Which of the following describes a traditional economic system?

A young man learns a trade from his father

If Congress wanted to increase the amount of money in circulation, which would work best?

Decrease taxes and increase government spending

Which of these best describes a mixed economy?

businesses are regulated by the gov to protect the public

Why did the gov create the Federal Deposit Insurance Corporation (FDIC) in the 1930s?

To increase public confidence in banks

If the Consumer Price Index is falling, what should the Federal Reserve do?

increase the reserve requirement for banks

Which of these is usually true in nations with a market economy?

businesses that are inefficient risk going out of business

Which of the following is NOT one of the three main questions that economic systems ask?

What type of individual should be the producer

Which of these would most likely result if Congress increased the minimum wage?

Some companies would raise the price of products.

Which of these is represented by Gross Domestic Product?

The total value of goods/services produced within a nation

Which of these is characteristic of a command economy?

A state planning commision determines what to produce

Which of these is characteristic of an economic downturn?

decreased production of goods and services

Which of these is most often a feature of countries with traditional economies?

The governmen values occupational roles over economic growth

Which of these actions would Adam Smith (pioneer of the market economy) most likely support?

entering into free trade agreements

studbud

Government Influences on the Economy

26 termsStudBud Administration55 plays

US GOV REVIEW

Flashcards26 cardsFPractice quizPHost liveL

Questions 26

Answers

1
Which of the following describes a traditional economic system?
The government sets a quota for TV production
A family receives Medicare benefits
Businesses decide to move their businesses to a new area
A young man learns a trade from his father
2
If Congress wanted to increase the amount of money in circulation, which would work best?
Increase taxes and increase government spending
Increase taxes and decrease government spending
Decrease taxes and increase government spending
Decrease taxes and decrease government spending
3
Which of these best describes a mixed economy?
the government decides who will produce goods and services
natural resources are owned and controlled by the government
the gov's only role in the economy is to ensure competition
businesses are regulated by the gov to protect the public
4
Why did the gov create the Federal Deposit Insurance Corporation (FDIC) in the 1930s?
to sop funding to participating banks
To encourage commercial trade between member banks
to prohibit states from regulating banks
To increase public confidence in banks
5
If the Consumer Price Index is falling, what should the Federal Reserve do?
increase the reserve requirement for banks
decrease tariffs placed on imported products
decrease interest rates
increase government spending
6
Which of the following is most responsible for fiscal policy?
Federal Reserve
Congress
US Treasury
Supreme Court
7
Which of these best reflects how the federal gov. manages the economy through fiscal policy
Buying and selling securities
Controlling the money supply
Taxes and spending
Controlling interest rates
8
Which of these is usually true in nations with a market economy?
most farms are owned and operated by the government
consumers have little choice in the types of goods to buy
workers are restricted by the gov from changing jobs
businesses that are inefficient risk going out of business
9
Which type of economy is depicted when the government and unions work to set a minimum wage?
Traditional
Mixed
Command
Market
10
Where do tax or revenue bills start
The President
the Internal Revenue Service
The House of Representatives
The Senate
11
The United States has which type of economic system?
Mixed market
Democratic socialism
Command
traditional
12
Which of the following is NOT one of the three main questions that economic systems ask?
What type of individual should be the producer
how should they produce
for whom to produce
what and how much to produce
13
What rates are being cut as shown in the cartoon?
personal income
interest
corporate
tariff
14
Which of these is an example of fiscal policy?
conducting open-market operations
creating budgets
adjusting the discount rate
changing the reserve requirement
15
Which of these is most often associated with the government in a command economy
national production goals
competition between businesses
inherited occupational roles
private ownership of property
16
Which of these would most likely result if Congress increased the minimum wage?
Some companies would raise the price of products.
States would receive less tax revenue.
Interest rates would be lowered to encourage spending.
Some cities would raise property taxes on homes.
17
Which of these is a function of the Federal Reserve?
to regulate the money supply
to establish export laws
to set the level of income tax
to pass spending legislation
18
How would Congress most likely respond if the GDP was low and unemployment rate was high?
lower government spending
buy government securities
change the reserve requirement
lower taxes
19
Why does the gov use the Consumer Price Index, a report on price changes for over 90,000 items?
to analyze worker productivity
to help measure inflations
to determine the unemployment rate
to measure the national average income
20
Which of these is represented by Gross Domestic Product?
The amount of reserve that banks are required to hold
The change in the average price of goods and services
The rate of interest charged on reserves lent to banks
The total value of goods/services produced within a nation
21
Which of these is characteristic of a command economy?
Buyers and sellers control the means of production
Business owners decide how much ot produce
Consumers set prices though demand
A state planning commision determines what to produce
22
Which of these is characteristic of an economic downturn?
increased employment levels
decreased government regulaton
decreased production of goods and services
increased consumer spending
23
Which econ question: gov tells factory managers to increase use of computers in manufacturing
when to produce
how to produce
what to produce
for whom to produce
24
Which of these is most often a feature of countries with traditional economies?
The government ensures that wealth is evenly distributed
The governmen values occupational roles over economic growth
The economy is controlled by a strong central authority
The economy is dependent on technological advances
25
Based on the chart, which best characterizes the condition of the US economy from 1975 to 1978
increased economic growth
Rapidly rising unemployment rate
a constant inflation rate
steady interest rates
26
Which of these actions would Adam Smith (pioneer of the market economy) most likely support?
entering into free trade agreements
raising taxes on imported goods
passing strict regulations on businesses
increasing wages to paid workers

Government Influences on the Economy Flashcards | StudBud