Entrepreneurship — Unit test

Question 1

Many classical economists such as Adam Smith believed that government should

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intervene little in the economy.

Question 2

US federal income tax is progressive by law, but which best explains why wealthy individuals can often pay far less in taxes than the top tax rate?

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High-income earners use tax laws to their advantage to reduce their tax rates.

Question 3

The EPA tries to balance protecting business interests with protecting

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air.

Question 4

Which describes an example of the economic system known as free enterprise?

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People are free to shop for the best price on products because there is open competition.

Question 5

Which best describes a difference between the views of Milton Friedman and John Maynard Keynes on the economy?

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Friedman said that monetary policy should be used to influence aggregate demand, while Keynes believed the best approach was fiscal policy.

Question 6

similardifferentallrandom

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similar

Entrepreneurship — Unit test Answers