What would government do in a model free enterpirse system?

protect property rights and enforce contracts

Why did the Soviet Union experience many surpluses and shortfalls?

Central planers could not manage every detail

In the sircular flow model, which of these is a factor payment?

the hourly wage a store pays to a clerk

Why are economies most efficient when they have full employment?

no productive resources are left unused

What does Adam Smith's idea of an "invisible hand" represent?

the way that markets coordinate trade

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POD Econ Lesson 3

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Economic Systems

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Questions 10

Answers

1
What would government do in a model free enterpirse system?
support entrepreneurs to encourage innovation
protect property rights and enforce contracts
stay out of economic activity altogether
ensure that prices remain reasonable
2
Why did the Soviet Union experience many surpluses and shortfalls?
The labor force was not well educated
the ocuntry depended on imports to obtain resources
the cold Russian climate made farming hard
Central planers could not manage every detail
3
Which method of distribution is most commonly used by online bookstores?
according to need
ability to pay
equal distribution
first come, first served
4
The three fundamental economic questions are what to produce, ____, and for whom.
why
when
how
where
5
Which of these economic goals is most important in a traditional economy?
efficiency
stability
freedom
growth
6
In the sircular flow model, which of these is a factor payment?
the monthly mortgage on a house
the hourly wage a store pays to a clerk
the credit card charge for ordering games online
the check someone writes to buy groceries
7
Which kind of economy is most common today?
mixed
traditional
market
command
8
Why are economies most efficient when they have full employment?
unemployment offices can be closed
no productive resources are left unused
wages are spent for consumer goods
no one person has to work too hard
9
Which is the best example of a transfer payment?
fee for renting a park facility
police officer's paycheck
Social Securtiy check
moving expense reimbursement
10
What does Adam Smith's idea of an "invisible hand" represent?
the concern of poeple for one another
the economic role of government
the way that markets coordinate trade
the divine oversight of human affairs

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