How do socialism and communism differ when it comes to government systems?

Socialism can be democratic & Communism is authoritarian

What is one way in which the economy of Singapore varies from the economy of Iran?

Singapore’s government is less involved in nation's economy

The smell of cooking from a restaurant permeates Joe's apartment. Economists call this

a negative externality or external cost

What does this diagram imply about the value of technological innovations?

Innovations in technology increase economic growth.

An ECONOMIST says you have no say about the plastic, pink flamingos on your neighbor's lawn

you do not have the property rights to your neighbor's yard

Why do U.S. economic policies seek to achieve the goal of maximum employment?

A more productive economy means a higher standard of living

What is the main role of MONEY in a MARKET economy?

It facilitates exchange by reducing transaction costs

What customary role does the United States government play related to refineries like this one?

It regulates refineries' release of pollutants in atmosphere

The economy of the United States can best be described as a

mixed economy called "free enterprise"

Which role of government in the U.S. free enterprise system does this illustrate?To ensure that

producers give consumers basic information about goods

Which of the following BEST summarizes the economic trend in China?

China's move toward market economy helped its economy thrive

In mixed Free Enterprise economy of U.S., Government plays a role including all of these EXCEPT

providing for equal distribution of income to all citizens

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Topic 2 Free Enterprise & other Economic Systems

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Topic 2 in Pearson ECONOMICS

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Questions 20

Answers

1
The main incentive of an entrepreneur is to
Ensure that the nation is growing at an appropriate rate
Ensure customers get what they want
All of these
Earn a profit
2
How do socialism and communism differ when it comes to government systems?
Socialism allows private property & Communism outlaws it
Socialism can be democratic & Communism is authoritarian
Socialism is authoritarian & Communism can be democratic
Socialism has central planning & Communism relies on market
3
What is one way in which the economy of Singapore varies from the economy of Iran?
Iran’s economy relies more on free market principles
Singapore’s economy relies more on central planning
Singapore’s government is less involved in nation's economy
Iran’s government is less involved in the nation's economy
4
The smell of cooking from a restaurant permeates Joe's apartment. Economists call this
a public good
a free rider problem
a negative externality or external cost
a bad smell
5
Which mean household income level saw the greatest change during 1976-2011?
Second 20%
Fourth 20%
Lowest 20%
Highest 20%
6
What 2 qualities work together to motivate & regulate the marketplace in a MARKET economy?
opportunity & efficiency
innovation & specialization
self-interest & competition
efficiency & utilization
7
What does this diagram imply about the value of technological innovations?
Innovations in agriculture eliminate the need for hand tools
Innovations in land use increase the need for equipment
Innovations in education decrease unemployment.
Innovations in technology increase economic growth.
8
An ECONOMIST says you have no say about the plastic, pink flamingos on your neighbor's lawn
because there is an ordinance allowing yard art
you do not have the property rights to your neighbor's yard
because the flamingos are not hurting anyone
because your neighbor doesn't care about what you think
9
In a MARKET economy, which would replace "Top Planners" in deciding what is produced?
Owners of Firms
Consumers
Government Regulators
Employees
10
One way the government of the U.S. helps increase economic productivity is by
encouraging innovation
favoring quantity over quality
increasing taxes
imposing regulations
11
Why do U.S. economic policies seek to achieve the goal of maximum employment?
High employment signals producers to lower prices
A more productive economy means a higher standard of living
The Constitution guarantees jobs to workers willing to work
High employment means the financial markets are stable
12
Who benefits from a free market economy?
Only the Wealthy Entrepreneurs
The Government
Consumers & Producers
People Living in Poverty
13
What is the main role of MONEY in a MARKET economy?
It facilitates uncertainty which benefits sellers
It facilitates wealth expansion
It facilitates exchange by reducing transaction costs
It facilitates uncertainty which benefits buyers
14
What customary role does the United States government play related to refineries like this one?
It tells refineries how much they are allowed to produce
It regulates refineries' release of pollutants in atmosphere
It tells refinery owners what they are allowed to produce
It takes control of refineries that do not make a profit.
15
U.S. government policymakers promote economic strength by pursing 3 goals.... EXCEPT
income equality
high employment
economic growth
stable prices and financial institutions
16
Which of these is NOT a necessary condition for an "efficient" market?
Fair prices
Competition
Incentives
Rule of Law
17
The economy of the United States can best be described as a
traditional economy
mixed economy called "free enterprise"
market economy
command economy
18
Which role of government in the U.S. free enterprise system does this illustrate?To ensure that
consumers pay only costs that the government has agreed to
producers provide competitors with basic info about goods
producers give consumers basic information about goods
consumers are taxed on all transactions in the marketplace
19
Which of the following BEST summarizes the economic trend in China?
China's move toward market economy helped its economy thrive
China's shift toward a command economy had negative results
China's shift toward a market economy had negative results
China's move toward command economy helped its economy
20
In mixed Free Enterprise economy of U.S., Government plays a role including all of these EXCEPT
providing for equal distribution of income to all citizens
protecting private property rights and contracts
promoting economic growth and stability
protecting public health safety and well-being

Topic 2 Free Enterprise & other Economic Systems Flashcards | StudBud