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