1. Which of the following amendments to the U.S. Constitution legalized the incometax?
   1. 12thAmendment
   2. 14thAmendment
   3. 16thAmendment
   4. 18thAmendment
2. WhichofthefollowingisNOToneofthecharacteristicsofagoodtax?
   1. simplicity
   2. efficiency
   3. equity
   4. reliability
3. The federal income tax is which type of tax?
   1. progressive
   2. regressive
   3. proportional
   4. atypical
4. FICAtaxesfundwhichofthefollowinglargegovernmentprograms?
   1. Social Security andMedicaid
   2. Medicare andMedicaid
   3. Social Security andMedicare
   4. Medicaid and Worker'sCompensation

1. Exceptforinterestonthenationaldebt,mostmandatoryspendingofthefederal government is for which of thefollowing?
   1. endowmentfunds
   2. entitlements
   3. tariffs
   4. excisetaxes
2. Whichofthefollowingisamajorsourceofrevenueformoststategovernments?
   1. propertytaxes
   2. corporate incometaxes
   3. salestaxes
   4. interestearnings
3. Whichofthefollowingtheoriessupportedthenotionthatfreemarketsregulate themselvesandshouldnotbeinterferedwithbythegovernment?
   1. Keynesian
   2. Supply-side
   3. Classical
   4. Reaganomics
4. Whichofthefollowingeconomistssupportedthenotionthatthegovernmentshould initiate spending duringdepressions?
   1. JohnKeynes
   2. AdamSmith
   3. DavidRicardo
   4. JohnMalthus
5. The poverty thresholdis
   1. The total income needed by a family to pay for needs andwants.
   2. Thetotalamountofwelfaredollarsbeinggiventoafamily.
   3. Thetotalamountoftaxesneededtosupportwelfareprograms.
   4. The income level below which income is insufficient to support ahousehold.

1. Which of the following is NOT a cause ofpoverty?
   1. lack ofeducation
   2. lack of governmentprograms
   3. economicshifts
   4. shifts in familystructure
2. Whichcountryistheworld'sleadingexporterofservices?
   1. The UnitedStates
   2. GreatBritain
   3. Japan
   4. China
3. WhichofthefollowingisNOToneofthereasonstheU.S.hasalargetradedeficit?
   1. imported foreignoil
   2. low labor costs in othercountries
   3. protectionist policies in othercountries
   4. high taxes on importedgoods
4. WhichofthefollowingisNOTacharacteristicofadevelopednation?
   1. high agriculturaloutput
   2. low infant mortalityrates
   3. solidinfrastructure
   4. many people work onfarms
5. WhichofthefollowingisNOToneofthetoolsusedtomeasurelevelsofdevelopment?
   1. energyconsumption
   2. tradefigures
   3. lifeexpectancy
   4. laborforce
6. Lessdevelopedcountriesthathaveshownsignificantimprovementintheareasof development are sometimes referred toas
   1. highly economiccountries
   2. developmentally improvedcountries
   3. newly industrializedcountries
   4. newly civilizedcountries

1. Whenayoungnativemanattendsmedicalschoolandthenleaveshishomelandto practice medicine in the United States, this is an exampleof
   1. Educationalexodus.
   2. Physiciandrain.
   3. Personalenrichment.
   4. Braindrain.
2. Which of the following institutions is NOT involved in aiding development around the globe?
   1. EuropeanUnion
   2. WorldBank
   3. United Nations DevelopmentProgram
   4. International MonetaryFund
3. WhichofthefollowingisNOToneoftheactionsthatneedtobetakenwhenacountry moves toward a marketeconomy?
   1. privatization
   2. strong economiccontrols
   3. protection of propertyrights
   4. new roles forgovernment