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American Government Basics of Economics Flashcards | StudBud
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American Government Basics of Economics
American Government Basics of Economics
30 terms
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#economics
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
What is the farthest right part of the "economic spectrum"?
Mixed Economies
Socialism
Capitalism
Communism
2
Who was the theorist behind "laissez-faire"?
Mr. Laissez
Adam Smith
Karl Marx
Friedrich Engels
3
Who came up with the idea of socialism, as well as the ideas for communism?
Friedrich Hayek
Milton Friedman
Adam Smith
Karl Marx
4
When the prices of stock shares are rising, which encourages buying, what is it called?
a free market
a bear market
a central market
a bull market
5
What drives capitalist economies?
Inequality between social classes
The conflict between the bourgeoisie and proletariat
Profit, as well as supply and demand
Whatever direction that government sets for their economy
6
What was the name of Adam Smith's book on laissez-faire?
The Invisible Hand
The Laws of Supply and Demand
A Wealth of Nations
The Communist Manifesto
7
Which of the following is FALSE about resources?
Resources are scarce
Resources are spread evenly among countries
Businesses and even countries compete for resources
The "factors of production" are considered resources
8
A situation in which no individual would be better off doing something different is called ___:
absolute advantage
efficiency
comparative advantage
equilibrium
9
Which of the following is NOT a difference between communism and socialism?
Socialist govts only have control of a few select industries
Communism is usually seen as more extreme
They are on opposite sides of the "economic spectrum"
Socialists want to reform capitalism, communists do not
10
Which of the following is NOT TRUE about Keynesian economics?
It helps get rid of government debt
can provide immediate relief and recovery during recessions
allows greater government control over an economy
it makes a direct impact on the economy
11
What usually happens when there is competition?
the economy suffers
prices go down
prices go up
prices tend to stay the same
12
What is the intersection of the supply and demand curves called?
Economic Intersection Point
The middle point
Equilibrium
Price-Quantity Matrix
13
Who put together most of what today is called "supply-side economics"?
Adam Smith
Friedrich Hayek
Robert Mundell
Friedrich Engels
14
What is the single MOST defining characteristic of socialism?
Adhering to the principles of supply and demand
The government nationalizing businesses
The desire to protect workers from big business
Equal distribution of wealth through society.
15
Which of the following is NOT a "con" to socialism?
Deprives workers of the "freedom to decide"
Causes inequality in society
Too complicated, too much government control
Leads to "laziness"
16
A business offering a sale would be an example of:
an incentive
efficiency
a resource
equilibrium
17
Keynesian economics is most effective when?
in times of prosperity
after a huge economic boom
when there is a recession
when the economy is stagnant
18
Which of the following is NOT a "factor of production"?
Land
Labor
Industrialization
Capital
19
Minimum Wage is an example of....
A Price Floor
Communism
A Price Ceiling
Equilibrium
20
People who are pessimistic about the economy are often called:
bear-lovers
bears
realists
bulls
21
Efficiency is when...
People can't do anything different to make things better
Supply and demand curves intersect
some people can b made better off without anyone being worse
Someone can make something with lower opp. cost than another
22
What is a mixed economy?
An economy that believes complete government control is best
An economy that is mostly communistic
An economy that embraces complete laissez-faire
An economy that combines laissez-faire and socialism
23
What does opportunity cost mean?
what society gives up when choosing communism
its what (- expenses + revenues) equals
it only refers to the money lost when buying something
the loss of potential gain from making a certain decision
24
What is another word for capitalism?
a market economy
bourgeoisie
a centrally planned economy
a mixed economy
25
Who were Milton Friedman and Friedrich Hayek?
critics of corporations and businesses
critics of Keynesian economics
critics of supply-side economics
critics of capitalism
26
Which of the following terms is NOT often associated with capitalism?
free market system
laissez-faire
market economy
socialism
27
Which American Presidents used Keynesian economics?
FDR and Reagan
Bush Jr. and Obama
Reagan and Bush Jr.
FDR and Obama
28
What is the best definition for a country that pays for many services for its citizens?
Trickle-down economies
Military-industrial complexes
Centrally-Planned Economies
Welfare state
29
What does it mean to "nationalize" industries?
Make businesses in that country more patriotic.
Make all businesses use "standardized parts"?
Set gov't standards that private businesses have to follow
Using the government to take over and run businesses
30
Which of the following is NOT another name for supply-side economics?
Third-Era Economics, by modern scholars
"Trickle-down economics" by its critics
all of the above are names used for supply-side economics
Reaganomics, due to its usage by Ronald Reagan
