This page shows a list of test questions in the American Government public release collection at MSDE. American Government
Standard "4.0 Economics," Indicator "4.1.1"
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This is a multiple choice question that allows you to select only one option.
Which of these United States government actions is most directly related to the goal of economic equity?
This is a multiple choice question that allows you to select only one option.
Read the scenario below.
A local board of education is preparing the budget for the next fiscal year. The board decides to pay for repairs to school buildings instead of buying new computers.
Which economic concept applies in this situation?
This is a multiple choice question that allows you to select only one option.
Which of these would be an opportunity cost to a government offering a tax break to businesses that invest in new machinery?
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Pre-recorded audio
Suppose the President and leaders of Congress agreed to increase funding for the military and for education, while not funding protection of wetlands for migrating cranes.
Which of these does the above decision reveal about economic costs and benefits?
This is a test question that allows you to enter extended text in your response.
In order to make driving safer, some citizens want a law prohibiting drivers from using cell phones while driving.
- Explain the economic costs and benefits of this law if it is passed.
- Based on the costs and benefits, do you support or oppose the law? Explain why.
- Include details and examples to support your answer.
Write your answer on the lines in your Answer Book.
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Due to large financial losses in the American automobile industry, the United States once set limits on the number of cars it imported. This response is most likely an example of government policy being shaped by
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Which of these best explains why state government leaders must carefully evaluate costs and benefits when developing budgets?
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A local government allocates funds to expand an elementary school.
Which of these most likely describes an opportunity cost of this policy?
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What is the opportunity cost for state governments that spend state money during natural disasters?
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Read the news article excerpt below.
LEGISLATURE TO PROVIDE ASSISTANCE
TO FIRST TIME HOMEBUYERS
In response to rising housing costs, the state legislature has voted to provide financial assistance to lowincome families to help purchase their first house.
The action described in the article above is intended to
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The federal government passed a law reducing the amount of lumber that can be cut from national forests.
Which of these could be a result of this law?
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If tax revenues decrease, what would be the effect on the state of Maryland?
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A local government has a limited amount of money to spend. It decides to spend the money to support local businesses instead of to remove trash from unused buildings and vacant lots.
Which of these is the opportunity cost of this decision?
This is a test question that allows you to enter extended text in your response.
Read the information below and use it to answer the BRIEF CONSTRUCTED RESPONSE that follows.
In 2002, the Maryland General Assembly voted to purchase undeveloped land on the Chesapeake Bay before a construction company could purchase it. The state plans to use the land as a park for recreational activities.
- Describe the opportunity costs and the benefits of the purchase.
- Is it appropriate for the state government to buy undeveloped land? Explain why or why not.
- Include details and examples to support your answer.
Write your answer on the lines in your Answer Book.
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Read the headline below.
What is an economic cost most directly associated with the headline?
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Which of these government actions would most directly promote economic security?
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The governor of Maryland chose to cut spending on road construction in order to increase spending for school construction.
Which economic principle is best demonstrated by this decision?
This is a multiple choice question that allows you to select only one option.
Read the news headline below.
Based on the headline, which of these is a purpose of this action?
This is a multiple choice question that allows you to select only one option.
Which of these is the main economic cost of the federal government removing taxes on imported goods?
This is a test question that allows you to enter extended text in your response.
Read the information and use it to answer the constructed-response item.
In 2002, the Maryland General Assembly voted to purchase undeveloped land on the Chesapeake Bay before a construction company could purchase it. The state plans to use the land as a park for recreational activities.
- Describe the opportunity costs and the benefits of the purchase.
- Is it appropriate for the state government to buy undeveloped land? Explain why or why not.
- Include details and examples to support your answer.
This is a multiple choice question that allows you to select only one option.
Read the information.
To help fight poverty, Maryland has passed a law raising the minimum wage for employees of private businesses doing contract work for the state.
Which socioeconomic goal is most directly addressed by the law described in the information?
This is a test question that allows you to enter extended text in your response.
Read the information below and use it to answer the constructed-response item.
The state legislature has to decide whether to fund a proposal to repair roads or a proposal that would increase funding for new school construction.
- Describe the benefits and opportunity cost of the decision.
- What is the best way for the state government to determine which proposal to fund? Explain your answer.
- Include details and examples to support your answer.
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Study the cartoon. Use the cartoon to answer the question.
What is a likely cost of the family's purchases shown in the cartoon?
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Read the excerpt.
“The Maryland Department of Natural Resources has rescheduled public hearings on whether to allow companies to build wind turbines in state forests in Western Maryland.”
—Baltimore Sun, January 2008
The situation described in the news article illustrates a possible conflict between finding alternative sources of energy and