A Pure Market Economy:

has very little or no government control

What are the four main factors of economic growth?

land, human and physical capital, entrepreneurship

Where is power held in an autocracy?

with one person; little citizen participation

Gross Domestic Product (GDP) is:

total value of goods/services produced in a country per year

An oligarchy is government by______.

a select few, usually a wealthy elite

literacy rate refers to:

the number of people in an area that can read and write

Physical capital includes:

buildings, factories, machinery, tools, and technology

What are the three basic economic questions?

What to produce? How to produce? For whom to produce?

Why is it important for a country to invest in human capital?

to educate and train its workers in order to increase GDP

What is a trade barrier?

Limits or prevents trade with another country

a refusal to buy goods from another country

a limit on the number of imports from a foreign country

What is an advantage of a command economy?

people's basic needs are met; food, employment, housing

Which of the following statements is true of a confederation?

It has strong regional governments and a weak central govt.

How does a mixed economy answer the three basic economic questions?

government and businesses decide

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Government and Economics Review

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Review for government and economics test

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Questions 28

Answers

1
A Pure Market Economy:
has moderate government control
leans toward more government control
has strict government control
has very little or no government control
2
Where is power held in a unitary government?
with the people
in the central authority
in the regional authorities
shared between the central and regional authorities
3
What are the four main factors of economic growth?
land, human and physical capital, entrepreneurship
literacy rate, GDP, land, natural resources
literacy rate, entrepreneurship, human and physical capital
human capital, natural resources, literacy rate, GDP
4
In which economic system are entrepreneurs most likely to exist?
traditional
market
command
5
Where is power held in an autocracy?
with one person; little citizen participation
a small group holds all the power; low citizen participation
with the people; high citizen participation
6
Gross Domestic Product (GDP) is:
total value of goods/services produced in a country per year
a product that weighs more than a ton
a product that is made overseas
a product that produces too much.
7
Human capital includes:
money invested in stocks
money
technology, factories, tools
training and educating workers
8
An oligarchy is government by______.
a select few, usually a wealthy elite
the military
a single ruler
the people
9
When might an embargo be successful?
to force a foreign country to change its economic policies
to force a foreign country to change its political policies
all of the above are true
to force a foreign country to treat its citizens fairly
10
literacy rate refers to:
the number of people in an area that can read and write
the rate of unemployed in a country
the number of people in an area that cannot read and write
the rate of people that are learning to read
11
How does a traditional economy answer the three basic economic questions?
the government decides
by individual choice
producers and consumers decide
by traditions or customs
12
Physical capital includes:
money
people, ideas, and training
buildings, factories, machinery, tools, and technology
education, training, and skills
13
What are the three basic economic questions?
What to produce? What to buy? For whom to produce?
What to make? What to buy? How much to spend?
What to make? Where to work? How much to spend?
What to produce? How to produce? For whom to produce?
14
A country that has aspects of a market economy plus a command economy is called a________.
market economy
command economy
mixed economy
traditional economy
15
Why is it important for a country to invest in human capital?
to provide insurance for its workers
to pay its workers to increase GDP
to provide health care for its workers
to educate and train its workers in order to increase GDP
16
What is a trade barrier?
An international border that traded goods must pass through
promotes trade with other countries
Limits or prevents trade with another country
helps trade by promoting foreign currency
17
In a presidential democracy, the people elect________.
the legislature and the legislature elects the leader
the legislature AND the leader
the leader only
the legislature only
18
Coal, oil, and natural gas are examples of which factor of economic growth?
literacy rate
physical capital
GDP
natural resources
19
What is an embargo?
a refusal to buy goods from another country
a limit on the number of imports
a tax on imports
a barge that takes imports out to sea
20
What is a quota?
a refusal to buy imports from a foreign country
a limit on the number of imports from a foreign country
a tax on imports
sending imports to another country
21
Entrepreneurship refers to:
all of the above
improving an already existing product
inventing something new
taking a risk to start a business
22
What is an advantage of a command economy?
there are many political parties to choose from
the people have the freedom to run their own business
the people can elect their leaders
people's basic needs are met; food, employment, housing
23
Which of the following statements is true of a confederation?
It has strong regional governments and a weak central govt.
It has a strong central government and weak regional govt.'s
Power is shared between the central and regional governments
24
How does a mixed economy answer the three basic economic questions?
business decide
the people decide
government and businesses decide
the government decides
25
Which form of government can be described as 'rule of all?'
oligarchy
democracy
autocracy
26
What does it mean for a business to 'specialize' in a good or service?
all of the above
to use division of labor to produce the product
to produce it or offer it cheaper than others
to produce it or offer it at a higher quality than others
27
Standard of living refers to:
quality of life
the ability to live a long time
the basic life expectancy in a country
the number of people living in a country
28
Power is distributed equally between the regional authorities and the central government.
federal
unitary
confederation

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