Business cycles occur in free enterprise systems because

Econ decisions like prices are determined by the market

Each society answers the three basic economic questions based on

combination of values and goals

The United States economy is a mixed economy

based on free market, allowing some gov't intervention

What is one way the government encourages people and businesses to give to charity?

by lowering taxes for people who donate

The most common in-kind benefits are

food giveaways, food stamps, subsidized housing, legal aid

The federal gov't monitors and regulates American banks and other financial institutions

to shield money from damaging effects of downturns

Why are free markets able to attain economic growth?

competition encourages innovation, which causes growth

How is China's economic system today different from the one in Soviet Russia?

it allows more economic freedom

Various fed, state, & local gov't programs help raise people's standard of living because

certain groups of people have fewer chances to be productive

Education programs make the economy more productive by

adding human capital & labor productivity

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Topic 2 Final Exam Review

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Questions 15

Answers

1
Business cycles occur in free enterprise systems because
Econ decisions like prices are determined by the market
standard of living is very high
government policy creates cycles
The efficiency of workers is not the same for each season
2
A person who believes that wealth should be evenly distributed throughout society is
capitalist
socialist
communist
entrepreneur
3
Each society answers the three basic economic questions based on
number of factor payments
combination of values and goals
degree of economic growth
the desire to achieve economic freedom
4
The United States economy is a mixed economy
based on free market, allowing some gov't intervention
based on free market, allowing no gov't intervention
based on traditional economy w some govt intervention
based on centrally planned w limited gov't intervention
5
What is one way the government encourages people and businesses to give to charity?
by subsidizing donations
through cash grants
by lowering taxes for people who donate
by redistributing taxes
6
The most common in-kind benefits are
food giveaways, food stamps, housing reimbursements
food giveaways, food stamps, tuition reimbursement
coupons, food stamps, subsidized housing, legal aid
food giveaways, food stamps, subsidized housing, legal aid
7
The federal gov't monitors and regulates American banks and other financial institutions
to shield money from damaging effects of downturns
to improve standard of living for all
to keep control over the economy
to keep prices stable
8
Policy makers pursue all of the following goals to stabilize the economy except
steady growth
stable productivity
stable prices
high unemployment
9
Why are free markets able to attain economic growth?
self interest motivates market growth
competition encourages innovation, which causes growth
consumers can buy all goods they need, firms then make more
10
How is China's economic system today different from the one in Soviet Russia?
it is centrally planned
it allows more economic freedom
it does not own major firm
it is socialist, not communist
11
Health insurance for the elderly, the poor, and the disabled is provided by
unemployment insurance program
Medicare & Medicaid
workers compensation
TANF
12
Various fed, state, & local gov't programs help raise people's standard of living because
people want the gov't to intervene in the market
people expect to maintain a high standard of living
certain groups of people have fewer chances to be productive
people living in poor areas can't afford to pay taxes
13
What is one way the government might try to promote economic growth?
increase spending
reduce prices
raise taxes
produce more goods
14
Education programs make the economy more productive by
unemployment insurance program
reducing injuries on the job
adding human capital & labor productivity
reducing payments to unemployed people
15
How could the Chinese economy be characterized?
mixed, more free market
free market
centrally planned
mixed, more centrally planned

Topic 2 Final Exam Review Flashcards | StudBud