All Free Economics MCQs with Answers

• A. outright opposition by state governments to federal law
• B. a general lack of financial resources and professional expertise at the state level
• C. inefficiency and sluggishness of state administrations
• D. all of the above

Explanation: Federal intervention may be encouraged by state opposition, inadequate state finances or expertise, and ineffective administration.

• A. anarchy
• B. the rule of men
• C. the rule of custom
• D. the rule of reason

Explanation: The rule of law subjects rulers and citizens to established, impersonal laws; its opposite is government according to the arbitrary will…

• A. concurrent power
• B. central power
• C. wholesale power
• D. regional power

Explanation: Federalism divides authority between a central government and regional governments, with some powers exercised by both levels.

• A. large sized countries with regional differences
• B. small homogeneous countries
• C. small urban industrial countries
• D. large homogeneous single religion countries

Explanation: Federalism is especially suitable for large countries with significant regional, cultural, or economic differences because it divides…

• A. a government that acts arbitrarily
• B. a government that operates in accordance with general rules and limitations
• C. an agreement or treaty in written form
• D. a government that is no subject to restraints on political power

Explanation: A constitutional government exercises power within established legal rules and limitations, protecting citizens from arbitrary action.

• A. administrator
• B. foreign policy maker
• C. legislator
• D. ceremonial representative of the U.S

Explanation: The U.S. president is both head of government and head of state, but the presidency is especially important in directing foreign policy…

• A. the states inefficiency
• B. the tenth amendment
• C. urban influence on the states
• D. excess state revenues

Explanation: Federal responsibilities expanded partly because state governments were often unable or inefficient in dealing with increasingly complex…

• A. federalism
• B. a subordinate judiciary
• C. unlimited power
• D. appointed representatives

Explanation: Federalism is a defining feature of the United States government because constitutional powers are divided between the federal government…

• A. By foreign nations
• B. By government investments
• C. By Congress
• D. By withdrawals from the Treasury Department

Explanation: Presidential programs require appropriations, and under the U.S. Constitution Congress controls federal spending.

• A. To preserve the status quo
• B. To form a government that would serve the interests of all groups in the society
• C. To insure the power of the small farmers
• D. To diminish the power of a strong central government

Explanation: The Constitutional Convention aimed to create a stronger but representative government capable of balancing the interests of different…

• A. doctrine of elitist pluralism
• B. doctrine of executive privilege
• C. principle of federalism
• D. concept of polis

Explanation: The U.S. Constitution establishes federalism by distributing authority between the national government and the states.

• A. always written
• B. intended to limit governmental power
• C. meant to establish the rule of men
• D. blueprints for monarchies

Explanation: Constitutions set the basic rules of government and are primarily intended to restrain public power through legal limits and institutional…

• A. strong personal power
• B. weak personal power
• C. no power at all
• D. power only in declaring war

Explanation: The framers feared concentrated executive authority after their experience with monarchy, so they designed a presidency with significant…

• A. explicit statements in the Constitution
• B. the Marbury v Madison decision
• C. an act of Congress
• D. the First Amendment to the Constitution

Explanation: The U.S. Supreme Court claimed the power of judicial review in Marbury v.

• A. Chief Justice
• B. commander in chief of Armed Forces
• C. chief diplomat
• D. party leader

Explanation: The president serves as commander in chief, chief diplomat and commonly acts as a party leader.

• A. that the Constitution delegates it so little power
• B. a result of the gradual emergence of the Supreme Court as a legislative body
• C. the development of the power of state governments
• D. the traditional organization of the legislative branch

Explanation: The traditional organization of the legislative branch, including committees, procedures and competing interests, is presented as the main…

• A. is a pivotal institution
• B. is the acting arm of the state
• C. includes the political process
• D. all of the above

Explanation: Government is a central institution, operates as the state’s administrative arm and encompasses the political process through which public…

• A. is the rallying cry of the Women Liberation Movement?
• B. was Karl Marx's exhortation to the workers of the world
• C. is the French expression Adam Smith used to mean that government should keep its hands off the economy?
• D. is the economic theory introduced to the U.S by Keynes?

Explanation: Laissez-faire is French for letting people do as they choose and refers to minimal government intervention in economic affairs, an idea…

• A. agricultural nations like Cuba
• B. less economically developed nations like Russia
• C. Asian nations lacking well-developed industrial sectors like China
• D. all of the above

Explanation: Marx expected communist revolutions in highly industrialized societies, but major revolutions occurred instead in predominantly…

• A. all property belongs to the government
• B. the economy is regulated through legislation and taxation
• C. losers totally destroyed
• D. the individual is free to do anything as long as he/she has money

Explanation: Democratic capitalism combines private ownership and markets with democratic government that influences the economy through laws…