The main economic and social goals listed in the chapter were determined by:

friends, relatives, community leaders, elected officials

The main drawback of the traditional economy is that it:

tends to discourage new ideas and ways of doing things

Gross Domestic Product (GDP) is:

total value of all final goods/services produced in a year

Some of the characteristics of capitalism are:

markets, private property, competition, and profits

In laissez-faire economics, the government's role is:

strictly limited to few actions to ensure free competition

Which of the following are components that make up capital:

tools, machinery, land, buildings

Which of the following are reasons why GDP is important to you:

good economic indicator of the country you live in

The factors of production are:

natural resources, labor, capital, and entrepreneurs

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Civics/Econ Ch19 The American Economy

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The American Economy

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Questions 20

Answers

1
_______ can improve productivity
specialization
trading with the foreign sector
government revenue
cost-benefit analysis
2
The main economic and social goals listed in the chapter were determined by:
friends, relatives, community leaders, elected officials
the government
a panel of business experts
economists
3
A ________ economy has five important characteristics:
traditional
free enterprise
command
closed
4
Human effort can be separated into two different categories:
physical and labor
mental and labor
mental and administrative
mental and physical
5
Capital goods are:
used to satisfy consumer wants directly
money, in all its forms
mineral deposits and fossil fuels
used to make other products
6
A characteristic of capitalism is __, the act of buyers & sellers taking part in transactions:
government regulation
tariffs
private property rights
voluntary exchange
7
The main drawback of the traditional economy is that it:
tends to discourage new ideas and ways of doing things
requires a large government bureaucracy
fails to answer the what, how, and for whom questions
has a great deal of uncertainty
8
Gross Domestic Product (GDP) is:
total value of all final goods/services produced in a year
total value of all labor produced in a year
total value of all capital goods produced in a year
total value of all goods and services produced in a year
9
When government seeks to protect people from adverse economic events, it is trying to achieve:
full employment
economic equity
economic growth
economic security
10
The author of The Wealth of Nations was:
Thomas Jefferson
Thomas Mann Randolph
Adam Smith
Alexander Hamilton
11
One advantage of a _____ economy is that it gradually adjusts to change over time.
market
command
socialist
traditional
12
In a ______ economy, a central authority makes most of the WHAT, HOW, and FOR WHOM decisions:
free market
command
market
traditional
13
Some of the characteristics of capitalism are:
competition, profit, and government ownership of resources
competition, profit,and production based on custom/tradition
markets, government set prices, and private property
markets, private property, competition, and profits
14
The money income that a person has left after taxes is called:
savings income
ethical income
disposable income
discretionary income
15
In laissez-faire economics, the government's role is:
to tell producers what and how much to produce
strictly limited to few actions to ensure free competition
completely refrain from any involvement in the marketplace
to set prices for all goods and services produced
16
Which of the following are components that make up capital:
labor, machinery, land, finished products
tools, machinery, land, buildings
labor, machinery, buildings, entrepreneurship
tools, machinery, finished products, land
17
Which of the following are reasons why GDP is important to you:
good economic indicator of the county you live in
good economic indicator of the state you live in
good economic indicator of a local city
good economic indicator of the country you live in
18
Consumers earn their income in:
the business sector
factor markets
the product market
the consumer sector
19
The factors of production are:
natural resources, capital, goods, and services
natural resources, money, labor, and entrepreneurs
natural resources, labor, capital, and entrepreneurs
natural resources, labor, capital, and money
20
A group providing information/warn about local businesses that could be dishonest:
Better Business Bureau
Consumer's Voice
Commission on Consumer Safety
Consumer Rights Council

Civics/Econ Ch19 The American Economy Flashcards | StudBud