How do private property rights encourage individuals to work, save, and invest?

Individuals can keep the gains they earn.

The result of the government's deregulation of the airline industry in the 1970's:

Competition in that particular industry increased.

Some products such as roads & sewer systems are not adequately supplied by the marketplace so:

choices about building such things are made by gov'ts.

A government that operates in a market economy MIGHT become involved in the economy:

to provide public goods and services to its citizens.

In order to maintain stability in a market economy, the government is most likely to:

transfer payments providing for social programs such as EBT

In the definition of a public good, the term "non-rival" means that a person's use of that good

does not reduce the amount available to others.

Intellectual property:

is often protected by copyrights & patents

In a command economy, how is it determined what goods and services will be produced?

Central government planning decides what will be produced.

Consumer sovereignty assumes that which fundamental statement in a market economy is true?

By purchase choices buyers determine the production of goods

The US food stamp program is an illustration of:

an effort to resolve market failure

Which of these is one of the ways in which a command economy differs from a market economy?

In a command economy, individuals have less economic freedom

In a mixed market economy which of these would MOST likely be a basic function of government?

to correct market failures and redistribute income

In the American economy, the goal of economic equity is MOST connected with:

giving participants a fair chance to succeed

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Economics Unit 1B Review

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Questions 18

Answers

1
Production of goods & services is controlled by supply & demand in this economic system.
communism
command
market
mixed
2
The greater the profit motive in an economic system, the greater the likelihood of:
equity
security
innovation
government controlling the factors of production
3
How do private property rights encourage individuals to work, save, and invest?
Most investments are guaranteed by the government.
Most earnings of individuals will go to the government.
Individuals can keep the gains they earn.
Any earnings or wealth cannot be passed on via inheritance.
4
The result of the government's deregulation of the airline industry in the 1970's:
There was no change in product quality or competition.
Competition in that particular industry increased.
Product quality of that industry decreased.
None of the above.
5
Some products such as roads & sewer systems are not adequately supplied by the marketplace so:
choices about building such things are made by stockholders
choices about building such things are made by gov'ts.
choices about building such things are made by corporations
choices about building such things are made by referendum
6
A government that operates in a market economy MIGHT become involved in the economy:
to make sure all products are produced the same way.
to increase the profits of a specific company.
to provide public goods and services to its citizens.
to eliminate income inequality among its citizens.
7
In order to maintain stability in a market economy, the government is most likely to:
tax imports
none of the above
transfer payments providing for social programs such as EBT
pass environmental regulations
8
In the definition of a public good, the term "non-rival" means that a person's use of that good
prevents the free riders from consuming it.
does not reduce the amount available to others.
reduces the amount available to others.
increases its marginal cost
9
Intellectual property:
is often protected by copyrights & patents
belongs to everyone with the human capital to use it
is protected by common law rather than by written laws
is protected by people's sense of decency, not written laws
10
In a command economy, how is it determined what goods and services will be produced?
Central government planning decides what will be produced.
Supply and demand control production and price.
Businesses decide on the basis of market conditions.
Consumers decide through their behavior in the marketplace.
11
In a market economic system, which of the following concepts creates an incentive to produce?
profits
equal distribution
low prices
charity
12
Consumer sovereignty assumes that which fundamental statement in a market economy is true?
Sellers should provide products that reflect a good bargain.
By purchase choices buyers determine the production of goods
Buyers should be able to name their own price for goods.
Sellers bring new products to the market due to research.
13
The US food stamp program is an illustration of:
an effort to resolve market failure
public provision of a suitable legal framework
the re-distributional function of gov't
a gov't action designed to enhance competition
14
Which country has the GREATEST degree of a command economy?
Mexico
Brazil
Canada
Cuba
15
Which of these is one of the ways in which a command economy differs from a market economy?
Market economies discourage free enterprise.
In a market economy, the government sets prices.
In a command economy, individuals have less economic freedom
Command economies tend to have a higher per capita GDP.
16
What are the types of economic systems?
Non-market, mixed command
Free, communist, mixed
Production, market, command
Market, mixed, command
17
In a mixed market economy which of these would MOST likely be a basic function of government?
to ensure the financial stability of all citizens
to correct market failures and redistribute income
to promote monopolies
to regulate who can purchase services
18
In the American economy, the goal of economic equity is MOST connected with:
restoring laissez-faire capitalism
giving participants a fair chance to succeed
subsidizing businesses that would otherwise fail
creating limits on corporate profits

Economics Unit 1B Review Flashcards | StudBud