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Economic Systems
Economic Systems
30 terms
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StudBud Administration
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Introduction to the basics of economics and systems
Flashcards
30 cards
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Practice quiz
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Host live
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Questions
30
Answers
1
Which are the government’s three goals for promoting economic strength?
high employment, steady growth, and stability
steady growth, high prices, and innovation
high employment, increased spending, and low taxes
low unemployment, low prices, and low taxes
2
What is one way the government might try to promote economic growth?
raise taxes
reduce prices
produce more goods
increase spending
3
Which of the following philosophers recommended the free market
Adam Smith
Karl Marx
Vladimir Lenin
Friedrich Engels
4
A person who believes that wealth should be evenly distributed throughout society is
a capitalist.
an entrepreneur.
a communist.
a socialist.
5
When did the nation’s welfare system begin?
during the War on Poverty
during the Great Depression
during the Civil War
during World War I
6
What is the government’s role in controlling externalities in the American economy?
encourage positive and limit negative externalities
limit all externalities to stop market failures.
limit positive and encourage negative externalities.
encourage all externalities to increase competition
7
What is one way the Constitution protects the free enterprise system?
It recognizes private property rights.
It establishes the principle of voluntary exchange.
It prevents the government from making contracts.
It spells out the rights of consumers.
8
To improve its standard of living, a nation’s economy must
reach economic equity
remain stable
grow throw innovation
allow the government to make decisions
9
What do people supply in return for factor payments?
innovation, profit, or goods
land, labor, or capital
innovation, labor, or trade
services, goods, or traditions
10
The ________ system is another name for a market economy.
Centrally Planned
Socialist
Free Enterprise
Command
11
What is one of the most important principles of economics?
money
scarcity
distribution
globalization
12
the level of economic prosperity
specialization
standard of living
poverty threshold
traditional economy
13
What does the process of specialization do for an economy?
It makes production more efficient.
It makes labor easier to control.
It eliminates unemployment.
It fosters competition.
14
Traditional economies usually
avoid change
adapt to innovation
15
Competition is a driving force in a free enterprise economy.
True
False
16
Which is a positive externality of a new high school?
more noise in the neighborhood
a raise in property taxes
student purchases at nearby stores
more traffic on the roads
17
Which of the following is considered a "cash transfer"
section 8
food stamps
unemployment compensation
grants
18
Health insurance for the elderly, the poor, and the disabled is provided by
TANF
the unemployment insurance program.
Worker’s Compensation.
Medicare and Medicaid.
19
In a free enterprise system, who decides what will be produced?
firms
consumer
government
producers
20
How is the economic system in China today different from the one in Soviet Russia?
The Chinese government is not authoritarian.
The Chinese government is socialist, rather than communist.
The Chinese government allows far more economic freedom.
The Chinese government owns firms in major industries.
21
Roads and bridges are examples of how government provides
in kind benefits
grants
market failure
public goods
22
Social Security withheld from your paycheck is for
cash transfers for the elderly and poor
401K retirement account
cash transfers for those hurt on the job
health insurance for the elderly and poor
23
How will consumers react to the incentive of a higher price on a good or service?
negative, buy less products
negative, buy more products
positive, buy more products
remain stable
24
Solar power and wind power are examples of what kind of resources?
labor
renewable
capital
nonrenewable
25
In a command economy, the government regulates how goods and services are distributed.
True
False
26
What is the profit motive?
incentive to make money
money that a business makes
exchange of goods
opportunity for success
27
Which of the following describes the physical flow from households to firms?
consumer expenditures
wages, rent, dividends
factors of production
goods and services
28
The United States economy is a mixed economy
free market with some government intervention
free market with no government intervention
centrally planned with no government intervention
traditional economy with some government intervention
29
a system to protect people experiencing unfavorable economic conditions
factor payments
market exchange
soul glo
safety nets
30
Why does the government protect inventors and authors by offering them patents and copyrights?
to promote innovation
to regulate the business cycle
to encourage free trade
to strengthen American culture
