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