In a free market economy....

most goods and services are offered by private companies.

what are antitrust laws?

laws that prohibit monopolies and other activity that reduces competition

When one company controls an entire industry

The biggest category of federal expenditures is spending for

aid to the elderly and the poor (Social Security, Medicaid, Medicare)

provide the largest source of federal revenue

The Sixteenth Amendment, ratified in 1913,

explicitly permitted Congress to levy an income tax

In a command economy....

the government owns and offers all the goods and services.

In a mixed economy....

both government and private businesses are involved in goods and services.

The federal debt in the United States

increased due to the difference between revenues and expenditures

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Unit 7: Is capitalism healthy for democracy?

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Questions 36

Answers

1
When supply is greater than demand what happens to prices?
prices go up
prices go down
prices stay the same
2
In a free market economy....
most goods and services are offered by private companies.
There is no government regulation
the government owns and offers all the goods and services.
both government and private businesses are involved in goods and services.
3
A budget deficit occurs when expenditures exceed
inflation
Authorizations
revenues
borrowing
4
What is the government agency created to stop companies from competing unfairly.
Federal Trade Commission
Office of Management and Budget
Federal Reserve
Federal Bureau of Financial Investigations
5
What word best describes this scenario? Tyler mows lawns and does yard work for 10$ and hour.
Consumer
Producer
Opportunity Cost
Provider
6
what are antitrust laws?
laws that prohibit all mergers and acquisitions
laws designed to build trust between the Fed Reserve and the ppl they serve
laws that prohibit monopolies and other activity that reduces competition
laws that give underdog companies a chance to compete
7
What is a tariff?
a tax on exports
an income tax
a sales tax
a tax on imports
8
What are securities?
a relatively safe form of investment
all of the above
popular around the world
something that the gov sells to raise money, gov pays it back with interest
9
What word best describes this scenario? Maria goes to the store and buys a new backpack?
Consumer
Provider
Opportunity Cost
Producer
10
What is a monopoly?
When a business buys all the the properties for sale in a particular area
When supply and demand don't match up and prices are varied
When one company controls an entire industry
When there is stiff competition within a particular industry.
11
Liam spends $10 on lemonade mix and ice. He sets up a lemonade stand and sells $20 worth of lemonade.
Profit
Producer
Scarcity
Consumer
12
When the government spends more money that it brings in.
surplus
allocate
defecit
revenue
13
The biggest category of federal expenditures is spending for
aid to the elderly and the poor (Social Security, Medicaid, Medicare)
foreign aid
salaries and benefits for public employees
national defense
14
Where does the government get its money from?
Tax dollars
Borrowing
Both
15
The ultimate power to determine how much the government will tax and spend, and what it will spend taxes for, lies with
Congress
the Treasury Department
the courts
the president
16
The largest contributions to federal revenue comes from
taxes on businesses
Interest on foreign debt
Entry fees at national parks
Individual income taxes
17
The income of a government from taxation and other sources.
deficit
earmarked
revenue
surplus
18
Income Taxes
were first used in 1915 after the 16th amendment was passed
all of these are true
were declared unconstitutional in Pollock v. Farmer's Loan and Trust Co
provide the largest source of federal revenue
19
The Sixteenth Amendment, ratified in 1913,
set up the Social Security system
explicitly permitted Congress to levy an income tax
forbade Congress from levying an income tax, but was later repealed
limited the total income tax Congress could levy on an individual
20
car company made thousands of cars this year but people haven't been buying as many cars. The car dealer lots are full.
Supply and Demand
Scarcity
Competition
Opportunity Cost
21
Ty could make $24 babysitting or she could attend her grandmother's birthday party. She decides to attend the party.
Supply and Demand
Missed Chance
Opportunity Cost
Scarcity
22
Who gets a say in the Federal Budget?
Congress
President
Both
23
In a command economy....
most goods and services are offered by private companies.
the government owns and offers all the goods and services.
There is no government regulation
both government and private businesses are involved in goods and services.
24
What type of economy does the government control all means of production and there is no private property?
Traditional Economy
Free Market Economy
Command Economy
Mixed Economy
25
The government borrows money principally by
printing more currency
obtaining loans from foreign governments
selling bonds/securities
maintaining numerous departmental credit card accounts
26
Congress authority to levy an income tax comes from which of the following?
Bill of Rights
Budget Act (1974)
Interstate commerce clause
Sixteenth Amendment
27
It's holiday time and the best toy of the year sells out. People are paying ten times what its worth online.
Supply and Demand
Scarcity
Profit
Competition
28
The United States has what type of economy?
mixed economy
traditional economy
free market economy
command economy
29
In a mixed economy....
the government owns and offers all the goods and services.
there is no government regulation
both government and private businesses are involved in goods and services.
most goods and services are offered by private companies.
30
When the government brings in more than it spends.
earmarked
revenue
deficit
surplus
31
When demand is greater than supply what happens to prices?
prices go down
prices go up
prices stay the same
32
The federal debt in the United States
is the difference between federal gov revenues and expenditures in a year
was eliminated due to George W. Bush's efforts to balance the budget
increased due to the difference between revenues and expenditures
consists of the interest that government must pay on the budget deficit
33
Communist countries like the former Soviet Union (present day Russia) have what type of economy?
Mixed Economy
Command Economy
Free Market Economy
Traditional Economy
34
The federal government borrows money from citizens through
entitlement programs
social security
bonds
income taxes
35
Gas station A sells gas for &3.75/gallon. Across the street gas station B sells gas for $3.70/gallon.
Supply and Demand
opportunity cost
Scarcity
Competition
36
the U.S. gov maps out how much $$ it expects to bring in and how much money it plans to spend. This overall plan is call
Government Spending Plan
Federal Budget
Omnibus Spending Bill
Federal Expenditures

Unit 7: Is capitalism healthy for democracy? Flashcards | StudBud