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Economic Systems
Economic Systems
25 terms
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StudBud Administration
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The basics of economics and systems
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
In a free enterprise system, who decides what will be produced?
producers
government
firms
consumer
2
Social Security withheld from your paycheck is for
health insurance for the elderly and poor
cash transfers for the elderly and poor
cash transfers for those hurt on the job
401K retirement account
3
What is the government’s role in controlling externalities in the American economy?
encourage positive and limit negative externalities
encourage all externalities to increase competition
limit all externalities to stop market failures.
limit positive and encourage negative externalities.
4
Competition is a driving force in a free enterprise economy.
False
True
5
Roads and bridges are examples of how government provides
grants
public goods
in kind benefits
market failure
6
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.
7
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
8
What is one of the most important principles of economics?
money
globalization
distribution
scarcity
9
In a command economy, the government regulates how goods and services are distributed.
False
True
10
A person who believes that wealth should be evenly distributed throughout society is
a capitalist.
an entrepreneur.
a communist.
a socialist.
11
Which are the government’s three goals for promoting economic strength?
high employment, steady growth, and stability
high employment, increased spending, and low taxes
low unemployment, low prices, and low taxes
steady growth, high prices, and innovation
12
How is the economic system in China today different from the one in Soviet Russia?
The Chinese government is socialist, rather than communist.
The Chinese government owns firms in major industries.
The Chinese government is not authoritarian.
The Chinese government allows far more economic freedom.
13
Traditional economies usually
adapt to innovation
avoid change
14
Which of the following is considered a "cash transfer"
unemployment compensation
grants
section 8
food stamps
15
What does the process of specialization do for an economy?
It fosters competition.
It makes labor easier to control.
It eliminates unemployment.
It makes production more efficient.
16
Why does the government protect inventors and authors by offering them patents and copyrights?
to strengthen American culture
to promote innovation
to encourage free trade
to regulate the business cycle
17
a system to protect people experiencing unfavorable economic conditions
soul glo
market exchange
safety nets
factor payments
18
How will consumers react to the incentive of a higher price on a good or service?
positive, buy more products
remain stable
negative, buy more products
negative, buy less products
19
What is the profit motive?
money that a business makes
incentive to make money
exchange of goods
opportunity for success
20
What is one way the government might try to promote economic growth?
raise taxes
increase spending
reduce prices
produce more goods
21
the level of economic prosperity
traditional economy
specialization
poverty threshold
standard of living
22
The ________ system is another name for a market economy.
Socialist
Centrally Planned
Command
Free Enterprise
23
Which is a positive externality of a new high school?
more noise in the neighborhood
student purchases at nearby stores
more traffic on the roads
a raise in property taxes
24
To improve its standard of living, a nation’s economy must
reach economic equity
grow throw innovation
remain stable
allow the government to make decisions
25
Health insurance for the elderly, the poor, and the disabled is provided by
Medicare and Medicaid.
Worker’s Compensation.
the unemployment insurance program.
TANF
