "Invisible hand" theory? | capitalism |
| Which economic system allows producers and consumers to make their own choices through voluntary exchange? | Market or capitalism |
| In the Free enterprise system, what is the primary factor that motivates individuals' economic choices? | profit |
| Which economic system is characterized by competition between producers and consumers? | Market or Free enterprise system |
| Which economic system is centrally planned by government agencies? | Command (Communism/Socialism) |
| Who owns the property and factors of production in a free market economy? | individuals and businesses |
| In a command/socialist economy, who gets to make the most important economic decisions? | government |
| In the circular flow model of economic activity, who sells products in the product market? | businesses |
| In the circular flow model of economic activity, who sells the factors of production? | individuals/households |
| What is the primary goal of individuals and businesses in a free-market economy? | profit |
| According to the law of demand, what will consumers do when price falls? | buy more |
| According to the law of supply, what will producers do when price rises? | increase production |
| What is the economic effect of price controls? | shortages |
| What will happen to price if there is a shortage of a product? | it will rise |
| What will happen to price if there is a surplus of a product? | it will fall |
| Which economic principle states that consumers will buy more of a good at a lower price than at a higher price? | law of demand |
| Which economic principle states that producers will increase their output of a good or service when the price is higher? | law of supply |
| In a free market economy, who makes the decisions on the most basic economic questions? | individuals and businesses |
| What is the price called at which quantity supplied is equal to the quantity demanded? | market price or equilibrium price |
| What will happen to the market price of a good if personal income of consumers rises? | it will rise |
| What will happen to the market price of a good if a complementary good rises in price? | it will fall |
| What will happen to the price of a good if a substitue for it becomes cheaper? | it will fall |
| What term is used to describe the income that people have left over after they have paid for basic necessities? | disposable income |
| What term is used to describe the lowest wage that employers are legally allowed to pay an employee? | minimum wage |
| How does government promote individual initiative in the free enterprise system? | copyrights, patents, protecting private property |
| What term is defined as "a general increase in price levels"? | inflation |
| What type of market only has one supplier of a product? | monopoly |
| What type of market is characterized by only a few suppliers who sell a nearly identical product? | oligopoly |
| What type of market has many different suppliers who produce a similar product? | competitive market |
| What is it called when two firms combine their business operations to form one company? | merger |
| What type of business has the disadvantage of having unlimited legal liability? | sole proprietorships and partnerships |
| What type of business is owned by its shareholders? | corporation |
| What is it called when a person makes a profit by selling shares of stock at a higher price than they paid for them? | capital gain |
| What is it called when a corporation pays out a percentage of its profit to its shareholders? | dividend |
| What type of organization helps workers to acquire higher wages, benefits, and better working conditions? | labor unions |
| What process do labor unions use to negotiate with the owners/management of a business? | collective bargaining |
| What is it called when labor union members refuse to work until its demands are met by the business management? | strike |
| What is it called when the business management refuses to let labor union members go to work until they accept they contract that they are offering? | lock-out |
| Which legislation officially recognized the right of labor unions to organize and use collective bargaining? | National Labor Relations Act |
| Which act limits labor unions by allowing states to pass "right to work" laws? | Taft-Hartley Act |
| What rights do workers have under the Fair Labor Standards Act? | minimum wage and 40-hour work week |
| Which type of financial institution is most important in the American economy? | commercial banks |
| How do banks make a profit? | charging interest to borrowers |
| What do individuals buy to protect their property and assets from accidents and liability? | insurance |
| What are laws that prohibit companies from restricting competition called? | Anti-trust laws |
| Where do banks acquire the money that they use to make loans? | deposits |
| Which government agency insures individuals' bank deposits | Federal Deposit Insurance Corporation (FDIC) |
| What forms of money are considered to be "legal tender"? | currency (notes and coins) |
| What is an item of value called that is pledged in order to secure a loan? | collateral |
| What figure is used to inform a borrower of the total annual percentage cost of a loan or other form of credit? | annual percentage rate (APR) |
| What form of money can be used to purchase something now and pay for it later on a monthly basis? | credit |
| What type of financial institution exists to provide services only to depositors who are members? | credit union |
| What is the disadvantage of using credit? | increased debt |
| What economic indicator is defined as “the dollar value of all final goods and services produced in a country in one year”? | Gross Domestic Product (GDP) |
| What phase of the business cycle is characterized by a growing GDP and low unemployment? | expansion |
| Which phase of the business cycle is characterized by a decline in GDP and rising unemployment? | contraction or recession |
| What economic indicator measures the percentage of jobless individuals over the age of 16 who are looking for work? | unemployment rate |
| Which economic indicator is used to measure inflation? | Consumer Price Index (CPI) |
| What is it called when a nation experiences a long and severe recession? | depression |
| What is it called when a government’s expenditures are greater than the revenue it receives? | budget deficit |
| Increased government spending and higher budget deficits result in which economic problem? | national debt |
| What type of tax is the U.S. income tax? | progressive |
| What type of tax is the sales tax? | regressive |
| What do payroll taxes pay for? | Social Security and Medicare |
| What is the primary source of revenue for the federal government? | personal income taxes |
| Who pays the most in federal income taxes? | people with higher incomes |
| Who is affected the most by sales taxes? | people with low incomes |
| Which act banned segregation in public accomodations and racial disrimination in the workplace? | Civil Rights Act of 1964 |
| What government program provides hospital insurance for people who are in poverty? | Medicaid |
| Which government agency creates and enforces safety regulations for the workplace? | OSHA (Occupational Safety and Health Administration) |
| Which government agency creates and enforces regulations to reduce pollution? | Environmental Protection Agency (EPA) |
| Which act prohibits discrimination in the workplace against individuals with disabilities? | Americans with Disabilities Act (ADA) |
| Which government agency is responsible for enforcing laws and regulations against discrimination in the workplace? | Equal Employment Opportunity Commission (EEOC) |
| What type of programs encourage race-based preferences for minorities in employment and education? | Affirmative Action |
| Who is responsible for enacting the nation’s fiscal policies? | Congress and the president |
| What term is defined as “policy that is used to regulate the amount of money in circulation”? | monetary policy |
| Who sets the nation's monetary policy? | Federal Reserve |
| Which tools can the Federal Reserve use to change the nation’s monetary policy? | open market operations, reserve requirements, discount interest rates |
| What type of monetary policy would the Federal Reserve use to increase the amount of money in circulation and stimulate economic growth? | loose (easy) money policy |
| What type of monetary policy would the Federal Reserve use to reduce inflation? | tight money policy |
| Migration has resulted in the most population growth in which area of the United States? | Sunbelt |
| What is it called when a government agency such as the Consumer Product Safety Commission orders that a product be pulled from the market? | recall |
| Which area of the U.S. economy has experienced the most job growth in recent years? | service industries |
| The growth of technology and service industries is best exemplified by which location in North Carolina? | Research Triangle Park |
| What is it called when a company lays off workers to save on labor costs? | downsizing |
| What is it called when a company closes its U.S. plants and begins production overseas in order to reduce costs? | outsourcing |
| Which industries in North Carolina have been affected the most by downsizing and outsourcing? | furniture and textile industries |
| What is it called when a nation can produce a good or service at a lower cost than another country can? | comparative advantage |
| What is it called when a nation exports more goods than it imports? | favorable balance of trade |
| What type of policy is used to protect domestic industry against foreign competition? | protectionism (tariffs) |
| What word means “the value of one nation’s currency compared to another nation’s currency”? | exchange rate |
| Which international economic organization was formed to eliminate trade barriers between European nations? | European Union (EU) |
| Which trade agreement eliminated tariffs and other trade barriers between the United States, Canada, and Mexico? | North American Free Trade Agreement (NAFTA) |
| Which international organization was created for the purpose of peacefully resolving conflicts between nations? | United Nations (UN) |
| What is a result of free trade and globalization? | global interdependence |
| How do wealthy nations like the United States help developing nations to grow economically? | foreign aid |
| Which international economic organizations provide foreign aid to developing nations? | World Bank, International Monetary Fund (IMF) |
| Which international organization was established to support globalization and free trade? | World Trade Organization (WTO) |
| Which fiscal policies result in economic growth? | cutting taxes and increased spending |
| What is it called when a nation imports more than it exports? | unfavorable/negative balance of trade (trade deficit) |
| What is it called when government reduces its regulation of business? | deregulation |
| Which government agency is involved in consumer protection through the regulation of food and medicine? | Food and Drug Administration (FDA) |
| Which government program provides cash welfare benefits to low-income families | Temporary Aid to Needy Families (TANF) |
| Which government programs benefit senior citizens? | Social Security and Medicare |
