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American Free Enterprise Flashcards | StudBud
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American Free Enterprise
American Free Enterprise
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1
Why are public goods examples of market failure?
They show that competition in the free market is dangerous.
They show that the private sector is more efficient.
They show that the free enterprise system does not work.
They show that the private sector is more efficient.
2
Which statement best describes the role of government in a free enterprise system?
It regulates business when the public interest is involved.
It controls all decisions about business activities
It forms companies and then allows managers to run them
It follows a strict policy of laissez-faire
3
Something is generally considered to be a public good if
the private sector couldprovide the service more efficiently
the benefits to society are greater than the total costs
the benefits of the good are greater for government
taxpayers demand that the government provide the service
4
Which agency is responsible to save lives, prevent injuries, and protect the health of workers?
Occupational Safety and Health Administration (OSHA)
Environmental Protection Agency (EPA)
Equal Employment Opportunity Commission (EEOC)
Food and Drug Administration (FDA)
5
You get a public broadcasting channel with out contributing to it. This is an example of
a market failure
an in-kind benefit
a free-rider problem
a negative externality
6
What is one way the government encourages people to give to charity?
by lowering taxes for people who donate
through cash grants
by subsidizing donations
. by redistributing taxes
7
right of a government to take private property for public use
voluntary exchange
patent
grant
eminent domain
8
What does this graph show?
average percentage of lending rates that most banks offered.
the percentage of jobs lost or gained during that period.
percent change in cash the federal government has available.
change in total value of American goods and services yearly.
9
Which programs provide health insurance for older people, poor people, and disabled people?
headstart
welfare and SCHIP
unemployment insurance
Medicare and Medicaid
10
A new runway has opened up at the airport, the noise of the airplanes is
market failure
free-rider problem
negative externality
positive externality
11
What does “No Free Lunch” mean
money is the root of all evil
money is no object
everything costs money
money grows on trees
12
Each payday, some of your pay is withheld for Social Security.What happens to this money?
It is put into an account under your name until you retire
It is used to provide medical benefits to Americans over 65
It is redistributed to workers who are injured on the job
It is redistributed as cash transfer to retired and disabled
13
Collecting taxes to pay for public goods is one role of _____________.
a free market system
the private sector
an interest group
a government
14
Which of the following is the best example of a public good?
highway system
movie theater
country club
shopping mall
15
direct payments of money by the government to poor, disabled, or retired people
patent
welfare
grant
cash transfers
16
Why has the government passed laws requiring businesses to disclose product information?
to make it easier for consumers to own property
to make it easy for businesses to have good information
to make it hard for businesses to make an excess profit
to make buyers more knowledgeable and safer
17
government aid to the poor
welfare
voluntary exchange
in-kind benefits
legal equality
18
A person, company, or country that makes, grows, or supplies goods or commodities for sale.
Producer
Consumer
Egotist
Slacker
19
When did the nation’s welfare system begin?
during World War I
during the War on Poverty
during the Great Depression
during the Civil War
20
income level below what is needed to support a family
in-kind benefits
welfare
cash transfers
poverty threshold
21
Why has America been referred to as the “land of opportunity”?
It provides anyone the possibility of success by hard work.
It provides money for all citizens.
It provides jobs for all citizens.
It provides farmers farmland without levying taxes on land.
22
financial award given by a government agency to a private group in order to carry out a task
patent
grant
cash transfers
in-kind benefits
23
government license that gives the inventor of a new product the exclusive rights
free contract
cash transfers
welfare
patent
24
A market failure occurs when a free market is unable to
distribute resource sefficiently
provide open opportunity
meet government regulations
encourage innovation
25
Which of the following actions might a free market government take to encourage new technology?
prohibit companies from using new technology
require business leaders to increase their use of technology
discourage use of technology by taxing new inventions
invest in more technological training for the public
26
Which is a positive externality of a new high school?
more traffic on the roads
more noise in the neighborhood
student purchases at nearby stores
a raise in property taxes
27
the principle that everyone has the same legal rights
gross domestic product
private property rights
voluntary exchange
legal equality
28
principle that people may decide what agreements they want to enter into
eminent domain
free contract
private property rights
cash transfers
29
goods and services provided for free or at greatly reduced prices
in-kind benefits
cash transfers
voluntary exchange
free contract
30
principle that people have the right to control their possessions and use them as they wish
cash transfers
legal equality
work ethic
private property rights
